Financial Aid
About Student Financial Aid
Financial aid is a term used to describe all sorts of different forms of monetary support given to students to help them afford a college education. Financial aid can include loans, scholarships, and grants, as well as federal and private student loans. With college costs constantly rising, there has been a groundswell in the number of students applying for and receiving financial aid to pay for college. Depending on the sort of financial aid a student qualifies for, his/her education costs could be completely or partially covered; if he/she is lucky, that student may qualify for certain grants or scholarships that will not need to be repaid. Financial aid is often essential for students to attend college, and the benefits of financial aid are many.
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Benefits of Student Financial Aid
Financial aid programs help students pay for their education, or parents who want to contribute funds to their children's college education. For so many students, financial aid is the gateway to college. Financial aid has given millions of students the opportunity to receive higher education and realize their educational goals. Subsidized federal loans, a common form of financial aid given to students who demonstrate a degree of financial need, save students thousands by not accruing interest while the student is in school; Pell Grants, another form of need-based financial aid, can cover thousands of dollars towards tuition that never need to be repaid.
What types of financial aid are available?
Financial aid comes in all shapes and sizes. It can be given out by the federal government, as well as state and local governments, businesses, individuals, and private organizations. Financial aid is an umbrella term that includes scholarships, grants, work-study programs, and both federal and private student loans.
What are merit and need based scholarships?
Merit based scholarships are awarded based on academic performance, and may cover all or a portion of a student's college and living expenses. Need based scholarships, on the other hand, are awarded on the basis of a student's financial need, and involves a complete evaluation of the family's income and expenditures.
What other financial aid options are available?
Work-study programs provide funds to students to help them pay for tuition and other expenses by providing students with part-time jobs while they are in school.
The last form of financial aid a student should explore is student loans. Federal student loans should be taken out before private student loans, and as their name suggests, are disbursed by the federal government. Federal student loans generally have lower interest rates than private student loans, thought they have lower borrowing limits and shorter repayment periods. Private student loans should only be considered after federal student loans are exhausted, and it is essential to compare your private student loan options before applying. A good final form of financial aid, you can search, compare, and apply for private student loans by using our Student Loan Comparison Tool above.
Frequently Asked Questions
Q:What are the different types of financial aid?
A:The various types of financial aid programs include federal financial aid, institutional financial aid, and private financial aid. Federal financial aid is most sought after source of funding for students since federal loans have the lowest interest rates and the most lenient terms and conditions. Institutional aid is mostly awarded to students with outstanding academic achievements or with extreme financial need. Private financial aid programs are stringent in terms and conditions and often have high interest rates. It is recommended that students utilize federal financial aid first, and if it does not fully cover the applicant's need, only than should students look to other types of financial aid.
Q:How do I qualify for student financial aid?
A:In order to qualify for student financial aid, your financial information must display a serious financial need. As one might expect, applicants with the highest need for finances are awarded the most financial aid. Others who demonstrate less need are awarded a smaller portion according to their need. Other than that, you need to make sure that you are a legal US citizen with a SSN, have not defaulted on any other loan, and have completed a minimum of high school education.