FINDING
THE MONEY TO ATTEND COLLEGE
There are millions of dollars available every year for college-bound students in the forms of grants, scholarships and other financial aid. The most common sources of aid are federal and state financial aid programs, followed by institutional programs and private loan sources. Financial aid comes in a variety of sources, some of which can be quite confusing. In order to find the best sources for financial assistance, one must know where and how to search. It is very important to be able to distinguish between legitimate programs and organizations from those that are merely scams designed to take advantage of unsuspecting students and/or parents. Researching available financial assistance requires time and effort to ensure all the requirements and obligations associated with that form of assistance are fully understood prior to submitting an application. Students often need and may qualify for a mixture of financial assistance resources. It is important for them to investigate all applicable sources rather than relying on a limited search which may not produce the desired results.
WHO CONTRIBUTES
AND HOW
STUDENTS
·
DO
NOT ASSUME THAT YOU WILL NOT QUALIFY FOR FINANCIAL ASSISTANCE! Even families
with significant income qualify for financial aid programs. Students do not have
to be academic scholars or athletes to receive grants, awards, and/or
scholarships.
·
Scholarship
money is available from a wide variety of programs. Research those programs you
may qualify for and submit an application. You have nothing to lose except some
time, and you have much to potentially gain in the effort!
·
Use
your talents and skills to enter contests that provide educational grants or
award money as prizes.
·
Seek
programs that use your academic achievements or affiliation with fraternal
organizations as a basis for granting gift money.
·
Utilize
your personal qualities. Many programs award money based on personal qualities
such as status, race, religion, and sexual orientation.
·
Contribute
to your own education by working part-time. Apply as soon as possible for
work-study programs that either provide wages or pay toward the tuition
account.
·
Check local community agencies, clubs, organizations and unions that award
scholarships to promising young leaders. Some examples are the Businessmen’s Association,
Kiwanis Club, Rotary Club, and local hospitals.
·
Evaluate
military web sites and apply early to military programs. Some programs start in
junior high school and can result in a free education with no active duty
enlistment obligation.
PARENTS
·
Check
your credit report and correct any problems prior to applying for financial
assistance loans. You must be considered credit-worthy to receive loans from
most private and government lenders.
·
Gather
all necessary data prior to completing loan applications. Complete and accurate
data is a must in order to obtain the maximum amount of aid possible.
·
It
is important that you take the time to learn about the federal loan programs,
the application process, and the student PROFILE process.
·
Work
together with your child in researching grant and scholarship programs.
·
Understand
all the details before individually signing or co-signing for a student
educational loan. Government loans are not relieved through bankruptcy, and
loan debts are not automatically transferred to the student upon their
graduation.
·
Go
with the student to meet with the college financial aid officer to get advice
on available programs and lending institutions.
·
Check
with your employer, especially in larger companies, to learn if there is educational
financial aid available to employee dependents.
· Create a file to hold copies of all applications submitted and all financial assistance materials received; you will more than likely need them in the future since reapplication must be made yearly.
MILITARY FINANCIAL AID
Thanks, but no thanks, you may be
thinking. THINK TWICE!! Sure, military
programs have pros and cons connected to them, but so do many civilian
programs! Refusing to evaluate the different military educational programs and
enlistment programs is not doing yourself or the military services justice.
The military offers everything from a free college education to a full officer
commission. Enlistment not only offers an education but also a steady income
and valuable job experience that may not be available in the civilian sector.
The military has much to offer including full medical and dental care, life
insurance, 30 days paid vacation per year, moving expenses, temporary lodging
expenses, travel expenses, and continuing educational programs. You also
receive tax-free money for a housing allowance and uniform allowance. Some
other benefits are having access to money-saving grocery stores (commissaries)
and Base Exchange shopping centers, and credit unions with low interest loans.
Civilian companies are quick to hire prior military personnel who are honorably
discharged because such veterans tend to be highly educated and self-motivated
individuals who have demonstrated work experience, dedication, reliability,
responsibility, and, often, supervisory experience.
