Posts Tagged ‘financial aid’

College’s Students Financial Aid Calculation

Monday, April 13th, 2009

I’m sure all of you American students out there know the Free Application for Federal Student Assistance (FAFSA). Now you might be interested with the calculation of financial aid based on the information done by the college you will be attending.

To be honest, each school has their own way of process. However, they share the same basic method of calculating students’ financial aid. Therefore, the more you understand about the process, the more comfortable you will feel with the timeline.

Information Received

So usually within 1-3 weeks the college will receive the information from the FAFSA. So after the information arrived, the college may actually contact you and ask you to provide additional documents or information that may not have been included with the FAFSA application. In order to make certain the process goes as smoothly and as quickly as possible, it is important for you to respond to these requests right away. Once the college receives all of the necessary information, it will review the information in order to determine the type of financial aid you can receive from the college.

Determining Your Need

If you are a student who is still living with your parents, your financial aid will be determined based upon how much your parents should be reasonably expected to contribute as well as how much you would be expected to contribute toward your college expenses. After subtracting this amount from the amount of the tuition and fees, the college can then determine the maximum amount of financial aid you can receive. This is not the amount of the financial aid package you will receive, however, as the outside aid you receive such as assistance from the Federal Pell Grant, scholarships and other grants will be deducted before the school determines the amount of financial aid it is willing to provide.

Helping with Expenses

The college you are interested in attending may provide you with a variety of different ways to help you pay for your college expenses. For example, you may qualify for a scholarship or a grant from the college. Or, you may be able to participate in a work-study program that will help you with off-setting the cost of attending the college. As such, the financial aid package you receive may actually be a combination of loans, grants, fellowships, work-study and scholarships that, when used together, will help you pay your college expenses and finally earn the degree you have been dreaming of getting.

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Students Financial Aid Option: Federal Loans

Sunday, April 12th, 2009

As you might’ve known, the college education fee is pretty expensive. In fact, two-thirds of 4-year undergraduate students have graduated with debt (2003 NPSAS report). As all of us predicted, the number is steadily increases each year. So bottom line is: almost all students need financial aid.

However, many students are complaining the tricky process of getting the financial aid. But it doesn’t have to be like that, you know? There are lots of available grants, scholarships, and loans out there, just waiting to be used.

Unlike scholarships and grants, a loan is borrowed money hat must be paid back with interest. Think carefully about how much money you need to borrow before you take out a loan…eventually, you will have to pay it all back!

Federal loans are one of the more popular options for college students because almost everyone is eligible to receive one! The U.S. department of education offers two types of federal loans:

  • Stafford Loans – are for undergraduates, graduate, and professional students. The best part about Stafford Loans is that you don’t necessarily have to be in dire need of financial aid in order to qualify. In the case of Stafford Loans, the lender is typically a bank or credit union that works through the U.S. Department of Education.
  • Federal Perkins Loans – are offered to students who demonstrate the greatest financial need. When you accept a Perkins Loan, the lender is your school. Therefore, the amount of aid that you receive depends on the availability of funds at your school and other scholarships that you might be getting. Undergraduates can receive as much as $20,000 in Perkins Loans, while graduate students can receive a maximum of $40,000. Another added benefit is that the government will pay your interest on the loan as long as you’re in school!

If these options sound confusing to you, don’t worry! When you accept a federal loan, you can combine several different types of federal loans into one easy-to-read payment plan. Known as Consolidation Loans, this option makes repaying your loans so much easier!

You are probably wondering what the process is for taking out a loan. If you’re applying for a federal loan, you need to check out the Free Application for Federal Student Aid (otherwise known as the FAFSA). This little form is used for all government lending programs, and oversees roughly $500 billion in student loans!

If you’re worried about skyrocketing interest rates, there is hope for student borrowers! The government has set a standard maximum interest rate for student loans, so you won’t be charged any additional fees. In fact, lenders often compete over who is offering the lowest interest rate to attract more borrowers.

Never be afraid to ask for help! There are lots of resources out there for students looking to take out educational loans. College can be affordable to EVERYONE.

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