US Department of Education loans are something you already know about if you have heard of any kind of Federal aid for students. The US Department of Education is in charge of all government grants and loans that help pay for college in the US. Filling out an FAFSA, or Free Application for Federal Student Aid, is the first step to getting a loan from the US Department of Education. FAFSA forms compare how much money is needed to go to a certain college with how much money the student's family can be expected to pay. Any difference is the amount of money that can be used to pay for college.
How to Get a Loan from the US Department of Education
To get a loan from the US Department of Education, a person must meet certain requirements. Some non-citizens with social security numbers are also eligible. Other requirements include being a US citizen, having a financial need, having a valid Social Security Number, and showing that you are eligible for college by having a high school diploma, a General Education Development (GED) certificate, or something similar. Also, people who want loans from the US Department of Education must be financially, academically, and legally stable. In other words, they must be registered with the Selective Service if they are male, they must not have defaulted on a student loan in the past, they cannot have been convicted of selling or possessing drugs, and they must keep a certain grade point average (GPA) to keep getting student loans from the Department of Education.
Loans from the US Department of Education
When it comes to US Department of Education loans, there are three main options: grants, which are free money, student loans, and work-study programmes, where the money for school is earned. Only when you borrow money for school do you have to pay it back. Most federal grants are based solely on financial need, and some are given on a first-come, first-served basis, so it's important to apply as soon as possible.
Work-Study programmes aren't really loans from the US Department of Education, but they are a federally required way to get money to go to college. As part of the financial aid package, a certain number of work-study hours are set. Most of the time, these are low-paying jobs with non-profit organisations or on campus. The money you make can be used to pay for college.
The Perkins Loan, the Stafford Loan, and the PLUS loan for parents are all real loans from the U.S. Department of Education. The interest rate on Perkins loans is very low, and they can be paid back over as long as 10 years. Each year, each school can only get a certain number of Perkins Loans. The Stafford Loan has a higher interest rate than the Perkins loan, and you might not get a grace period after you graduate. The US Department of Education, on the other hand, gives out more Stafford loans every year. Students who don't have an immediate need for money can also get Stafford loans. Stafford loans can be paid back over as much as thirty years.
The last type of loan from the US Department of Education is called a PLUS loan. They are given to the parents of college students, not to the college students themselves. Federal PLUS loans can be paid back over ten years, starting two months after the money is received.
