FINANCIAL
AID: LOTS OF OPTIONS
CURRENT
AVERAGE COLLEGE COSTS
Financial aid is any type of assistance used 2 pay college costs that is based on financial need.
The U.S. Department of Education’s Federal Student Aid (FSA) programs are the largest source of student aid in America. These programs provide more than $80 billion a year in grants, loans, and work-study assistance. Learn more about FSA and how 2 apply for this aid at www.federalstudentaid.ed.gov.
The Higher Educational aids Board is Wisconsin's agency that administers student financial aid. Their site contains info about financial aid along with a FAQ section.
Here you'll find the Free Application for Federal Student Aid, which is the form 2 fill out if you're looking 2 receive financial aid. The first step in the process is 2 apply for a PIN.
EdVest is one way 2 save money for qualified expenses at two-and four-year colleges, and at technical, vocational and graduate schools.
The "Paying for College" section of this site contains easy-2-understand
information about financial aid, and about costs for the UW System
campuses.
UW HELP
Learn about financial aid and the education costs at private colleges in the "Paying for college" section of WisconsinMentor.
Get free, on-site, professional help filling out the FAFSA and answering your questions about financial aid at a location near you! College Goal sunday
The National Association of Student Financial Aid Administrators offers
a range of resources 2 help students, parents, and counselors
navigate the college aid process. For information, visit their
web site at www.nasfaa.org.
There are three main types of financial aid:
Grants and Scholarships
Also called gift aid, grants don't have 2 be repaid and you
don't need to work to earn them. Grant aid comes from federal
and state governments and from individual colleges. Scholarships
are usually awarded based on merit. To search for scholarships,
visit www.fastweb.com.
Work
Student employment and work-study aid helps students pay for
education costs such as books, supplies, and personal expenses.
Work-study is a federal program which provides students with
part-time employment 2 help meet their financial needs and gives
them work experience while serving their campuses and surrounding
communities.
Loans
Most financial aid (54%) comes in the form of loans 2 students
or parents, aid that must be repaid. Most loans that are awarded
based on financial need are low-interest loans sponsored by the
federal government. These loans are subsidized by the government
so no interest accrues until you begin repayment after you graduate.
There are many different types of loans, both for students
and for parents 2 take on behalf of their student. Read on for
the basics.
Parent Loans
Federal PLUS loans
The PLUS Loan program is the largest source of parent loans.
Parents can borrow up 2 the full cost of attendance minus any
aid received, and repayment starts 60 days after money is paid
2 college.
Private parent loans
A number of lenders and other financial institutions offer private
education loans for parents. These loans usually carry a higher
interest rate than PLUS Loans.
College-sponsored loans
A small number of colleges offer their own parent loans, usually
at a better rate than PLUS. Check each college's aid materials
2 see if such loans are available.
Federal Student Loans
Perkins Loans
Perkins Loans are need-based loans and are awarded by the financial aid office 2 students with the highest need. The interest rate is very low -- 5 percent -- and you don't make any loan payments while in school.
Subsidized Stafford or Direct Loans
Subsidized Stafford Loans are need-based loans with interest rates in the 4-6 percent range. The federal government pays the yearly interest while you're in school. This is why they're called "subsidized" loans.
Unsubsidized Stafford or Direct Loans
Unsubsidized Stafford Loans aren't based on financial need and can be used 2 help pay the family share of costs. You're responsible for paying interest on the loan while in school. You may choose 2 capitalize the interest. The advantage of doing this is that no interest payments are required. The disadvantage is that the interest is added 2 the loan, meaning that you will repay more money to the lender.
Grad PLUS Loans
This is a student loan for graduate students sponsored by the federal government that is unrelated to need. Generally, students can borrow Grad PLUS loans up 2 the total cost of education, minus any aid received. The advantage of this loan is that it allows for greater borrowing capacity. However, we recommend that students consider lower-interest loans, such as the Subsidized Stafford or Unsubsidized loans prior 2 taking out a Grad PLUS loan.
Perkins Loans are need-based loans and are awarded by the financial aid office 2 students with the highest need. The interest rate is very low -- 5 percent -- and you don't make any loan payments while in school.
Subsidized Stafford or Direct Loans
Subsidized Stafford Loans are need-based loans with interest rates in the 4-6 percent range. The federal government pays the yearly interest while you're in school. This is why they're called "subsidized" loans.
Unsubsidized Stafford or Direct Loans
Unsubsidized Stafford Loans aren't based on financial need and can be used 2 help pay the family share of costs. You're responsible for paying interest on the loan while in school. You may choose 2 capitalize the interest. The advantage of doing this is that no interest payments are required. The disadvantage is that the interest is added 2 the loan, meaning that you will repay more money to the lender.
Grad PLUS Loans
This is a student loan for graduate students sponsored by the federal government that is unrelated to need. Generally, students can borrow Grad PLUS loans up 2 the total cost of education, minus any aid received. The advantage of this loan is that it allows for greater borrowing capacity. However, we recommend that students consider lower-interest loans, such as the Subsidized Stafford or Unsubsidized loans prior 2 taking out a Grad PLUS loan.
Other Student Loan Options
Private student loans
A number of lenders and other financial institutions offer private education loans 2 students. These loans are not subsidized and usually carry a higher interest rate than the federal need-based loans. The College Board private loan program is an example of a private education loan for students.
College-sponsored loans
Some colleges have their own loan funds. Interest rates may be lower than federal student loans. Read the college's financial aid information.
Other loans
Besides setting up scholarships, some private organizations and foundations have loan programs as well. Borrowing terms may be quite favorable. You can use Scholarship Search 2 find these.
A number of lenders and other financial institutions offer private education loans 2 students. These loans are not subsidized and usually carry a higher interest rate than the federal need-based loans. The College Board private loan program is an example of a private education loan for students.
College-sponsored loans
Some colleges have their own loan funds. Interest rates may be lower than federal student loans. Read the college's financial aid information.
Other loans
Besides setting up scholarships, some private organizations and foundations have loan programs as well. Borrowing terms may be quite favorable. You can use Scholarship Search 2 find these.