fafsa a loan?
my counselor at phoenix helping me with fafsa but he says im paying back this money isnt fafsa suppose to be a goverment
money for those who qualify? and dont have to pay back
- 1 decade agoFavorite Answer
FAFSA stands for free application for student aide. It just sets you up for different financial aid options. The main thing that people try to get is the Pell grant, and you don't have to pay that back, but if you don't get Pell then you may qualify for other grants, that you will not have to pay back. But if there are not enough grants to pay your tuition, fees, and other needs, then you can take out student loans, which are government funded, and you pay back at a government rate. Example if you fill out fafsa, you may not qualify for Pell, so they may give you a state or school grant, but its not enough for tuition, so then you may take out a stafford loan, and pay it back at, i think the rate is 5% or something like that now. Good luck with your education. You will love it!!!!!!
- nativeAZLv 51 decade ago
No, FAFSA is simply the application form for loans and some grants. Loans have to be paid back, grants do not. Once you submit the application, you will receive a report that tells you what you qualify for and you then select if you want to accept each item. You may be offered a Pell Grant, which is free money. You may be offered a subsidized loan, which is no interest until after you graduate, or unsubsidized loan, which starts accruing compounded interest right away.
If you take loans, take only what you absolutely need as you will have to pay them back, most likely with 50% interest, and because they are government loans, they are unforgivable, which means if you are starving on the street you still cannot write them off.
Make sure the person at your school is also advising you on how to locate and apply for potential scholarship opportunities. There are a lot out there for lots of different reasons, some not even income based. The FAFSA does not apply you for scholarships. You have to do that yourself. Scholarships are free money.
- alien3starrLv 51 decade ago
The FAFSA tells the government what type of aid you qualify for. The lowest incomes get grants (like the pell grant) which you don't have to pay back, but you will probably also get a Perkins and Stafford loan. Don't worry though, you don't have to pay these while you're in school and you can defer payment on them until you get a job. The colleges you apply to may also give you grants and scholarships based on what the FAFSA says, so maybe you won't need loans at all. It depends.
- KittyMeowGrrrrLv 51 decade ago
after you graduate you'll pay it back..............they're just lending it to you...get it??