Higher education costs are skyrocketing and figuring out how to pay for it all can be daunting task for anyone. Nevertheless, nobody should be discouraged from obtaining a higher education because they think they won't be able to pay for it. Alternatively, take the time to research all of the college grants, financial aid and scholarships you might qualify for. A few of these may even be federal school grants. Federal grants are a type of financial aid that you will not have to pay back after graduation, and can be used to pay for any of the expenses needed to attend school. Financial aid of this kind is given out based on the financial need of the student applying, specifically looking at the "Expected Family Contribution" area of your Free Application for Federal Student Aid (FAFSA) statement; so be sure to honestly and completely fill out the FAFSA document to increase your chances of obtaining federal grants. Funds from these grants can be deposited into your bank account, but sometimes these can also be paid to you by check or even sent in to your student account at school. There are two kinds of federal grants: the Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG).

In addition to these two federal student grant programs, your college might have certain money reserved as student college grants. To obtain more information on this excellent source of financial aid, you will want to stop by the school's financial aid office quickly and often. A lot of grant money is rather limited and is dispersed swiftly, so finish your school's financial aid application as soon as you can. The first step to receiving federal student aid of any type is to fill in the FAFSA; additionally, nearly all colleges have their own financial aid forms you will need to complete to determine if you are eligible for any neighborhood or corporate financial aid. As grant money is just about always reserved for students whose families demonstrate legitimate financial need, you might discover that your own family's financial assets limit your eligibility for grant programs. If that's the case, it is crucial that you make use of all varieties of financial aid, such as college student loans and work study programs.

Student Loans Financial Aid

Today student loans and financial aid are almost a given for college kids heading off to school. Few parents have the financial resources to pay all of the tuition for their children, and so most students fill out a FAFSA and apply for loans. This has not always been the case, however. Student loans are quite a modern invention.

The first recorded student loan program was developed by Harvard University in 1840. These early student loans were private loans that were not funded by the government. In 1935 the state of Indiana's General Assembly passed a law that provided student aid to students who had high test scores on their college entrance exams. This led to the formation of the Indiana State Financial Aid Association, or ISFAA, which was followed by the opening of the first Financial Aid office in Indiana University. Soon other colleges joined the ISFAA, and Indiana students had a new way to pay for school.

On October 4, 1957, Russia launched the first successful satellite into space. This had a huge impact on the history of financial aid in America, because the American government suddenly realized that they were in a race to put the first person in space. They realized that they only way to succeed in this race was to ensure that as many high school graduates as possible attended college, a feat which was out of the financial resources of many. With guidance from the ISFAA, the federal government created a working financial aid program.

After World War II, Congress passed the National Defense Education Act. This act introduced the Perkins Loan, a low-interest student loan that is provided to low-income students and has a 10-year repayment period. This was the first federally backed student loan, and more would soon follow. In 1963 the Health Education Assistance Act provided loans for students pursuing degrees in medical and health fields. This was followed by what is now known as the Federal Work-Study Program, a program that allows the federal government to pay the wages of working students.

By the end of 1965, Most of the student loan programs we use today, such as the Stafford Loan, Work-Study Program, and Perkins Loan, were in place. As the cost of education continued to rise, the government introduced the Parent's PLUS loan program in 1981, a program that allowed higher-income families to get assistance in paying for school. Today, these loan programs allow many students to pursue an education when they would otherwise be unable to, making them a valuable resource to our country as we strive to continue as a global leader.