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 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. 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 grants 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.
A lender will be selected if the aid package includes an FFELP loan. The school’s financial office will help the student select a lender. Federal student loans are unsecured but are backed by guarantee agencies. These guarantors insure student loans against default and collect a 1% default fee from each disbursement. Determining students’ loan eligibility is a coordinated effort among the school, lender, guarantor and the US Department of Education. Technological advances and streamlined processes have made such coordination very swift. Within minutes, approval of an FFELP loan is possible.
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. These loan service providers may be the ones who will collect payments, monitor balances and be in contact with the borrower.
The student borrower has to start repaying the loan six months after finishing school. There are several repayment options for FFELP loans. 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.
A loan will be declared in default after nine months of non-payment. The lender or loan service providers will be in regular contact with the borrowers who cannot pay on time. The loan guarantor will likewise regularly call the borrower whose loan payments are past due for two months or more. Such regular communication is pursued so that loan defaults are avoided.
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