Fed Financial

Seeking financial aid for college. Federal Aid is not an option. Been out of school for a few years. Help!?

Federal Aid is not an option because of a default in the past.

Public Comments

1. Why isn't federal aid an option? It's the best one. Private loans through banks, but the interest rates aren't as good.
2. You can still receive Federal Aid if you've been out of school for awhile. I recently went back to school after being out for 10 years. It all depends on your income. Most schools will not let you go through the process of applying for Stafford Loans or any scholarships until you've applied to FAFSA first. Just contact the school you're interested in and ask their Financial Aid Dept. what you need to do. You can also go on-line to the Fed. Aid website and start your application w/them. It's www.fafsa.ed.gov
3. I suggest applying for lots of scholarships. Look online at fastweb.com. It's free to register, and it has tons of scholarships that you can apply for. Scholarships are always a good way to get some extra money for college. Good luck!
4. Federal Aid is always your best option. Even if you are not interested in the loans the the Department of Education provides, most scholarship organizations (including *colleges* that offer scholarships as part of their financial aid packages) are going to require you to file a FAFSA (to demonstrate your financial need). Your loan default (I'm assuming here that your default was on a Federal loan) will show up on your FAFSA, plain as day and preclude you from obtaining further federal aid... that is, until you clean up your record. As such, you need to resolve your default (not simply because you need Fin. Aid now but because a loan default will haunt you and your credit report for years). Once you are out of default (which usually means making a certain number of on-time payments), you will again be eligible for Federal Aid and you will be much better off. In fact... If you are an independent student seeking your first undergraduate degree, you will not only be eligible for federal loans but grant aid as well (depending on your financial need). If you choose not to resolve your default: there are private loan companies will still give you a loan. You can do simple internet searches for education loans, but to make sure that the company you choose is legitimate, check with your college Financial Aid administrator. If you *must* go this route, it is in your best interest to pay attention to interest rates and repayment terms (remember: your loan default affects your credit which in turn affects the rate that you receive on your private loan). Good luck!