In most areas of the United States, public school systems from elementary to high school and beyond are enjoying their always anticipated summer break. Mainly families are enjoying much needed vacations, celebrating summer birthdays and holidays or just spending some time in the sun.
But while the days are ticking away until students return to class, it might be a good time to start thinking about sources of financial aid for either yourself or your future college students if you haven't already done so.
Most states and federal aid programs have a deadline in which you must apply to receive certain types of financial aid. Check with your school to make sure you don't miss out on those opportunities for assistance.
The best place to start is by filling out a Free Application for Federal Student Aid (FAFSA). You can fill out and submit your free application online at www.fafsa.ed.gov. For some students, you may need your parent's assistance with some of the information needed on your FAFSA, unless you were/are what is considered an independent student.
Four to six weeks after you submit your financial aid application, you should be notified that it has been processed. At that time you will have access to your Student Aid Report. (SAR) This is a document containing all the information that you submitted. It should tell you whether or not you are eligible for aid based on that information you supplied on your application.
It will also give your expected family contribution (EFC). Your EFC is calculated with a standard formula that the government uses to determine how much your family can be expected to contribute towards the financial expense of attending college.
Once you have received your SAR, check with the college you listed on your application to see if they have received your information. There may be additional information that you need to submit to the college before you can receive any form of aid.
Types of Financial Aid
Your college will be able to tell you a lot about what types of aid are available to you based on your need. There are several types out there. The following is a brief description of a few grants, loans and other types of financial aid.
Grants:
Federal Pell Grants are awards that do not have to be repaid. They are usually granted to undergraduate students who have not yet obtained a bachelor's degree or any other type of professional degree. The amount that you can receive depends on the maximum that is allowed for that school year. Currently, for the 2007-2008 year, the maximum amount you can receive from a Federal Pell Grant is $4,310. That is the total amount you can receive for the entire year.
Federal Supplemental Educational Opportunity Grant (FSEOG) also does not have to be repaid. Just like the Federal Pell Grants, these are awarded to undergraduate students who have not obtained their bachelor's or other professional degree, as well as those who demonstrate an extreme need for such assistance. The maximum amount that can be received per year with the Federal Supplemental Educational Opportunity Grant is from $100 to $4,000.
There are also many state grant programs. Check with your college for a list of grants that you may be eligible for. As with federal programs, state grants will also have deadlines. Make sure you are aware of those to ensure that you will be able to get the maximum assistance that is available to you.
Student Loans:
Along with grants, you also have student loans. The difference between these and the previously mentioned grants is that you do have to repay these loans. When you repay them is your choice. You can make payments on your loans while you're attending college on a monthly basis. You can also contact the company that is servicing your loans and ask them to place you on an in-school deferment program that allows you to delay your payments until the time that you either leave school or graduate.
One of the student loans that you may apply for is called a Federal Stafford Loan. (FSL) There are two options you have with this type of loan, subsidized and unsubsidized. In a subsidized Federal Stafford Loan, all the interest that accrues during the time you are in school is paid by the government as long as your enrollment status remains at least half time. The other option is an unsubsidized loan. In an unsubsidized loan, you can defer your interest payments until either leave school or graduate, but you are still responsible for paying the interest as well as the principle of the loan.
If you are still considered a dependent of your parents, they can apply for what is known as a Federal Plus Loan. The difference between a Federal Plus Loan and a Federal Stafford Loan is that it is not necessary to demonstrate financial need to be approved for these loans. There is also no set limit on the amount that can be received on this type of loan. A parent can apply for the full amount of the cost of attending college, or the remaining amount after other aid is applied. This type of loan is also available to graduate students whereas other forms of aid are not.
Other Forms of Financial Aid
Aside from the other programs already mentioned, there are still other ways you can obtain assistance with paying for college. There are programs such as the Federal Work Study program in which you can work in a government office, on campus or in other areas determined by the government to help off set your educational expenses. Some campuses will have the same type of program available on a university level. Both will earn the student an hourly wage that usually paid on a monthly basis. There are also many online sources of information about scholarships, grants and internships such as www.fastweb.com.
As with everything in life, explore your options. Grants are excellent sources of financial aid, but not everyone is eligible to receive the full or even a partial amount. That's where loans can help by supplementing the grants. One should be careful in choosing the amount and number of loans. Do not apply for or accept an amount beyond what is needed unless you are for certain that you will be able to repay it. Once you accept it, it stays with you until you complete the repayment process. You also need to keep track of your loans, the amounts and any payments that you make towards them. If you let them slip into default, you are hurting any future chances of receiving any further aid for school. It can also affect your credit and future purchases. Choosing your financial aid is an important process, not only for your college success, but for your future as wel
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