Higher Education Grants for Lone Parents

On July 31, 2009 in Uncategorized

The pursuit of higher education should be open to everybody. Such chances should even be greater for single parents who are often in tight money situations. Fortunately, access to a broad database of college grants for single parents is now available on the Internet. The single parent can typically start an online search for available college grants by visiting the website of the FASFA (Free Application for Federal Student Aid). The FASFA will first gauge the ability of an applicant’s own parents to contribute to the cost of college education. The previous year’s tax return of the parents will be needed in the FASFA application. Through the tax document, the EFC (Expected Family Contribution) to the applicant will be determined.

College grants for single parents are made possible by FAFSA 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. College money assistance for single parents are especially desired because they do not have to be repaid. School grants for single mothers can be funded by donations from alumni, school endowments, or the government. Another desirable funding option is scholarships for single mothers because they do not have to be repaid either. There are both talent based scholarships and needs based scholarships available.

If there is an FFELP loan goes with the package, a lender will be chosen. 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. There is a coordination among the school, lender, guarantor and the US Department of Education to determine the student’s loan eligibility. Technological advances and streamlined processes have made such coordination very swift. The approval of an FFELP loan could only take minutes.

The guarantor helps in disbursing the loan in college grants for single parents. Proceeds are first applied to the school expenses. The student gets the balance of the disbursements. There are also third-party loan service providers who may be assisting lenders and guarantors. Their areas of responsibilities may include payments collection, monitoring of balances and regular communication with the student borrower.

The student borrower has to start repaying the loan six months after finishing school. The terms of FFELP loan payments vary widely. A student borrower can choose equal monthly installments, escalating payments, income-linked payments or extended repayments. Borrowers may apply for a payment grace period or payment reduction if they are facing temporary financial difficulties.

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. The loan guarantor will likewise regularly call the borrower whose loan payments are past due for two months or more. All these are done to prevent loan defaults.

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