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OPTIONS TO HELP YOU
PAY FOR COLLEGE.
Today, most students
rely on some form of financial assistance in order to pay
for college. While financial assistance can
com from a variety of sources, the Federal Family
Education Loan Program (FFELP) is the largest source
of aid. Understand the different kinds of aid
available and work closely with your college.
Learn more about the main types of financial aid:
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Grants
Grants do not need to be paid back and are generally awarded to
students based on financial need. Grants are typically awarded
with your financial aid package. Federal grants include: Pell Grant,
Federal Supplemental Educational Opportunity Grant (FSEOG), Academic
Competitive Grant (ACG), Science & Mathematics Access to Retain
Talent Grant (SMART) and the new, Teacher Education Assistance for
College and Higher Education Grant (TEACH).
To apply for federal grants you need to submit the Free
Application for Federal Student Aid (FAFSA) at
www.fafsa.ed.gov.
State governments and individual
colleges may also offer grants that can be based on financial need
or academic merit.
Work
A part-time job may also help provide the extra money you need
to pay for college. You can find employment on your own or
through the federal work-study program. Federal work-study is
typically awarded with your financial aid package and provides
employment - usually around 20 hours a week - either on or off
campus.
Federal Student and Parent Loans
These loans are insured by the federal government and include:
Subsidized Stafford, Unsubsidized Stafford, Parent PLUS, Grad PLUS,
and Perkins loans. In many cases, these loans are funded by private
lenders through the FFEL Program but some college may offer these
loans through the Direct Loan Program, with funds coming directly
from the federal government. These loans are typically awarded
with your financial aid package. Interest rates, fee and
repayment are set by the federal government. To apply for federal
loans you need to submit the Free Application for Federal Student
Aid (FAFSA) at
www.fafsa.ed.gov.
New Interest Rates and other
changes take effect
July 1, 2008 on federal Stafford and PLUS loans. Check out a
summary of what you should know to take advantage of
new
student loan changes.
Private Student Loans
Private student loans are offered through banks or financial
institutions and are not insured by the government. Private student
loans generally have higher loan limits, variable interest rates and
require a credit check. Certification by your college is not always
required. You can apply for a private student loan usually by
phone or online.
Scholarships
Scholarships are a great resource because they do not have to be
paid back. Generally, scholarships are reserved for students
with special qualifications, such as academic, athletic or artistic
talent. Awards are also available for students who are interested in
particular fields of study, who are members of underrepresented
groups, who live in certain areas of the country or who demonstrate
financial need. There are thousand of scholarships available
but it does take time to find and apply for different scholarships.
You should be careful of scams. You can locate most
scholarships through online searches and should never pay for a
scholarship search.
FastWeb scholarship search is
the largest, most accurate and most frequently updated scholarship
database. .
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