All About Financial Aid Packages for Online Degree Programs
In these rough economic times you might think that a college education or online degree program is out of reach, in both costs and time consumption. Fortunately, that isn’t the case. Over $83 billion in financial aid will be distributed this year alone, and aid is available regardless of your income level. All you need is the right information and resources to help get you started on the road to completing a traditional or online college degree.
First of all, it is essential to know the differences between the main types of financial aid. These include loans, scholarships, grants, and work study. Loans are aid that must be repaid. Loans for online college degrees or traditional programs are grouped into three categories: federal student loans, federal parent loans, and private loans. Federal student loans usually have lower interest rates than private loans and do not require collateral. They also have deferment options’and different repayment plans. The two types of federal loans are Stafford loans and Perkins loans. These are usually awarded based on need, with the Perkins loan only going to those with the greatest need. In order to apply for a federal loan, you must complete the Free Application for Federal Student Aid (FAFSA).
Loans are also available for parents of online college students or on-campus students who need assistance with paying for their child’s education. Federal parent loans (PLUS loans) cover the costs of education all the way up to full attendance. These loans have a fixed interest rate that is usually higher than student loans, and is the full responsibility of the parents. You must start repaying these loans after 60 days and they must be paid in full after 10 years.