FAFSA = Free Application for Federal Student Aid.
Unless you are wealthy enough to finance your own, or another person's education, or are fortunate enough to have grants and/or scholarships to fully cover the cost of college education, student loans are a necessity these days to make the dream of earning a college degree a reality.
The FAFSA is lengthy and thorough, but you can fill it out online and save it there for future use. For instance, each year, you can just renew the FAFSA, only updating relevant information for the current year. The purpose of the FAFSA is to ensure all eligible students receive the funds they need to attend college. Some of the benefits of federal student loans include low fixed interest rates, excellent repayment terms (typically not starting until six months after graduation or after the student no longer maintains at least half-time student status), and NO credit check.
Image via WikipediaStafford federal student loans are available as either:
*Subsidized--demonstrated financial need; government pays interest on loan until six months after student is no longer enrolled at least half-time in school;
OR
*Unsubsidized--regardless of financial need; student is responsible for accrued interest, which he or she may pay while in school, or have it applied to the loan balance.
Other federal loans include student PLUS loans and consolidation loans.
Here is a list of tips from the FAFSA site of what you need to do to apply for a federal student loan:
- Gather the following information: previous year's tax return and other income information; social security number/s (yours and parents' numbers, if you are under 18 and a dependent); driver's license number (if you have one); alien registration number if you are not a US citizen.
- Apply as soon as possible after January 1st each year and be mindful of your school's financial aid application deadlines.
- Review your FAFSA for accuracy after receiving your Student Aid Report (SAR).
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It's a pain to fill out, but can be very beneficial. I'm so glad I found your blog. I'm stopping by from the A to Z challenge and I look forward to visiting again.
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