Tuesday, November 17, 2015

Federal Student Loans

Good evening,

As many of you start your college application process, you will need to consider applying for FAFSA along with federal student loans. FAFA stands for Free Application for Federal Student Aid. You must submit the application in order to receive student aid for college. When applying you will need the following:

  1. Your SSN
  2. Parent(s) SSN
  3. Driver's License Number
  4. Personal Savings and Investment Account information of yours and your parents. 
The earliest you can apply for FAFSA is January 1st for the year you are attending college. I suggest applying on January 1st if you can.  You can fill out as much as you can and correct it later. This is because the student aid does run out. You want to make sure to apply right away in order to receive it. 

Federal student aid includes:
  1. Grants financial aid that does not have to be repaid.
  2. Loans-borrowed money that you must repay.
  3. Work-study- a work program through which you can earn money to help pay for school.

There are three different types of federal student loans and a lot of students and even parents get this confused.

Direct Subsidized Loans
Subsidized loans are for students with demonstrated financial need, as determined by federal regulation. You will have to pay back the loan, but it does not charge you while you are attending school at least part-time. 

Direct Unsubsidized Loans
This loan is not based on financial need. Your school will determine the amount you can borrow based on your tuition, This loan does charge interest even when you are in school.

Direct PLUS Loans
This loan is unsubsidized. The parents of dependent students are able to take out this loan. 

Here is a link to a video further explaining the different types of federal student aid.




Works Cited:
Federal Student Loans. (n.d.). Retrieved November 18, 2015, from https://www.salliemae.com/plan-for-college/types-of-student-loans/federal-student-loans/

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