What is Financial Aid?

Financial aid is essentially money used to pay for College. Financial Aid is defined as  funding provided to students and families to help pay for postsecondary education and educationally related expenses. It is NOT money used for wants, shopping sprees, buying a car, partying, spring break trips, etc. Keys to understanding how to finance your education are realizing the cost of attendance, understanding loans, understanding your financial aid package, knowing how much you owe, and developing a plan to repay student loans. 

Understanding Student Loans

In some ways, of course, all loans are alike. You borrow money, called the principal, and agree to pay it back over a specific term, or length of time, with interest. But the conditions of the loan, some of which are listed below, can affect how much you can borrow and how much the loan will cost you.

• The term of the loan
• Type of the loan: Whether the loan is secured or unsecured
• Interest Rates: Whether the interest is fixed or adjustable

The most common loan types are: 

• Subsidized Direct Loan - no interest due during the in-school or grace period
• Unsubsidized Direct Loan – interest begins to accrue at the time of disbursement and will continue throughout the life of the loan
• Parent PLUS Loan – available to parents of dependent students
• Graduate PLUS Loan - available to graduate and professional students
• Private or Alternative Student Loans - available to credit-worthy students