The Advantages of a FAFSA
If you are considering attending college, money could be one of the main issues you are having to overcome. The government offers federal loans, grants and scholarships that give you the opportunity to take your education to the next level. Fill out a FAFSA (Free Application for Federal Student Aid) today to receive your financial assistance for college with lower interest rates and friendly repayment terms.
Other People Are Reading
-
Low Fixed Interest Rates
-
Whether the parent or child obtains the loans to help pay education costs for college, a FAFSA offers lower interest rates than private bank loans. The interest rates do not begin to accumulate until after the student has finished college, at which time a rate of around 5% will be applied per month. Undergraduate students can borrow anywhere from $5,500 to $12,500 per year, and graduate students can borrow up to $20,500 per year depending on certain criteria.
Repayment Options and Terms
-
FAFSA federal loans are categorized into two available loan packages. Unlike loans taken out with private institutions, no credit checks are required, and the government pays for the interest for the first six months.
Subsidized Stafford loans provide loans to students based on income and other factors included in the FAFSA application. The federal government assists in the payment of interest of the loans until six months after the student graduates.
Unsubsidized Stafford loans are available to students regardless of financial factors (a FAFSA still needs to be filed). The student is responsible for his own interest, which begins to accumulate six months after the student has graduated.
Consolidation loans allow either the student or parent to combine several federal student loans into one monthly payment. Federal consolidation cannot be combined with private loans, and if combined will result in the government not assisting in paying for the interest on the loan.
-
Financial Aid Opportunities
-
By filling out the FAFSA, schools can assist you in finding other types of financial aid you are qualified for. The federal government, your state and sometimes your school offer scholarships and grants in an effort to provide you with the financial capability to attend an institution of higher education. The federal government can provide a work study program where they coordinate with programs on college campuses to find you employment opportunities.
Quick Application Process
-
The paperwork can be filled out online using the online FAFSA application found at the FAFSA website (see resources). With the necessary information, the application process is quick and easy, and you can save your progress if you don't complete it in one sitting. The website gives you the ability to check on the processing of your application, in which afterward you will receive a Student Aid Report (SAR). If changes need to be made, the online application allows you to make changes quickly and conveniently from your computer.
-
References
Resources
- Photo Credit student with papers image by Petro Feketa from Fotolia.com
