Financial aid Essay

Custom Student Mr. Teacher ENG 1001-04 1 May 2016

Financial aid

55% of college students don’t know what financial aid is and how helpful it is for their education. What is financial aid? Financial aid helps college student cover their classes. There are different steps to accomplish before you will be able to get financial aid. Financial is known as the biggest contributor of student financial aid in the United States. According to, financial aid spent more than 150 billion for 15 million students. Federal Student Aid is responsible for controlling the student financial assistance programs. These programs give grants, loans, and work-study funds to students attending college. They make sure students can benefit from these programs by telling students about different opportunities of the programs and the steps for applying and get aid from those programs. First of all, Grants and scholarships are usually the most apply for because you won’t have to pay anything back because they are free money.

They are the only financial aid money that doesn’t have to be repaid. For example, statistics shows that Grants and loans are the major forms of federal financial aid for degree-seeking undergraduate students. The largest federal grant program available to undergraduate students is the Pell Grant program. In order to qualify for a Pell Grant, a student must demonstrate financial need. Federal loans, on the other hand, are available to all students. In addition to federal financial aid, there are also grants from state and local governments, institutions, and private sources, as well as private loans. Furthermore, they mention that in the academic years 2006–07 to 2011–12, the percentage of first-time, full-time undergraduate students at 4-year degree-granting institutions receiving any financial aid increased from 75 to 85 percent. The percentage of students receiving aid at 4-year public institutions increased from 75 to 83 percent.

According to, Grants are need-based, while scholarships are usually merit-based. Grants and loans are the major forms of federal financial aid for degree-seeking undergraduate students. The largest federal grant program available to undergraduate students is the Pell Grant program. In order to qualify for a Pell Grant, a student must demonstrate financial need. Federal loans, on the other hand, are available to all students. In addition to federal financial aid, there are also grants from state and local governments, institutions, and private sources, as well as private loans.Grants and scholarships can come from the federal government, your state government, your college or career school, or a private or nonprofit organization. Do your research, apply for any grants or scholarships you might be eligible for, and be sure to meet application deadlines! According to, The U.S department of education have different programs of grants.

They have given each grants its own page. How can you get a financial aid? Almost all of their grants are reimburse to students with low income. If you are interested in grants, or in any federal student aid, you have to begin by sending a free application on Once you’ve done that, you’ll talk to your college to find out how much you can get and what are the other steps when you submit your fasfa. Most students usually ask what kinds of scholarships are available, and how do you get one? According to, there are abundance amount of scholarships from all kinds of organizations and they’re easy to find. Most college students will probably be able to receive a scholarship for being a great student, a good soccer player, or a member of a church, or because your parent works for a particular company, or for some other reason. You’ll also want to be careful and avoid scholarship scams because other websites will tell you to apply.

The only reliable website to apply is Additionally, when students apply for financial aid, they are most likely offered loans as part of your school’s financial aid. A loan is money you borrow and must pay back with interest. If you think you need to take out a loan, you have to know who is making the loan and the different requirements, terms and conditions of the loan. According to, Student loans can come from the federal government. According to my research, Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources. Learn more about the differences between federal and private student loans. my financial advisor in my college, Mr. Angel Camillo observes that a lot of students ask him different kind of questions about loans. For example, they usually ask him those questions, available? What types of federal student loans are available?

According to, The U.S. Department of Education has two federal student loan programs which are The William D. Ford Federal Direct Loan Program is the largest federal student loan program. Under this program, the U.S. Department of Education is your lender. There are four types of Direct Loans available direct are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school. Unsubsidized loans are loans which they give to eligible undergraduate, graduate, and professional students, but in this case, the student does not have to demonstrate financial need to be eligible for the loan. Direct loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Direct allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.

The federal loan Program called mostly Perkins is a school loan program for undergraduates and graduate students with extreme financial need. Under the program, the school is the organization that lends student money. If you are an undergraduate student, you are eligible to Up to $5,500 per year in Perkins Loans depending on your financial need, the amount of other aid you receive, and the availability of funds at your college or career school. $5,500 to $12,500 per year in Direct Subsidized Loans and Direct Unsubsidized Loans depending on certain factors, including your year in college. If you are a graduate student, you are able to get Up to $8,000 each year in Perkins Loans depending on your financial need, the amount of other aid you receive, and the availability of funds at your college or career school.

Additionally, Up to $20,500 each year in Direct Unsubsidized Loans. The remainder of your college costs not covered by other financial aid in Direct PLUS Loans. If you are a parent of a dependent undergraduate student the remainder of your child’s college costs that are not covered by other financial aid. Note: A credit check is required for a parent loan. Other question students ask is why should I take out federal student loans? Federal student loans are an investment in your future. You should not be afraid to take out federal student loans, but you should be smart about it. Federal student loans offer many benefits compared to other options you may consider when paying for college The interest rate on federal student loans is almost always lower than that on private loans—and much lower than that on a credit card!You don’t need a credit check or a cosigner to get most federal student loans. You don’t have to begin repaying your federal student loans until after you leave college or drop below half-time.

