Another choice that you currently have when deciding how you are going to pay for college is a type of need based loan provided by the Federal Government. The Federal Perkins Loan carries a low fixed rate (5.0% for duration of the repayment). It is available for families that generate low yearly revenue who must apply using the standard FAFSA application. (For more information click HERE.)
The best part of the Federal Perkins Loan is that it currently is eligible for the Federal Loan Cancellation program. This only is available for teachers working in critical shortage areas (math, science and special education) but can result in the forgiveness of large percentages of the student loan.
The bad news is that there are currently rumors that the Federal Perkins Loan will be discontinued under President Bush's current budget. Hopefully this will not be the case as the low interest rate and potential for loan forgiveness makes this an attractive option when paying for college.
Showing posts with label FAFSA. Show all posts
Showing posts with label FAFSA. Show all posts
Tuesday, December 18, 2007
Tuesday, December 4, 2007
Should I fill out a FAFSA?
The best place to start for most students looking for ways to supplement their college tuition is the Free Application for Federal Student Aid. I need to highlight that this is a FREE service provided by our Federal government. There is currently an organization that will gladly help you fill out your free application for approximately 79.99 dollars. This organization uses the URL: www.fafsa.com. Do not waste your money with this group, as our government has done a very decent job with the application process and there is no need to pay anyone.
The FAFSA takes around an hour to fill out and will require you to input data concerning your family size, assets, number of children in college and income from the previous year. This data is plugged into a formula and the Expected Family Contribution or EFC is computed. This is the dollar amount that the Federal Government determines is manageable for your family to pay for your college tuition. Each year you attend college you will need to re-submit your FASFA with the corresponding year's tax records. This will help determine a new EFC which can be higher or lower as income and family situations change.
To begin a FAFSA application please visit the following website:
http://www.fafsa.ed.gov/
.
The FAFSA takes around an hour to fill out and will require you to input data concerning your family size, assets, number of children in college and income from the previous year. This data is plugged into a formula and the Expected Family Contribution or EFC is computed. This is the dollar amount that the Federal Government determines is manageable for your family to pay for your college tuition. Each year you attend college you will need to re-submit your FASFA with the corresponding year's tax records. This will help determine a new EFC which can be higher or lower as income and family situations change.
To begin a FAFSA application please visit the following website:
http://www.fafsa.ed.gov/
.
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