 |
|
|
|
|
|
 |
|
|
|
| Options to Pay for Your Education |
|
So, you've added up the costs that will be involved with attending college. Did you have any idea that it would cost so much? Don't panic if you weren't born into money! Thanks to private funding and the Federal Government, there are many options available to students who need help to obtain money to pay for their educations.
Read on to explore the options that you have to pay for your schooling.
Score Big with Scholarships
Scholarships are a great source of funding, as they are a free monetary gift, and never have to be repaid. Scholarships can come from colleges and other private organizations or companies in communities. There are plenty of scholarships available, and many aren't based merely on excelling in the classroom, high grades and athletics. There are scholarships for leadership, overcoming personal adversity, blondes, brunettes, and even duck-callers! So, don't discount scholarships because your grades aren't perfect, some companies and organizations are looking for students who are down to earth and just trying to make a difference in the community and in their personal lives. Scholarship amounts can range from a small sum such as $50 to a huge sum (think in terms of a full-ride scholarship!) A lot of scholarships aren't claimed each year because many students aren't aware of them. Get on-line and search out different scholarships and apply for as many as you can.
Free Application for Student Aid
The first step in receiving any Federal Financial Aid is completing your Free Application for Federal Student Aid (FAFSA). The FAFSA gives the government an idea of how much it will cost to attend the school you want to, how much your family will be contributing, etc. It is important that you know the deadlines in which you must have your FAFSA completed and submitted. Federal Financial Aid is limited so if you fail to meet the deadlines, you might be out of luck. Also, make sure that your FAFSA is complete and accurate. Be sure to be truthful because much of the information on your FAFSA is verified. Being deceitful will not guarantee you more money, and might hurt your chances at receiving any kind of financial aid.
Grants - Free Financial Aid
Grants are another means of aid for students, used to compensate the cost of schooling. Similar to scholarships, grants are given and never have to be paid back. Grants are a source of Federal Financial Aid, and can be obtained through the government (i.e. a Pell Grant) or through your school or institution (i.e. a Federal Supplemental Educational Opportunity Grant a.k.a. SEOG). The catch with grants is that they are granted to students based on financial need. So students that can not prove they have the need for a grant will most likely be turned away. The Expected Family Contribution (EFC) portion of your FAFSA will determine eligibility for a grant from the Federal Government.
Loans
Loans are a good option when you have exhausted the other sources of funding, or when the other sources aren't sufficient to cover all of the costs associated with gaining an education. Most students take advantage of loans, because they are fairly easy to get. Remember that with loans, you are just borrowing the money. Eventually, you will have to pay it all back, plus the interest that accrues. So borrow sparingly, and only borrow what you absolutely need.
There are two kinds of loans: Federal Loans and Private Loans. Federal Loans are granted from the Federal Government. Private Loans are granted from private institutions such as banks, or private companies.
Federal Loans
Federal Loans are the largest source of educational loans. It is necessary to complete a FAFSA in order to qualify for these loans. Federal Loans are usually the first choice of borrowers because of their low interest rates, and the fact that they are guaranteed by the Federal Government. Federal Loans also offer an in-school deferment, and a grace period, which allows you to avoid making any payments until you have been graduated or out of school for several months. This lets you find employment and get settled before you have to start repaying your loans. Deferment and Forbearance options are also available with Federal Loans incase you fall upon financial or other hardships while you are trying to pay off your loans.
Another huge advantage to Federal Loans is that they are not credit-based, meaning that if you have not yet established credit, or have less-than-perfect credit, you can still qualify.
Private Loans
Private Loans are an option when the Federal Financial Aid or Federal Loans you were granted isn't enough to cover your education costs. They are also an option if you choose not to complete the FAFSA or fail to meet the deadlines. This is because Private Loans do not have deadlines; you can apply for one at anytime during the school year. Private Loans do tend to have higher interest rates and are credit-based, so if you are not credit-worthy, you may not be able to get a private loan or may need to bring a cosigner onto the loan with you.
Also, international students may want to look into Private Loans because with a cosigner that is a permanent or U.S. Citizen, they may qualify.
A way to save on the money, that you have to pay back with your student loans, is to consolidate all of your loans together. EdFed, a partner company of Student Loan Foundation, can save it's borrowers thousands of dollars over the life of their student loans, by consolidating their student loans.
Work Study
Another option that you need to complete a FAFSA for is The Federal Work Study Program. This program allows students who can demonstrate financial need the opportunity to obtain employment for the college or university that they are attending. The purpose is to work for the money that you need to pay for your schooling. Since the money is earned, there is no need to pay it back.
Keep Looking for Other Options
As a final note, do not plan on just one source of funding. Make sure that you are not discounting other options that may pass you by. For example: do not just assume that the scholarships you receive will be sufficient enough to cover all of your education expenses. Look into grants, loans, etc. Always keep your options open.
This article lists just a few of the options that can help to fund your education. Meet with a guidance or financial aid counselor for more ideas.
|
|
|
Shoot for the moon. Even if you miss it, you will land among the stars.