Types of Free Grant Money For College
Federal Pell Grants
Fortunately for students and parents, most Federal Aid packages do not take your credit history into account.
Can I Qualify For Free Grant Money for College… really?
Pell Grants have been around for a long time. This type of grant is available to individuals who demonstrate financial need and can document this need.If the college student (or the student’s parents… depending on the college student’s age) are economically disadvantaged by the U.S. government’s standards, then receiving a Pell Grant is almost automatic. Almost. As with any form of Federal Student Aid, your economic situation has to be demonstrated through the correct documentation and fall within the proper guidelines.
A Pell Grant does not have to be repaid. Currently, the max Pell Grant amount is $5,350 per year.The maximum amount can change each award year and depends on program funding. The amount of funding you receive from the Pell Grant will depend largely on your financial need, your cost of education, whether you are a full-time or part-time student, and more.
What to Do When Free Grant Money for College Just Isn’t Enough
Because your economic status plays a role in determining your eligibility for a Pell Grant, you may or many not qualify, and if you do, the grant may not cover the entire cost of your college degree.For this reason, the majority of college students often consider student loans as a viable alternative to help cover the cost of their education.
One of the most common types of Student Loans are Stafford Loans, which come in two types: Subsidized and Unsubsidized. And the good news is, Stafford Loans do not take a student’s or the parents’ credit history into account when determining eligibility.
One of the most common student loans is the Stafford Subsidized Loan. The term comes from the fact that the government pays any interest that accrues during the period the loan is not being repaid. That period is typically while the student is carrying a half-time or greater load of classes, and for the first six months after leaving school.
An unsubsidized Stafford Loan, however, requires that college students pay for any interest accrued on the outstanding principle.The good news is, if you are strapped for cash while you are in college, you do not have to pay your interest payments, but they will be added to the loan principle.
What Are Federal Perkins Loans and Do I Want One?
Another type of “no credit check required” Federal Loan is the Perkins Loans. The Perkins Loan is awarded to undergraduate and graduate students with exceptional financial need. The Perkins Loan differs from the Stafford Loan in that it is deemed a “campus-based” loan program, meaning the school acts as the lender using a limited amount of funds provided by the Federal government.
How Much Am I Eligible For?
The Stafford Loan programs allows dependent undergrad students to receive between $5,500 and $7,500 annually. Since independent undergrad students are, by definition, independent, they can get more loan money: between $9,500 – $12,500 each year. If you are a graduate degree student, each year you can receive up to $20,500.
Under the Perkins Loan Program, a student can borrow between $5,500 and $8,000 for each year of study depending on the degree level. The amount you receive depends on when you apply, your financial need, and the funding level at the school, but the loan carries a very low interest rate of 5%.
Funding Your Degree
Obviously, every student’s situation is different. Although many individuals 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-rate student loans to fund their college tuition costs and expenses. Although we would all rather get free grant money for college (and many students do qualify), in the end, the most important thing is that you are able to find a college or university that offers a Financial Aid Package that will help you realize your dream of attaining a college degree.
To discover the best way to pay for your education, find Colleges that Connect You with an Aid Package or Free Grant Money For College