Free Grant Money For College- Truth or Fiction

Most of us have seen on local television commercials tell us about the millions in cash grant money available to students around the nation. Yes, there may be a grain of truth in this assertion, most of us are pretty sure that the federal government has no plans to transfer millions of dollars in free grant money for college to pay for our education but the government does offers a series of grants to help students pay for their education.

How do I find Free Grant Money For College?

Pell Grant, a form of public subsidy

Fortunately for students and parents that most German aid packages do not take your credit history into consideration.

What is Free to allocate money for college and Am I Eligible?

Pell Grants are one of the oldest government grants available to students and payments and eligibility is based primarily on your economic status.If you or your parents is considered a low-income families by government standards, a Pell grant can be achieved depending on your level need.The key word to note here is "almost" or "may." As with any other government-funded program, you will be asked to show your financial needs with proper documentation.

Since Pell Grant is a grant and not a loan, it will not be repaid when you graduate. Currently, you can receive up to $ 5350 a year with a Pell grant.The maximum amount may change each year and award depends on program funding. The proportion of funds you receive from the Pell Grant will depend largely on your financial needs, your spending on education, whether you are full time or part-time students, and much more.

What to do when the Free Grant Money for college is just not enough

Because your economic status plays a role when you are eligible for Pell Grant, you may or many not qualify, and if you do, the rate may not cover the total cost of your school degree.Most students will therefore wish to search a student loan in addition to a Pell Grant (or instead of one, if they do not qualify) to finance their education.

Stafford Loans are the most common type of Federal Student Loan Program. There are two types of Stafford Loans are available and students can qualify for both types (subsidized or unsubsidized). Fortunately, both types of Stafford loans do not look at the student's or parents' credit rating in determining access to these loans.

The first type of Stafford loan, and the most desirable, is called a "subsidized" loans. The term comes from the fact that the government pays an interest rate earned during the period of the loan not being repaid. This period is typical, while the student is about half hour or greater load of classes and for the first six months after leaving school.

An unsubsidized Stafford Loan, however, requires that university students pay for any accrued interest on outstanding principle.The good news is, if you are strapped for cash, while you are in school, you do not pay your interest payments, but they will be added to the loan principle.

Perkins Loans vs. Stafford Loans

In addition to Stafford Loans, Perkins Loans are also available for college students to help finance their education. Perkins loans are awarded to students (both undergraduate and graduate level) who shows financial need. This is a campus-based loan program with the school acting as the lender using a limited pool of funds from the federal government.

How Much Am I entitled to?

For Stafford Loans, dependent students can borrow from $ 5,500 to $ 7,500 a year. For independent students, you can go from $ 9,500 to $ 12,500 per year. Grad student or professional students can get loans of up to twenty thousand, five hundred U.S. dollars each year.

A Perkins Loan allows students to borrow up to five thousand five hundred a year to eight thousand a year. The amount you receive under the Perkins Loan Program (unlike the Stafford program) will depend somewhat on the funding level at school, but the loan offers a low interest rate of five percent.

Funding your degree

It is clear that each student's situation is different. Although many people will be able to receive free grant money for college because of their economic status, some students will instead have to take advantage of low interest student loans to finance their college education costs and expenses. Although we all prefer to get free grant money for college (and many students qualify), ultimately, the most important thing is that you are able to find a college or university that offers a financial assistance that will help you realize your dream of achieving a university education.