The cost of a college education has been rising consistently over the years, making it a major concern for students and their families.
According to a report by Ohio State University’s National Student, Financial Wellbeing Study, 72% of college students suffer financial stress because they cannot afford their tuition (60%) or cover their monthly living expenditures for studying and other connected expenses (50%) for their studies.
39% of college students withdraw due to financial difficulties, according to Intelligent.com. They opted to work and make money instead. The percentage of pupils that drop out of college has gone increasing in the last several years.
Fortunately, the government has set up various federal financial aid programs to help students cover their tuition and other college expenses. In this blog, we will discuss the different types of federal financial aid available to college students and how to apply for them.
Federal Pell Grant
The Federal Pell Grant is the most popular form of federal financial aid and it does not need to be repaid. It is available to undergraduate students who have not yet earned a bachelor’s or a professional degree. Apart from that, there are some other types of grants are also available including Federal Supplemental Educational Opportunity Grant (FSEOG) for undergraduate students with exceptional financial need, the Teacher Education Assistance for College and Higher Education (TEACH) Grant for students who plan to become teachers in high-need fields, etc.
To apply for the Federal Pell Grant you must submit the free application for Federal Student Aid (FAFSA) form. The FAFSA is a comprehensive application that collects information about the student’s family income and assets, as well as other relevant details.
Federal Direct Loans
Federal Direct Loans are loans provided by the government to help students cover their college expenses. There are two types of Federal Direct Loans: Subsidised and Unsubsidised. Subsidised loans are available to undergraduate students with financial needs, and the government pays the interest on the loan while the student is in school.
Unsubsidised loans are available to undergraduate and graduate students, and the student is responsible for paying the interest on the loan while in school.
To apply for Federal Direct Loans you have to complete the FAFSA form. The government sets the interest rates for the loans, and the repayment terms vary depending on the type of loan.
Federal Work-Study Program
The Federal Work-Study Program is another federal financial aid program that provides part-time jobs for undergraduate and graduate students with financial needs. The program encourages students to work in jobs related to their course of study, and the earnings are used to pay for tuition and other college expenses.
To be eligible for the Federal Work-Study Program, you must complete the FAFSA form and meet certain income requirements. The program pays students at least the federal minimum wage and allows them to work up to 20 hours per week.
It’s important to note that while federal financial aid can significantly reduce the cost of college education, it may not cover all expenses. Students may need to consider other options, such as scholarships, grants, or private loans, to cover any additional expenses.
In conclusion, federal financial aid programs are an excellent way for students to reduce the financial burden of a college education. To apply for these programs, students must complete the FAFSA form as soon as possible and meet the eligibility requirements. Students should also explore other options to ensure that they have sufficient funds to cover their college expenses. With the right financial planning, students can pursue their college dreams without worrying about the cost.