Introduction
College can be costly to pay for, however, there is a lot that can help cover the expenses. In 2025, a student will be able to borrow money for a student loan, get grants, scholarships, or attend a work-study program. This handbook briefly explains the primary methods of financing your education and where and how to search for the best available options for your needs.
Types of Financial Aid
1. Federal Student Loans
Federal loans are a good bet for students. Low interest rates and flexible repayment options are provided by them.
- Subsidized Loans: For use by students in need of funds. The government pays the interest while in school.
- Unsubsidized Loans: Accessible to all students, whether entitled or not. While in school, interest accrues.
- PLUS Loans: For parents of dependent students or graduate students. They have higher interest rates and require a credit check.
2. Grants
Grants are free money which you don’t have to pay back.
- Pell Grants: For undergraduate students in financial need.
- State Grants: Will differ in each state and can be a great way to lower your tuition.
3. Scholarships
Scholarships are another form of free money that you never have to pay back.
- Merit-Based Scholarships: Awarded based on academic performance, sports, or other talents.
- Need-Based Scholarships: Assigned to students based on their financial need.
- Private Scholarships: Provided by businesses, organizations, and foundations.
4. Work-Study Programs
Work-study lets students hold part-time jobs in school to help pay for their education.
- Federal Work-Study: Government jobs that enable students to earn money to pay their school bills.
Latest Changes Concerning Student Loans and Financial Aid
Loan Forgiveness
If you are in public service, you may qualify for loan forgiveness. Recent changes have made it easier to qualify for forgiveness programs.
Income-Driven Repayment Plans
These plans calculate your monthly loan payments based on how much money you earn. They can come in handy when you find it difficult to pay your loans after graduation.
Loan Resumption
Federal loan collections have resumed following a break in 2025. Be sure to make your loan payments to avoid late fees.
Tips for Managing Student Loans
- Stick with Federal Loans: They provide lower interest rates and more repayment options than private loans.
- Consider Income-Driven Repayment: Income-driven repayment plans can lower your monthly payment if you’re having trouble making payments.
- Refinance for Lower Rates: If you have private loans, refinancing can help reduce your interest rate, but be careful not to lose any federal loan benefits.
FAQ Section
Q1: At what time should I file for financial assistance?
A1: Apply as soon as FAFSA opens, which releases anytime from October to November for the next academic year.
Q2: Am I eligible for financial aid if I don’t have great credit?
A2: Federal student loans do not require a credit check. Certain private loans may require good credit.
Q3: How can I find scholarships?
A3: Many scholarships are offered by your school, local institutions, and online databases. Ask your school’s financial aid office for ideas.
Q4: What if I cannot make payments to my loans?
A4: If you’re struggling to make payments, reach out to your loan servicer to inquire about deferment, forbearance, and income-driven repayment options.
