The Benefits of Federal Student Aid
Federal student financial aid has helped thousands of need-based students achieve their dreams of going to college because the aid was either free, interest was paid by the government or the student loan interest rates were extremely low!
Just during the 2004-05 school year the federal government dispersed over $129 billion in financial aid, and 63% of it consisted of federal student loans. Since then the government has also given away many college grants and scholarships that didn't need to be paid back, which helped make college more affordable for students.
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It is estimated that by the year 2010 college enrollment will increase by 25%, making FSA (Federal Student Aid) even more important and in demand, so it's important to know about the different types of federal aid. As long as you fill out the FAFSA and become eligible for financial aid, you can choose which type of aid is best for you.
Take a look at the benefits of these types of aid:
- Free money opportunities that don't have to be paid back
- Federal Pell Grants have helped low and middle-income students receive an average of $2,445 per year
- The Federal Supplemental Education Opportunity Grant (FSEOG) offers a range of $100 to $4,000 to students to cover their college education
- The Academic Competitiveness Grant (ACG) offers you from $750 for your first year to $1,300 for your second year
- The National SMART (Science And Mathematics Access to Retain Talent) Grant awards student up to $4,000
- Colleges offer institutional grants specifically to their students to help them with their tuition
- In the 2004-05 school year the Federal Work-Study program awarded $1.2 billion dollars to college students
- You can earn money while you pay for your education
- You are guaranteed a job at your college if you qualify for work-study
- It does not affect your future financial aid status if you need to apply for more aid
- You will gain valuable experience working in college and become better prepared for your future career
- Your communication and time management skills will increase
- In 2004-05 over $41 billion dollars was awarded in federal student loans
- The government pays the interest for loans such as the Federal Perkins Loan and the Subsidized Stafford Loan as long as you are enrolled in school
- Student loans help low-income and middle-class students build up their credit
- Students that cosign with their parents or someone with good credit will automatically receive that person's good credit rating
- If you have a Perkins Loan and become a teacher, it can be cancelled if you decide to work in a low-income area
- More than 4,000 private lenders and other agencies participate in the FFEL (Federal Family Education Loan), offering you many student loan options
- Graduate students can borrow up to $18,500 per year
From an American Association of University Women Survey
- 70% of respondents worry more about the cost of college education for their children than the cost of a house, a car or secure retirement.
These are just a few of the reasons why federal student aid is a great way to pay for college. With the wide range of benefits you can receive with federal student financial aid, every eligible student should be able to attend the school of his or her choice.