Most of us have viewed the local tv commercials informing us about the millions in cash grant money available for students around the nation. Yes, there may be a grain of truth in that claim, most of us are pretty certain that the Federal government has no intention of handing over millions of dollars in free grant money for college to help pay for our education Still, there are grants available to help college students pay for their college education.
What Types of Free Grant Money For College Are Available?
Federal College Grants: The Pell Grant
Thankfully, the majority of government aid packages don’t look at your credit history when deciding whether or not you are eligible for a grant.
What is Free Grant Money for College and Am I Eligible?
As one of the most well-known grant programs, the Pell Grant program is fairly well-known. Rather than basing your eligibility on credit-worthiness, your economic situation is taken into considerationIf the student and his or her parents are a low-income family, Pell Grants are almost automatic. Almost. As with any form of Federal Student Aid, your economic situation has to be demonstrated through the correct documentation and fall within the proper guidelines.
A Pell Grant does not have to be repaid. Currently, the max Pell Grant amount is $5,350 per year.The maximum value of the Pell Grant is subject to change annually and will depend partially on the program’s funding that year.
What If I Don’t Qualify for Free Grant Money for College?
Since a Pell Grant is dependent on your financial status and cost of education, among other factors, the grant may not cover the cost of your education. For this reason, the majority of college students often consider student loans as a viable alternative to help cover the cost of their education.
Stafford Loans are the most common type of Federal Student Loan program. There are two types of Stafford Loans available and students may qualify for both types (Subsidized or Unsubsidized). And the good news is, Stafford Loans do not take a student’s or the parents’ credit history into account when determining eligibility.
One of the most common student loans is the Stafford Subsidized Loan. A subsidized loan means that the government will pick up the tab on your interest while the loan in not in repayment. That period is typically while the student is carrying a half-time or greater load of classes, and for the first six months after leaving school.
An unsubsidized Stafford Loan, however, requires that college students pay for any interest accrued on the outstanding principle.The good news is, if you are strapped for cash while you are in college, you do not have to pay your interest payments, but they will be added to the loan principle.
Perkins Loans versus Stafford Loans
In addition to Stafford Loans, Perkins Loans are also available to college students to help fund their education. The Perkins Loan is awarded to undergraduate and graduate students with exceptional financial need. This is a campus-based loan program, with the school acting as the lender using a limited pool of funds provided by the federal government.
How Much Am I Eligible For?
For Stafford Loans, dependent undergraduate students can borrow from $5,500 to $7,500 per year. For independent undergraduate students, you can take out from $9,500 to $12,500 per year. Grad students or professional students can get loans of up to twenty-thousand, five hundred dollars each year.
Under the Perkins Loan Program, a student can borrow between $5,500 and $8,000 for each year of study depending on the degree level. The amount you receive under the Perkins Loan program (unlike the Stafford program) will depend somewhat on the funding level at the school, but the loan offers a very low interest rate of five percent.
How to Pay For College
Clearly, each person’s background is unique. Although many individuals will be able to receive free grant money for college because of their economic status, some students will instead have to take advantage of low-rate student loans to fund their college tuition costs and expenses. Though everyone would rather receive free grant money for college… and many people reading this article will receive grant money, others will not qualify. But at the end of the day, the most important goal is to locate a university that offers a Student Aid Package that will enable you to receive your university degree.
Find Free Grant Money For College or find universities that offer financial aid packages that better meet your unique needs.
