Introduction to Financial Aid
Students must know that there are plenty of options to choose from when it comes to seeking for funding to pay for their university expenses. Financial aid offers great options to those parents and students who need funding immediately and need more time for them to pay off the money. Hence, looking for different funding can be a bit of a hassle and overwhelming most especially when you should properly identify the right type of financial aid for students, that is why they must be exposed to at least three options.
Federal Aid will always be a great help to students. However, some are afraid of applying since the process can be quite intimidating because of the numerous requirements. Students are afraid of being rejected, With that being said, they are getting loans from private company like online payday loans wherein they can immediately receive the money in times of emergency and the pay off will be deducted to their next paycheck within thirty days.
What are the available types of federal loans?
There are different types of loan, but for students, it is best to avail the federal loans for them to maximize its benefits. What are types of federal student loans that are currently available in U.S context?
There are four types of Direct Loans that are being offered by the William D. Ford Federal Direct Loan Program:
- Direct Subsidized Loans- this type of loan is granted to students who need financial assistance for their college enrollment and other fees.
- Direct Unsubsidized Loans– this is a type of loan where anyone can apply because it is granted not based on the financial needs of applicants.
- Direct PLUS Loans– this is a type of loan that is given to professional students and parents to cover their financial expenses that is not covered by other financial aid. Just like the second type of loan, it is not based on the financial need of the applicant.
- Direct Consolidation Loans– this gives the opportunity for applicants to compile all eligible federal student loans into one single loan having single loan service.
Why is there a need for federal student loans?
If you are the type of person who thinks that you will not be needing this aid very soon, then you must start investing on it from now on. This type of loan provides great benefits in comparison to other types of loans. It will be of great help to you or anyone you know.