Even if you feel that you are well within the financial range for FAFSA approval, there are many reasons for the denial or exclusion of financial aid from the government. Many times, denial has more to do with technical or funding issues that it has to do with your own needs and finances, so the first thing that you should do is contact the FAFSA administration office and ask for an explanation. Once you have discussed where the application or approval went wrong, and have exhausted FAFSA as a funding source, you should ask the representative about the other programs available through the government that could help you on your way.
If you have been working with a professional financial aid consultant, it would be wise at this point to speak with them again and discuss your options. After you have confirmed that aid has been denied and that you are still in need of assistance, there are a few programs that you should explore. The most popular alternative to the FAFSA approval is the federal PLUS loan, also known as the direct PLUS loan. This is a loan that is taken out by the parents of dependent undergraduate students. This loan is similar to a mortgage or car loan because it is based on the credit and approval of the parents and is not restricted to parents based on their assets. Financial need is not determined or taken into account.
These loans are low interest and they are designed specifically for the use of education. Also, when you are awarded these loans, they do require you to report any previous scholarships and financial aid you have received because they will take it into account and deducted it from the overall loan amount. Because of this loan, parents are able to fund the entire college education without depleting assets. The payments tend to be low, and they allow you to defer payments and interest until after graduation, which allows the student to get a job in the field of their major.
Next, the Stafford or direct loan from the government should be investigated. These loans are referred to as in-student deferred, and this means that they are not payable while a student is attending college half-time or better. Because these loans are backed completely by the national government, interest rates are well below the going notional rate on any other type of college funding. Most receive the monies from a third party entity, such as Sallie Mae or Chase. These are ideal loans for those students whose major will ensure a better than average wage once they have graduated.
The last area I would mention to look into is in the area of local, merit-based funds from your town or city. Many local scholarship committees tend to not advertise too much simply because they do not have sufficient funds for many students. They are available and if you can find them and make your case known to them, there is a very good chance that you will be awarded some money, and every little bit helps. I would still caution against paying money to anyone offering to find scholarships for you. They generally cannot do any better then you would be able to do with just a little bit of effort on your part.
If you have been working with a professional financial aid consultant, it would be wise at this point to speak with them again and discuss your options. After you have confirmed that aid has been denied and that you are still in need of assistance, there are a few programs that you should explore. The most popular alternative to the FAFSA approval is the federal PLUS loan, also known as the direct PLUS loan. This is a loan that is taken out by the parents of dependent undergraduate students. This loan is similar to a mortgage or car loan because it is based on the credit and approval of the parents and is not restricted to parents based on their assets. Financial need is not determined or taken into account.
These loans are low interest and they are designed specifically for the use of education. Also, when you are awarded these loans, they do require you to report any previous scholarships and financial aid you have received because they will take it into account and deducted it from the overall loan amount. Because of this loan, parents are able to fund the entire college education without depleting assets. The payments tend to be low, and they allow you to defer payments and interest until after graduation, which allows the student to get a job in the field of their major.
Next, the Stafford or direct loan from the government should be investigated. These loans are referred to as in-student deferred, and this means that they are not payable while a student is attending college half-time or better. Because these loans are backed completely by the national government, interest rates are well below the going notional rate on any other type of college funding. Most receive the monies from a third party entity, such as Sallie Mae or Chase. These are ideal loans for those students whose major will ensure a better than average wage once they have graduated.
The last area I would mention to look into is in the area of local, merit-based funds from your town or city. Many local scholarship committees tend to not advertise too much simply because they do not have sufficient funds for many students. They are available and if you can find them and make your case known to them, there is a very good chance that you will be awarded some money, and every little bit helps. I would still caution against paying money to anyone offering to find scholarships for you. They generally cannot do any better then you would be able to do with just a little bit of effort on your part.
About the Author:
About the Author: Brandon Hansen is a college funding expert. Visit his website for more information for those who are denied FAFSA funding , and to see how you can get our 2009 College Funding Guide.
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