For the majority of Americans who don't think they qualify for Pell Grants, the federal grant for low-income students, it's easy for them to think that financial aid beyond student loans won't happen for them. But that's just not the case. Here are few other types of financial aid every family paying for college should know about. Show 1. State Grants Pell grants get much of the publicity, but state states add up. Where can you find out about them? From an igrad.com article: "You can learn about state grants by calling your school’s financial aid office. For instance, the state of Oregon offers a limited supply of $2,000 state grants, according to Jim Brooks, financial aid director of the University of Oregon. The earlier you apply, the better your chances are of receiving these funds. You should also remember to list state schools first when filling out the FAFSA. If you’re already in college and don’t plan on transferring, just list the school you’re currently attending." 2. Payment Plans Tuition payment plans can help you avoid student loan borrowing by allowing you pay off a semester or a year's tuition over an extended period of time. Divide payments over several months. Just make sure you're only paying off what you can afford. 3. Endowment Money/University Grants Some schools have a stack of cash they can dole out to students that may come from university donors or other sources. The availability of this funds is partly why students should always fill out the FAFSA form regardless of a desire for student loans or qualifying for Pell Grants. 4. Community Scholarships Any student that only applies for scholarships from their school is doing themselves a disservice. Make sure to also look within the community for sources of funding. Asking their high school counselor is a great start but also look towards community organizations and the parents' workplaces. 5. 529 Plan Grants and Scholarships Yay! Some states will essentially reward you for saving for college. For instance, 529 plan matching and program enrollment grants offered in some states can give students a few hundred dollars annually to add to college savings. A 529 plan is a college savings plan and a matching grant program is when the plan matches a contribution up to a specific dollar amount by either a percentage or dollar amount. From usnews.com: "States differ widely on how often grants can be distributed. "Some grants are one-time-only matches that are made by the plan when the account is opened; others are made on an annual basis up to the match limit," says College Savings Plans Network's Fitzgerald. For instance, Maine offers $500 grants, called Alfond Grants, to start 529 plans for babies born in the state or who are moving to the state before their first birthday." Bottom line: There's a lot financial aid available to families who look in the right places. Fill out the FAFSA but also look around for money for college, whether your student is a college freshman or an infant who can benefit from 529 plan matching grants programs.
A financial aid recipient may be granted one or more forms of assistance. Students receiving grants are usually also eligible for loans and campus employment as part of their "package." Some different forms of financial aid are listed below.; Merit ScholarshipsThese awards are designed to recognize the exemplary academic performance of students without regard to financial need. The merit scholarship will be the first component of any need-based financial aid award. Learn more GrantsGrants (outright gifts) may be made from the college's own endowment, from state or Federal sources, or from outside agency funds. Most grants are based on demonstrated financial need. State Grant Information
Fostering Independence Tuition Waiver Program – Pennsylvania Residents Only. The Fostering Independence Tuition Waiver Program provides a waiver for tuition and mandatory fees charged by most postsecondary institutions located in the Commonwealth for youth who are or were in foster care. This waiver applies only to tuition and mandatory fee charges that remain after all other gift aid (federal, state, and other scholarships or grants) have been applied to the student’s account. Please contact Erica Burg, Associate Director Financial Aid for additional information. Campus EmploymentMost students receiving assistance are offered campus employment of up to 12 hours per week in exchange for wages which help defray expenses. Campus jobs are provided using funds from the Federal Work-Study Program or from Dickinson's own funds. Student LoansSeveral low-interest loan programs are available to students who demonstrate financial need. The Federal Direct Subsidized Loan is available through the Department of Education. This loan features a federal subsidy, which means repayment does not begin until after the student finishes school. Deferments are available for graduate study and a variety of other reasons. The Abe and Cora Hurwitz student loan is a low-interest Dickinson loan offered to students on a combined basis of academic merit and financial need. Outside ScholarshipsAny student receiving financial aid who also receives scholarships, loans, tuition remission, or support from a source other than the college, must report the additional aid to the Dickinson Financial Aid Office. Such assistance can impact the student's eligibility for assistance from federal and institutional resources. The total amount of aid received by the student cannot exceed need as computed by federally approved methodology. The college will always reduce or eliminate self-help (loans or work) before reducing grant aid.
