About 'federal student aid history'|... in WWI Brave Mexican-Americans. Thanks to Dr. Donald Everett, history professor of Trinity University, I have a copy of a story in the January 14, 1919 San Antonio...
College education would be beyond the reach of most people without student loans. There are three main types of loans, student loans, parent loans and private loans, plus a variety of scholarship programs and grants. As scholarships tend to be non repayable grants rather than loans, the cost of your college education can be significantly cut if you can qualify. How to Find and Apply for Scholarships A quick search for scholarships will bring up countless offers from companies offering to give you all the information you need in return for a fee. This same information is available free from reputable sources so do not pay anyone trying to make an easy profit from you. Use one of the free online organizations which will match your profile to a database of available grants. FastWeb is the largest of these with 1.5 million grants and scholarships available. Membership is free. Funding Sources for Student Loans Direct Loans are funded directly by the Government while the FFEL type use third party lenders. Eligibility and loan limits are usually the same for both Direct Loan and FFEL programs but Direct Loans will normally have a lower interest rate. • Federal Direct Loan • Federal Family Education Loan (FFEL) The main sources for private funding for student loans are the SLM Corporation usually referred to as Sallie Mae, banks and credit unions. Stafford Loans / Perkins Loans /PLUS Loans The Federal Perkins Loan Program provides low interest loans for students with exceptional financial need. The college acts as the lender using government funds. Perkins type loans are the cheapest option as the government will pay the interest charges while you are in school and for nine months afterwards. Perkins loans also do not carry any origination fee. Stafford loans are the most commonly used student loans. Depending of your financial needs, the loan may be subsidized which means the Government will pay the interest on the loan while you are in college. As the loans are government backed the interest rates are lower than would otherwise be charged. PLUS Loans are usually referred to as Parent Loans. These are more expensive than either Stafford or Perkins type loans and are dependent on a good credit history however the total allowable amount can be equal to the entire cost of tuition minus any financial aid. Since 2006 students may borrow under this program independent of their parents. Applications for student loans are made using the Free Application for Federal Aid (FAFSA). Programs for veterans of the armed services are provided under the GI Bill. Sources: US Dept of Education FinAid |
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