Student Loans and Grants
College costs in the United States have gone up rapidly in the past few years. Millions of students – and parents – around the country are finding it increasingly difficult to meet the expenses of a higher education. As a result, they are forced to rely on other sources of funding which include student loans and grants. More than 65 percent of all college students rely on student loans and grants to pay for tuition. Federal and state governments as well as a number of private organizations offer a large number of student loans and grants.
One way to pay for college is by taking out a student loan from the government or a private lender. Student loans differ from other types of loans in the fact that they generally have lower rates of interest and a longer time for repayment. Students who do not find work after graduating can defer payments or apply for forbearance. Options such as loan forgiveness and tax-write off in line with the amount borrowed make student loans com an attractive option. Student loans on offer include Federal Perkins Loans and Stafford Loans. These loans are 100 percent secure as they are guaranteed by the government and come with interest rates ranging between 1.9 to 5 percent. A number of student loans are also offered by private lenders – however, these loans usually carry more conditions as compared to Federal student loans and are not the top preference for most students.
Most students apply for, and prefer, student grants which are essentially a “gift” of money from a number of sources that can go towards meeting the cost of college. Unlike a student loan, the money obtained through a grant does not have to be paid back. Student grants include Pell grants, which are offered by the Federal government, and cover between 30 to 60 percent of tuition fees. The amount awarded under Pell grants has been increase by more than 20 percent recently, making it an excellent option for students to finance a higher education. In order to apply for college student loans and grants, applicants can fill out a Free Application for Federal Student Aid or FAFSA online.
Frequently Asked Question(s)
Q:What kinds of student loans can I apply for with private lenders?
A:Private lenders offer students different kinds of student loans to help with their college education. Private loans can be divided into school channel loans and direct to consumer private loans. Both of these categories come in fixed and variable interest rate options. It is recommended that students exhaust their federal aid options first before applying for private loans.
Q:What college loan types can I apply for?
A:There are a number college loans available for students. The Federal Government offers different types of loans that are specifically designed to help students with their financial need. Students can apply for Perkins loans, Stafford loans, Federal Direct Students loans and Federal student loan consolidation programs. Students can access these loans by filling out the FAFSA application available online.
Q:How do I apply for Stafford student loan grants?
A:The first step in applying for Stafford loan is to fill out the FAFSA form so that your financial need is determined. Students who have filled out the FAFSA form in the last academic year need to fill out the Renewal FAFSA form. After your application is processed your university will review the results and notify you about your eligibility through an award letter.
Q:How to apply for student loans and grants?
A:To apply for federal student loans and grants all you have to do is check the requirements and fill the Free Application for Federal Student Aid or FAFSA online. For private loans, the requirements can include a good credit history and other factors that can vary from company to company.
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