Congratulations! You’ve decided to continue your education at a college or career school. Whether you are a traditional student seeking a certificate or an adult looking to earn a Ph.D., one big question you have is, “How am I going to pay for college?” The problem may seem even bigger if you have a job and a family; money is tight these days, and few people have the extra cash on hand to pay for tuition and the other costs associated with higher education.
There are four basic ways to pay for college: 1. write a check; 2. get gifts of money from other people; 3. borrow money; 4. earn money. You don’t have to be a rocket scientist to see that option #2, “get gifts from other people,” is a sweet deal. Many students are able to create a financial plan with elements of all three methods.
The U.S. Department of Education provides information about college funding options; here are a few highlights.
Scholarships It is possible to get gifts in the form of scholarships. There are thousands of them available, and they are offered by schools, employers, individuals, private companies, nonprofits, religious groups, and professional and social organizations. But they are awarded on a highly selective basis. People aren’t going to give money to just anyone!
Most scholarships are merit-based, and you earn them by meeting or exceeding standards set by the scholarship-giver. They might be awarded based on academic achievement, or a combination of academics and a special talent, skill, or interest. Other scholarships are based on financial need.
How to find scholarships? Ask at your high school guidance office, or the college admissions or financial aid office. Search online; there may be some for which you are eligible.
Grants Like scholarships, grants are also gifts, but they're usually based only on financial need. Grant aid usually comes from federal and state governments and individual colleges. Available federal grants include:
• Pell Grants, awarded to undergraduate students. • The Academic Competitiveness Grant (ACG) is for college freshmen and sophomores who are eligible for Pell Grants and who took "rigorous" classes in high school. • The Federal Supplemental Educational Opportunity Grant (FSEOG) is awarded to undergraduate students with exceptional financial need. • The National Science and Mathematics Access to Retain Talent Grant (National SMART Grant) is awarded to exceptional college juniors and seniors who are eligible for Pell Grants and are majoring in mathematics, technology, engineering, a foreign language critical to national security or physical, life or computer sciences. • The Teacher Education Assistance for College and Higher Education Grant (TEACH Grant) is for students who plan to teach in schools that serve low-income students.
Loans When paying for school, option #3 is loans. A loan is a contract to borrow money and repay it over time, with interest. Loan types range from charging your credit card (not advised!) to getting a federal loan (a very good deal). In the case of most federal student loans, you do not need to begin repaying them until several months after you leave college or are no longer enrolled at least half-time.
Lots of students take out federal student loans: every year, more than $70 billion in federal student aid is given out in the form of low-interest loans. To learn more about federal student loans, read Federal Aid First, an online brochure from the U.S. Department of Education. The next best deal is student loans from banks or financial institutions. These loans often have variable interest rates, require a credit check and may not provide the benefits of federal student loans.
Your last resort for borrowing money is your credit card: you will pay the same high interest rate as if you had bought a new home entertainment system or a fur coat. Work-Study A good alternative to borrowing money is to earn money through the Federal Work-Study (FWS) program, which provides part-time jobs for students with financial need. More than 3,400 schools participate in the Federal Work-Study program, and in a typical year over 800,000 students are given work-study jobs. The program is administered by participating schools, and it's designed to put you to work in the community, or in a job related to your studies, whenever possible. You get to keep some of the money you earn, while a portion is withheld to help pay for tuition.
Other Sources of Aid Organizations that assist students to pay for their education include the U.S. armed forces. Reserve and active duty service personnel and veterans may be eligible for benefits under the Montgomery GI BILL-Active Duty (MGIB-AD), Montgomery GI Bill-Selected Reserve (MGIB-SR) or the Reserve Educational Assistance Program (REAP). Other organizations include AmeriCorps community service organization. Check with federal, state, and local agencies for more information.
Tips for Finding and Saving Money
• See if you are eligible for an athletic scholarship, if you are athletically inclined. • Consider a state school in your state. Most state colleges and universities offer lower tuition to in-state residents. • Go to a lower-cost community college for one or two years, and then transfer to a four-year school. • Live at home while attending a local college. You could save thousands of dollars. • Check out online programs. You could save big money and earn your degree on your own schedule—even while you continue to hold down your present job or keep up with family responsibilities.
The very first places you should look for education finance programs are at the schools you are comparing on EducationForCareers.com. Check out their financial aid pages and compare the programs offered—you’ll be sure to find the plan that works for you!