Other
military service benefits include:
·
World-wide
travel opportunities
·
Scheduled
promotions with commensurate pay increases
·
Educational
and physical development
·
Specialized
technical training and licensing/certifications
·
Hundreds
of career fields to choose from
· Major benefits offsetting the cost of “starting out in life”
STATE FINANCIAL AID
Every state has some type of an aid-based
program that can only be used in that state’s institutions. The programs are designed
to help fill the unmet financial needs of students. Awards are made based on
financial need, and some programs may be limited to a first-come-first-served
basis. College financial aid officers may automatically combine state aid in
the students financial-aid package, or they can suggest which type of program
would best meet the financial needs of the student. The financial aid office at
the institution you plan to attend will be the best source of information as to
which state programs are available.
Most
common state programs:
·
State
Grant Program
·
State
Scholarship Program
·
State
Work-Study Program
·
State
Reciprocity Program
·
State
Special Career Program
· State Loan Programs
FEDERAL FINANCIAL AID
The federal government is the largest source
of educational funding. Federal funds are available through loans, grants,
scholarships, work-study programs, and educational institutions. Federal aid
programs all differ from each other and have a language that can be difficult
to understand. It is therefore advised that students pursuing federal aid take
whatever time necessary to work closely with the financial aid office at the
institution they plan to attend.
Federal
Aid Programs:
·
Federal
Pell Grant
·
Federal
Supplemental Educational Opportunity Grant (FSEOG)
·
Federal
Perkins Loans
·
Federal
Direct Student Loan Program (FDSLP)
·
Federal
Family Education Loan Program (FFELP)
· Federal Work-Study Program
INSTITUTIONAL FINANCIAL AID
Colleges and universities offer financial
aid that consists of non-federal and non-state aid programs that are
administered by the institution. The amount of institutional aid and the types
of programs available varies greatly from college to college and from program
to program. Early application is a must since funds are limited and are usually
quickly dispersed. The college administers institutional financial aid programs
so the finance office is the best source of information.
Types
of institutional aid programs:
·
Grant
and Scholarships
·
Endowments
·
Academic
Achievement Awards & Scholarships
·
Low
Interest Rate Loans
· Work-Study Programs
PRIVATE FINANCIAL AID
Private financial aid is non-federal and
non-state aid that originates outside of the college. Private sources can base
award criteria on whatever they choose to award. There are basically five
sources of private financial aid.
·
Private Awards, Grants, Fellowships, & Scholarships
The majority of private aid
is awarded based on academic achievements, field of study, personal characteristics,
financial need, and academic standing. However, the award criteria can be such
things as religious affiliation, group membership, ethnic background, or place
of residence. The award amounts vary greatly, as do the application dates and renewability
status.
·
Organizations, Associations, & Societies
These groups tend to make
financial aid available only to members in order to increase the educational
level of current members, attract new members into the specific profession, or
recognize academic achievements of educators and researchers.
·
Community Support
Financial support from the
community comes from a variety of sources and differs from one community to the
next. Criteria may reflect whatever qualities the sponsors wish to reward.
Sponsors include churches, high schools, local businesses, local hospitals,
large corporations (local branches), local foundations, and civic
organizations. Information on community support may be located at the public
library, school counselor’s office, or the city’s Chamber of Commerce.
·
Employer Support
The employer of one of the parents may sponsor a scholarship exclusively
for children of employees. This area of support is often over-looked, resulting
in scholarship funds being carried over into the following year with the funds
increasing annually. For this reason, students other than employee dependents
who are interested in the specific business career field may be able to
negotiate a contract for the scholarship funds in exchange for a specific
length of employment after college graduation. The usual contractual agreement
is one year of financial support for one year of employment. Contracts are
legal and binding so the advice of an attorney should be obtained.
·
Private Loans
Educational loans are available to students’ parents or to independent adults attending college. The borrower must qualify for the loan by showing need and being credit-worthy. Educational loans usually have a low interest rate with repayment terms determined by the lender. There are usually several options available as to the rate of interest, how the interest is calculated, and when repayment will begin. In some cases a student loan corporation can guarantee a private loan. Several lenders should be evaluated before a decision is made and a contract is signed.