Importance of Financial Aid in Funding College Education

The previous few years have been a true test for many who have unshakable faith in the higher education system. With the state of the economy touching new lows and rendering hundreds of thousands of Americans jobless, serious questions were raised over the wisdom of making an investment money in an expensive college or university degree. viewing your credit score

However, there are statistics to support those who assume that college or university education opens the door to high paying jobs. In line with the U. S. Census Bureau’s 2005-2007 American Community Survey, the average every year income of any high college graduate was $26, 712, while those with some college or university or associate’s level earned $32, 793 every annum. The earnings of those with a bachelors and graduate or professional degree were $46, 277 and $61, 014 every year respectively.

Clearly, the numbers are left out for obvious reasons and the argument is won in favor of a school education. But not everyone has the money to finance higher education. For such people, college or university financial help provides a ray of hope. Many colleges offer financial counseling to students and educate them about the various federal assists available to them to fund their education.

National financial aid for individuals includes scholarships, grants, and backed loans given based on financial need as opposed to academic accomplishment. Besides, some state agencies also offer grants to deserving students. Some of the dominant federal financial aid programs are:

Pell Grant: This is a need-based give that is usually given to undergraduate students. As opposed to a loan, a scholar doesn’t have to negotiate a Pell Grant. The number of grant can vary from year upon year and will rely upon factors such as financial need, cost to attend college, whether you are an entire time or part time pupil, and whether you plan to go to college or university for a full academics year or less.

Additional Educational Opportunity Grant (SEOG): This is also a need based grant and can be a part of a student’s overall aid package susceptible to availableness of funds. Priority has to students who have already received a Pell Grant. Students can get up to $4000 as part of this grants.

Federal Stafford Loan: This kind of is another source of school financial aid proposed by the federal government. These types of are fixed rate college student loans offered to undergrad and graduate students provided they are really enrolled in at least an element time program. Students can apply for both subsidized and unsubsidized Stafford loans. Subsidized Stafford loans are only directed at students who demonstrate monetary need. Students who make use of this loan need to start out making repayments six months after they graduate.

Parent Loan for Undergraduate Students: This is yet another federal financial aid for college or university students. It is a low interest loan that parents of a dependent undergrad student can take to fund the expense of entire education. This loan is not available to parents of independent students.

The Circumstance. S. Congress passed a bill in 2008 that proposed sweeping changes to the country’s higher education law. The check desired to increase the college or university financial aid programs and the highlights included simplification of the federal financial help form and availability of Pell grant all year round. Repairing the education system is evidently one of the top most priorities of the government of course, if they are successful in their endeavor, they’ll be a huge benefit for the future of post-secondary education.

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