Many students don’t believe that they can afford college because of the rising costs. For students in this predicament, there is hope. Federal and state loan programs assist students in making a college education a reality. Here is some advice about student loan programs for financing a college education.

Before students can determine how much college financial aid to apply for, they need to begin at the beginning with the financial aid form. The free student financial aid form (FAFSA) is available for students to fill out after the first of the year. Once parents have received their tax documents the student can go ahead and begin the process.

The federal financial aid application needs to be filled out each year in order to qualify for aid. The FAFSA application can be picked up from the school guidance counselor. There is also a website (fafsa.ed.gov) where the form can be filled out electronically. Filling out the form this way allows for a quicker turnaround time on the application.

The financial aid award letter is compiled from the information received on the federal financial aid form. This student report tells how much financial aid a student needs and what he or she is eligible for. This form lists the student loans (if any) that the student can apply for to receive money for college.

College financial aid from the federal government is on a first come basis. The earlier that you file the form, the better your awards letter will look. Studying the letter provides both student and parent with vital information about loans.

Federal student loan programs are listed on the aid letter. These programs include need and non-need based federal loan programs for the student.

Federal loan programs include: Direct student loans (subsidized and unsubsidized), Stafford loans (subsidized and unsubsidized), and Perkins loans.

When considering student loan programs, parents need to look at three things. First, the loan with the lowest interest rate is best. A lower interest rate means lower payments when it is time to begin that phase. Secondly, government loans based on need provide a grace period before repayment. Students can complete their studies before beginning to repay the loan. Lastly, subsidized federal loans have the interest on the loan paid by the lender during the time that the student is in school. This subsidy keeps the student from having to start payments while in school.

Students can also pursue other loan solutions. These loans include private student loans that are not funded by the government. Privately funded loans help families pay the portion of the college bill that has been assigned to them. Families are assigned an amount to pay based on their financial picture.

States offer loan programs to students also. To be eligible for these loan programs, students have to attend a state school. If the student plans to attend a state school, these loan programs are a good choice for college financial aid.

Some state programs cater to specific needs of that state. For instance, some states offer loan programs for teachers. They receive the loan money with the understanding that they will teach in an underprivileged area of the state for a certain amount of years in exchange. This loan is called a scholarship loan. The student has to attend a school with elementary or teaching education as a course of study.

State loan programs vary by state. Look up your particular state to find out which loan and even student scholarship programs they offer. Even if you were considering an out-of-state school, it may be worth your while to attend a state school that you like to receive more financial aid.

State and federal loan programs exist to meet the needs of students for college. No matter what your financial picture is like, there are a number of resources available to help meet the costs of college. Start your search today.

Tags: college financial aid | direct student loans | direct student loans | state loan programs | stafford loans | stafford loans | perkins loans | perkins loans | student loan | college | FAFSA

del.icio.us Digg Furl Reddit