| Federal student loans are the largest single source of financial aid, and everyone is eligible to apply with or without demonstrated financial need. These loans have features that make them a smart way to borrow for college. The terms and rates of federal student loans make them an attractive college financing option. Any student who has been accepted at a post secondary school is eligible to apply for federal student loans, regardless of their family need or ability to repay. | |
| Federal Financial Aid Programs |
Federal Pell Grant - A monetary gift to qualified undergraduate students. Federal Supplemental Educational Opportunity Grant - a monetary gift awarded to undergraduate students. Federal Work Study - Allows students to work part time to earn money for college expenses. The school coordinates the job. Federal Perkins Loan - 5% fixed Interest loan where the school acts as the lender. Federal Subsidized and Unsubsidized Stafford Loan - Annually adjusted variable rate loan. You pick the lender of your choice that offers student loans. Loan can be deferred from payments until 6 months after you graduate or finish college. Federal Plus Loan - Available to parents. YOU pick the lender of your choice and payments are made on a monthly basis. Annually adjusted variable rate loan. |
| Other Sources of Financial Aid |
Private scholarships and grants from corporations, civic groups, philanthropic and religious organizations. Start your search with high school counselors, financial aid offices, libraries and your local financial institution. There also are many other ways to manage college costs, and some are especially attractive to those who may not quality for need-based or merit-based aid. Flexible Payment Plans - are available at some colleges. Payment plans allow you to spread the costs over several months. Home Equity Loans - allow homeowners to borrow funds against the appraised value of their home minus the amount owed on the first mortgage. Alternative Loans - provide funds to families seeking an "alternative" to federal loan programs. Passbook Savings Loans - are related to money in a savings or certificate of deposit account that serves as security for a loan. Insurance Policies - often allow the holder to borrow against the cash value at a life Insurance policy. Other Links - for more information on financial aid, loans, and scholarships. www.finaid.com |