College Students - What To Do If Denied FAFSA Funds

After you have completed the FAFSA application and gone through that process, there is still a chance that it can be denied for a variety of reasons. You may feel like you are fully deserving of funds and that you have done all you could to be approved for college funding, but sometimes it has more to do with technical or funding issues more than your own needs or finances. Your next step is to contact the proper FAFSA department and ask for an explanation. After you have exhausted FAFSA as a viable funding source, ask the FAFSA representative if there are any other sources that are available through the government.

If you have spent time with a financial aid consultant, schedule a time to chat with them about your options. After you have confirmed that FAFSA funds has been denied and you still are in need, there are a couple programs that you should still explore, the most popular being the PLUS loan. The PLUS loan is taken out by parents and is similar to a car loan or mortgage because it is simply based on credit of the applicant. Financial need is not taken into account at the time of the application.

Because they are very low interest rate loans, they make them a great option if you have been denied FAFSA funding elsewhere. You do, however need to report other scholarships and grants or financial aid that you have received because it will be taken into account and deducted from the overall loan amount. Another good benefit from these types of loans is they are deferred until after graduation, so no interest is being accrued, nor payments made until the graduate has a reasonable amount of time to get a job in the field of their major.

Another option is the Stafford loan, or direct loan from the government. These loans are referred to as in-student deferred, and this means that they are not payable while a student is attending college half time or better. These loans are backed completely by the government, so that means the interest rates are well below the national rate of other college funding options. If your student is planning on a high paying industry, these loans may be best for you. The money you will receive generally comes from a third party entity, such as Sallie Mae or Chase.

Even if you have received limited scholarship money, financial aid, and loan funds for higher education, you might still want to do a detailed search for merit-based funds in your area. Many small scholarship committees hide themselves and try to award money quietly, mainly because they are small groups and cannot afford to help very many students each year. If you make yourself and your needs known to them, however, you stand as good a chance as any of landing more than a few extra dollars toward your schooling. You will only know if you try, but be wary of scholarship finding services who ask for money from you.

About the Author: Brandon Hansen is a college funding expert. For more information for those who are denied FAFSA funding , visit http://www.myschoolplans.com/