Financial Aid for Psychology School

The federal government regulates the maximum interest that lenders can charge on federally guaranteed student loans, creating lower interest on college loans. Additionally, loan repayment does not begin until six months after graduation (or when enrollment in school is less than half time). There is also assistance for borrowers having difficulty repaying their education loans, including deferment and forbearance. These options give borrowers more interest-free time on their loans.

Stafford Loans are the most common federal student loan available. Stafford Loans include the Federal Family Education Loan (FFEL) Program and the William D. Ford Federal Direct Loan (Direct Loan) Program. Both programs are dispersed directly to students, and can be subsidized or unsubsidized, depending on the student's financial situation. Loan amounts are also need-based, and are distributed accordingly.

Another common type of financial aid in the form of a loan is a private loan. Private loans offer higher limits and no payments until graduation, however, your interest begins to accrue as soon as the loan is distributed. Private student loans can be given to either students or parents and are a better alternative to credit card debt.

You still need to complete federal forms, such as the FAFSA to apply for private loans. Eligibility often depends on the credit scores of you and/or your parents. You increase your chances of being approved for a private loan if you keep your credit score above 650. Interest rates and fees are based on your credit score, so you may choose to apply with a cosigner to achieve a lower rate.

PLUS Loans are loans for parents and are paid through FFEL and Direct Loan programs. In order to qualify for this type of loan, you must be a dependent student enrolled at least half time in your undergraduate education, and your parent has to apply for the loan.

PLUS Loans also requires a healthy credit score, and impose a yearly limit. This limit is equal to your school costs minus other financial assistance you receive. In addition to the loan limit, the first payment is due 60 days after the loan is distributed with a small fee that your parents are required to pay—usually less than four percent of the loan.

Graduate and professional degree students are now eligible to borrow under the PLUS Loan program, under the same terms and conditions. This program is referred to as the GRAD PLUS Loan program.

Scholarships can be very competitive but worth the effort, as they do not need to be paid back and are an excellent way to help finance your education. Scholarships may have restrictions, such as applying to a specific course of study or active involvement in an organization or group. Some scholarships apply to general education and usually require a certain grade point in order to maintained the scholarship.

For psychology students, the professional associations for your specialty may give scholarships to qualified individuals. For example, the American Psychology Association offers over a dozen scholarships to psychology students. Some of the best scholarship resources, however, can be your own local organizations, private and public schools, small businesses, large corporations, community groups, generous individuals or philanthropic foundations.

Grants are a smart way to finance your education because it's "free" money—you don't have to pay back a grant. With over a thousand federal grant programs in the U.S., worth more than $400 billion, securing a psychology grant can help you save hundreds or even thousands of dollars. Like scholarships, if you take the time to apply for a grant the payoff can be well worth the effort. Schools often consider you for grants when automatically upon completion of the FAFSA and application to the school.

Work-study programs are a financial aid because they help students finance their education by working in on-campus jobs, community-related jobs or assisting teachers. Work-study awards typically depend on factors such as level of financial need and school funding availability.

Work-study pays at least the federal minimum wage, and often more, depending on the skills and level of experience needed. You can indicate whether you want to be considered for work-study assistance when completing your FAFSA form.