Overview
Financial aid is any financial resource that a student may
receive to assist in meeting the cost of attending college.
Each financial aid office will determine what the Cost
of Attendance (COA) is on their campus. Costs
vary from campus to campus but the financial aid award system
makes it possible for you to afford the school you have
chosen to attend regardless of cost. The following is a
list of the most common financial aid assistance programs
available:
Scholarships
A scholarship is a form of financial aid that does not require
repayment. There are many scholarships available with just
as many diverse qualifications. Locating scholarships is
free; you can begin by visiting with your high school counselor
or a financial aid officer at a college or university and
filling out your Free
Application For Federal Student Aid. Additional
resources include your local library or free
online scholarship searches. It is important that
you start early in your scholarship search and avoid advertising
gimmicks that promise you scholarship money for a fee. Remember,
finding and applying for any financial aid, including scholarships,
should be free.
Federal
Pell Grants
A Pell Grant is an entitlement
program for undergraduate students and is awarded
by a college financial aid office. Awards can be made up
to $4,000 for each academic year, based on financial need.
You must complete the Free
Application For Federal Student Aid and contact
the financial aid office at your campus to see if you qualify.
Federal
Supplemental Education Opportunity Grants
A SEOG is a need-based
grant for undergraduate students and is awarded by a college
financial aid office. Awards can be made up to $4,000 for
each academic year for educational expenses with priority
given to those who receive a Pell Grant. You must complete
the Free
Application For Federal Student Aid and contact
the financial aid office at your campus to see if you qualify.
Campus-
Based Scholarship and Grant Programs
Campus-based scholarship and grant programs are not federal
programs and vary from campus. You should contact the financial
aid office on your campus for a listing of grants and scholarship
programs available at your school and an application form.
State
Aid
State aid programs vary from state to state and are generally
reserved for residents of the state in which a school
is located. You should contact your state's education department
or the financial aid office at your school for more details.
Military/ROTC
Active military, reserves and ROTC programs offer excellent
financial aid programs. If you are interested in the details
of these programs you should contact a local recruiting
office or your campus ROTC office.
Federal
Work Study
The Federal Work Study program is a need-based
program for students and is awarded by a college. This program
allows qualifying students to earn money for school expenses
by working. You must complete the Free
Application For Federal Student Aid and contact
the financial aid office at your campus to see if you qualify.
Perkins
Loans
A Perkins Loan is a federal, need-based, loan program for
undergraduate and graduate students administered at the
campus level. The interest rate is low and students can
borrow up to $4,000 per year for undergraduates and $6,000 per year for graduate
students to pay their cost of education. Repayment on a
Perkins Loan is made to the school and begins after a nine-month
grace period, which starts after graduation or a drop in
enrollment below half time. You must complete the Free Application
For Federal Student Aid and contact the financial aid office
at your campus to see if you qualify.
Federal
Family Educational Loans (FFEL)
There are two types of FFEL Loans, Stafford Loans and Parent
Loans (PLUS). The interest rates on these loans are variable
and are reset each July 1 by the federal government. Current
Interest Rates
Stafford
Loans
There are two types of Federal Stafford Loans - Subsidized
and Unsubsidized. The provisions for both loans are identical
with the exception of interest. With Subsidized Stafford Loans
the government pays your interest until you begin repayment;
on Unsubsidized Stafford Loans you are responsible for
the interest that accrues before you begin repayment.
Qualifying
for a Stafford Loan is not dependent on credit history or
credit worthiness but you must be enrolled at least half
time. Every student is eligible to get an
Unsubsidized Stafford Loan to help pay their cost of education
regardless of need unlike Subsidized Stafford Loans, which
are based on the Expected
Family Contribution (EFC).
Stafford Loans have limits; Subsidized limits are $3,500 for first year students, $4,500 for second year students and $5,500 after that. In addition to Subsidized limits, Unsubsidized limits are $7,500 for the first year, $8,500 for the second year and $10,500 after that. Many students qualify for both. A Stafford loan must be repaid within a 10-year period to the loan holder. Repayment begins after a six-month grace period following graduation or a drop in enrollment below half time.
To apply
for a Stafford Loan you must complete the Free
Application For Federal Student Aid, which will
calculate your EFC and determine the amount of Subsidized and Unsubsidized
Loan amounts you are qualified to receive. Next, you will
want to contact the financial aid office on your campus
to ensure you have completed any campus specific forms and
met any deadlines they may have. Once your financial aid
amount has been awarded you will be asked to choose a lender.
Many
students are not aware of the impact the lender
they choose will have on the life
of their loan. You will want to consider
the servicer and the secondary
market your lender
uses and the borrower benefits, this is the savings plan,
they offer. By choosing an OSLA
Student Lending Network member you will be ensuring
that you receive Exceptional
Customer Service and Exceptional
Borrower Benefits over the life
of your loan.
Parent
Loans (PLUS Loans)
The PLUS Loan program allows parents to borrow (a credit
check is required) the entire cost of education for each
dependent child that is enrolled at least half time. For
example, if a student's cost of attendance is $8,000 and
the student receives or is eligible for $4,000 in other
aid, the parent can borrow up to $4,000. PLUS loans go into
repayment 60 days after being disbursed.
Many
parents are not aware of the impact the PLUS Loan lender
they choose will have on the life of their loan. To see
if you qualify you will need to complete the PLUS Loan Application.
By choosing an OSLA PLUS Loan you will be ensuring that
you receive Exceptional
Customer Service and Exceptional
Borrower Benefits over the life of your loan.
