Why is FAFSA So Important to College Students Looking For Student Loans?

October 16, 2009 · Posted in College Loans · Comments Off 

FAFSA is Your Ticket to student loans?

FAFSA is your only entry into the world of federal student loans. You can also find yourself the recipient of a federal grant and work study programs to boot. Without a Student Aid Report (SAR), your chances of getting the best student loans are almost nil.

FAFSA, stands for Free Application for Federal Student Aid. The feds are your best place to get a college loan because they have the money to lend at a decent interest rate and the government will actually make your interest payment on some of the loans.

The application usually is completed online (spanish version as well) but we recommend downloading a copy and printing it out. It will take you time to research and find the answers to their questions.

First you need to create an account with FAFSA. This pin number will allow you to proceed with filling out the application. You will then continue to use that pin number as long as you are applying for federal student loans. Basically it is a virtual account system. Read more

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Types of Federal College Loans

October 2, 2009 · Posted in College Loans · Comments Off 

Federal college loans tend to confuse many potential college students. Most people do not really understand the different types of loans available to them, or how they work. They simply take the word of their school that they are being offered the loans for which they qualify.

First, understand that there are actually three different types of federal financial aid. Grants are money that are given by the government and do not require repayment. The Perkins Loan Program and the Federal Family Education Loan Program are loans that do require repayment. Some federal college loans are subsidized and others are not, but all of them allow you to wait until after college to start making payments. The most important thing to remember is that the federal government doesn’t actually loan money.

Subsidized federal college loans are loans that you do not pay interest on until you graduate college. The government pays the interest on these loans instead. Unsubsidized loans accrue interest while you’re attending school, even though no payment is necessary. Read more

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