DIFFERENT TYPES OF AID
ATTEND OF COLLEGE OR UNIVERSITY THAT PARTICIPATES IN THE
WILLIAM D. FORD DIRECT LENDING PROGRAM!!!!!
William D. Ford Direct loans originate from the government.
William D. Ford will have lowest fixed interest rates.
(Remember, when school is finished, consolidate directly with the government for the lowest fixed interest rates. http://www.dlservicer.ed.gov)
-The FFEL or Federal Family Education Loans -
The difference - FFEL lenders, originate from the government, but force borrowers to immediately take loans from a private lender.
(BAD MOVE. Really BAD MOVE)
YIKES!
Every school year each college calculates an estimated cost of attendance. This cost is set in stone, and is used to calculate how many loans, grants and scholarships you may receive. Your college, after receiving the FAFSA, will put together a financial aid package offer for you based on that estimated cost of attendance.
As you are waiting for your college to send your "financial aid offer" (a.k.a. financial aid package), either via mail or on the internet, it is you job to get familiar with different types of aid that will appear in your Financial Aid Offer Letter:
FEDERAL PELL GRANTS: FREE MONEY - GREAT Available for undergraduate students, with no bachelor's or other higher degrees, who have financial need and are U.S. citizens or eligible non-citizens enrolled in an accredited university. Awards can range upwards to $5,100 per academic year depending on availability. When you submit your FAFSA, your college or university will calculate the amount of your award.
FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANT: FREE MONEY - GREAT - Available for undergraduate students, with no bachelor's or other higher degrees, who have financial need and are U.S. citizens or eligible non-citizens enrolled in an accredited university. Awards can range upwards to $4,000 per academic year depending on availability. When you submit your FAFSA, your college or university will calculate the amount of your award.
FEDERAL PERKINS LOANS: LOANS - GREAT/GOOD - LOWEST INTEREST RATE - Available for undergraduate and graduate students who have financial need. Must be U.S. citizens or eligible non-citizens enrolled in an accredited college or university. There is a $4,000 per year maximum. When you submit your FAFSA, your college or university will calculate your award.
FEDERAL PLUS LOANS: LOANS - GOOD - IF FROM WILLIAM D. FORD - Available for parents or step-parents of college bound students. The maximum loan amount available depends on the estimated cost of education (calculated by the financial aid office) minus other financial aid received. remember, this is a parental loan, so independent students are not eligible to apply.
FEDERAL UNSUBSIDIZED/SUBSIDIZED LOANS: LOANS - GOOD - IF FROM WILLIAM D. FORD - Available for undergraduate and graduate students who have financial need. Must be U.S. citizens or eligible non-citizens enrolled in an accredited college or university. There is a per year maximum. When you submit your FAFSA, your college or university will calculate your award. When you submit your FAFSA, your college or university will calculate the amount of your award.
GRADUATE STUDENTS - FEDERAL GRADPLUS LOANS - GOOD - FIXED INTEREST RATE. ORIGINATES DIRECTLY THOUGH THE GOVERNMENT. PART OF THE WILLIAM D. FORD OFFERINGS. AVOID PRIVATE LENDERS AND USE THESE LOANS INSTEAD. NO AGGREGATE AMOUNT!!!! NO PREDATORY LENDING TACTICS!!!
IF YOU ATTEND A PRIVATE INSTITUTION AND YOUR PACKAGE DOES NOT INCLUDE THESE LOANS, AND YOU STILL HAVE A BILL MAILED TO YOU FOR PAYMENTS DUE, ASK YOUR SCHOOL TO PROVIDE ACCESS TO THESE LOANS TO FILL THE GAP!!! THESE LOANS ARE AVAILABLE BUT ARE NOT AUTOMATICALLY OFFERED BY SOME PRIVATE COLLEGES.
Scroll to the bottom of the page to see per year maximums students can borrow.
FEDERAL WORK STUDY: WORKING FOR MONEY - OKAY- WAGES ARE USUALLY POOR - Available for undergraduate and graduate students. The college provides jobs to students as part of the financial aid package to help earn money to pay for education versus borrowing 100% loans. Jobs usually pay wages depending on year in school.
SALLIE MAE - SUCKS - AVOID - PREDATORY LENDER- RUN
Are you eligible to receive financial aid?
Legitimate Web-site for more goodies!
Updated September 16, 2008 16:51
the U.S. Department of Education.
This web-site is a very condensed cluster of information, designed to diminish the intimidation of the financial aid process.
More information is available at your college of choice.
Call them. They will help.
consolidate via the federal government at www.dlservicer.ed.gov
This will help you avoid predatory lenders.
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