College Grants for Solitary Parents
The pursuit of higher education should be open to everybody. Single parents, often beset with financial difficulties, should be afforded even greater chances at education. Fortunately, access to a broad database of college grants for single parents is now available on the Internet. The website of the FASFA (Free Application for Federal Student Aid) is typically the resource from which a single parent can start looking for college grants.The FASFA will first gauge the ability of an applicant’s own parents to contribute to the cost of college education. The previous year’s tax return of the parents will be needed in the FASFA application. Through the tax document, the EFC (Expected Family Contribution) to the applicant will be determined.
College grants for single parents are made possible by FAFSA through the FFELP (Federal Family Education Loan Program). The FAFSA application is analyzed to determine the financial aid package suitable for the single parent applying for a grant. This aid package will be prepared by the school that the student wants to attend. The difference between the EFC and the cost of enrolling at that school will be covered by the package. A combination of grants, scholarships, work–study programs and a loan amount are the possible components of the aid package. College money assistance for single parents are especially desired because they do not have to be repaid. School grants for single mothers can be funded by donations from alumni, school endowments, or the government. Another desirable funding option is college money awards for single mothers because they do not have to be repaid either. There are both talent based scholarships and needs based scholarships available.
A lender will be selected if the aid package includes an FFELP loan. Help will be extended to the student by the school’s financial office in choosing a lender. Federal student loans are unsecured but are backed by guarantee agencies. They collect a 1% default fee in order to insure student loans against default. Determining students’ loan eligibility is a coordinated effort among the school, lender, guarantor and the US Department of Education. Technological advances and streamlined processes have made such coordination very swift. Within minutes, approval of an FFELP loan is possible.
The loan in college grants for single parents may be disbursed through the help of the guarantor. Proceeds are first applied to the school expenses. The student gets the balance of the disbursements. There are also third-party loan service providers who may be assisting lenders and guarantors. Their areas of responsibilities may include payments collection, monitoring of balances and regular communication with the student borrower.
The student borrower has to start repaying the loan six months after finishing school. There are several repayment options for FFELP loans. A student borrower can choose equal monthly installments, escalating payments, income-linked payments or extended repayments. Borrowers may apply for a payment grace period or payment reduction if they are facing temporary financial difficulties.
A loan will be declared in default after nine months of non-payment. Once borrowers were unable to pay on time, regular contact will be initiated by the lender or loan service providers. If loan payments become past due for two months or more, the loan guarantor will be contacting the borrower regularly. Such regular communication is pursued so that loan defaults are avoided.
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