How Does Financial Aid Work?
Parents who will have a child(ren) going off to college in the next year or so are paying close attention to attendance costs due to current economic uncertainty. Getting all pertinent facts and understanding how does financial aid work will help relieve much of their anxiety.
Economic assistance is a vital element of a college education. Most people cannot attend college without such assistance. Educational financial aid funds may be used for living expenses and other college-related costs in addition to tuition and matriculation fees. Student aid is funded by state, federal, private, and institutional sources and may consist of loans, grants, scholarships, or work-study salaries. This type of economic assistance is awarded based upon funds availability and students demonstrated financial need.
Financial assistance is available to students in various circumstances, so parents should always complete a Free Application For Student Assistance ("FAFSA") application. Even many students from families with six-figure incomes get financial assistance. If your own family has suffered a significant financial setback, you should contact a Financial Aid Officer at your child's school to explain the situation. Most colleges will
work with you to make it possible to attend their school.
Student loans are a form of educational economic assistance that must be repaid. Unlike other loans, however, repayment of need-based student loans does not begin until the student graduates from college and typically have very low interest rates.
Students with substantial demonstrated merit or financial need may qualify for scholarships. Students how feel that they cannot afford to attend college should look into scholarships, as such funds are available to those who seek them out. Scholarships do not have to be repaid.
A FAFSA is not required for merit-based financial assistance, but is strongly advised, as these scholarships seldom cover the full cost of attendance. Most scholarships do not require a separate application. Merit programs (including scholarships) help students with special abilities. Quite often, you are not required to prove financial need in order to receive funds via merit-based programs.
Many college scholarships are out there waiting for students to find them. Private organizations and corporations in addition to many educational and religious associations offer scholarships.
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Category: Personal Finance