A grant is considered gift aid (i.e., money which does not need to be repaid). Grants are usually given to students based solely on a demonstration of financial need. For federal grants, students must submit a Free Application for Federal Student Aid (FAFSA) each academic year. For state grants, student must submit a New York State Tuition Assistance Program (TAP) application each year. ScholarshipsScholarships are gift aid (i.e., money which does not need to be repaid). Scholarships are usually given to students based on some form of demonstrated merit (e.g., academic ability, community service involvement, particular talent). Scholarships often require that the student has financial need in addition to being meritorious. Scholarships typically require the student submitting additional applications to the organization(s) offering the scholarship. Work StudyWork Study is simply a part-time job, often on campus, for which a student earns a paycheck. It is considered financial aid because the government is paying a portion of the paycheck and the student must demonstrate need to qualify. Students must submit a FAFSA to determine their eligibility for work study. LoansLoans are aid funds that are borrowed and must be repaid at a future date. Federal student loans are considered aid in part because the interest rates are subsidized by the federal government, and except for PLUS loans, a credit check is not required. Sometimes a portion of a federal loan can be forgiven (i.e., not repaid) if a student goes into certain occupations or does full-time volunteer service upon graduation from school. More information: Federal loans | Private loans Need-Based AidThe financial need of a student is determined by the information provided on the FAFSA. Financial need is simply defined as the difference between the student's cost of attendance and the EFC (expected family contribution—the family's ability to pay towards the costs of attending college, as defined by the federal government).
Once you've decided to go back to school, your next big step is determining how you are going to pay for your education. This process can feel daunting: there are many financial aid options for college, and it's hard to know which one is right for you. If you're starting to think about how to get financial aid for college, here are 4 types of financial aid to consider. Types of Financial Aid for CollegeLoansLoans are one of the most common college financing options. However, not all loans are the same, and there are two different types of student loans for college: federal and private. There are significant differences between the two, so it's important to have a clear understanding of what each type entails. Federal Student LoansThe U.S. Department of Education offers a federal student loan program called the Direct Loan Program. This program is widely used, and offers multiple loan options which are based on degree level and financial need. Loans are also available to parents of dependent undergraduate students and to those who do not demonstrate financial need. Federal student loans are a good option for many students, as they give students a way to cover the cost of education at relatively low, fixed interest rates, and offer flexible repayment options to help students afford their monthly payments. You can learn more about federal loans, including your eligibility for certain programs, on the Federal Student Aid website. Private LoansPrivate student loans, as the name implies, are granted by private lending institutions, such as banks, credit unions, or state agencies. In general, students should only consider private loans as a supplement to federal loans and other financial aid, as private loans are less regulated and tend to cost more to the student over the long term, due to higher or variable interest rates. However, the reality is that federal loans will usually not cover the full cost of a student's education, and most students will need to find one or more additional sources of aid. While students should try to explore all other options first, if used sparingly, private loans are an important resource to help students meet their educational goals. GrantsGrants, unlike loans, are a form of financial aid that students do not have to repay or pay interest on, and can be used to cover any education-related expenses, such as books or housing, not just tuition. They can come in a number of different forms, with the two most common being the federal government grant and the state government grant. Federal GrantsFederal grants are primarily accessible to undergraduate students demonstrating significant financial need. They will be offered to students who meet eligibility guidelines upon completion of the FAFSA (Free Application for Federal Student Aid). The amount of aid awarded will be dependent on factors such as enrollment status, cost of attendance for the institution the student is applying to, and financial need. Graduate students in certain fields, such as teaching, and the children of Iraq or Afghanistan veterans may also be eligible for certain federal grants. A full list of federal student grant programs can be found here. State GrantsMost U.S. states and territories have their own higher education agencies which usually offer some form of need-based grant to resident students. Like federal grants, the amount of aid available to each student will depend on their financial need and the cost of attendance for their school of choice. State aid programs, since they are more limited in scope, are also often first-come, first-serve, so students interested in participating will need to do their research and gather their materials early. Eligibility will vary by state, so it's important to look into your own state's requirements. A full list of state agencies can be found here. Military AidIf you are a service member, veteran, or the spouse or child of a service member or veteran, chances are, you will be eligible for some form of military-specific financial aid.
These are just a few of the programs available; a more comprehensive list of educational programs for service members and veterans can be found here. Eligibility for this aid is program-dependent, so be sure to contact the financial aid office or the veterans' services office of the school you're planning on attending to discuss your military financial aid options. Employer Tuition AssistanceMany organizations are recognizing the benefits of investing in their employees through employer tuition assistance programs. These can take a few different forms, but generally fall into one of two categories: college-business educational alliances and tuition reimbursement. Educational AlliancesThis benefit consists of a partnership or agreement between an organization and an institution of higher learning (often online) to allow the employees of that organization to enroll at significantly discounted rates. These types of programs are a win-win, giving employers a better-educated, well-trained workforce and giving employees access to high-quality, affordable education options. Employer Tuition ReimbursementMany employers offer eligible employees (typically, those who have worked for the organization for a certain period of time) reimbursement for taking college courses. Usually, this amount does not cover the full cost of tuition, and will usually come with a per-annum and/or lifetime cap. However, when combined with other sources of financial aid, this is a great way to help students graduate with less debt and minimal out-of-pocket expenses. |