Paying For College: The Financial Aid Puzzle
The cost of a college education is rising every year. This year the average cost of a private four-year school was $26,273, up 4.4% from last year, and the average cost of a public school was $7,020, up 6.5% from last year. For most families, paying for college is a struggle. If you feel like you do not have all the pieces of the financial aid puzzle, you are not alone.
On January 1st the 2010-2011 FAFSA (Free Application for Federal Student Aid) was released. The FAFSA is probably the most important part of the financial aid puzzle. If you are planning on attending college in the fall of 2010 you should be in the process of submitting this form. The FAFSA determines how much federal financial aid you are eligible to apply for. There are three basic types of federal student aid:
- Grants: Grant money is financial aid that does not have to be repaid. Most grant money is based on financial need.
- Work-study: Work-study money is earned through a job or near campus. Work-study money does not have to be repaid.
- Loans: Loan money, including subsidized Stafford loans and unsubsidized Stafford loans, is awarded by the government and must be repaid with interest.
Federal financial aid can be a huge help when paying for college, but since most federal financial aid is awarded based on need, not everyone who files a FAFSA will be awarded sufficient aid to cover their education. So what happens when your federal Stafford loans and grants are not enough? Luckily, there are other pieces of the financial aid puzzle that can help you pay for college.
PLUS Loans are federal student loan options that are not based on financial need, but rather on credit. There are two types of PLUS loans; Parent PLUS loans and Graduate PLUS loans. If you are an undergraduate student, your parents can apply for a PLUS loan to help supplement the cost of your education. If you are a graduate student you can apply for a PLUS loan for yourself. With the federal PLUS loan you can borrow up to 100% of unmet financial need. PLUS loan money can also help you pay for educational costs not covered by your tuition including housing and supplies.
Some students choose to add private student loans to their financial aid puzzle. Private Student Loans are an alternative student loan option. Although you should always apply for federal financial aid before pursuing this option, private student loans have a few advantages. Private student loans are awarded based on credit rather than on need. You can use private student loans for any education related cost including textbooks, housing and transportation. If you are looking for a private student loan, the new private student loan comparison tool on PrivateStudentLoans.com can help you determine which lender and loan best meets your needs.
Because private student loans are based on credit, most students need a parent, family member, or close friend to cosign the loan. A cosigner is an individual who agrees to pay any debts if the primary account holder is unable to do so. This ensures to the lender that the loan will be paid back even if the student borrower does not have the funds to make payments.
The final, and quite possibly the best, piece of the puzzle is scholarships. Scholarships are favorable because unlike loans they do not have to be repaid. Hundreds of thousands of organizations around the country award scholarships to students based on their backgrounds, interests and accomplishments. StudentScholarshipSearch.com is a website that helps you find and apply for scholarships that you qualify for.
Every student’s financial aid puzzle is put together differently. Many students take advantage of all of these financial aid options while some students only need to use one or two. Some student might qualify for more financial aid while other students might be awarded more scholarship money. Whatever your financial situation is, remember that all of these options exist to help you complete your education.
Questions and Answers
Article Tags:
federal financial aid
,fafsa
,paying for college
,scholarships for college
,private student loans
Students who make the mistake of not taking the time to understand their student loan options make several mistakes that can cost them a lot of money upon graduation.
After you have researched your eligibility for various private grants and scholarships and have applied for them, you can also apply for government financial aid.
If you plan to attend college at some point in your life, you should have a plan to keep your student loan debt to a minimum.
Many students have some money that they've put away for college and also have access to funds that their parents have saved for their college education.
A free guide covering all types of federal student aid: loans, grants and work-study program. Read our article to know all information you need on student aid you are eligible for.
The competition among students with their marks is becoming tougher and tougher to get admission in the best colleges of Delhi. Delhi university cut off marks seems to be unrealistic as it has touched the pinnacle in last few years.
For the first time, SOL will offer the facility of online admission for undergraduate courses. Students can download and submit application forms on the SOL website - Sol.du.ac.in
In order to perform a search and get the exact college textbook that is required you need the following information; Title, Author, Volume# or Edition#, and the ISBN number. Armed with this information you are able to search online or in other bookstore for the exact item for a college book and not pay university prices. There are many different sites online that offer a college textbook at a better price. But don't discount the local public library. You may be able to find your college textbook
The prices of collect textbooks continue to rise. That's the bad news. And the good news is that there are ways to get cheap textbooks – you either rent or buy them from college bookstores online.
Textbooks are your major expenses of every semester, and they can be very, very expensive. But there's good news here: you can buy them at discounted prices from 40% - 85%. And what do you need to do?
For college students, summer vacation is well known as a time to see old friends, relax and recharge, and make money for the upcoming school year. Most students use this time to completely forget about the stresses of college life, but others use summer break as a time to do some of the college-related activities generally set aside during the academic year. Searching for scholarships is one of those activities.
There are many common misconceptions about online education. One of these misconceptions is that its only purpose is to supplement a brick-and-mortar education. However, online education, or distance learning, is becoming an increasingly popular way to complete an entire degree. More people are turning to distance learning to complete associate's, bachelor's and master's degree programs.
Discuss this Article
