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Thread: HELP!!! Need answers to questions about Student Grants/Loans.....

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    Veteran Member Kittie's Avatar
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    Default HELP!!! Need answers to questions about Student Grants/Loans.....

    Ok. I have a few questions.

    1. Where can I find information about goverment grants for students that I don't have to pay for???? (I absolutely refuse to pay $99.95 to find this out.)

    2. Are federal loans easy to get?

    3. When do you have to start paying back student loans from the government?

    4. Can you get loans and grant from the government for incidentals and course materials in addition to tuition?

    5. When you get a federal grant or a loan is the check made out to the student or to the school?


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    God/dess Lena's Avatar
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    Default Re:HELP!!! Need answers to questions about Student Grants/Loans.....


    You can fill out the FAFSA (federal application for student aid, I think) form online for free - do a search for FAFSA. Based on your tax's from last year, the govt will determine what your estimated contribution to your own education should be. The government will cover the cost of your education above that amount, up to about $4500 for the year. They send the money to the school and the school sends you a bill for the rest of it.

    You can get student loans by checking the student loan box on the FAFSA application. Most student loans don't have to be paid as long as you are in school.

    The financial aid office at your school should have a list of scholarships available.

    Lena



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    Banned Melonie's Avatar
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    Default Re:HELP!!! Need answers to questions about Student Grants/Loans.....

    Based on your tax's from last year, the govt will determine what your estimated contribution to your own education should be.
    Just to clarify, the US gov't makes this calculation based on household income - meaning that if Kittie lives on her own and files her own tax return it will only be her income which is counted. However, if she still lives with family and is considered to be a dependent on her parent's tax return, then both her own income and her parents' income are factored into the equation.

    Pell Grants are indeed grants - "free money" toward college expenses which does not have to be repaid. However, the amount of money typically available in the form of Pell Grants is typically limited to enough to pay for textbooks !

    Stafford Loans are basically a co-operation between the gov't and a local lender. The local lender pony's up the tuition money every year in the form of a low interest rate loan. The interest rate is low because the gov't guarantees that the loan will be repaid by them if not by the student. The gov't then basically makes the interest payments for you to the local lender while you are still in school. Then a few months after you graduate (or leave school), the gov't stops making the interest payments and the borrower must then make their own payments towards principal and interest. It should be noted that Stafford Loans are specifically exempted from bankruptcy protection - meaning that if you go belly up on a Stafford Loan it will haunt you forever in the form of confiscated future tax refunds, refusal to grant licenses in some states, etc.

    Student Loans are also available from local lenders which do not have the gov't paid interest while you are in school feature. These either require you to make interest payments yourself while you are a student, or calculate the interest payments during the time you are a student into the amount you borrow (thus making your payments larger when you graduate or leave school). Interest rates on local lender Student Loans are usually higher than on Stafford Loans, because there is no gov't guarantee of repayment. However, these Student Loans from local lenders are not exempted from bankruptcy protection, and won't haunt you should you go belly up on them.

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    Default Re:HELP!!! Need answers to questions about Student Grants/Loans.....

    Quote Originally Posted by Melonie link=board=6;threadid=12919;start=msg167460#msg167 460 date=1093947214
    Based on your tax's from last year, the govt will determine what your estimated contribution to your own education should be.
    Just to clarify, the US gov't makes this calculation based on household income - meaning that if Kittie lives on her own and files her own tax return it will only be her income which is counted. However, if she still lives with family and is considered to be a dependent on her parent's tax return, then both her own income and her parents' income are factored into the equation.
    Just needed to jump in here...when I applied for FSFSA, I had to provide my mom's tax returns as well. I was 24, lived on my own for 3 years, and was told that my parent's income would be used to determine my "eligibility" until I reached the age of 25. I lost a lot of aid since my mom is self-employed, and although she makes a decent living, she was not going to contribute to my out-of-state tuition (she paid for my in-state tuition). So...you will want to check...they may have changed things...but they will want to see your parents tax returns until you are 25.

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    Default Re:HELP!!! Need answers to questions about Student Grants/Loans.....

    Sorry if this sounds like gobbledygook but it is from the gov.

    http://studentaid.ed.gov/PORTALSWebA...glish/faqs.jsp
    8. Why do I have to provide my parents' information on the FAFSA?

    When you apply for federal student aid, your answers to the questions in Step 3 of the paper FAFSA or in Step 2 of the online FAFSA will determine whether you're considered dependent on your parents or independent. If you're considered dependent, your parents' income and assets as well as your own must be reported on the FAFSA. Students are classified as dependent or independent because federal student aid programs are based on the principle that students (and their parents or spouse, if applicable) are considered the primary source of support for postsecondary education.
    According to http://www.fafsa.ed.gov/help/fftoc03k.htm

    For federal financial aid purposes, a student is independent if he or she can answer Yes to any of these questions:

    Was the student born before January 1, 1981?
    During the school year 2004-2005, will the student be working on a master's or doctorate program (such as an MA, MBA, MD, JD, Ph.D., Ed.D., graduate certificate, etc.)?
    Is the student married?
    Does the student have children who receive more than half of their support from the student?
    Does the student have dependents other than the student's children or spouse who live with the student and who received more than half of their support from the student, now and through June 30, 2005?
    Is the student an orphan, or is the student or was the student (until age 1 a ward/dependent of the court?
    Is the student a veteran of the U.S. Armed Forces?
    If the student claims to be independent, the student's school may ask that the student verify his or her answers to these questions before he or she can receive any federal student aid. If the student thinks he or she has unusual circumstances that might make him or her independent, the student should contact the school's financial aid office.

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    God/dess Lena's Avatar
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    Default Re:HELP!!! Need answers to questions about Student Grants/Loans.....

    I always forget about that. I get to check the orphan/ward of the court box so I don't have to use my parents.



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    Default Re:HELP!!! Need answers to questions about Student Grants/Loans.....

    also kittie, if you do a google search for "fafsa" or "student scholarships" remember you never never have to pay any kind of fee. fafsa means free application for federal student aid. I point this out because in my search I came across plenty of sites that for a "nominal fee" will do the paperwork for you. Also there are tons of websites that will link you to various scholarships and grants for which there is no fee to apply. Your first step is filling out your fafsa. Many times you cannot get other aid without first doing the fafsa. There are soooooo many different scholarships out there and not all of them merit based. I swear there is nearly a scholarship for almost every type of person. Search for your gender, ethnicity, parents service in the military, your last name, town you were born in etc. Also, your school's financial aid office has resources to tons of scholarships and grants.

    Even with my horrid credit, I had no problem getting a stafford loan, perkins loan and another one too i forgot what it was called. But I am considered an independent student. You start repaying loans when you are no longer in school full time.

    Also, it's my understanding that student aid you receive is used for anything to help you attend school. Not just tuition and books. That would include transportation, childcare etc. You don't have to breakdown what you're spending your aid on, just keep your grades up.


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