Uncle Sam Can Help! – An overview of Federal Student Loans
If you need help in paying for your college or vocational school to make you one step closer to your dream career, you are not alone in this quest. When millions of students are wanting the same thing as you do, it is time to turn to Uncle Sam and get that much needed financial assistance: Federal Student Loans. The U.S. Department of Education plays a key role in the nation’s post-secondary education and you can definitely get more opportunities, whether you’re planning to attend a 4-year college course, a community college, or a technical school.
What Types of Federal Student Loans Can You Get?
Knowledge is power, where everything you learn will be valuable for the rest of your life. Each year, $80 billion are awarded to nearly 14 million students. You can definitely be one of these lucky ones, by applying for:
1. Federal Work Study – is an on or off-campus job for undergrads and graduates, which will help them earn money and get at least the federal’s minimum wage.
2. Federal Perkins Loan – is a federal student loan which comes with a 5% interest. Undergrads can borrow up to $5,500, and graduates or professional students can borrow up to $8,000.
3. Subsidized Direct Stafford Loan – is where the U.S. Department of Education will pay for the loan’s interest rate while one is in school. Students should attend school at least half-time and have financial needs. You can borrow between $3,500 to $8,500.
4. Unsubsidized Direct Stafford Loan – comes with a fixed rate and a certain grace period. Be in school and attend at least half-time, so you won’t have to pay interest rates. You can borrow between $5,500 – $20,500.
5. Direct PLUS Loan – are for parents with good credit history, who can borrow college money for their children’s education. There is no minimum amount, where any financial aid given will be deducted from the loan. How much one gets will depend on the maximum cost of attending school.
How to Get College Money Without Applying for Federal Student Loans?
1. Federal Pell Grant – which doesn’t have to be repaid and available exclusively to undergrads. You can get a yearly aid between $ 400 – $4,731.
2. Federal Supplemental Educational Opportunity Grant – which doesn’t need to be repaid and is open to undergrads with serious financial needs. You can get a yearly aid between $100 – $4,000.
3. ACG or Academic Competitiveness Grant – which doesn’t need to be repaid, where you have to meet certain requirements to be considered. You can get a yearly aid of up to $750 in your first year and up to $1,300 in your second year, given that you complete rigorous training and have at least a 3.0 GPA.
4. National SMART Grant – which doesn’t need to be repaid and is open to those who are at least doing half-time in their 3rd, 4th, or 5th year study program. A 3.0 GPA is a must and yearly aid can reach up to $4,000.
5. TEACH Grant – or short for Teacher Education Assistance for College and Higher Education, doesn’t have to be repaid unless you fail your duty to teach in elementary or secondary school. You can get a yearly aid of up to $4,000.
You can learn more about your federal student options by visiting the U.S. Department of Education online, or by calling their toll-free hotline: 1-800-4-FED-AID (1-800-433-3243). Why not try talking to your school counselor? You can get all the information you need. Always remember: You Don’t Need to Pay in Getting Help for Your Federal Student Aid!
READINGS:
http://studentaid.ed.gov/students/publications/student_guide/2009-2010/english/glance.htm
http://studentaid.ed.gov/students/publications/student_guide/2009-2010/english/typesofFSA_grants.htm
http://studentaid.ed.gov/students/publications/student_guide/2009-2010/english/repayingstudentloan.htm
http://studentaid.ed.gov/students/publications/student_guide/2009-2010/english/fsamission.htm
