Financial
Aid
Financial
Aid comes in the form of loans that must be repaid, with interest.
There are 4 types of loans:
Student
Loans (Stafford Loans and Perkins Loans are this type)
Parent
Loans (PLUS loans are this type)
Private
Education Loans (can also be called Alternative Loans)
The
fourth type is for after you have areranged all of your student
loans. You can then do a Consolidation Loan to bring all of your
student loans together for one interest rate (hopefully lower) and
one payment.
Interest
rates are expected to increase by 1.5% to 2.0% on July 1, 2006,
returning to historical averages. In addition, Congress is proposing
to change the consolidation loan program from a fixed interest rate
to a variable interest rate starting July 1, 2006.
School
Programs
The
financial aid office at the school you plan to attend is the best
place to begin your search for free information. The financial aid
administrator can tell you about student aid available from your
state, the school itself, and other sources. The school is required
to inform you of its aid procedures and deadlines, and how and when
you'll receive your aid award.
Be
sure that you've read and understood each school's satisfactory
academic progress policy and keep copies of your enrollment agreement,
the school's catalog, and all financial aid documents (especially
loan documents) you receive. You can also find free information
about federal, state, school, and private student aid in your local
library's reference section (usually listed under "student aid"
or "financial aid"). Student aid information may also be available
from foundations, religious organizations, community organizations,
and civic groups, as well as organizations related to your field
of interest, such as the American Medical Association or American
Bar Association.
You
can also check with your parents' employers or unions to see if
they award scholarships or have tuition payment plans. Federal Financial
Adi comes in the form of loans that must be repaid, but are guranteed
by the federal government. You can fill out a Free Application for
Federal Student Aid (FAFSA) at http://www.fafsa.ed.gov.
