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Fund Your Future

CSAC.CA.GOV

CALIFORNIA NATIONAL GUARD

The California National Guard Education Award Assistance

Program (CNG EAAP) is a state-funded program designed

to provide an education incentive to improve skills,

competencies, and abilities for active members of the

California National Guard, State Military Reserve, or Naval

Militia who have completed at least two years of service.

The Adjutant General will select up to 1,000 participants for

the CNG EAAP. For more information, click on “Money for

College” at

www.calguard.ca.gov .

CALIFORNIA VETERANS

As a veteran, there are education programs available which

you may use for a wide variety of approved education

and training programs including: apprenticeship and on-

the-job training, college degree and certificate programs,

flight training, and correspondence courses. Each program

provides different benefits to different groups of individuals

and offers a specified number of “months” of benefits.

Typically, most education benefits can be collected for

36 months; however, the maximum amount that can be

collected under any combination of VA education program

is 48 months. Please note that veterans can only use one VA

education benefit for training at a time. To learn more to go

www.calvet.ca.gov/veteranservices-benefits/education .

†Except for students working toward teacher certification.

*Indicates California Dream Act Students are eligible.

STUDENT LOANS ARE NOT ALL

CREATED EQUALLY: PRIVATE

VS. FEDERAL DIRECT LOANS

STUDENT LOANS

Remember, student loans must be repaid like loans for a car

or house – and with interest. Only borrow what you need to

fill the gap between grants or scholarships and the cost to

attend school. Learn more at

www.studentloans.gov an

d

www.studentaid.gov .

FEDERAL LOANS

Federal student and parent loans are issued through the

Federal Direct Loan program from the U.S. Department of

Education. Direct Loans are low-interest loans for students

and parents. Loans help pay for the cost of higher education

after high school. You’ll have a single point of contact and

online access to your Direct Loan account information. There

are several repayment options to choose from. Complete

the Free Application for Federal Student Aid, or FAFSA.

Subsidized

For dependent and independent students with

demonstrated financial need, no interest is charged while

in school at least half-time. Amounts vary in first year of

college, and annually through senior year.

Visit:

https://studentaid.ed.gov/sa/types/loans/

subsidized-unsubsidized

.

Unsubsidized

For dependent and independent students. Not based

on financial need; interest is charged during all periods,

amounts vary in first year of college, up through senior year.

Visit:

https://studentaid.ed.gov/sa/types/loans/

subsidized-unsubsidized

.

PLUS

Unsubsidized loans for parents of dependent students

and for graduate/professional students. Interest is charged

during all periods.

CONSOLIDATION

Eligible federal student loans can be combined into one

loan resulting in a single monthly payment and may provide

alternative repayment plans.

REPAYING STUDENT LOANS

You can work with your loan servicer and select a federal

student loan repayment plan that works for you; standard,

graduated, extended repayment, income-based, pay as you

earn, income contingent, and income sensitive. Learn about

loan repayment options, management tools, and calculators

at

www.studentloans.gov .

FEDERAL LOAN REPAYMENTS

Standard:

You fully repay the loan and all interest accrued

with fixed monthly payments for up to 10 years.

Graduated:

You fully repay the loan and all interest

accrued for up to 10 years with payments that start out lower,

but increase over time.

Extended:

Up to 25 years (for borrowers with balances of

$30,000 or more) in which you fully repay the loan and all

interest accrued with fixed or graduated payments.

Income-Based:

Your monthly payment is based on

your discretionary income. Payments will be less than the

Standard plan; however, you’ll end up paying more over

time, but any amount not repaid after the equivalent of

25 years of payments will be forgiven. Financial hardship

conditions apply.

Pay As You Earn:

Your monthly payment is based on

your discretionary income. Payments will be less than the

Standard plan; however, you’ll end up paying more over

time, but any amount not repaid after the equivalent of

20 years of payments will be forgiven. Financial hardship

conditions apply.

Income-Contingent:

Your monthly payment will be

recalculated each year depending on your income and other

factors. Like the Income-based repayment plan, any amount

not repaid after the equivalent of 25 years of payments

will be forgiven.

Learn more about federal student loan repayment and

federal loan forgiveness programs (that’s where you work

in a certain occupation, pay on your loans for a fixed period,

and any remaining balance is forgiven!) at

http://studentaid.

ed.gov/repay-loans

.

If you don’t repay your loan, you’ll damage your credit rating,

making it harder and more expensive to borrow money in

the future