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When starting college the need for finance is almost always unavoidable. There are many sources of finance; however, the most popular are Government Grants and loans since they come with lower interest rates and longer repayment programs than private loans. If you’ve been searching around for loan information you surely have heard of the Department of Education loans. These loans are the ones that we will be explaining in this article. The US Department of Education The US Department of Education concentrates almost all government aid for those who need finance to go to college. This department is known for being extremely precise and strict with its proceedings on loan application. You’ll need to be prepared and have all the information prior to applying for a loan. Otherwise you’ll be searching around for forms, and trying to collect all the documentation that you need over and over again. The Applications When you want to apply for a Federal Loan, you’ll have to fill a form. This form is known as Free Application for Federal Student Aid Form (A.ka. FAFSA). Within this forms you’ll have to include a lot of personal and family information that’s necessary for the department to consider your application and to calculate the amount of money you’ll be able to request. With all this information that will be thoroughly checked, the department will come to know with how much money the applicant’s family will be able to contribute to his education and what the total amount of money he will need will be. The difference between these numbers will usually be the sum the applicant will be able to request to the department of education. Qualification These loans have specific requirements you’ll need to meet in order to get approved. If you fail to meet any of these requirements you’ll provably get declined. However, don’t despair as if you contact the department they’ll probably help you solve the problem. Following is a list of the most significant requirements: 1) US Citizenship 2) Valid Social Security Number 3) Feasible financial Need 4) Eligibility for Higher Education 5) No Defaults or Bankruptcy in credit report 6) No Convictions 7) High Grade Point Average Different Options When it comes to the US Department of Education Aid, there are at least three possibilities that can be taken into account: Federal Grants, Student Loans and Student Work Programs. Grants are a form of financial aid that doesn’t have to be paid back, the requirements for this type of loans focus on financial need and inability to obtain finance through other means. Usually, grants are processed on a first come – first served basis. Student Loans have been explained in the above paragraphs and differ only with regular loans in the length of repayment and interest rate charged that tends to be significantly lower. Student Work Programs imply that the applicant will be working for certain government agencies in order to pay for his education. The job will only take a couple of hours or if a fulltime job, only part of the salary will be deducted towards the payment of college. --- Mary Ann Wise, a professional consultant with more than twenty years in the financial field, is currently committed to helping people in the process of securing personal loans, mortgage, refinance or consolidation loans and preventing consumers from falling into the hands of fraudulent lenders. In one of her websites: http://www.badcreditloanservices.com you will find more useful tips and interesting articles on this subject and other financial related topics.
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college finance, government finance, student loans, department of education loans, federal loan, student work programs, federal grants, financial tips,
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