Financial Aid Tips - Financial Aid Help for College Students
One of the more sought after questions anytime you are thinking about college is, "What exactly is financial aid?". One of the largest myths related to Higher education Financial Aid tends to be that finances funded via the Federal Government aren't required to be repaid back. The idea is only to a certain extent true, given that Federal Financial Aid is made of four types of aid. It is essential that all eventual and present university students be aware of the variations.
Loans -Must be re-paid
Grants - Do not need to be re-paid
Scholarships - Aren't required to be re-paid
Work-Study - Federal Work-Study amounts/hours dependent on your college
School loans, both the Subsidized and Unsubsidized happen to be credited funds with the assurance to pay off. An additional variety of Financial Aid is known as a PLUS loan. To be brief, PLUS loans happen to be federal loans which are commonly obtained by graduate or higher degree requesting scholars (i.e. Doctorate individuals). PLUS loans could even be taken out by parents or guardians of dependent undergraduate students (24 yrs. old or younger) to help cover school related expenses not originally covered by Financial Aid loans.
Scholarships and grants are not required to be repaid and are usually awarded based around "merit" (College scholarships) and / or "need" (Grant). These need-based funds, such as the PELL Grant, are designed to support low-income or no-income which are from difficult fiscal conditions and usually have a relatively elevated dependence on extra financing to cover school. For some cases, scholarships can be need-based as well. Merit-based offers usually are based using several components in accordance with the scholarships; however, a student's financial circumstance ("need") isn't always an element.
Federal Work-Study programs are likely to be part-time work opportunities available for Professional, Undergraduate and / or Graduate students (at least Part-time) that have some sort of monetary necessity. Any duties from the work-study process are typically centered around the pupil's college degree and / or general public service. It is also worth noting that not all University or college are part of the program so it is necessary to double check with your preferred university or college if this is an alternative which suits you.
One separate tid bit I want to make sure everyone understands as it goes hand-in-hand with Financial Aid is the notion of borrowing responsibly. In a nutshell, only borrow what you need up to your Cost of Attendance. Furthermore, try to supplement your loans you are taking out with either Scholarships and/or Federal grants. As stated by Financial Aid Steps:
"EFC" is tossed around a lot while you are enrolling to college or already attending, but what does it mean and why is it so important? EFC stands for Estimated Family Contribution and it is the Federal Governments best determination on your "financial need". Your an/or your family's "financial need" is determined through a formula based on what you report through the Free Application for Federal Student Aid (FAFSA). Since it is calculated by the Federal Government, EFC is based on the Federal Methodology. These components include:
Number of family members attending college
That's it, a short review of the 4 components of Financial Aid. To get more in-depth information on Financial aid please visit, Financial Aid Head Quarters page.
Please visit us at http://www.financialaidsteps.com for more facts and tips from start to finish about the Financial Aid, Scholarship and Private Student Loan process so you can make a well informed decision on how to finance your education.
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