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Everybody should have an opportunity to pursue higher education. Such chances should even be greater for single parents who are often in tight money situations. Fortunately, access to a broad database of college grants for single parents is now available on the Internet. The single parent can typically start an online search for available college grants by visiting the website of the FASFA (Free Application for Federal Student Aid). The resources of an applicant’s parents will be examined through the FASFA facility to determine their capacity to support a college education. The parents’ tax returns during the previous year is a requirement in a FASFA application. Through the tax document, the EFC (Expected Family Contribution) to the applicant will be determined.

FAFSA paves the way for college grants for single parents through the FFELP (Federal Family Education Loan Program). The FAFSA application is analyzed to determine the financial aid package suitable for the single parent applying for a grant. The prospective school of the student applicant will be the one which will prepare the financial package. The package is meant to cover the difference between the cost of attending that school and the EFC. The aid may consist of a combination of scholarships, grants, work-study program and a loan amount. College grants for single parents are especially desired because they do not have to be repaid. School grants for single mothers can be funded by donations from alumni, school endowments, or the government. Another desirable funding option is scholarships for single mothers because they do not have to be repaid either. There are both talent based scholarships and needs based scholarships available.

If there is an FFELP loan goes with the package, a lender will be chosen. Help will be extended to the student by the school’s financial office in choosing a lender. Federal student loans are unsecured but are backed by guarantee agencies. These guarantors insure student loans against default and collect a 1% default fee from each disbursement. There is a coordination among the school, lender, guarantor and the US Department of Education to determine the student’s loan eligibility. Technological advances and streamlined processes have made such coordination very swift. The approval of an FFELP loan could only take minutes.

The guarantor helps in disbursing the loan in college grants for single parents. School expenses take the priority in the disbursements. The student gets the balance of the disbursements. Third party loan service providers also sometimes come into the picture. These loan service providers may be the ones who will collect payments, monitor balances and be in contact with the borrower.

Repayment of the loan starts six months after the student leaves school. There are several repayment options for FFELP loans. These choices include equal monthly installments, escalating payments, income-linked payments, and extended repayment scheme. Borrowers may apply for a payment grace period or payment reduction if they are facing temporary financial difficulties.

A loan will be declared in default after nine months of non-payment. The lender or loan service providers will be in regular contact with the borrowers who cannot pay on time. The loan guarantor will likewise regularly call the borrower whose loan payments are past due for two months or more. All these are done to prevent loan defaults.