Count On Success

So you’ve gotten into the accredited degree of your choice. Now what? How do you pay for your tuition? If you need money, look to the U-S government first. There are Federal grants and loans available to help you pay for college. Federal student aid programs are the largest source of student aid in the U-S, providing more than $100 billion a year in grants, loans, and work-study assistance.

A grant is the cheapest form of online degree grant, because you don’t have to repay it. Pell Grants are awarded based on a student’s financial need. There are also grants given based on a college student’s course of study. The first step to getting a grant is to fill out a Free Application for Federal Student Aid, FAFSA. Nearly all two and four-year colleges and universities use the FAFSA to award federal and state financial aid.

If you don’t qualify for a federal grant, a loan may be next best option. The same FAFSA will gain you information about various loans. Federal loans offer borrowers lower interest rates and have more flexible repayment plans than many banks.

Schools usually participate in the Federal Family Education Loan, FFEL, or the Direct Loan Program. In the Direct Loan Program, the funds come directly from the federal government. Funds for a FFEL come from a bank, credit union, or other lender. Many schools give students a list of preferred lenders, or you can choose your own.

Under the FFEL or the direct loan programs, students can borrow over $12,000 each year with interest rates below four percent. The amount is determined by the number of years a student has left in college as well as financial need. Students taking out a loan have to sign legal documents outlining the amount borrowed and the terms for repayment. The type of loan also helps determine when interest has to be paid.

Under both the Direct Loan and FFEL programs, the money goes straight to your school. The loan pays for tuition, housing and other school charges, first. You can get any leftover cash or give the school permission to hold the money for future expenses. First year students don’t get their loan checks until 30 days into the school year. The delay is a way to protect you from having repay a loan in case you don’t start school or drop out within the first month of class.

If you don’t want to go with a loan, the federal government’s work-study program provides jobs for undergraduate students with financial need. The work-study program encourages students to perform community service or jobs related to their field of study. The money they earn goes to help pay for education expenses. Students can work on campus for the university or off-campus. Off-campus work is usually for a nonprofit group or public agency that works in the public’s interest.

So if you don’t have thousands of dollars to be used for a college degree, check out the U-S government as a resource. The government has billions of dollars for financial aid for college students.

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