financial aid / student loans. student loans a loan obtained to pay for education bills in which...
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Financial Aid / Student Loans
Student Loans a loan obtained to pay for education
bills in which the payments are delayed until after graduation
1. Federal Student Loans a) guaranteed by the federal government
(acts as cosigner)
b) have the best terms
c) largest source of student loans
d) degree = higher income = more tax dollars and less government assistance
2. Federal Stafford Loans a) most common federal student loan
b) no credit check required
c) limits on the annual and total amounts you can borrow
d) payments do not need to be made while in school
e) six month grace period after you are no longer enrolled before payments are required
f) two types
2. Federal Stafford Loans (cont)
I. Subsidized 1. applicants must show a certain level of
financial need to qualify2. Interest charges do NOT accrue while
in school
II. Unsubsidized 1. not need-based2. Interest charges DO accrue while in
school
3. Federal Perkins Loansa) similar to Stafford loans – for students
with “exceptional” financial need who will not likely get any financial support from parents to attend school
b) carry a lower interest rate
c) offer a longer grace period before repayment
4. PLUS Loans Parent Loan for Undergraduate Students
loans offered by banks and lending institutions to parents of students
parents must have good credit
5. Private Loans privately funded and not backed by the
government
higher interest rates and fees
Financial Aid Process Students receive financial aid in the following
forms:1. Grants – money given, usually because of
financial need2. Scholarships – money awarded for exceptional
academic achievement, an outstanding talent or skill, and/or financial need
3. Work-study – money earned by working at a part-time job
4. Loans – borrowed money that must be repaid
Most aid is based on financial need
Free Application for Federal Student Aid (FAFSA)
the federal form used to determine the amount a family should be able to pay for one year of college
must be submitted after January 1 to receive need-based aid provided by the federal gov
in some cases, it is used to determine eligibility for state and institutional aid
FAFSA (cont.) similar to filling out tax forms – info
required on income, assets, etc of both parents and students
can be completed online at www.fafsa.ed.gov
aid often awarded on a “first come, first serve” basis
FAFSA – After You Submit In several weeks, a Student Aid Report (SAR) will
be received with a Expected Family Contribution (EFC) – the amount the family is expected to contribute
The schools you want your aid information to go to are indicated on the FAFSA
If a student has financial need, the college will send an award letter explaining their “package”- any combination of grants, scholarships, work-study, and/or loans
Additional Financial Aid Financial aid applications can also be
submitted directly through most schools Contact the Financial Aid Office for
assistance
1. Grants Pell Grant
largest of the federal grants available awarded through FAFSA
Academic Competitiveness Grant must have successfully completed a “rigorous high
school program” and be eligible for a Pell Grant awarded through FAFSA
Supplemental Educational Opportunity Grant (SEOG) students with exceptional need are given this
federal grant directly through the school awarded through FAFSA
Grants (cont.) State Grants
state governments offer a variety of programs, some for students in a specific career field
FAFSA serves as the application for state grants in PA
Institutional Grants awarded through the school depending on the
student’s availability of funds and desirability to the school
awarded through the school’s financial aid applications
2. Scholarships
Academic Scholarships – most awarded by the individual school for academic excellence
Athletic Scholarships – offered through the school for participation in school athletics
Talent Scholarships – most offered through the school for talent in music, art, theater, and dance
Scholarships (cont.) Local Scholarships – local organizations
offer small scholarships to students in their community
Minority Scholarships – offered through the school to attract outstanding minority students
3. Work – Study Federal and school-sponsored work-study
programs are designed to help students in financial need earn money for school
Most work-study jobs are on campus (dining hall, library, student union, admissions jobs)
Awarded through FAFSA