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Student financial aid in the United States


Student financial aid in the United States is funding that is available exclusively to students attending a post-secondary educational institution in the United States. This funding is to assist in covering the many costs incurred in the pursuit of post-secondary education. Financial aid is available from federal, state, educational institutions, and private agencies (foundations), and can be awarded in the forms of grants, education loans, work-study and scholarships. Please note that in order to apply for any federal financial aid students must first complete the Free Application for Federal Student Aid (FAFSA).

In the United States, grants come from a wide range of government departments, colleges, universities or public and private trusts. Grant eligibility is typically determined by financial need and academic merit. The application process is set by the agency providing the funds and often relies on data submitted via the FAFSA.

Some examples of grants commonly applied for in the U.S.:

An education loan is borrowed by the student (or parent) in order to pay for educational expenses. Unlike scholarships and grants, this money must be repaid with interest. Educational loan options include federal student loans, federal parent loans, private loans, and consolidation loans.

Federal student loans are loans directly to the student; the student is responsible for repayment of the loan. These loans typically have low interest rates and do not require a credit check or any other sort of collateral. Student loans provide a wide variety of deferment plans, as well as extended repayment terms, making it easier for students to select payment methods that reflect their financial situation. There are federal loan programs that consider financial need. For more information on federal student loans please visit: https://studentaid.ed.gov/sa/types/loans.

Direct Subsidized Loans are the most sought, as they have few requirements other than enrollment and demonstration of financial need. However, the amount you may borrow is determined by your school and may not exceed your financial need, which is based on the EFC from your FAFSA. You are not required to begin repaying these loans for as long as you are in school at least half-time. They also offer a six-month grace period, meaning you do not begin repaying them until six months after you leave school. These loans also offer a deferment period in some cases.


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