¶ … student aid programs. Student finance aid can be described as funds given to the student to make it easy for them to fix cost of education such as fee and tuition, room and board, supplies and books where the students are undertaking their education like in universities, colleges or private schools.The funds which is being given out to public educations by government in general is known as financial aid meaning that it is being given to particular students, Financial aid can also be referred to as scholarship, although scholarship has some other components like students loans and grants.Loans are finance that one lend and must be paid back with an intrest after a period of time.In the case of student loan the money will be taken back after graduating.Aid is the help one is given.

All the U.S. states governments and The United States government offer loans, grants and work study to the students who are worth and need- based ones.Upto nine federation and 605 programs of state student aid including many post secondary institution offer merit aid.Main federal grants consist of Federal SEOG Grant, Pell Grant, SMART Grant, Stafford Loans and others in subsidized and unsubsidized form.The U.S. Department of eduction makes Fideral Perkins loans from participation in school per annual appropriations whereas The U.S. Derpartmet of Education makes Federation PLUS loans and Stafford Loans.Federation Family Education Loan Program (FFELP) accepted that students to be given loans by the private lenders which the federal government had guaranteed.Need and non-need based aid such as scholarship, work study programs, loans, grants was offered by State Government.

Private universities and colleges offered grants and need -- and merit-based scholarship.In any case there was a student who wanted the financial support which exceeded what an institution is able to give the person was given an option of private education loan.The disadvantages was that private education loans was higher in Terms of interest than loans from the federal government. There were also added advantages where one could be given financial support in the type of need-or merit-based aid and a scholarship.Institution has different need; some need FAFSA, need based analysis document to seek for the Finance to use an added scrutiny for the rationalization of institutional funds.

Finance aid can be divided into two parts depending on ways in which the finance aid is given. It can be of need -- based or merit based.Student aid is offered as scholarship or grant, it is of low interest having been subsidized by the government and almost everyone is in apposition to get it.Student aid application is received by the Department of Education starting from January.On receiving it should be of current where necessary changes have been effected or present. It should have current income, whoever you depend on and your assets every year.Everyone is indicated to how much the family can raise or pay by the Department of Education depending on the family capabilities.Much of the student aid is offered as federal aid and they are given as low interest loan and grants.The federal loan program is categorized into Fideral Direct Subsidized and Fidera Directl unsubsidized loans.Fideral loans bid favorable repayment condition and lower interest as compared to private student loan and it can be o be at disposal for state based aid.

Merit-based scholarship entails universities or colleges' scholarship and other organization.They are usually for student who have excellent achievement and SAT or ACT of maximum scores.It is also offered to potential leadership, talented individuals and other personalities.While Need-Based financial aid is being given to the students with financial need, this is done by analyzing the Application for Federal Student Aid.

When we talk about the process of student aid, it must start with Free Application for Federal

Student Aid (FAFSA).Not unless one completes this form is when the office will recognize him. This makes this completion to be very important or it can be renewed since it is an annual event.It is important that it is indicated in your calendar every January first because Free Appliction for Federation Student Aid can only be done at this time as the earliest.Financial aid eligibility and the submission of ones Free Application for Federation Student Aid must be re determined by your financial aid office annually.

The process of financial aid application is as follows; Step one involves completion and submission of Student's Free Application...

After making sure that the step one is completed one moves to step two and you cannot move to step two before completing the first one and this will apply to the other steps for you have to satisfactory complete each steps.In step two, EFC is being calculated by the Department of Education.The presentation of EFC to the school and the student through Student Aid Report (SAR) is done in step three.In step four aid eligibility is being calculated by the school and also sends award letters.The last step which is the fifth, there is comparison of award Letters and they are suppose to follow instructions.It can also be through the electronic submission but one has to have Identification Number that can be used and if not a pin. One must have drivers' lincense, federal tax return and social security number and it has its advantages over doing it manually.
According to Chemo Diana (2007)many students of universes and colleges ends up with large sums of debts simply because they tend not to be mature to control their funds as expected.Students involve themselves to costlier lending activities as offered by those who lend in education sector and credit card issuers.Failure to plan also forms basis of student financial loss.Students loans are still in question whether they are still good debts, most of the time students take higher loans yet they are not sure whether they are going to find a job which will help in paying back the debt. On the other hand private loans tend to have higher interest rate, they don't consider protection and less option for payment.Instead of students taking advantages of resources which are valuable to prevent large amount of debts, their debts increases.They can involve in full time summer jobs which will prvide them with money for the year so that sometimes they can fail to apply for the loan.Part time jobs might help in daily expenses and this apply to tuitions.

Lack of planning also contributes a lot to the difficulties of paying the debts. In appropriate budgeting usually leaving student with no option but to rely on the credit card making them use more interest rate. Without planning living cost becomes as was not expected leading to spending much.Asection of the students use colleges and other graduate schools as a backup, others stay in studies for longer periods so that they don't pay back their loans earlier but not to compete for jobs.Fetterman, Mindy (2006) finds that the number of debtors keep on increasing.

Eventhough students have college or universities debts, they have away to avoid them.This can be done when a student keep his or her grades high where individual hard work in a competitive environment for scholarship awarding, one can stay involved, taking placement classes in advance, seek for grants and scholarships

Student loan has been of question whether they worth the education or they put students into financial hole? According to Tim Grant (July 29,2009) inPittsburgh post Gazette writes a story of Marjorie Dillon,26 with her 9 months daughter.She had been burden with debt from where she did her college education. She and her classmates enjoyed at the time the university offered them the student loan although they did not investigate the terms and conditions of the loan.They used the money to pay their tuition and other expenses.On completing her college graduating to have a bachelor degree.she was earning $7.25 in a hour, in a week of 25 to 30 hours.She was having debt of $120,000 though she tried to find a better job but to no success.When she was taking her loan she had to have co-signer which was her grandmother, meaning that her grandmother had to loose her house if the loan was not cleared. This made Dillon to regret why she went to school if it could bring such a scenario Kantrowtz (2010) writes about heavy budden to families after taking loans.This situation does not only happen to Dillon but others also share this kind of scene showing the burden which is bestored to the college graduates when they don't find a job after completing their universities and colleges. Schemo Diana (2007) talk about crisis in debt, in other opinion a section may see it as loans worth the education for they got the jobs, this could be facilitated by the type of course one took which many a times goes with sciences which might be of easy to get a job than other courses.Schemo, Diana Jean (june 2007) where it was indicated that loan deepen a crisis in student debt.

CONCLUTION

Loan for the student in colleges and universities have given student opportunity to learn…