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Everybody should have an opportunity to pursue higher education. Such chances should even be greater for single parents who are often in tight money situations. Single parents today are lucky for they can access a broad database of college grants online. 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 resources of an applicant’s parents will be examined through the FASFA facility to determine their capacity to support a college education. The previous year’s tax return of the parents will be needed in the FASFA application. Such a document is necessary to establish the EFC (Expected Family Contribution) to the single parent.
College grants for single parents are made possible by FAFSA 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. The aid may consist of a combination of scholarships, grants, work-study program and a loan amount. 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.
If there is an FFELP loan goes with the package, a lender will be chosen. Help will be extended to the student by the school’s financial office in choosing 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. The coordination could now be done swiftly because the processes have been streamlined and modern technological tools are employed. The approval of an FFELP loan could only take minutes.
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. 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. 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. 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.