The first thing you need to do is complete your FAFSA. Your FAFSA is the key to any and all financial aid.
Second, you must be enrolled in an undergraduate course of study, though there are some rare teaching certificate exceptions
If you have received an associate degree, or any diploma below a baccalaureate, and you enroll in another undergraduate program you are still eligible.
What would make me ineligible for a federal Pell Grant
If you already earned a baccalaureate
If you are pursuing a professional degree such as pharmacy, dentistry, or veterinary medicine. Professional degrees are not considered undergraduate, and thus, are not eligible.
Securing your bachelors degree from another country, unless the school provides written documentation stating that your degree is not equivalent to a U.S. bachelors degree.
If you are currently incarcerated
Additional Notes
Undergraduate studies are usually only four or five academic years. If the program is longer, like a six-year pharmacy program, then students are considered undergrads for only the first four years unless the school designates that the graduate program begins after the end of the third academic year.
Grants and scholarships are always what you should strive for first as they do not require repayment. Join scholarshippoints.com for FREE for a chance at winning over a $100,000 worth of scholarship money for school.
With some schools no longer able to afford the overhead costs of running a college institution…many schools have decided to beef up their online degree programs. It saves the school money to have more students take classes online than it does to have them on campus. Online degree programs are growing rapidly, and more and more potential students are taking advantage of the convenience of taking a class on their own time. In the past online degrees were shunned in the collegiate world…they weren’t thought to be reputable, and even referred to as scams…but that is all changing (and never had much merit), and it has been for awhile now. While some students are not full time online, many of them have taken an online class to help ease their busy schedule. Other students, who work full time and have families view online degree programs as the key to their education; the convenience of online classes coupled with increased financial aid offered through the US Dept of Education has definitely made it easier for some people to go to school, who otherwise would not have considered it.
The Free Application for Federal Aid can be filled out for any school that participates in the Title IV aid program. If you are interested in a certain online school, it would be wise to make sure the school participates in the program. Most online degree programs are branches of bigger institutions, so you shouldn’t run into many issues with being able to receive federal aid….but there are definitely online schools that do not handle these loans. If you plan on depending primarily on loans to pay for your school, I would highly recommend attending an online school that participates in the federal financial aid program. Funding an entire college education with private loans will not exactly get you ahead financially; it will do quite the opposite, and I have always said I really don’t see the point of working so hard for four years to complete your degree, only to be so buried in debt when you are done that even the best job offer won’t be enough to make your loan payments every month.
Recently, Sean Dove, an admissions representative at Devry University created a list of the top ten mistakes to avoid when choosing an online degree program:
Don’t be lazy. Investigate and request information from several online colleges.
Don’t eliminate an online college or university just because it is not an institution whose name you recognize.
Don’t be afraid to ask questions. In fact, put together a list of questions before talking with admissions representatives.
Don’t rule out a college immediately because of cost. Financial aid, credit for life experience, scholarships, and tuition payment plans may make a college or university far more affordable than it appears to be.
Don’t “blow off†any admissions representatives who may call you. Take advantage of the opportunity they offer you to learn more about their online degree programs.
Don’t trust your memory. Take good notes when you read college brochures and speak with admissions representatives.
Do not be discouraged or intimidated by financial aid forms. Most online colleges have staff members who will be happy to help you.
Do not settle on the first seemingly appropriate online degree program you discover. For instance, a general business program might not serve you as well as a program with a focus in accounting, marketing, management, etc. Conversely, a more general, broadly based degree program in business may better meet your needs.
Don’t keep your interest in continuing your education a secret. If you talk to friends, family members, and colleagues they can share their experiences and offer you important encouragement and support.
Don’t be intimidated by returning to “schoolâ€. The fact is, if you have good basic academic and time management skills, if you are motivated, and if you have the support of your closest family members and friends, your chances of achieving your degree (and career) goals are high.
If you are currently taking online classes or completing an online degree, please feel free to share your experiences here and add to Sean’s list. If you want to learn more about what schools are out there, and what programs are offered online then visit this online directory. You can also visit the financial aid forum to read more about other student’s experiences with online degrees, financial aid, and many other college related issues.
The FAFSA blog is sponsored in part by:
Five most recent FAFSA form help blog posts:
It’s not something that any of us want to think about, but it is a sad realty of life. If you take out a Stafford loan and something happens to you where you wind up permanently disabled or worse, the entire amount of the loan is forgiven.
I know when I was 18 I didn’t pay much attention to this fact, but when I went back to school at 30 with a wife and child I read the fine print. The last thing I wanted to do was put them in a bad situation if something unforeseen happened to me.
For a Parent Plus loan (which is a loan a parent takes out on behalf of the student), the forgivness extends to them as well in the event of death, but not in the case of permanent disability of the student for whom the parent borrowed the money for.
Let me first start off by saying that even if your credit is has been severely affected by credit card debt, or any other kind of debt….you can still file a FAFSA and receive a Stafford loan. Your FAFSA results are not affected by your credit history. Recently there was a post on forum that is specifically for students and parents who have questions about financial aid, that relates to this question:
i took out credit cards while i am a full time student. i borrowed way too much and now one of those cards is in default. my F.A. adviser said that i cannot get any more F.A. with this happening. if i enroll my cards in a credit counseling AKA debt management program will this in any way affect my ability to 1. get more student loans, since i have 2 more years of graduate school. 2. cause me to have to enroll my already low interest rate student loans into this debt management account. i need help now !! thank you
Hi Patti, your credit and any credit card debt you may have in no way affects FEDERAL aid….which means you can still file the FAFSA and borrow federal loans. Your debt would affect your ability to get approved for private student loans. Can you afford school with just federal loans? How much is your tuition?
ms stanford, i need the loans due to the high cost of private graduate school. the f.a. officer denied a budget increase for this term. she said that the school approved the increase but the federal people denied it based on my credit card debt being on collections. she told me that i would not be able to get Federal aid next year if this or any other debt is over due 60 days.can you refer me to a contact in the federal area to contact to resolve this?
