10 Key Factors on Fees, Loans & Grants Every Student Should Know

Pursuing a degree is not easy; there are many financial constraints that are involved and you need to be aware of the different loans and grants that can reduce your financial burden. One way of doing that is by looking for financial aid. Over 8 million students apply and receive financial aids every year. You can find out from your college financial counselor about the money you are eligible for. You can even fill the Free Application for Federal Student Aid to evaluate how much you are eligible for. 10 Things You Must Know About Financial Aid Here are some things you should keep in mind when you apply for financial aid: 1. Apply for financial aid as soon as you decide to apply for an online degree program. You can either start in your high school or start looking out the year before you go to college by filling the Free Application for Federal Student Aid (FAFSA).rn2. You should be aware of the FAFSA and its offerings. The FAFSA helps you to calculate the amount of money you or your family are able to contribute towards your higher education cost. The form is available on the FAFSA website: www.fafsa.ed.gov. You can also get a hardcopy from the financial aid office of your school or from your financial counselor. The Financial Aid Advisor can help you to fill the form.rn3. You have a better chance of getting more aid if you apply just after January 1 of the year you are planning to apply for financial aid. This is because the amount for each institute is restricted and is offered on a first come, first serve basis.rn4. You can get your money based on the financial structure of your school which can vary from online college to college. Usually the amount is not given directly to you; most of it gets directly credited to your account during the commencement of your terms.rn5. You can either opt for a loan or a grant which can be divided into merit based and need-based loans and grants. Usually grants and scholarships are offered depending on your merit and achievement. You can even consider government-subsidized loans at low-interest which provide educational tax benefits.rn6. Grants are offered as Pell Grant and the TEACH Grant based on your performance. The grant amount need not be paid back.rn7. However, the federal loan programs offered as Federal Direct Subsidized and Federal Direct Unsubsidized Loans, the Perkins Loan, and the Parent PLUS Loan and Graduate PLUS need to be paid back with the interest rates. But they are offered at a lower interest rate than any private student loan offered by banks.rn8. part from these federal financial aids, you can also avail the benefits of state-based financial aid offered by the state in which you are residing.rn9. While Federal Stafford loans do not require any form of credit checks, if there has been a default in repaying the student loan, then you will not be eligible for any new federal loan. However, the PLUS loan (Parent Loan for Undergraduate Students) requires a credit check and might not be given to you if you have bad credit. Moreover all private student loans require credit checks.rn10. There are repayment procedures for each kind of loan and they are all considered as separate entities. You can however consolidate them in a private consolidation loan. Contact the financial aid officer of your school to get to know more information and ask seniors who landed grants how they went about it. Good luck!