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. 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 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.
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. 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 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. Help will be extended to the student by the school’s financial office in choosing 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. 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 guarantor helps in disbursing the loan in college grants for single parents. School expenses take the priority in the disbursements. The balance that remains is disbursed to the student. Third party loan service providers also sometimes come into the picture. Their areas of responsibilities may include payments collection, monitoring of balances and regular communication with the student borrower.
Repayment of the loan starts six months after the student leaves school. There are several repayment options for FFELP loans. These choices include equal monthly installments, escalating payments, income-linked payments, and extended repayment scheme. 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. 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.