Financial aid is money students are awarded to pay college. There are two forms of financial aid: gift aid and self-help aid. Gift aid is money that the student doesn’t have to repay. It can take the form of scholarships or grants. Self-help aid is money the student will be responsible for repaying such as … Read more
There are two types of federal guaranteed student loans: subsidized and unsubsidized. The subsidy refers to the payment of interest while the student is attending school or is in a deferment or grace period. For qualified students, the federal government pays the interest on the loans and therefore “subsidizes” the student loan. Subsidized student loans … Read more
A gap year is time taken off (usually a year) after graduating from high school and before starting college. Gap years are common in places such as England and are becoming more popular in the United States. Gap years originate in the desire to take a break from the academic stress of high school before … Read more
Tuition discounting refers to the scholarships and grants colleges and universities provide to students. The Association of Government Boards of Universities and Colleges defines it as “Tuition discounting is the process by which the institution offsets its published tuition price (sticker price) with institutional grant aid for enrolling students.” The students are not paying full … Read more
Private education loans are loans to college students made by financial institutions such as banks and credit unions. The do not require students to complete the FAFSA and students receive the money directly from the lender. Many private loans appear to have lower interest rates than federal loans. However, these advertised rates are generally “best” … Read more
There are four types of federal loans. Three are loans to students and one is a loan to parents. The most common loan is the Direct Loan, formally known as the Stafford loan. These are direct loans to the student from the federal government. There are two types of Direct loans, subsidized and unsubsidized. Both … Read more
SAR stands for Student Aid Report and is what you receive after your FAFSA is processed. If you provided an email, you should receive a link to your SAR three to five days after submitting the FAFSA. If you submitted a paper version without an email address, it will take up to three weeks to … Read more
Just because a student is paying for all of his own expenses doesn’t make him an independent student for financial aid purposes. The Free Application for Federal Student Aid (FAFSA) has very specific requirements to qualify as an independent student. Students must answer “yes” to one or more of the following questions to be considered … Read more
Last September a group of 80 colleges announced a new college application designed to improve access, affordability, and success. They actually call themselves the Coalition for Access, Affordability, and Success. But for some reason, the counselors who work with high school students, both private and school-based, don’t seem impressed with the new option. Maybe because … Read more
