Christian Science Monitor: “If you’re not sure whether you’re eligible for financial aid to help pay for college, there’s an easy answer: Yes. You are. ‘Everybody is eligible, regardless of income,’ says Brad Yeckley, assistant manager of the Student Financial Education Center at Penn State University. What varies is the type of aid you’ll get and whether you’ll have to pay it back.”
Some highlights:
“To get federal, state and school financial aid — and even some private scholarships — you must fill out the Free Application for Federal Student Aid, known as the FAFSA … Some forms of financial aid are first-come, first-served, and schools and states often have their own deadlines. Apply for financial aid as soon as possible once the FAFSA opens on Jan. 1 of each year.”
“Schools start by granting you need-based aid (if you qualify), meaning funds that are earmarked for students with financial need. Those can include need-based grants — from the government or the school — and need-based federal loans such as Perkins and direct subsidized loans. Direct loans, also known as Stafford loans, are the most common types of federal student loans. Subsidized loans are more favorable than their unsubsidized counterparts because they don’t accrue interest while you’re in school or for the six months following graduation.”
“If you don’t receive enough need-based aid to cover your cost of attendance, or didn’t qualify for any at all, the school will then offer you federal direct unsubsidized loans or PLUS loans (available to parents and graduate students).These loans are less desirable than direct subsidized or Perkins loans because they accrue interest while you’re in school and during your grace period after you graduate. PLUS loans in particular carry high interest rates, and those made to parents are eligible for fewer repayment plans.”
“A net price calculator will show you how much grant aid you’re likely to receive to attend a particular school. That amount could include federal Pell Grants as well as state and school grant funding. But net price calculators don’t always show you exactly how much of each you’ll receive. That’s why it’s helpful to get an estimate of your potential Pell Grant from the FAFSA4Caster. Most colleges include net price calculators on their websites, but the tools aren’t always easy to find. Search for a calculator using the U.S. Department of Education’s Net Price Calculator Center.”
