The 5 Types of Federal Financial Aid Explained
There are many different ways to receive aid that’ll help you in paying for college. Although private, state, and international aid is available, federal aid is typically easier to attain and comes with many benefits. The advisors at College Funding of Tampa Bay are here to explain the five types of federal financial aid so you can achieve higher education.
Federal Grants
Perhaps the most common form of student financial aid, federal grants come in the form of “gift” money which does not need to be paid back like a loan. By filling out your Free Application for Federal Student Aid (FAFSA), you can see how much aid you qualify for. Unlike scholarships, grants are based on need rather than merit so anyone can qualify. Since it’s free, it doesn’t hurt to try so you should ignore any of the common myths about FAFSA that may be holding you back. Even if you think you might not meet the requirements, you may very well be surprised to find out how much you could be getting for free.
Federal Scholarships
Scholarships are similar to grants in the fact that they’re awarded as gift money that doesn’t need to be paid back with the difference being that scholarships are based on the academic achievements of the individual. This can be done by earning perfect grades, maintaining a high-grade point average, or conquering some other scholarly feat that puts you above the average student. It is also entirely possible to earn more than one scholarship, each of them ranging from a small bonus of a hundred bucks to the amount of a full tuition. These awards are usually awarded by the school being attended and are sometimes funded by donations.
Federal Loans
Federal student loans, just like any other loan, must be repaid. While many private student loans exist, it may be in your best interest to sign up for a federal loan because of the potential benefits that come along with it, including:
- Repayment plans personalized to your exact situation
- The ability to postpone payments as needed
- Lower interest rates for students
- Tax-deductible interest
- Loan consolidation
- Loan forgiveness
Depending on your situation, consolidating your federal loans may be better than refinancing private loans. You can learn about the differences between consolidating and refinancing so you can make an informed decision on what’s best for you.
Work Study
Work studies are part-time jobs specifically designed for students to receive at least minimum federal wage towards their loan repayment. This is not only a great way to pay back your loan, but also a way to gain hands-on experience in your career choice. Work study availability is based on the school and is usually open to both graduates and undergraduates.
Veteran Aid
As a tribute to the United States Armed Forces, specific financial aid is available for those who qualify such as:
- Veterans
- Active-duty members
- A child or spouse of a deceased veteran
- A child or spouse of a veteran who was disabled while serving
Veteran aid can come in the form of fee waivers, tuition assistance, financial aid, and work studies. Many of these benefits are dependent on the school itself, so it’s best to contact the financial aid office to see if you qualify and what you may qualify for.
Need Further Assistance?
If you need help figuring out what types of federal aid you qualify for, you can contact the financial advisors at College Funding of Tampa Bay at (813) 755-6834 for a free consultation. We’ll discuss your options and help you find the best path in funding your journey to higher education!
