Financial Aid – Federal Or Private Loans?

It is true that the world revolves around money, however, in the world of education not having enough money is not the end of your education – financial aid is there to help you solve your worries.

Therefore, if you belong to a low or a middle class family and you thought that you might never be able to pursue a college degree, it is time for you to think again. Regardless of how bad your financial circumstances are, which is of course a good thing when we are talking about aid, you should definitely apply to a college and financial aid and who knows you might even get a hundred percent financial assistance.

There is a belief in students that if they seek financial assistance from the colleges, they might not get accepted by the college. This is simply not true. Most of the colleges do not even look at the fact that you have applied for the financial aid; as long as you present yourself as a suitable candidate there is no way that you should not get into the college. Once you have been accepted by the college, and if you truly are in need of the aid, the college will see that and the result will be in your favor.

There are two types of financial aid – one that is determined by your academics known as the merit-based financial; the other is known as the need-based financial aid which takes into consideration only your financial standing. Many universities now offer more merit based than the need based financial aid. So if you are a brilliant student, and also in need of financial assistance, you just might be the perfect candidate for receiving financial aid.

If you had to choose between federal and private loan always go for the federal loan. This is because unlike federal loans, private loans do not offer you with a fixed rate. While the interest rate may be a certain amount one year, next year there is a high chance that the interest rate increases. As the interest keeps accumulating, you end up having a huge amount of debt which you can never have imagined. Be sure to also try government grants that carry no annual interest fees as well and don’t have to be paid back for extra assistance to help you when you’re in need.