My Boarding School Blog
11 10th, 2010 What is a Pell Grant?
The economic meltdown experienced in the US takes a toll on graduating students who aspires for a college education. Good thing there are Pell grants available for students and parents to aid in financing for higher education. Also known as a Federal Pell Grant differs from a loan for it does not need to be repaid. Certain qualifications and criteria apply in the selection of the Pell Grant recipients. They are available to undergraduate students without a professional degree. The maximum Pell Grant amount for 2010-2011 is $5,500.
Although a Pell Grant may not pay for the entire tuition fee depending on the degree taken, income of the family, and if the student is a full time or part time student. To apply for the Pell grant one must apply first for the Free Application for Federal Student Aid (FAFSA). A report will be generated and sent to the applicant informing them if they qualified for the grant.
The qualifications considered in the screening of applicants for the Pell grant includes family income if the student still lives with the parents, individual income if the student has work, number of students in the family who are in college and the living expenses of the student. These factors play a role in determining if an individual is qualified for the assistance. The goal is to help and provide low income student with the chance to finish their college education and obtain a degree they can use to alleviate their socioeconomic status. Once eligible and you have passed the screening process you will be awarded with the Pell Grant funds to your school or pay you directly by means of check or other methods. Schools can disburse funds either by semester, trimester or quarterly.
read comments (0)09 7th, 2010 Student Loans and Grants in the US
A student loan helps in paying for tuition fee, books and other expenses in college. Its interest rate is lower compared to other types of loans and is payable after graduation. In the US student loans are offered by the federal government in the U.S. Department of Education’s Direct Loan Program.
By using the Direct Loan Program the student is borrowing directly from the government which has less interest than other loan agencies or banks. Apart from the low interest you only communicate with one agency—Direct Loan Servicing Center which can be accessed at their website: www.dl.ed.gov.
The qualifications required for applying for a student loan depends on a variety of factors such as parent’s income and your credit history. The first step is to fill out an application form or the Free Application for Federal Student Aid (FAFSA). To guide you on your student loan application here are the necessary steps to take.
- Check your Dependency Status
- Accomplish the FAFSA on the Web Worksheet
- Look for School Codes
- Students & Parents Apply For a PIN
- Check your Application Deadline Dates
After accomplishing the above steps you are ready to fill out the application and log in electronically to your account with your pin. Checking the status of your loan application can be viewed online and other changes such as adding school codes can be made into your account.
The US Department of Education Direct Loan Program is the largest loan giving body in the country. Their programs offer more than $100 billion consisting of grants, loans and student aids in different states. Their loan programs come in 3 different types.
- Subsidized – for students who are determined by federal regulations needing financial help. No interest is charged while in school, during the grace period and deferment methods.
- Unsubsidized – loan application is not based from a financial need. Interest is charged at all times.
- PLUS – unsubsidized loans for the parents of the students and for graduate or professional students. Interest is charged on all periods.
- Consolidation- all eligible student loans combined into one direct consolidation loan.
Before availing a student loan the expenses should be estimated to be able to provide a rough guide of what you will get when the loan application is granted. For subsidized and unsubsidized loans the interest rate is a fixed 6.80%.
