The Secret To Us Department Of Education Loans

The Secret to​ US Department of​ Education Loans
If you​ have heard about any kind of​ Federal financial aid for students,​ you​ are already familiar with US Department of​ Education loans .​
the​ US Department of​ Education handles all government aid for defraying the​ cost of​ attending college in​ America,​ from grants to​ loans .​
the​ first thing that you​ will need to​ do to​ apply for US Department of​ Education loans is​ to​ fill out a​ FAFSA,​ or​ Free Application for Federal Student Aid form .​
FAFSA forms compare the​ amount of​ money required to​ attend a​ specific college to​ the​ amount of​ money that can be expected to​ be paid by the​ family of​ the​ attendee .​
Any difference is​ the​ amount of​ money eligible for student aid.
Qualifying for US Department of​ Education Loans
US Department of​ Education loans have specific qualifications that an​ applicant must meet to​ be eligible .​
the​ qualifications include US Citizenship (some non-citizens with social security numbers are also eligible),​ financial need,​ possession of​ a​ valid Social Security Number,​ and proof of​ eligibility for higher education in​ the​ form of​ a​ high school diploma,​ General Education Development (GED) certificate,​ or​ similar .​
Furthermore,​ applicants for US Department of​ Education loans must be in​ good financial,​ academic,​ and legal standing .​
in​ other words,​ they must be registered with the​ Selective Service if​ required,​ they must not have defaulted on​ a​ student loan in​ the​ past,​ they can have no record of​ conviction on​ charges of​ sales or​ possession of​ drugs,​ and they must maintain a​ certain grade point average (GPA) to​ continue to​ receive student loans from the​ Department of​ Education.
Types of​ US Department of​ Education Loans
There are three main possibilities when considering US Department of​ Education loans: grants,​ which are monetary gifts,​ student loans,​ and work-study programs where the​ money for education is​ earned .​
Only in​ the​ case of​ student loans does the​ money need to​ be repaid .​
Most federal grants are based solely on​ financial need,​ and some are given on​ a​ first-come-first-served basis,​ so it​ is​ important to​ apply as​ early as​ possible .​

Work-Study programs are not technically US Department of​ Education loans,​ but they are a​ federally mandated way to​ receive financial aid to​ attend college .​
a​ number of​ work-study hours are specified as​ part of​ the​ financial aid package .​
These usually involve jobs working with non-profit companies or​ on​ campus,​ and pay a​ modest salary .​
the​ money earned can be used for college tuition.
True US Department of​ Education loans include the​ Perkins Loan,​ the​ Stafford Loan,​ and the​ PLUS loan for parents .​
Perkins loans have a​ particularly low interest rate and can be paid back over a​ time period of​ as​ long as​ 10 years .​
There are a​ limited number of​ Perkins Loans available to​ each school every year .​
the​ Stafford Loan has a​ higher interest rate than the​ Perkins loan,​ and doesn’t necessarily offer a​ grace period after graduation .​
However,​ there are more Stafford loans offered by the​ US Department of​ Education every year .​
Stafford loans are even available to​ students who don’t have a​ pressing financial need .​
Stafford loans may be paid off over a​ period of​ as​ long as​ thirty years.
PLUS loans are the​ final type of​ US Department of​ Education loans .​
They are offered to​ parents of​ undergraduates,​ as​ opposed to​ the​ students themselves .​
Payments on​ Federal PLUS loans start two months after the​ money is​ received,​ and can be paid off over a​ ten-year term.

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