Everyone has their dream university planned since high school, and if you do not, you are indeed living under a rock! As college costs soar high, even exceeding living expenses, most American families turn to outside help to bear the expenses.
While plenty of grants, loans and scholarships exist out there, it might be tricky to choose one out of them and leave you perplex. So, hold your horses; we are glad to provide you with an overview of how you can find the right agency to empower education to the fullest.
Get the ball rolling
Although you can apply to numerous colleges while you dream about entering one, you still must consider checking the sticker prices twice before you finalize because even application costs are not free.
Whichever the prestigious college might be, Harvard, Yale, NYU, UCLA, etc., these colleges are not just excellent institutions but even offer luxurious lifestyles along with state-of-the-art amenities, beautiful campuses, etc. Who would only want to attain such facilities without hurting your pockets? Therefore, if you want bang for your buck, opt for grants or scholarships to secure your future education.
Why financial aid
The whole motive of seeking financial aid is to make up for the budgetary differences between what you and your family can afford and what the college usually costs.
Here is how the monetary system works: U.S. financial aid for high schools is as essential as college financial aid. Students and their families are expected to contribute to the cost of college to the extent that they are economically capable. Financial aid can fully bridge the gap if a family cannot contribute the entire cost.
Plenty of fish in the sea
The first and foremost step that requires your attention is filling out the FAFSA form as early as possible to stay on the safer side because many loans are granted on a first-come, first serve basis. FAFSA refers to Free Application for Federal Student Aid. The earliest date you can file the FAFS application is October 1, as of recent updates.
The three main types of financial aid:
- Grants and Scholarships: Also known as gift aid, grants do not have to be paid later, and you do not need to earn them by working in labor. Grant aid is offered by federal and state governments as well as individual colleges. Scholarships are usually awarded based on your merit results.
- Work: Student employment, such as internships and work-study aid, offers students financial independence to support their education costs, such as books, supplies, and even personal expenses. Work-study, for example, joining college clubs, is a type of federal program that provides students with part-time opportunities to help meet their financial needs and give them work experience.
- Loans: 54% of financial aid comes in the form of loans to students or parents, but based on being repaid later. Most loans that are awarded, mainly due to insufficient financial state, are low-interest loans sponsored by the federal government. The government finances these loans, so no interest bothers you until you begin repayment after your graduation, with many individuals opting to refinance their student loans to lower monthly payments.
Paint your own picture
While having too much liberty can cause a person to be puzzled or distressed at the most, remember, FAFSA is not the whole picture. To qualify for FAFSA, you need to be eligible to be a high school graduate enrolled at a qualified institution with a justified expenditure. Not to forget, be a U.S. citizen or sometimes, even eligible noncitizen can make it in.
Indeed, FAFSA is an essential tool in deciding the amount of grant or loan you can be promised with. But in all honesty, most financial aid counsellors have the liberty as well as the authority to use resources as they see fit. The expected family contribution plays a significant role, but they may consider other factors.
Most institutions prioritize the student’s skills and experiences, as they should. The motive is to look for colleges that successfully reach out to the financial aid office about your child’s probability of getting grants or federally funded loans. (For example, Harvard has various specific programs for academically excellent students.) Along with its academic reputation, Harvard also offers help to families decide whether a school is worth pursuing or not.
There is always a light that never goes out
Lots of options
With the availability of loans, there are various options for both students and parents. The ball is in your court; which one suits your needs and goals since it’s sometimes vital to walk through fire in search of gold.
Parent Loans
- Federal PLUS Loans
The PLUS Loan program is the home to most parent loans. Money can be lent up to the entire expenses minus any additional aid received, and repayment starts two months after the money is paid to the college.
- Private Parent Loans
Several lenders and other financial institutions grant private education loans to parents. These loans usually have higher interest rates than PLUS loans.
- College-Sponsored Loans
Only some colleges offer their own parent loans, which can be at a better rate than PLUS. Ensuring researching each college’s aid materials before you finalize on one to see the availability of such loans
Student loans
- Private Student Loans
Several lenders and other financial institutions grant private education loans to students. These loans are not funded, which means they usually carry a higher interest rate than the federal need-based loans. The College Board private loan system is one example of a private education student loan.
- College-Sponsored Loans
Some colleges have their own loan programs, which lower interest rates than usual federal student loans. However, ensure reading the particular college aid section, specifically the grants and scholarships category.
- Other Loans
Some private organizations and foundations offer scholarships as well as additional loan programs where you can borrow. Research before you confirm anyone.
The bottom line
With tuition fees and average college debt rates rising, one might rethink the whole point of pursuing education abroad. Hence, financial aid is a good and viable option to support one’s financial and economic needs without being worrisome. No matter what happens, what matters at the end of the day is that empowering education should be important for anyone and everyone.
