Higher Education Grants for Solo Guardians
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. Single parents today are lucky for they can access a broad database of college grants online. 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 parents’ tax returns during the previous year is a requirement in a FASFA application. Such a document is necessary to establish the EFC (Expected Family Contribution) to the single parent.
FAFSA paves the way for college grants for single parents through the FFELP (Federal Family Education Loan Program). A financial aid package for the single parent will be assembled after analyzing the FAFSA information provided by the applicant. This aid package will be prepared by the school that the student wants to attend. The package is meant to cover the difference between the cost of attending that school and the EFC. A combination of grants, scholarships, work–study programs and a loan amount are the possible components of the aid package. Grants for college for single parents are especially desired because they do not have to be repaid. College grants for single mothers can be funded by donations from alumni, school endowments, or the government. Another desirable funding option is scholarships for single moms 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. The school’s financial office will help the student select 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. The coordination could now be done swiftly because the processes have been streamlined and modern technological tools are employed. 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 balance that remains is disbursed to the student. There are also third-party loan service providers who may be assisting lenders and guarantors. These loan service providers may be the ones who will collect payments, monitor balances and be in contact with the borrower.
Repayment of the loan starts six months after the student leaves 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. Students expecting short-term financial problems may seek a grace period for payment or negotiate a payment reduction.
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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