If your application shows that you need financial aid, you will most likely qualify to have the government pay your interest while you are in school. Federal student loans offer flexible repayment plans and options to postpone your loan payments if you’re having trouble making payments. If you work in certain jobs, you may be eligible to have a portion of your federal student loans forgiven if you meet certain conditions. Students also ask questions about loans. What should they observes before they can take a loan? According to, before you take out a loan, it’s important to understand that a loan is a legal obligation that you will be responsible for repaying with interest. You may not have to begin repaying your federal student loans right away, but you don’t have to wait to understand your responsibilities as a borrower. Keep track of how much you’re borrowing. Think about how the amount of your loans will affect your future finances, and how much you can afford to repay.

Your student loan payments should be only a small percentage of your salary after you graduate, so it’s important not to borrow more than you need for your school-related expenses. Research starting salaries in your field. Ask your school for starting salaries of recent graduates in your field of study to get an idea of how much you are likely to earn after you graduate. You can use the U.S. Department of Labor’s Occupational Outlook Handbook to estimate salaries for different careers or research employment opportunities advertised in the area where you plan to live to get an idea of a local starting salary. For more information, you also can use the Department of Labor’s career search tool to research careers and view the average annual salary for each career. Understand the terms of your loan and keep copies of your loan documents. When you sign your promissory note, you are agreeing to repay the loan according to the terms of the note even if you don’t complete your education, can’t get a job after you complete the program, or you didn’t like the education you received.

Make payments on time. You are required to make payments on time even if you don’t receive a bill, repayment notice, or a reminder. You must pay the full amount required by your repayment plan, as partial payments do not fulfill your obligation to repay your student loan on time. Keep in touch with your loan servicer. Notify your loan servicer when you graduate; withdraw from school; drop below half-time status; transfer to another school; or change your name, address, or Social Security number. You also should contact your servicer if you’re having trouble making your scheduled loan payments. Your servicer has several options available to help you keep your loan in good standing. Undergraduate and graduate students with work-study jobs will work part-time on or off-campus while enrolled. Federal Work-Study provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the student’s course of study.

An example of work study is it provides part-time employment while you are enrolled in school. It’s available to undergraduate, graduate, and professional students with financial need. It’s available to full-time or part-time students. It’s administered by schools participating in the Federal Work-Study Program. Check with your school’s financial aid office to find out if your school participates. The Federal Work-Study Program highlights employment in civic education and work related to your course of study, whenever possible. Are jobs on campus or off campus? Both. If you work on campus, you’ll usually work for your school. If you work off campus, your employer will usually be a private nonprofit organization or a public agency, and the work performed must be in the public interest. Some schools might have agreements with private for-profit employers for work-study jobs. These jobs must be relevant to your course of study.

If you attend a proprietary school, there may be further restrictions on the types of jobs you can be assigned. You’ll earn at least the current federal minimum wage. However, you may earn more depending on the type of work you do and the skills required for the position. The most important question students ask is can they work more hours than ask? The answer is no because the amount students earn can’t go past the total amount of Federal Work-Study award. According to, when they give your work hours, your employer or your school’s financial aid office will consider your class schedule and your academic progress. Generally, your grant or loan will cover a full academic year and your school will disburse your money in at least two payments called disbursements. In most cases, your school must pay you at least once per term .Schools that don’t use traditional terms such as semesters or quarters usually must pay you at least twice per academic year—for instance, at the beginning and midpoint of your academic year.

If you’re a parent taking out a Direct PLUS Loan to help pay for your child’s education expenses, your loan funds will be disbursed according to the same type of schedule. If you’re a first-year undergraduate student and a first-time borrower, you may have to wait 30 days after the first day of your enrollment period .for your first disbursement. Check with your school to see whether this rule applies there. If you’re a first-time borrower of a Direct Subsidized Loan or a Direct Unsubsidized Loan. Similarly, if you are a graduate or professional student taking out a Direct PLUS Loan for the first time, you must complete entrance counseling before receiving your first disbursement.

If you are a parent taking out a Direct PLUS Loan to help pay for your child’s education, you will not be required to participate in entrance counseling. If you’re going to have a work-study job, you’ll be paid at least once a month. If you don’t receive the type or amount of financial aid you expect to, contact your school. The financial aid office can explain how your aid was determined. All in all, financial aid is here to help students in need to cover their tuition fees. I urge every students to go to their school financial aid office to get more information about it because it’s really important. Financial can help you for your future. I hope every students know financial aid and the help they could get from them.

Work cited
“Cost and Financial Aid Increasingly Influence Students’ Choice of College.” The Chronicle of Higher Education. N.p., n.d. Web. 22 July 2014. “Fast Facts.” Fast Facts. N.p., n.d. Web. 21 July 2014.

“Financial Aid Can Help You Afford College.” Financial Aid Can Help You Afford College. N.p., n.d. Web. 21 July 2014. Los Angeles Times. Los Angeles Times, n.d. Web. 22 July 2014. N.p., n.d. Web.

Tomusk, Voldemar. ““Nobody Can Better Destroy Your Higher Education than Yourself”: Critical Remarks about Quality Assessment and Funding in Estonian Higher Education.” Assessment & Evaluation in Higher Education 20.1 (1995): 115-24. Web.

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