Federal Loans

It's a common dilemma for students when they receive admission to the school of their choice: how will I pay for college? Just because a particular school is expensive doesn't mean the less-fortunate should consider it an improbable option. Government financial aid has been a real shot in the arm for low-income students who are qualified for college, but lack the necessary funds.

Financial aid is a program available to the large majority of students, and the hardest part really might be just filling out that financial aid application, called a FAFSA financial aid form. Types of college financial aid offered are loans, grants, scholarships, or fellowships. Whatever the option, it's certainly better than not going to college at all. Here are a few types of federal student loans.

One offering that has become popular lately is a kind of federal financial aid called Stafford Loans. These are federal student loans for students enrolled in an accredited institution - a real school. Stafford Loans are granted regardless of financial need. The two types of Staffords are subsidized and unsubsidized, reflecting the timing of interest payments the borrower pays during school.

Plus, loans are low-interest, federally funded loans available to credit worthy parents of needy students - not to be confused with federal direct student loans, which are a different animal. The qualifications for this loan are the student and borrower must be US citizens, have a valid Social Security number, not be in evasion of any other federal student loans, meet geographic limitations, and properly fill out the federal student financial aid form (FAFSA).

Another type of federal student loan is the Perkins loan, which is limited in availability and designed for good students who demonstrate hardship. Since this government financial aid is highly desired, these federal student loans are given to students who are the first to meet all requirements and deadlines.

Outside of these federal loans, there are types of free financial aid, usually based on academic qualifications. Some colleges offer grants or fellowships, which are another form of college financial aid that doesn't require repayment. The most important thing to do is actually take the time and fill out the financial aid form so you can discover what kinds of student financial aid are available.

The likelihood of receiving some form of financial aid is high, with federal student loans - like the Stafford Loans - being the most common. The one thing to remember is loans have to be repaid, while grants, fellowships, and scholarships do not. A good word of advice is to keep your GPA as high as possible and score highly on your SAT and ACT college exams to increase your options. Whichever options are offered, you can't know until you grab a pencil and fill out the federal student financial aid form. Ask and you shall receive.