Money for College - Where Is It and How Do I Get It?
By Vanessa McHooley
College is expensive - but money is available
to help you pay the way! By doing a little
research and filling out a few forms, you
can find money through scholarships, grants,
loans, and tuition assistance such as work
study.
Scholarships
There are more than one million scholarships
available each year to reward students
who have distinguished themselves academically,
athletically, musically, or in some other
way. Scholarships pay for some or all
of a student's college costs through cash
or tuition reimbursements.
The primary government counterpart for
scholarships is the Reserve Officers'
Training Corp (ROTC) program. Through
ROTC, military branches offer full scholarships
to students who agree to serve in the
military for a certain number of years
after graduation. Religious groups, professional
associations, and civic organizations
are other sources of scholarships.
Grants
Grants are financial aid awards that
do not need to be repaid. There are Federal,
state, and private grants available.
Federal: There are two main types of
Federal grants:
The Pell Grant is the largest federal
grant program. It provides up to $3000
per year based on financial need
The Federal Supplemental Educational
Opportunity Grant provides from $100-$4,000
per year, depending on when you apply,
your level of need, the funding level
of the school you're attending, and the
policies of the Financial Aid Office where
you attend school
Special grant programs through the National
Health Services Corps and the Armed Forces
are available for students entering the
health and medical field.
State: All states provide some type of
grant, scholarship, or tuition assistance
programs.
Your state's higher education agency
can give you information about state grants,
including the State Student Incentive
Grant (SSIG) Program. This program is
funded jointly by individual states and
the U.S. Department of Education.
Private: Many private grants are available.
Your university may offer institutional
grants from its own resources.
Loans
Once you have exhausted all the scholarships
and grants available to you, it is time
to look at loans. Federal loans are the
largest source of financial aid available.
Check the information below for information
about the major types of Federal loans:
A Perkins Loan is need-based and you
must be at least half-time student. The
interest rate is fixed at 5 percent and
you can borrow up to $3,000
A Subsidized Stafford Loan is need-based
and you must be at least half-time student.
The interest rate is variable with 8.25%
cap. You can borrow up to $2,625 year
1, up to $3,500 year 2, and $5,500 for
years 3-5
An Unsubsidized Stafford Loan is available
for any student who is at least a half-time
student. The interest rate is variable
with 8.25% cap. You can borrow up to $2,625
year 1, up to $3,500 year 2, and $5,500
for years 3-5
A Parent PLUS Loan is for the parent
of a dependent attending at least half-time.
The interest rate is variable with 9%
cap and it can cover the cost of attendance
less total financial aid offered. It is
available year round and can even pay
for back expenses.
If you don't qualify for Federal loans,
private loans are also available through
banks and credit unions.
Work Study
The Federal Work-Study Program provides
jobs for undergraduate and graduate students
with financial need, allowing them to
earn money to help pay education expenses.
So how do I get all this financial aid?
Your first step in applying for any government
money, whether federal or state, is to
complete the Free Application for Federal
Student Aid (FAFSA). For more information
about the FAFSA and how to apply, you
can visit NextStudent's "FAFSA On The
Web" section located here: https://www.nextstudent.com/fafsa/fafsa.asp.
Other ways to find out about financial
aid sources include:
Check with state agencies in both your
home state and the state in which you
will attend college to find out about
grant opportunities
Check with your college Financial Aid
Office about institutional grants and
scholarships
Check with your high school career counselor
about grants and scholarships you may
be eligible for
Search the internet for student loans,
scholarships, and other financial aid
opportunities
Check with the your parents' employers
to see if they offer any scholarships
Check with the advisors of any clubs you
belong to, about scholarships that might
be available
As you can see there are many ways to
get money for school. Make sure you cover
all bases and try to get the free money
first, and use student loans if the need
arises, and you will end up paying for
school in the most efficient manner possible.
This article is distributed by NextStudent.
At NextStudent, we believe that getting
an education is the best investment you
can make, and we're dedicated to helping
you pursue your education dreams by making
college funding as easy as possible. We
invite you to learn more about how to
get money for college at NexStudent.com.
About The Author
Vanessa McHooley from SanDiego California.
