Stafford loans were established by Congress in 1965 as part of the FFELP (Federal Family Education Loan Program) to provide financial aid for students. They were originally intended to help student who were ‘in need’ but just what was meant by the term ‘in need’ was not entirely clear and the program was rapidly expanded. Today, Stafford loans account for more than 90% of the $50 billion dollars plus which is distributed each year to the various FFELP programs.
One way in which the definition of ‘in need’ was quickly broadened was to create two different forms of Stafford loan - subsidized and unsubsidized.
In the case of subsidized loans, the Federal Government pays the interest charges which would ordinarily accrue from the date on which the loan is originated until payments start. Usually, no payments are made while the student is attending school (as long as the program is a half-time program or greater) and for a further six month grace period after completion of the course. Students can however request that payments begin earlier if they wish to start repaying their loan before the usual date.
Because the government pays interest on these loans they are normally need-based in that aid […]
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The old saying that ‘money makes the world go around’ is as true today as it was all those years ago when it was first coined and that is not always good news for many youngsters who are trying to get the funds together for a college education so that they can reach their potential and get a share of all that lovely money. Many young people today possess considerable skill but do not get the opportunity to develop their skill and reach their true potential. Fortunately, for many youngsters that is where scholarships come in.
Both scholarships and grants are designed principally for individuals who demonstrate particular talent or financial need and, of course many young people fall into both categories.
There are literally hundreds of scholarships available today and they vary widely in terms of the qualifications required for an award, the amount of money payable and the purpose to which that money may be put. Some scholarships will for example cover a wide range of expenditure including tuition, books and other course materials and housing. Other scholarships may only be used to pay for tuition fees. Similarly some scholarships will meet the full cost of tuition (and perhaps other […]
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