This is the main method that is used to determine financial aid awards that consist of grants, loans, and work-study. The financial aid department at FHTC is here to help you better understand the options that will best fit your needs to pay for school. It is important to remember that each type of award carries requirements and restrictions. Be sure you clearly understand your options before accepting awards, changing classes, dropping a class, or deciding to no longer attend a class.
Subsidized Loan- A loan based on financial need for which the federal government pays the interest that accrues while the borrower is in an in-school, grace, or deferment status. For Direct Subsidized Loans first disbursed between July 1, 2012, and July 1, 2014, the borrower will be responsible for paying any interest that accrues during the grace period. If the interest is not paid during the grace period, the interest will be added to the loan’s principal balance.
Unsubsidized Loan-A loan for which the borrower is fully responsible for paying the interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues throughout the life of the loan.
Federal Pell Grant- A federal grant for undergraduate students with financial need.
Federal Perkins Loan- A federal student loan, made by the recipient's school, for undergraduate and graduate students who demonstrate financial need.
Federal Work-Study- A federal student aid program that provides part-time employment while you are enrolled in school to help pay your education expenses.
Direct Loan- A federal student loan, made through the William D. Ford Federal Direct Loan Program, for which eligible students and parents borrow directly from the U.S. Department of Education at participating schools. Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans are types of Direct Loans.
Federal Family Education Loan (FFEL) Program- Under this program, private lenders provided loans to students that were guaranteed by the federal government. These loans included Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, FFEL PLUS Loans, and FFEL Consolidation Loans. Federal student loans under the FFEL Program are no longer made by private lenders. Instead, all new federal student loans come directly from the U.S. Department of Education under the Direct Loan Program.
Interest-A loan expense charged for the use of borrowed money. Interest is paid by a borrower to a lender. The expense is calculated as a percentage of the unpaid principal amount of the loan.
Interest Rate-The percentage at which interest is calculated on your loan(s).
Consolidation- The process of combining one or more loans into a single new loan.
Deferment- A postponement of payment on a loan that is allowed under certain conditions and during which interest does not accrue on Direct Subsidized Loans, Subsidized Federal Stafford Loans, and Federal Perkins Loans. All other federal student loans that are deferred will continue to accrue interest. Any unpaid interest that accrued during the deferment period may be added to the principal balance (capitalized) of the loan(s).
Default- Failure to repay a loan according to the terms agreed to in the promissory note. For most federal student loans, you will default if you have not made a payment in more than 270 days. You may experience serious legal consequences if you default
Delinquent- A loan is delinquent when loan payments are not received by the due dates. A loan remains delinquent until the borrower makes up the missed payment(s) through payment, deferment, or forbearance. If the borrower is unable to make payments, he or she should contact his or her loan servicer to discuss options to keep the loan in good standing
Collection Agency- An entity that recovers unpaid debt from borrowers who have defaulted on their loans.
It is important to keep in mind that money and time go hand in hand. Often times we don't think too long about ordering a meal at a fast food establishment or grabbing a gas station soda, Red Bull, coffee or snack. However, when purchased frequently enough the amount can add up fast. Experts recommend that to get a better handle on your own finances- you should track every penny spent for one month. At the end of the month add up various groups like; fast food purchases, entertainment, clothing, and goods to see where you are really spending your money. Then equate that with how many hours you must work to cover that cost in your life.
The chart below shows a brief version of this concept. Keep in mind that these figures do not account for taxes on goods, nor taxes taken out of the pay amount. Consider that the average full-time job is 40 hours a week equaling 160 hours a month. This is just a possible snapshot- this does not include other standard expenses like- utilities (gas, water, electric), internet/cable, vehicle (insurance, gas), medical expenditures (doctor or dental); entertainment like movies or bowling.
|Item Purchased||Cost x frequency= total cost per month||Hours Worked @ $10|
|Gas Station Coffee||$1.95 x 20 (5 per wk)= $39.00||4 Hours (1/2 a day)|
|Red Bull||$3.43 x 12 (3 per wk)= $41.16||4.5 Hours|
|44 oz Soda||$1.64 x 30 (1 per day)= $49.20||5 Hours|
|McDonald's Meal||$3.79 x 8 (2 per wk)= $30.32||3.5 Hours|
|Cell Phone Plan||$60.00||6 Hours|
|Rent||$500||50 Hours (6.2 days)|
|Student Loan Payment||$250.00||25 Hours (3.1 days)|
|Grocery Bill||$50.00 x 4 (per week)= $200.00||20 Hours (2.5 days)|
"Here are five ways to go about it:
1.) Talk with your high school and college counselors. They usually have a list of local organizations that offer scholarships. Starting in junior year is better than waiting until the last minute in senior year.
2.) Go local. When my daughter started her search, I was surprised at the number of local groups that had money available. One of the most generous grants was awarded by an area real estate broker.
3.) Also check with local businesses, service organizations, religious groups, large employers and civic groups. Parents may even have scholarships available through their employers.
4.) Don’t forget to specifically ask for merit aid from the colleges you’ve been accepted to because they can often be the biggest source of assistance. Just remember that you have to probe deeply. Many programs aren’t advertised and may be offered by departments or to students who have special qualifications. It also helps if a college has a healthy endowment and is willing to part with some of their kitty for grant aid.
5.) You can streamline the process by using online scholarship search engines. One of my favorites is Fastweb.com, but also check out sites such as Cappex, Scholarships.com and Cheapscholar.org. They all do pretty much the same thing in locating grant opportunities locally and nationally. "