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College Scholarships and Financial Aid
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Families are not alone in paying the costs of college:
every year millions of students apply for and receive financial aid
and almost half of all students who go to college receive some kind
of financial aid. Because college represents an investment in our
most precious resource—our children—no child who wants to go to college
and is willing to work hard should be prevented by financial need.
Here’s what to do:
- Start saving early. Saving money is the best way to prepare
for meeting the costs of college. Set aside money each month,
starting now, to build a college fund. Think about where your
child might attend college, how much that type of college might
cost, and how much you can afford to save. The earlier you and
your child begin saving, the smaller the amount you will have
to set aside each month.
- Apply for financial aid. All needy students can apply
for federal, state and other student financial aid to help them
pay for college. The two major types of aid are grants or scholarships,
which do not have to be repaid, and loans, which are available
to students and parents and, like a car loan or a mortgage, must
eventually be repaid.
Where Can You Apply for Financial Aid?
The federal government supplies $46 billion annually in student
aid, about 75 percent of all student aid.
- Pell Grants are the most important form of student financial
aid for the nation’s neediest students. In 1999-2000, almost 4
million needy students received Pell grants. The size of the grant
depends on the student’s need. In 2000-2001, the maximum grant
will be $3,300.
- The Work-Study Program lets students work during the
summer or part-time during the school year to help pay for college.
Colleges help find jobs for students, and the federal government
helps pay the salary. Work-Study jobs give students valuable work
experience and are often related to the student’s classes or future
career—in addition to helping pay the costs of college. The new
additions to the Work-Study program, the America Reads Challenge
and America Counts, let students work as reading
and math tutors for young children—helping students give back
to the community and pay for college.
- Federal Loans are available to both students and parents.
Stafford Loans for students are either subsidized,
for needy students, where some of the accumulated interest is
paid by the government, or unsubsidized, where the student
pays all of the accumulated interest. PLUS Loans are loans
to parents for any costs that are not paid for by other aid.
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A Quick Word About Student Loans
Students usually do not have to start repaying their loans until
after they finish school, and the interest rate is usually lower
than for other kinds of loans. Many students are hesitant to
take out loans, but remember: college graduates
usually make a good deal more money than people who do not have
a college education, so paying a loan after graduation will
be easier than it might seem. Nevertheless, it is important
that both students and parents understand the terms of the loan
before agreeing to them and know when repayment will begin and
how much their payments will be. There are many different education
loans, so before taking out any loan, be sure to find out what
the exact conditions of the loan are. |
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Other Forms of Aid Include:
- Federal aid administered by colleges including Perkins
Loans and Supplemental Educational Opportunity Grants (SEOGs)—the
U.S. Department of Education gives aid to colleges, who decide
which of their students need it most.
- HOPE Scholarships, Lifetime Learning tax credits, and other
tax benefits for higher education—The HOPE Scholarship tax
credit provides a maximum of $1,500 (100 percent of the first
$1,000 of tuition and required fees, and a 50 percent credit on
the second $1,000) for each of the first two years of college.
The Lifetime Learning tax credit provides a maximum $1,000 tax
credit to help college juniors and seniors and graduate and professional
degree students, as well as adults who want to go back to school.
For detailed information on who is eligible for these and other
tax benefits, it’s best to refer to your Internal Revenue Service
(IRS) forms and publications which are available at www.irs.gov.
- Many states and colleges offer financial assistance
directly to individual students based on need or merit. Merit-based
aid, usually scholarships or grants, is given to students
who meet requirements not related to financial needs—like doing
well in high school or displaying artistic or athletic talent.
A notable example of state aid is the Georgia HOPE Scholarship,
which guarantees students free college as long as they have earned
a B average and stayed off of drugs. Call or write your state’s
higher education agency or college financial aid offices to request
information about these opportunities.
- Other Assistance. Organizations, foundations and other
groups offer scholarships to academically promising students,
minorities, women and disabled students. To learn more about these
scholarships, speak with your school guidance counselor or go
to the reference section of the public library.
- Serve Your Country. Many opportunities exist for students
to pay for all or part of a college education by serving their
country during or after their college years. Service in Americorps,
the Merchant Marine Academy, the country’s domestic Peace Corps
or in the Reserve Officer Training Corps (ROTC) entitles students
to scholarships of varying amounts to cover educational expenses.
The U.S. Army, Navy and Air Force each has its own military academy
(a four-year college and a commission in the military after gradua-tion),
where tuition is free, but only the most highly qualified students
are admitted. Local armed forces recruiting offices can provide
more information. Call 1-800-94-ACORPS for more information about
Americorps—a way to serve your community and pay for college.
More Information on Federal Aid
For the most up-to-date information about student aid supplied by
the U.S. Department of Education, call the Federal Student Financial
Aid Information Center at the U.S. Department of Education toll-free
at 1-800-4FED-AID. You can also get a copy of the federal
financial aid form, which is required to apply for all federal financial
aid, by calling this number. You can also obtain the guide to federal
financial aid for students, called The Student Guide, which
provides an extensive and annually updated discussion of all federal
student aid programs. You can obtain the Guide by writing
to the following address:
Federal Student Aid Information Center
P.O. Box 84
Washington, DC 20044
To apply for other aid in addition to federal aid, you may need
additional forms. High school guidance counselors can tell you more
about applying for financial aid, including where to get forms you
might need for state aid. College financial aid offices can also
be of help to you.
A Final Note
A college education is a major ingredient for success in the world
today—and by taking the right courses and working hard your child
can be prepared to go to college. Building a strong foundation of
high-level classes, starting with algebra I and geometry by the
eighth and ninth grades, and continuing to take rigorous courses
through high school will better prepare students for college admissions
tests and college course work. By saving for college and taking
advantage of financial aid from the U.S. Department of Education,
colleges and states, you can change college from a dream into a
reality for your children if they are willing to take the challenge
to do their best in school from the start.
The
End
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Copyright
© 2001 BayCon Group, Inc. All rights reserved
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You
Can Afford College
( 302207)
Lately, it seems that "higher education" has become synonymous with "higher
cost." That's why Kaplan has created You Can Afford College. This helpful
book provides expert advice on how to get through the financial aid maze
and find ways to comfortably afford your teen's college education - or
your own.
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