Ways to Pay for College
Going to online degree program is expensive, but financial help is available if you know where to look. The Federal Government has billions of dollars available for college students in need of financial aid. The Department of Education has grants, loans and work-study programs available to students who need help.
A grant is the cheapest form of college grants, because you don't have to repay it. Pell Grants are awarded based on a student's financial need. There are also grants given based on a college student's course of study. The first step to getting a grant is to fill out a Free Application for Federal Student Aid, FAFSA. Nearly all two and four-year colleges and universities use the FAFSA to award federal and state financial aid.
If you don't qualify for a federal grant, a loan may be next best option. The same FAFSA will gain you information about various loans. Federal loans offer borrowers lower interest rates and have more flexible repayment plans than many banks.
Schools usually participate in the Federal Family Education Loan, FFEL, or the Direct Loan Program. In the Direct Loan Program, the funds come directly from the federal government. Funds for a FFEL come from a bank, credit union, or other lender. Many schools provide a list of lenders they use, but you may also research your own.
Under the FFEL or the direct loan programs, students can borrow over $12,000 each year with interest rates below four percent. The amount is determined by the number of years a student has left in college as well as financial need. Students taking out a loan have to sign legal documents outlining the amount borrowed and the terms for repayment. The type of loan also helps determine when interest has to be paid.
Under both the Direct Loan and FFEL programs, the money goes straight to your school. The loan pays for tuition, housing and other school charges, first. You can get any leftover cash or give the school permission to hold the money for future expenses. First year students don't get their loan checks until 30 days into the school year. The delay is a way to protect you from having repay a loan in case you don't start school or drop out within the first month of class.
The federal government's work study program is another option for financial aid. Undergraduate students with financial need get jobs or perform community service related to their field of study. The money earned goes to help pay for their education. Work-study programs offer jobs on or off-campus. Off-campus work is usually for a private nonprofit group or public agency that works in the public's interest.
So if you don't have thousands of dollars to be used for a college degree, check out the U-S government as a resource. The government has billions of dollars for financial aid for college students.
