There are many different types of loans that are available for college students and it may become overwhelming to sort through all of them. Yet, there are many services that are available to help you understand these college loans and to help you grasp how to go about the application process as well. School loans for college students are incredibly important, especially considering the hefty amount of money that students usually have to pay back once their college career is over.
However, as the old saying goes, it takes money to make money, and this is certainly true of college. In fact, according to the United States Census Bureau, those students who have a bachelor’s degree earn more than 80 percent more on average than those who only attained a high-school diploma. On the other hand, the average price of four years at college has been estimated to be approximately $72 thousand.
However, the important thing to realize is that although college tuition prices are rising, so is the level of low-cost federal financial support that is available to help you pay for your education. As a matter of fact, over 75 percent of college students use and receive financial aid in order to assist in paying for college. Unfortunately, there are many students out there who do not apply for any type of financial aid simply because they presume that they would not be eligible for one reason or another.
The truth is that you are probably more eligible than you think, as there are many different types of financial aid for college students available. Therefore, if you are one of the many students who dismissed financial aid before simply because you felt that you would not be eligible to receive it, you should immediately have second thoughts and put more consideration into going through the application process.
The following are the three most widely used federal financial aid programs available:
Ã?Â· Pell Grant
A Pell Grant is an excellent option because unlike many of the other loans, a Pell Grant does not need to be repaid. The eligibility for this grant is determined according to a person’s financial need. If you are not financially well off, then you are more likely to be able to receive it.
Basically, how the Pell Grant works is that the funds are distributed by the colleges themselves, either through direct payments that are then obviously made out to the students, or through credit to a particular semester bill. Typically, a Pell Grant is only available to students who are attending college at least on a part-time basis.
Ã?Â· Perkins Loan
A Perkins Loan is a particularly low interest, need-based type of college loan. Basically, those who are receiving a Perkins Loan will have to begin paying the interest on the loan nine months after their graduation date. There are some basic qualification requirements to this loan, however, and you must fit the qualification needs in order to be eligible for the loan.
These qualification requirements are: enrollment in an eligible school at least part-time in a degree program of some sort; U.S. citizenship, permanent residency, or at least eligible non-citizen status; satisfactory academic progress; no unresolved defaults or overpayments owed on that of Title IV education loans and grants; and satisfaction of all Selective Service requirements.
Ã?Â· Federal Supplemental Educational Opportunity Grant (FSEOG)
This grant is quite similar in many ways to the Pell Grant, in that it does not need to be repaid. Additionally, it is offered in regards to need-based requirements and eligibility. This grant is available to those students with exceptional need who are earnestly progressing satisfactorily towards their particular degree. As well, typically you are eligible to receive anywhere from $100 to $4000 a year, depending on your need.
The most important thing to remember here is to take the proper time and consideration in order to be able to decide on which type of loan is best for you. Remember that a loan can be an incredibly positive and resourceful thing, and so you should use all of these available offers to your advantage as best as you can, in order to help make your college experience as financially easy as possible.