College Financial Aid Programs
Find the Cash to Pave Your Way to Success
Financial aid is an essential component of any college education. Most people would not even be able to attend college without financial assistance, including federal student loans, private loans, even scholarships and grants. Guess what? You only get financial aid when you apply for it; it’s not a free hand-out.
It’s Up to You: Make Financial Aid a Reality
Whatever you decide to major in, wherever you decide to attend college, make absolutely certain you apply for financial aid.
Why?
Because if you don’t it simply means you were too lazy. Fact: millions of college bound students every year fail to fill out a Free Application for Federal Student Aid, FAFSA. Many think they wouldn’t qualify for aid, many are too “proud” to “ask” Uncle Sam for a hand out, many are just lazy and miss the deadline. Which are you? These students lose out on millions of dollars in low-cost, affordable loans because they didn’t have the right information or the motivation.
Money that pays for college: it’s motivation enough.
The Free Application for Federal Student Aid: FAFSA
The FAFSA is your ticket to low-interest federal loans and free grant money. If you think your parents make too much money or you won’t qualify or you have some other lame reason, you are likely mistaken. Millions of students miss out on low-interest federally funded loans each year for bad reasons.
Getting Private Loans
If you want to get a loan from a private lender, be considered for a scholarship or pursue other financial aid options, you will have to fill out special applications for each. You can find comprehensive scholarship listings online with their accompanying application information, so you don’t have to worry about missing out on any free money.
Financial Aid Due Dates and Deadlines
The FAFSA application is key. Many other grants, scholarships and loan programs require you have completed a FAFSA as well. Due dates are hard and fast. If you miss them, you lose—simple as that. Bookmark federal application dates and state application dates on the FAFSA website.
The earlier you apply for loans and grants the better. Some are first-come, first-served. Always submit applications by the deadline and don’t exclude information requested on any application. Some of the most frequent mistakes students make is missing the deadline and just leaving questions and information fields blank on applications. Why do the work if your application is only going in the trash?
Start Your Financial Aid Search
Most college bound students should start looking for scholarships and grants as early as sophomore year in high school. Begin with the Internet. There are a number of ways you can search for scholarships, but never pay a fee. Motivated students will be able to turn up plenty of scholarships with basic and advanced search tools. But you’ll also find plenty of free resources that provide you with targeted scholarships and grants based on your personal and educational goals and interests.
Types of Aid Available for College Students
There are many types of financial aid available for college students, so one or more are bound to suit your needs. The major financial aid types: loans, grants, scholarships, alternative sources and student consolidation loans.
Student Loans
There are a number of student loan types, including federal and state loans and private loans.
- The Stafford Student Loan Program is the single most popular federal loan in the country. With a Stafford loan allows students to borrow money from various lenders, including banks and sometimes even colleges. However, what makes the Stafford loan particularly beneficial to students is the fact that the federal government pays the interest while you are a student. This is something you just won’t get borrowing directly from a bank.
- The Federal Perkins Loan is also a government subsidized, but campus based program. Perkins loans are awarded to students with great financial need on a first-come-first-served basis. The federal government metes out funds to each participating college and when the money is gone, it’s gone, so students are encouraged to apply early.
- Parents of dependent students can apply for Parent PLUS loans. However, the parent is then responsible for the interest that accrues during the period in which the student is in school.
- Graduate students and professionals may opt to apply for Grad PLUS Loans, a program that offers more financial flexibility.
Outside of the federal loan choices, you’ll find state specific loans and private student loans from all types of lenders. Leverage these financial tools wisely and you will have no problem paying for college.
Scholarships: Free Money
There are all types of scholarships available and for all types of students. This is the deal: if you don’t apply, you have no chance.
Myth: you won’t qualify for any scholarships.
False. We bet you have no idea how many scholarships exist.
There are thousands of scholarships available, which add up to millions of dollars in free money for students willing to go for it. There are minority student scholarships, scholarships for women, athletic scholarships, extra-curricular activities, religious groups, community service scholarships, students involved in charity organizations, and more.
GoCollege.com is your free online guide to scholarships, including tips for organizing your scholarship search, writing a killer essay and staying motivated.
Grants: Merit-Based Free Money
Grants are often awarded based on financial need. Good news: you don’t have to pay grant money back—it’s free. However, most college grants come bundled with particular terms, such as minimum GPA, major field of study, or income qualifications.
- Federal grants, such as the Pell Grant, are awarded to students of exceptional need. Students need to meet certain income requirements and occasionally maintain a particular GPA to continue to receive funds.
- Did you know most state governments provide need-based grant money to resident students? State-based grant programs can take a significant chunk out of your tuition bill and you won’t have to worry about paying a cent back.
Alternative Sources for College Cash
Other types of financial aid you may not have considered:
- 529 Savings Plans available through most state governments offer families big returns and tax-free incentives when saving for college. Most financial advisors suggest parents open a 529 account not long after a child is born. Sock away a little bit each month and you could have college paid for when all is said and done.
- Some colleges offer tuition payment plans that offer affordable solutions for students and their families.
- Parents may even consider a home equity line of credit as a financial solution to college finance.
Student Consolidation Loans
Once your college education is over, you can also make use of student loan consolidation plans that make paying back student loans much more manageable. Consolidation loans let you combine multiple student loans, lower your interest and lower your monthly payments. A student consolidation loan is one of the best alternatives to loan default.