Applying for Financial Aid for a Degree Online
Federal Financial Aid assistance is available to students who are seeking a degree online if they attend a school that has been accredited by the U.S. Department of Education. This financial aid is offered to students based on need with the most beneficial loans being granted to the students who demonstrate (via tax returns) the greatest need for assistance. There are several stipulations and conditions that go with taking out a loan for federal financial aid, all of which need to be carefully considered before applying for any of them.
- Loans are deferred: Federal financial aid loans are deferred, meaning that repayment of the loans does not begin until after the student graduates from college, leaves school, or drops below part-time attendance. This convenience allows students to focus on their studies rather than working to pay back the loan while they are still in classes.
- Loan interest may be subsidized: Subsidized loans do not garner interest until after the deferment ends and repayment begins (usually after graduation). Subsidized loans are not always available - they are offered first and foremost to students with the greatest financial need. Students who barely qualify for financial aid or have a decent income will find that they are offered a combination of subsidized and unsubsidized loans with the greater portion of available loans being unsubsidized.
- Loans may not be discharged in bankruptcy: If you find yourself in dire financial straits after graduation or unable to find suitable employment, you should speak with your lender rather than avoiding them and not picking up the phone. Allowing the situation with your finances to get severe to the point where you have to file bankruptcy will not clear you of the obligation of paying back your federal financial aid. If you work with the lender, they may be willing to offer you a payment forbearance or deferment for a period of time until you are able to start paying again.
- Loan repayment can be adjusted: Typically, once you graduate or leave school, your financial aid payments will automatically be set up based on a 10 year schedule - however much you have borrowed up to that point will be divided into 120 nearly equal payments plus the interest that will accrue over that period of time in amortized fashion - this will be your monthly payment. If you wish, there are other repayment options available such as income-based repayment which allows you to pay a certain percentage of your income each month. As your income rises, so must your payments. You must meet minimal income level requirements for this option.
- Loan forgiveness is possible: Based on what type of online degree you obtain, it may be possible to have all or a portion of your loan forgiven. Doctors, educators or attorneys who work in low-income or pro bono situations may qualify for this type of loan forgiveness. Speak with your Financial Aid office for more information on loan forgiveness, if your degree will qualify you and what the requirements are.
Obtaining a college scholarship in order to pay for your degree online is quite simply the best way to manage your educational goals. Scholarships are grants of money that do not have to be repaid by the student ever, and are given out based on certain academic or meritorious standards. Scholarships are offered to students based on reasons relating to gender, race, academic standing, ambition, major, athletic ability, or even the ability to write an essay well. The smaller, more common, one-time scholarships are offered usually for writing a brief history and possibly for meeting certain requirements dealing with your standing in school such as being a particular major or in a certain year of school.
Finding and Applying for Scholarships
You can find and apply for various scholarships online or through your school's Financial Aid office online. When choosing which scholarship to apply for, be sure you read the rules and restrictions of the scholarship carefully before applying. Many people who apply for various scholarships are refused simply because they do not meet the qualifications listed with the scholarship description. That means wasted time preparing documents, writing essays, and possibly postage and stationery as well.
Essay Writing Tips
Many essays will require you to write at least one essay and possibly more - especially those smaller scholarships that are applied for through the Internet. These essays will usually have a specific theme and most of them will be looking for information about your past, your plans for the future or your outlook on the world. When writing these types of essays it is important to not brag about yourself and your abilities, but you must paid yourself and your accomplishments in the most positive light possible. What the readers of these dozens, hundreds or thousands of essays are looking for is the student who is set apart from the group; who has a unique and interesting outlook or who has overcome the greatest obstacles with the most uplifting attitude. You have to look back on the situations in your life that were challenges for you and remember how you faced and overcame them. Stories that you look back on now and laugh at but were torn up about when they were happening are good examples of your character.
While most scholarships offered are for a single semester, and some may be for a single purpose such as paying for tuition or books (or even books for a specific class), some are offered for a longer term such as one year, or even up to four years of school including all expenses (known as the "full ride"). The larger scholarships are usually offered to high school students for various reasons, but there are plenty of large (sometimes million-dollar) scholarships available for adults as well.