Loans, Scholarships, & Grants
LOANS
Loans are an extension of money to assist in payment of your education
which YOU MUST PAY BACK in FULL PLUS accrued INTEREST! When you apply
for Financial Aid, you will qualify for money in the form of Stafford
Loans. The amount for which you qualify will be based on eligibility
as well as any outstanding Stafford Loans which you may have already
received. When you submit your FAFSA, you will qualify for Stafford
Loans. Other commercial and private loans may be available and you
may need to investigate these sources to completely cover tuition
and living expenses while you are in school. All loans can generally
be divided into two types:
UNSUBSIDIZED LOANS
When a bank, person, or business loans you money, there is an expected
return on the investment. As a result, they will charge you interest
on the amount of money you borrow. This interest will be added to
the loan you receive. You are responsible for repaying the loan as
well as the interest that accrues. Therefore, when looking at loans
available, you would be wise to consider how much money you really
need as well as the interest rate which will be
applied. You must also take into consideration the terms under which
you must pay back this money. Most commercial and private loans will
be unsubsidized.
SUBSIDIZED LOANS
The interest on these loans is subsidized and, as a result, you will
not accrue additional financial debt due to interest while you are
in school. Interest is still being charged by the lender but the federal
government or some other third party is paying the interest for you
while you are in school. However, once you leave school (graduation
or otherwise), interest will begin to accrue and you will be responsible
for paying back the principle plus all accrued interest. For the Stafford
subsidized loan, there is a 6-month grace period during which you
do not have to begin paying back the loan and the government is still
paying the interest. Obviously, the sooner you can make your payments
after this grace period (even making some additional payments as your
budget allows it), the less interest will accrue. In general, use
SUBSIDIZED loans before using UNSUBSIDIZED loans; you'll save money
because you won't be accruing interest while you are in school.
Beware that there are many commercial loans available. MAKE SURE
YOU UNDERSTAND THE TERMS OF THE LOANS for which you apply. You especially
want to know the interest rate on the money you borrow and
the terms under which you must pay back the loan. Even if you don't
complete your program, YOU ARE STILL RESPONSIBLE FOR PAYING BACK ANY
LOANS.
Many loans will give you a break if you are able to provide a cosigner.
A cosigner is a person who must have a good financial background and
will accept financial responsibility for your loans in case
you default (are unable or unwilling to repay the loan). In general
students have lousy credit, at least in the eyes of lenders. They
are concerned you could default on your loan and they will have lost
their money. If someone is willing to accept financial responsibility
for your loan, lenders may give you (and ultimately your cosigner)
a break on the interest rate. For more information, talk to your Financial
Aid Office.
Scholarships
There are a lot of scholarships out there, but its up to you to find
them. Nearly all of them will require an application and will have
deadlines. Your Financial Aid Office is the best place to begin your
search for Scholarships. You should also consider checking your place
of employment, any organizations which you belong, school, and place
of worship for available scholarships. You may also want to contact
AAPA chapters of both your home state and the state in which you will
be attending a Physician Assistant program. The AAPA maintains a list
of state chapters as well as contact information at:
American
Academy of Physician Assistants Chapters
The Physician Assistant Foundation also gives scholarships each year
for Physician Assistant Students. Information on the PA foundation
Scholarships can be found at:
http://www.aapa.org/paf/pafprog.html#ASP
Money received from scholarships
generally does not need to be paid back. Applications will differ
from one scholarship to another, but typically you will need to
submit a narrative statement explaining why you feel you qualify
for their scholarship.
Grants
Grants are similar to scholarships and availability is based on resources
and financial need. They are the reason it is so important to get
your FAFSA submitted as early as possible. The later in the year you
complete your application, the less likely you are to receive money
from Grants. When you submit your FAFSA form, you will be considered
for Pell Grants. Unfortunately, these grants are not available to
persons who already hold a Bachelors Degree or higher. Grants do not
have to be paid back. As with scholarships, check your place of employment,
organizations, and place of worship for any grants which you may be
eligible.
