December 11, 2017

Federal Student Loans – How Much Can You Get?

One of the most commonly used forms of financial aid for students pursuing higher education is federal student loans. Many high school students are reluctant to explore this alternative for various reasons. However, when one understands how much money is available, it makes a great deal of sense to research this option.

Federal Student Loans

The Federal student aid program was designed to ensure that students, regardless of socioeconomic income, could pursue higher education. This opened many opportunities or those from minority groups, students with disabilities, women, and other groups who previously were denied access to higher education.

How much can be received by individual students varies depending on several factors. Subjects studied, length of programs, grade point average, SAT scores, and socioeconomic status have all affect the amount of funding available to each student. One example would be comparing a nine month vocational course, which would qualify for much less, than a doctoral program.

Funding is often based on the subject study. For those completing degrees which require four years or more of education, much more money will be made available than for those who are completing a two year degree or less. It costs much more to educate a teacher, for example, than it does to complete a cosmetology degree. It’s important, therefore, when considering a loan to determine the total cost first based on this subject studied as well as the length of the program and degree to be earned.

If going to a two or four year college or university, the length of the program will vary depending on the type of degree desired as well as the subject matter. In some coursework, such as teaching, an extra year is required in order to provide on-the-job training. Loans will take this into consideration and ensure that money is available until the certification is received even after the degree has been earned. For those planning on attending post-secondary education, therefore, it’s important to talk to counselors in order to ensure that funding will be available until the goal is reached.

While in high school, especially during the senior year, it’s important to look to the future. This can be very difficult to do with the activities, events, and excitement surrounding this final year. Not only do many applications need to be completed for financial aid and college entrance, but grade point average needs to be maintained at a 2.5 or better and SAT scores need to reflect that one could be successful at the college level.

Of primary importance is the income level of the family. In order to increase equity at the college level, loans take into consideration the family’s annual income. Today college is a viable alternative for everyone. It’s important to remember, however, that the amount made by the family each year must be proved. This is done through family taxes for which copies of the forms will be requested by the lender before money is set aside.

No longer is higher education limited to the rich and wealthy. Today’s federal student loans are designed to ensure that those with the desire to excel have the opportunity to achieve their dreams. Maintaining a solid GPA, scoring well on SAT tests, carefully choosing degree programs as well as knowing the length will help determine how much money will be available to students when they apply. It’s OK to change your mind along the way. The important thing is to get started with the application process as early as possible.

Find out more: https://studentloans.gov/myDirectLoan/index.action