Consolidating federal parent plus loans
Grants and loans from the Department of Education are issued according to information submitted by students and their parents.
The FAFSA compiles family data related to income and assets, to create accurate snapshots of each applicant’s ability to pay for college.
As part of the Health Care and Education Reconciliation Act of 2010, Barack Obama and the 111th Congress cut out the middlemen and ended the private lender subsidy arrangement.
The move designates the student assistance effort as the only U. Government-backed lending program, and leaves the Federal Government as the sole administrator for Federal Direct Student Loans.
Expected Family Contribution (EFC) is an important reference number that is submitted along with your Student Aid Report to each of the colleges you are considering attending.
Campus financial aid offices match your FAFSA status with available student aid, until your college financing needs are met.
Direct subsidized student loans are reserved for the neediest applicants, and interest payments are guaranteed by the Federal Government during certain periods of the life of each loan.
The important thing to remember about both of these coveted forms of financial aid is that you are never required to pay the money back.
Credit reports are summations of every credit encounter a person has logged during his or her lifetime – with greater numbers of successful interactions leading to positive credit scores.
The problem for most college students is not a history of bad credit, but rather a credit history that simply does not include enough entries.
Formal financial aid offers include Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), TEACH Grants, Military Service Grants Federal Direct Student Loans and any other forms of institution-specific assistance that are available at your school.
An important distinction exists between federally issued student loans : Some are subsidized, while others are not.