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If you didn't get straight A's in school or if your SAT scores weren't
in the stratosphere, don't make the mistake of thinking that you are
not eligible for financial aid in the form of grants, scholarships or
loans. In 2007, the U.S. Department of Education will provide more than $78 billion, about 60 percent of all student financial aid, to help millions of students pay for postsecondary education.
For an overview of what federal loans are available and how they work, see the chart below. You can search the U.S. Department of Education website for federal financial aid.
While searching or financial aid, it's important to avoid scams and identity theft schemes that can appear to be legitimate sources.
Scholarships & Grants
Scholarships and grants are types of financial aid that can be based on your:
- academic achievement (including grades and SAT scores)
- intended course of study
- financial need
You can search the private scholarships directory at the U.S. government website for students and their families.
Many states feature their own financial aid programs. For more
information about what kinds of financial aid you may be entitled to,
check out the State Guide to Grants and Scholarships.
Some students may have already qualified for a full-time education
grant without even knowing it. The AmeriCorps program offers financial aid in return for community service that is performed before, during or even after your postsecondary education. The fund can be used to pay ongoing educational expenses or to repay federal student loans. Visit Americorps to find out more about this type of financial aid.
Federal Loans
Financial aid from the U.S. Department of Education is awarded according to demonstrated financial need.
If you qualify for a Federal Pell Grant, you do not have to repay this
financial aid. The grants are given only to students who have not yet
earned a bachelor’s or graduate degree. The amount of money you may
receive is dependant upon the cost of schooling, eligibility and other
factors that are contained within your SAR (Student Aid Report).
In 2006, the government created two new Federal Grants. They are called The Academic Competitiveness (AC) grants and National Science and Mathematics Access to Retain Talent (SMART) grants. For information on these federal grant programs, visit the U.S. Department of Education website.
In 2006, the government created two new types of Federal Grants for financial aid:
- Academic Competitiveness (AC) grants
- National Science and Mathematics Access to Retain Talent (SMART) grants.
For information on these federal grant programs, visit the U.S. Department of Education website.
Even the IRS offers financial aid in the form of tax credits for higher education expenses:
- Hope Tax Credit, which offers up to $1,500 per student
- Lifetime Learning Tax Credit with a total benefit up to $100,000.
Visit the IRS to find out about these education tax credits.
Even the IRS offers financial aid in the form of tax credits for higher education expenses. One program is called The Hope Tax Credit, which offers up to $1,500 per student, the other is called the Lifetime Learning Tax Credit with a total benefit up to $100,000. Visit the IRS to find out about these education tax credits.
Federal Work Study
This program serves as a paid internship as well as a financial aid
tool for any student seeking real world participation in their chosen
field of study. Full and part-time undergraduate and graduate students
are eligible; the jobs may be located on or off campus. The work
portion of the financial aid provides students hands-on experience at
employment that is directly related to their course of study.
You will be paid at
least the minimum current wage, sometimes substantially more. How much
you make will depend on your current skill-set, when you apply for the
work, your level of financial aid need and the school's funding level.
Once that level has been met for the year, no more financial aid will
be available so it is wise to explore the work-study option as early as
possible.
Military Benefits
The Armed Forces offer financial aid for service members and their
families but some people fear the details and paperwork will be
overwhelming and don't take advantage of what is rightfully theirs.
Don't be discouraged. The process has been streamlined and simplified.
Whether you are Active
Duty, Guard, Reserve, Veteran or Spouse & Family there are several
ways to receive financial aid. The one most people are familiar with is
the G.I. Bill which provides financial aid in terms of tuition, through the school you are attending. The other option is the Federal Student Aid program, which includes money for books, living expenses and fees on top of tuition expenses.
Visit the G.I. Bill online to explore your options for financial aid.
Employer Reimbursement
It is not only Fortune 500 companies that provide partial or full
tuition reimbursement for employees. There are hundreds of other
companies, agencies and societies that support higher education for
their workers. Check with your employer's Human Resource department for
information about tuition reimbursement policies. Make sure to inquire
about tax consequences if you are going to be receiving full tuition
reimbursement.
Student Loans
If you decide to take out a student loan, be aware that you are
undertaking a contractual obligation for which you are legally
responsible, even if you change careers or decide that the school was
not to your liking. While this is financial aid, it is still a loan and
you must pay the money back.
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