Types of Federal Student Aid

If you need help paying for
college or career school, the office of Federal Student
Aid might be your best option. We offer more than $150 billion
to students each year in the form of grants, loans,
and work-study funds. And federal student aid can be
used to pay for school expenses such as tuition, room and
board, and books and supplies. After you’ve filled out the
Free Application for Federal
Student Aid or FAFSA, you’ll receive an award letter
from each school you list on
your FAFSA. This letter explains both the
federal and non-federal financial aid options that a
school is offering you. So let’s talk about federal aid. If you qualify for and receive
a federal grant, you won’t have
to repay the money. That will definitely help
offset the cost of school, but
you may still need additional
help. If so, a federal student loan
might be your answer. Remember, a student loan is
just like any other loan; it’s borrowed money that will
have to be repaid with interest. If you plan to take out a loan,
consider federal student loans
first. Compared to private student
loans, federal student loans
often have lower fixed interest
rates and offer many benefits that
you won’t find otherwise. For example, when it’s time for
you to repay your federal
student loan, your loan servicer can work
with you to find the best
repayment plan for your
individual needs. Plus, you may be able to adjust
your loan payments based on
your income. You also may be able to defer
your federal loan payments,
deduct student loan interest on
your taxes, and even consolidate your
eligible federal student loans
into one loan with one monthly
payment. Federal loans can even be
forgiven based on certain types
of employment. Getting a work-study job is
another great option to help
pay for school. Eligible undergraduate and
graduate students will be able
to earn at least minimum wage. If you have questions or need
any assistance, you can contact
the financial aid office at
your college or career school or
visit studentaid.gov for more