Financial Aid for College: What Are The Different Types?

Many students will require financial aid to assist them in paying for college. They have a variety of financial aid options to choose from, which is fortunate for them. Federated Financial is one of the authority sites on this topic.

A student must complete the FAFSA application form, which can be found here, in order to receive federal financial aid from the government.

You and the schools you’ve chosen will receive your personalised Expected Family Contribution (EFC) number once your FASFA financial aid application has been processed. This is the figure used to determine how much federal aid you are eligible for.

Student loans are sums of money that must be borrowed and repaid with interest. The following are the various types of student loans available:

Federal Stafford Loans with Subsidies – Federal Stafford Loans with Subsidies that are available to undergraduate and graduate students who demonstrate financial need.

Unsubsidized Federal Stafford Loans – Unsubsidized Federal Stafford Loans are available to undergraduate and graduate students regardless of financial need.

Federal PLUS Loans are federal loans for undergraduate students that are available to parents to help their children pay for their education.

Federal Perkins Loans – Low-interest government loans made to undergraduate and graduate students with significant financial need through a participating school.

Private Student Loans, also known as alternative student loans, are loans provided by private institutions that are more flexible and have higher borrowing limits.

Subsidies

A grant is a federally funded scholarship that you can use to help pay for your tuition. The best part is that you don’t have to pay it back. 26 federal departments, including the Department of Education, provide over 1,000 grant programmes.