Federal Student Financial Aid

Written by Seth Cotterell
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Attending college is the best way to give yourself an advantage in today's competitive job market. Studies prove that people with a college degree will earn significantly more in their life times than those without one. They will not only have greater earning power, but also have more choices for challenging and rewarding job opportunities.

A college degree is certainly important, but the question often arises, how do you pay for college? University tuition has been increasing steadily for many years with no end in sight. For people who want to attend college but cannot meet the high cost of attendance, the best way to overcome that obstacle is with federal student financial aid. This is money given by the federal government to help citizens earn university degrees.

Federal Student Financial Aid

Federal student financial aid comes in a variety of forms. Student loans are one of the most common sources of federal student financial aid. Direct loans by the US government can either be unsubsidized or subsidized, depending on the financial need of students and their parents. Those who qualify for subsidized loans do not have to worry about interest accruing while they are attending school because the government assumes that responsibility.

Subsidized loans are based on financial need. Unsubsidized loans, on the other hand, are not usually based on economic necessity. They are available to almost all students. The amount you qualify for depends on your standing in school. Freshman can receive a standard amount per year, and the unsubsidized loan amount increases each year of attendance. Unlike subsidized loans, unsubsidized loans do accrue interest while you're in school, so interest payments after graduation will be higher.


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