Importance of Financial Aid in Funding College Education

The previous few years have been an actual test for many who have unshakable faith in the higher education system. With the state of the economy touching new lows and rendering hundreds of thousands of Americans jobless, serious questions were raised over the wisdom of committing money in an extravagant school degree. viewing your credit score

However, there are statistics to support those who believe school education opens the door to high paying occupations. Based on the U. S. Census Bureau’s 2005-2007 American Community Survey, the average every year income of the high college graduate was $26, 712, while those with some school or associate’s level earned $32, 793 every annum. The earnings of those with a bachelors and graduate or professional degree were $46, 277 and $61, 014 every year respectively.

Clearly, the numbers are left out for obvious resons and the argument is won in favor of a school education. But not everyone has the money to account higher education. For such people, college or university financial help provides a ray of hope. Many colleges offer financial counseling to students and educate them about the various federal helps available to them to fund their education.

Federal government financial aid for young students includes scholarships, grants, and backed loans given based on financial need as opposed to academic accomplishment. Besides, some state agencies also offer grants to deserving students. Some of the dominant federal financial aid programs are:

Pell Grant: This is a need-based grants that is usually given to undergraduate students. Contrary to a loan, a pupil doesn’t have to decide a Pell Grant. The number of grant can vary from year upon year and will rely upon factors such as financial need, cost to attend college, whether you are an entire time or part time scholar, and whether you plan to go to school for a full academics year or less.

Additional Educational Opportunity Grant (SEOG): This is also a need based grant and can be a part of a student’s overall aid package be subject to supply of funds. Priority has to students who have already received a Pell Grant. Students can get up to $4000 as part of this grants.

Federal Stafford Loan: This kind of is an additional source of college or university financial aid made available from the federal government. These types of are fixed rate pupil loans offered to undergrad and graduate students provided they can be enrolled in at least a component time program. Students can apply for both subsidized and unsubsidized Stafford loans. Subsidized Stafford loans are only directed at students who demonstrate economic need. Students who make use of this loan need to start out making repayments six months after they graduate.

Parent Loan for Undergraduate Students: This is yet another federal financial aid for school students. It is a low interest loan that parents of a dependent undergrad student can take to fund the price tag on entire education. This loan is not available to parents of independent students.

The Circumstance. S. Congress passed a bill in 2008 that proposed sweeping changes to the country’s higher education law. The check wanted to increase the school financial aid programs and the highlights included simplification of the federal financial help form and availability of Pell grant throughout every season. Reconstructing the education system is evidently one of the top most priorities of the government of course, if they are successful in their endeavor, its be a huge reward for the future of post-secondary education.

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