The time to file for financial aid is now here. Every year in February students are sent reminders to file there free application for student financial aid form. Maybe you are putting it off or do not feel you need to file for financial aid. The fact is, if you don't file, you might be giving up free money for college.Filing for financial aid is an important process in going to college whether you are a student depending on your parents to pay for college, a parent of a potential college student or an adult student. By filing the free application for financial aid, you become potentially eligible for all types of financial aid in the form of grants, need-based scholarships and loans.Most schools have a deadline to file by in order to receive the maximum amount of financial aid you might be eligible for. Usually the earliest deadline date to file is sometime in February and as late as early March. The earliest deadline is for maximum consideration. If you file after the earliest recommended deadline, much of the free money in the form of grants and need-based scholarships, might already be expended. Check with your school to find out the earliest deadline to be considered for the maximum amount you might be eligible for.While you can file as late as the end of June of the academic year, the later you file, you limit yourself to only being eligible for loans. If you can't afford to pay for college any other way, loans are a good option, but they must be paid back when you finish school and the interest rates can be substantial, as high as 8.25%. Your best bet is to file early to avoid a substantial loan burden when you are done with school.
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College is expensive, and many students use financial aid to pay for tuition, books, and other education-related expenses. Student loans are the most common type of financial aid. With so many loan programs available, there is more than one way to find money for school. Whether you have good credit or bad credit, banks, credit unions, and Federal loan programs offer packages to fit every need. Of course, if you want to maximum your loan choices, a good credit history is imperative. While bad credit will not disqualify a student loan applicant, bad credit student loans come with steep penalties and higher rates.Bad Credit Private Student LoansIf you're looking for a bad credit student loan, many financial institutions are able to help. Banks and credit unions value education, and they realize that knowledge can lead to smarter credit and financial choices. Student loans acquired from a bank or credit union are termed private student loans because the Federal government does not finance them. Consequently, private student loans have strict loan requirements.Prior to funding a private student loan request, a bank or credit union will examine the applicant's credit history. Since most private lenders offer bad credit student loans, the purpose of a credit check is not to approve or deny the loan. Rather, a credit check helps the lender determine the level of risk. Depending on the severity of bad credit, the interest rate on the student loan will be either comparable to other loans or much higher.Federal Loans for Students with Bad CreditSince private lenders offer higher rates to students with bad credit or no credit history, many students turn to Federal Direct Loan programs for assistance. Federal loans such as the Federal Stafford and Federal Perkins are government programs developed for students with bad and good credit. The Federal government insures these loans; thus, bad credit students can qualify for very low interest rates.Although non-credit based Federal loan programs offer easy approvals, the loan amount per year is typically small and may not cover all tuition expenses. Students who need additional funds may have to apply for a private student loan. In this case, improving a low credit score can open the door to better rates.
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Often there are college students who have an exceptional financial need. These students may not have any scholarships or any savings to fall back on. Maybe their parents don't have the savings and maybe their parents have bad credit, making it difficult for the student to get a student loan.Ideal Student Loan for "Exceptional" Financial NeedThe ideal student loan offered by Sallie Mae lenders in a case like this is called a Federal Perkins loan. It has a very low interest rate and there is a longer grace period for repayment in this program.To receive this student loan students must be enrolled at least as a halftime student in an accredited degree program. It is for US citizens or permanent residency citizens and some eligible non-citizens of the US.To maintain this student loan students must show satisfactory academic progress. There must be no defaults on any of the Title IV educational loans and grants that may have been used in the past.How the Federal Perkins Student Loan WorksWhat happens is the US Department of Education programs a certain amount of funding to schools. Those schools determine which students have the greatest need. The school combines the funds with some of its own funds and creates student loans to qualifying students.To apply for this loan program an application must be submitted. The free application for Federal student aid is called FAFSA. When using the Federal Perkins student loan the school will pay the students or apply the loan to the school charges. The loan comes in two payments during the academic year.The Parent PLUS Loan for Parents of Dependent StudentsThe Perkins student loan has many similarities to the Stafford loan. The most notable difference is that the Perkins loan has no fees and has a longer grace period.The Parent PLUS loan is an additional Federally sponsored type of student loan. It is a low interest loan for the parents of undergraduates who are their dependents.With a Parent PLUS loan the family can fund the entire cost of the student's education, minus any other financial aid such as scholarships or other student loans.
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Nearly every student who applies to college or career school also applies for financial aid. With grants, loans, and scholarships available from federal, state, institutional, and private sources, students have good reason to explore their financial aid options. When you apply for financial aid, you'll encounter two applications: the FAFSA and the CSS College Profile. Here's what they are and how they differ from each other.The CSS / Financial Aid PROFILEThe College Board, a not-for-profit membership association that assists students to enter college, is comprised of more than 5,400 career colleges, trade schools, universities, and other educational organizations. The College Board administers the SAT test to high school students. But another key mission of the College Board is to help you lower your cost of attendance (COA). Your COA includes tuition, room and board, books, travel expenses, and other expenses associated with attending college.The College Board administers the online CSS / Financial Aid PROFILE application (commonly known as the CSS Profile). Member schools agree to use the CSS Profile application to standardize the financial aid application process and to make it easier for students. By using one standardized application, it's much easier for students to apply to multiple schools.Schools use your CSS Profile application information to determine how much nonfederal financial aid you are eligible to receive. Nonfederal financial aid includes institutional grants and scholarships, which are subsidies that the college gives you to help you lower your cost of attending college.You fill out your CSS Profile online. There is an initial fee of $25 that includes sending your application to one school, plus a fee of $16 for every additional school or college that you want your information sent to.Which Colleges Use the CSS Profile?The information collected on the CSS Profile is used by almost 600 colleges, universities, graduate schools, and professional schools to determine eligibility for nonfederal student aid funds. Many private colleges, which have institutional financial aid funds, will ask students to complete both the FAFSA and the CSS Profile applications. Many career colleges and public universities do not have institutional funds to distribute, and these schools may not require the CSS Profile. When you apply to a college or career school, inquire at your school's admissions office or financial aid office.FAFSA The Free Application for Federal Student Aid (known as the FAFSA) is a form that you fill out annually to determine your eligibility for federal student financial aid. Federal programs include Pell grants, Stafford loans, PLUS loans, and work-study programs. The program is administered by Federal Student Aid, which is an office of the U.S. Department of Education. Its mission is to ensure that all eligible individuals can access federally funded or federally guaranteed financial assistance for college education.Most accredited career colleges are eligible to administer federal Title IV education grants, and they will ask you to fill out the FAFSA before your first tuition payment is due. The FAFSA form is available online at the FAFSA website. The application is free, and may be filled out either online or printed out on paper.What's the Difference Between the Applications? The FAFSA and the CSS profile use two different systems to calculate your expected family contribution (EFC), which is the amount of money a school will expect you or your family to contribute, and how much the school will award in grants and scholarships.FAFSA asks for a different set of financial information than the CSS Profile. For example, FAFSA ignores assets of siblings, all assets of certain families with less than $50,000 of income, and both home and family farm equity. The CSS Profile collects information on estimated academic year family income, medical expenses, elementary
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