College isn't just for the wealthy or those with a large savings account. There are actually many options available to help you pay for a college education depending on your income and a variety of other factors. The lower your income, the more aid you may qualify to receive. In addition, the type of degree and cost of attendance at your college of choice impact the amount of your federal financial aid award. Some of the aid you may qualify for may not require any repayment. The actually categories of federal financial aid include:
1. Grants – This is essentially free money available to financially needy students. There is no requirement to pay back these funds unless you drop out of school during the term.
2. Student Loans – There are several types of federal student loans. In most cases, all funds must be repaid at some point. The interest rate paid on student loans varies depending on the type awarded.
|Jennifer Mathes, Ph.D.|