Federal Student Aid Can Work with Your Military Benefits
Through your dedication to the military, you’veearned great military education benefits, but don’t stop lookingthere. You also may be eligible for low-interest loans or grants(free money) through the government.
Theloans and grants offered by the Federal Student Aid program can beused for the cost of tuition, books, fees, and living expenses. Oftenservicemembers use Federal Student Aid to supplement their militarybenefits and apply the money toward the expense of living while inschool.
Who IsEligible for FSA?
Youmust be
- a high school graduate or possess a GED
- working toward a degree or certificate
- enrolled in an accredited school or program
- a U.S. citizen or have a social security number
- registered with the FAFSA
Becausemost citizens are also eligible for FSA, it doesn’t matter whichbranch you are with, or whether you are active duty, reserve,retired, etc.
Howto Apply:
Afteryou have selected a college or qualifying school, simply fill out theFAFSA form either online or on paper. You’ll need tax forms fromprevious years, W-2s, bank statements and investment statements tofill out the application. It can be tricky, but if you use the FAFSA Pre-Application Worksheet , theprocess becomes quite simple. Once your application has beenprocessed, your school will send you an award letter to let you knowwhich FSA options are available to you. Simply select the loans orgrants you wish to receive and your school will take care of therest.
Tip:There are companies available that will fill out your FAFSA for you.They cost about $50. We recommend that you fill out the formyourself. With the use of the Pre-ApplicationWorksheet ,the process is fairly short and simple.
Stilllooking for the right school? Make sure the school you select is botheligible for FSA and will accept your military benefits by usingUSMilitary.com’s School Finder. Whenyou use this simple, free tool, there is no guesswork in findingqualifying schools.
Loan andGrants through FSA
Eachof the following can be applied for via the FAFSA form.
LOANS
Loansmust be repaid and are funded or backed by the federal government.Each one has a different fee charged upfront, interest rates, anddeferment policies. There are two different types of loans:subsidized and unsubsidized. The interest on an unsubsidized loanbegins immediately—as soon as the school receives the money; thisinterest can add up while you are in school, so it is a good idea tomake small payments while you are attending your program. Theinterest on a subsidized loan does not begin until six months afteryou leave school, which means big savings.
StaffordLoan—Unsubsidized
Benefit: Up to $6,625 1st year, $7,500 2nd year, and$10,500 3rd year.
Interest: Variable up to 8.5%
Source: Federal Government
StaffordLoan—Subsidized
Benefit: Up to $6,625 1st year, $7,500 2nd year, and$10,500 3rd year.
Interest: Variable up to 8.5%
Source: Federal Government
FederalFamily Education Loan (FFEL)—Unsubsidized
Benefit: Up to $6,625 1st year, $7,500 2nd year, and$10,500 3rd year.
Interest: Variable up to 8.5%
Source: Private Banks
FederalFamily Education Loan (FFEL)—Subsidized
Benefit: Up to $6,625 1st year, $7,500 2nd year, and$10,500 3rd year.
Interest: Variable up to 8.5%
Source: Private Banks
PerkinsLoan
Benefit: Up to $4,000 per year.
Interest: Fixed at 5%–no initial loan fees
Source: School
GRANTS
Grantsare basically free money issued by the federal government. Thesetypes of grants are distributed to your school’s business office.If there is any extra after school expenses, you can take theremaining balance for living expenses.
PELLGrant
Benefit: Up to $4,000 per year.
Eligibility: Need-based.
Source: Federal Government
FederalStudent Education Opportunity Grant (FSEOG)
Benefit: Up to $4,000 per year.
Eligibility: Need-based—for those with a higher need than PELL Grantrecipients. Individuals may receive both grants.
Source: Federal Government
