So you want to go to college but you do not have the money to do so. Well, if you do not have the funds to pay for school, there is an abundance of money available to help you with your college-related expenses. Fortunately, there are a number of sources that provide financial assistance to students to help them pay for their college education. Read this article to learn more about the different types of financial aid.
Significance
Millions of students rely on financial aid to pay for their college education. Fortunately, there are a variety of state, federal, institutional and private sources that provide financial assistance to students every year. Students may use financial aid to pay for necessary college expenses, such as tuition, fees, books and housing. Without financial aid, many students would not have the funds to attend school and earn a college education.
Types
There are variety of financial aid programs available to assist students with their college expenses. The different types of financial aid programs include grants, loans, work-study and scholarships. Not all students qualify for every type of financial program, but many students are eligible to receive some type of aid.
There are different types of grants such as the Federal Pell Grant, The Academic Competitiveness Grant (ACG) and the Federal Supplemental Educational Grant (FSEOG).
Student loans are administered through the government and other sources, such as banks and credit unions. Student loans include Federal Perkins and Stafford loans, Parent PLUS loans and private loans.
The Federal Work-Study program (FWS), allows students to work part-time in a position either on or off-campus while they attend school. If a student chooses to work off-campus, the job must be with a public agency or a private nonprofit organization.
There are also different types of scholarships available for students, that are either need-based, academic or extracurricular scholarships.
Function
The amount of financial aid a student receives is based on his family's income. A student must demonstrate a financial need for assistance in order to receive funding for college. In order to qualify for financial aid, a student must first complete the Free Application for Federal Student Aid (FAFSA). The FAFSA determines whether or not that student needs financial assistance for school and how much she is eligible to receive. The FAFSA information is sent to the student's school and the financial aid office awards that student the appropriate amount of financial aid for each semester or quarter.
Benefits
Financial aid programs make it possible for students to earn their college degree in a reasonable amount of time. Many students receive enough financial aid to cover their entire cost of attendance, so they do not have to work while in school; or they only need to work part-time to take care of additional expenses they may have. So, this gives students more time to focus on school and even attend school full time.
Also, students do not have to repay grants, scholarships or work-study money. And if a student uses student loans to pay for college, he does not have to repay the loan until he graduates from school. In addition, lenders normally offer flexible repayment options for student borrowers, along with a grace period.
Considerations
In regard to students loans, you should only borrow the amount of money that you actually need for school. Many students accumulate a large amount of student loan debt because they do not borrow wisely. So, even if you qualify for a certain amount of student loans, you do not have to borrow the entire amount that is awarded to you. Please keep in mind that there are also fees and interest rates associated with most student loan programs.
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