Patti is not alone. Often times someone is either giving you false information or you are misinterpreting what they are saying. But let this be clear, if you are deep in debt on a credit card, and you can’t even get approved for a car loan…you can still fill out the FAFSA and receive the Stafford loan with no problem whatsoever. Your credit is not checked for these loans, and remains completely seperate from the Federal aid process.
If you default on a Federal loan (you don’t make a payment for 180 days), then that will appear on your credit report. You will not be allowed to borrow another Federal loan until that loan comes out of default. BUT it is not your bad credit that is preventing you from getting the loan, it is the default status on that Federal loan that draws the red flag. Once that loan comes out of default (usually 9-12 ontime payments to the debtor), you could apply for a Stafford loan the next day even though your credit has not technically been repaired yet. To check out more questions like Patti’s visit the financial aid forum.
Points code: FAFSAIQ
The FAFSA blog is sponsored in part by:
Five most recent FAFSA form help blog posts:
Did you know there are tax incentives while paying back your federal student loans?Most can claim the interest on their taxes.This benefit applies to all loans used to pay for post-secondary education, including PLUS loans.
The IRS publication 970, Tax Benefits for Higher Education explains these benefits in greater detail.You can also contact the IRS at 800-829-1040 with additional questions.
Did you know the U.S. government requires each student applying for federal financial aid to complete a renewal FAFSA each year?And since the FAFSA is the key to determining your financial aid package it is of paramount importance to do so.
The reason a renewal is required is your financial situation or status could change (for better or worse) from year to year and that information must be captured.For example, perhaps one of your parents got a promotion and is able to pay for more or college or last summer’s internship paid very well, and allows you to contribute more to your education.All of this is crucial to determining your awards package.
So don’t forget to do your renewal FAFSA after the first of the new year!
The FAFSA blog is sponsored in part by:
Five most recent FAFSA form help blog posts:
If you’re just filing your FAFSA now, be aware that loan limits have increased as well; you’ll receive additional details from your school’s financial aid office in your award letter and financial aid package.
The FAFSA blog is sponsored in part by:
Five most recent FAFSA form help blog posts:
Starting with the 2008-2009 school year, the Federal Parent Plus Loan can now be deferred until 6 months after the child’s graduation. This is a big change, because typically Parent Plus loans were due immediately upon disbursement. This will help a lot of parents out who are trying to help their children to pay for College, but cannot afford the monthly payment while the student is in school. This also helps the parents who plan on having the child repay the loan when they are done.
Remember, that Parent Plus loans are the parent’s responsibility for the life of the loan. There is no way to switch the loan to the students name when the student is done (short of taking out a private loan to pay it off, which I don’t recommend).
Also, I am asked quite frequently if the Plus loan can be used to living expenses….if the student is living off campus. The answer to that is, IF the school agrees to it, then yes. They are the ones that certify the actual amount of the loan. Check with the school, and explain to them what you need the money for…this way the loan will be disbursed, and most of it will go towards tuition that is due, then the remainder would go to the parent or student to help with living expenses.
If you need a PLUS loan for this upcoming school year, and your child knows what College they are attending, apply for this loan NOW…every day lenders are dropping out of this loan program, due to an ever changing student loan industry…so its best to get your paperwork in now.
Beginning July 1, 2008, HR 5715 passed by Congress will allow parents to choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half time. Accruing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly.
Special Provision for Parents Delinquent on Mortgage Payments
The bill would allow lenders to consider parents eligible for PLUS loans even if, during the period January 1, 2007, through December 31, 2009, the parents are or were:
* No more than 180 days delinquent on a mortgage payment on their primary residence
* No more than 180 days delinquent on any medical bill payments
* No more than 89 days delinquency on the repayment of “any other debt”
As far back as 2001, Congress, looking at incredibly high interest rates on federal student loans (8.25% statutory maximum on the Stafford loan, 8.5% on the PLUS loan) decided to legislate a mandatory fixed rate of 6.8% on Stafford loans beginning July 1, 2006. At the time, it seemed like a good idea to legislators to try “fixing” market prices. Prior to that legislation, Stafford and PLUS loans had variable rates of 2.3% and 3.1% + the 91-day Treasury Bill rate at the last auction in the month of May.
Fast forward to today – 2008. With the economic uncertainty, the 91-day Treasury Bill’s current rate is a shockingly low 0.21% (as of noon 3/20/08). If Stafford loan rates were still variable rate loans and rates were set today, the Stafford loan would have a variable rate of 2.51% – lower than student loan interest rates have ever been. For students now paying 6.8%, a rate of 2.51% would mean paying about $50 less per month on $20,000 in federal student loans. Had Congress also left student loan consolidation alone (not reducing subsidies to lenders, thereby reducing availability of consolidation loans to students) that same rate change would mean paying 56% less interest for the life of the loan.
This is a lesson for all of us – when government attempts to manage free markets, unintended consequences may result, and those consequences may be financially quite harmful in the long term.
to beef up their 