Everybody should have an opportunity to pursue higher education. 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 resources of an applicant’s parents will be examined through the FASFA facility to determine their capacity to support a college education. The parents’ tax returns during the previous year is a requirement in a FASFA application. Through the tax document, the EFC (Expected Family Contribution) to the applicant will be determined.
FAFSA paves the way for college grants for single parents through the FFELP (Federal Family Education Loan Program). The FAFSA application is analyzed to determine the financial aid package suitable for the single parent applying for a grant. The prospective school of the student applicant will be the one which will prepare the financial package. The difference between the EFC and the cost of enrolling at that school will be covered by the package. 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. School money assistance 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.
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. Guarantee agencies help facilitate the student loan grant. These guarantors insure student loans against default and collect a 1% default fee from each disbursement. 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. Within minutes, approval of an FFELP loan is possible.
The guarantor helps in disbursing the loan in college grants for single parents. School expenses take the priority in the disbursements. 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. These choices include equal monthly installments, escalating payments, income-linked payments, and extended repayment scheme. Students expecting short-term financial problems may seek a grace period for payment or negotiate a payment reduction.
Nine months of non-payment of the loan will mean default on the part of the borrower. The lender or loan service providers will be in regular contact with the borrowers who cannot pay on time. If loan payments become past due for two months or more, the loan guarantor will be contacting the borrower regularly. All these are done to prevent loan defaults.
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