Government-sponsored Student Financial Aid

The past several decades have seen a marked increase in the general national concern for providing students from unfavorable economic backgrounds with the financial means to attend an institution of higher learning. Today, the opportunities for merit and financially-based scholarships, both public and private, are virtually limitless.

While scholarships can be awarded for all sorts of situations and achievements, from being born in a war zone to winning a spelling bee, most federal programs look exclusively at a current or potential student’s financial situation. FAFSA, or the Free Application for Financial Student Aid, is a document used by the government to determine whether a student is eligible for federal aid. It can be filled out and submitted annually, and is the also the standard means of establishing aid eligibility for many private institutions as well.

Common Forms of Federal Aid

Two major types of aid that might be awarded through a FAFSA report are:

Stafford Loans

These loans are the product of two related aid programs, the Financial Family Education Plan the Direct Loan program. While the maximum annual aid from Stafford loans varies from $5,500 to 20,500 depending on your level of education, the interests rates are fixed, and the government ensures a six-month grace period upon graduation before you must start paying back the loan.

Grants

Unlike loans, grants do not have to be paid back. Probably the most well-known federal form of this type of aid is a Pell grant, which can be a maximum of around $4,000 or $5,000. Unlike loans, grants are often based upon more criteria than just financial circumstances, such as level of education sought, student status, and the costs of your particular institution.

Contact Us

In the current economic climate, finding a job that pays enough to cover your student loan expenses can be exceptionally difficult. If you find yourself unable to pay back federal or private student loans, you might consider the possibility of filing for bankruptcy. Contact the Boca Raton bankruptcy attorneys at the law offices of Eric N. Klein & Associates, P.A. at 561-353-2800 today for more information on this option.