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FAQ ... Frequently asked questions
Question:
What exactly is a private student loan and how is it
different from a federal student loan?
Answer:
A private student loan is a credit based loan offered by a
lending institution. It is different from a Federal loan for
several reasons, one namely being that a private student
loan is sent directly to you while a federal loan is sent to
your school's controller's office where you sign it over to
the school.
Question:
Should I
still apply for Federal aid, even if I know won't qualify?
Answer:
Yes. Many students and parents mistakenly think they
automatically do not qualify for Federal financial aid for
some reason, and ultimately prevent themselves from ever receiving
it simply by never applying for it. Applying every year is
reccomended.
Question:
Do
I need to be enrolled or accepted before I can apply for
Federal financial aid at
a particular college?
Answer:
You can apply for Federal financial aid any time after January
1. To receive funds, you must be admitted and enrolled at the university,
where you will sign the check over to the school. Private
student loans are different as you can apply at any time of
the year and the funds are sent to you and not the school.
Question:
Why
do I have to wait until January 1 to submit my financial aid application?
Answer:
Federal Financial aid is a need and non-need based process,
where your family's income and tax information from the most
recent tax year is used to determine your eligibility for
need-based financial aid during the upcoming school year.
All income earned up until the new year counts toward your
Federal financial aid eligiblity.
Question:
Do I need to go through the Free Application for Federal
Student Aid (FAFSA) process every single year?
Answer:
Yes, you do. The internet has made things much easier. The
Department of Education's website makes it as easy as it can
be. Visit their website at
www.ed.gov . You can fill out the FAFSA for free at
www.fafsa.ed.gov |