Lesson 6: Scholarships, Grants & Financial Aid
Federal Aid & Loans
FREE APPLICATION FEDERAL STUDENT AID
This form is required by most American colleges. The application is multi-paged and requires parental and student information, both personal and financial. You need to have completed your federal and state tax forms for the fiscal year to complete this packet. While the form seems intimidating the first time you read it, take heart! The instructions are easily understood and they will guide you through it each step of the way. You can save the application online and come back to it when you are ready. Each student must have a PIN to use the online features, so have your child apply, online at their website, in the beginning of junior year.
Pell Grants
Another governmental source of funding for college. Check out their website. PELL Grants currently can not exceed $4000 per year. Not as well known, or utilized, as the Stafford loans.
Restrictions apply and there is a host of eligibility requirements.
http://www.studentaid.ed.gov/students/pu...
Stafford Loans
There are 3 types of loans: unsubsidized student loans and parental loans, and subsidized. Based on a nationwide formula, U.S. students can currently borrow approximately $2,600 freshman year, $2,600 sophomore year and $5,000 junior year and $5,000 senior year, based on their signature alone. Rates vary, but are extremely competitive. Repayment does not begin until 6 months after graduation. (If your child quits school before obtaining his/her degree, repayment will begin immediately.) There is a wide selection of payment options available to the new college graduates. Parent loans often are based on family assets, such as using your home as collateral. See Resource section.
