You Can Afford It; How
to Pay for College
The first question that most
people ask about attending college is, "How much will it
cost?" Schools are sometimes reluctant to post tuition costs
because they are afraid of discouraging potential students. In
fact, many students will qualify for financial aid and scholarships
that greatly reduce the cost of higher education. There are
three sources of financial aid: (1) federal and state government
grants and loans, (2) grants that come directly from the school
and (3) outside scholarships from private organizations. For millions
of Americans, these sources of aid have made college affordable.
About 70 percent of college
financial aid comes from the U.S. government, most of it through
student loans. You don't have to start making payments on a student
loan, with its relatively low interest rate, until you complete
school. The federal government also offers a variety of grants, including the Pell Grant, the Supplemental Educational
Opportunity Grant (SEOG), the Academic Competitiveness Grant and
the SMART grant. In most cases a school or college will have a
financial aid department to help you fill out any necessary forms.
The federal government also funds a work-study program. In addition, most states
offer grants, scholarships and loans to residents. Good news: In 2006 Congress passed a law that allows students who attend schools that offer most of their courses online to receive financial aid (previously only students who attended schools that offer most of their courses on a campus were eligible). This is expected to increase enrollment in online schools considerably.
The first step is to fill out
the Free Application for Federal Student Aid (FAFSA), which you
can complete online at fafsa.ed.gov. You cannot fill out the form
before January 1 of the year you plan to attend school. So if
you plan to start in September, you cannot submit a FAFSA until
after the previous January 1. The federal filing deadline is June
30; if you file online, processing usually takes about a week.
It's best to complete this form as soon as you can; most schools want to see the forms by late
January or mid-February. Once your FAFSA is processed, you will receive a report that shows your Estimated Family Contribution
(EFC), which is also sent to the school or schools you hope to attend. For private scholarships, check out online services. Another great source for information about government grants is Students.gov.
If you are still a dependent
on your parent's tax return, you will need their financial information
to fill out the FAFSA. However, you will not need this information
if you are independent, which includes those who are older than
24, enrolled in a graduate program, married or serving in the
armed forces.
Typically the school you plan
to attend will provide other forms to determine if you qualify
for institutional grants or state funds. Each state has its own
application deadline.
Finally, there are scholarships
that come from outside the government and school; those you apply
for and get on your own. A good place to start your search is
CareerStop, which is sponsored by the Department
of Labor. We also recommend registering with the free search service Scholarship Experts. If you are in the military, make sure you look into educational grants and loans -- about a third of veterans never use them. Military.com offers a free guide to military education benefits.
You also will want to investigate 529 plans that allow you to save for college
tax-free. See Saving for College
for more information.
For more details about financial
aid and scholarships, visit our college-guide bookstore. |
