Federal financial aid (FAFSA) is the most used method of gaining entry into college. It’s easy to apply for Federal financial aid but you’ll need to know some facts before you start accepting money from the government for school. First, you need to know that most, if not all, of the money you will be receiving is a loan, not a gift. You’ll be paying this money back over the course of several years. When we say ‘several’ years, we’re not talking about 3-4 years. We’re talking 15 years or more.
I’ve been paying my $245 student loan payment for 17 years now. I borrowed abour $29,000 for college during my 4.5 years and, with interest, I’ve repaid more than $52,000 so far and I am barely over 1/2 way done paying it back. Now, with any loan, the majority of the payments during the beginning of the loan are mostly interest and they take little away from the principle but it’s still a mental tough-point to have to pay basically a car payment forever, it seems, just for going to school. But, sadly, this is the reality of borrowing money from the government for college. It has its advantages: you get to go, no matter what. However, the disadvantage is being burdened with probably the biggest debt of your life as soon as you graduate. This post is sponsored by Scentsy.
There are 3 types of aid you can receive from Federal student aid. Grants, subsidized loans, and un-subsidized loans. Grants are monies received in which you do not have to pay them back and they are granted on a first-come-first-served basis as well as other factors. For example, there are grants that are given just to women who have children. Subsidized loans are monies loaned to you where the interest is paid for by the government until you graduate from college. Un-subsidized loans accrue interest as soon as you receive the check for that semester. So with an un-sub loan, your bill starts getting bigger from the 1st day you attend school.
Are you ready? Are you planning? Do you have dreams of graduation? Well, you should.