Funding Your Education
Finding money to pay for college isn’t as hard as you may think, and applying for
financial aid should be as important to you as filling out those college applications.
Once you start doing your research, you’ll see that funding your education is doable,
and that you have a lot of options when it comes to putting together an impressive
financial aid package.
Your first step will be filling out the Free Application for Federal Student Aid
(FAFSA), which will show you the kinds of scholarships, federal and state grants,
campus-based aid, and low-interest student loans you’re eligible to receive. Remember
that funding you don’t need to pay back in the form of scholarships and grants is
the most ideal way to fund your education, and that those resources should be exhausted
before you start applying for loans. The more work you do now in looking for these
sources of aid, the less overwhelming your student loan debt will be post-graduation.
This "free money" is not only attainable, but an expected part of most financial
aid packages, especially if you can show you have financial need.
Browse through our resources for tips on funding your education, because the best
strategy for tackling that financial aid application process is being well-informed
about all of your options before you dive in. We have information for you about
the campus-based programs you could be eligible for, how to fill out and where to
find the FAFSA, details on useful contacts and where else you’ll find good tips
on funding your education, and more. Don’t let your hesitation about the process
or unanswered questions prevent you from finding funding to pay for your college
education.
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Funding your education can be a very difference experience depending on the college
you choose to attend post-graduation. While you’re applying to the colleges on the
list, evaluate your financial aid options at each school. What kinds of campus-based
aid does the school offer? Not every college will have a fully-funded federal aid
program, as it is up to the college to decide whether to participate in many federal
grant programs. If the schools you’re eyeing don’t offer much in the way of scholarships
and grants, the ideal type of funding you’ll be seeking because you don’t have to
pay those back, consider your other options. A little research – and caution – will
go a long way toward reducing your student debt totals.
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The funding you may be eligible for (and hopefully will receive) from the federal
government will not only go toward paying for your college tuition and fees, but
other costs such as your books and living expenses. The FAFSA application and resulting
Student Aid Report (SAR) you receive will take all of those costs into account,
and tell you the kind of aid you may receive in the form of scholarships, grants,
federal work-study, and student loans. You should compare your award letters before
you make a decision on which school to attend, and once you’ve made a decision,
let the school know whether or not you are accepting or declining the awards.
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Your first step will be filling out the FAFSA, a form that will give you the best
of the kind of aid you’ll be receiving from each school you’re interested in attending.
After your information has been evaluated the government determines your level of
need and subsequently, how much aid you are eligible to receive and where the aid
will come from. The FAFSA can be completed in paper form and then mailed in, but
the FAFSA on the web allows for faster processing. When you’re waiting to see what
kind of financial aid you get from each college before making the decision about
which school to attend, faster processing is a good thing.
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Whether you’re eligible for certain financial aid awards will be determined by the
results of your FAFSA and an analysis of your SAR by your intended college’s financial
aid administrator. That financial aid administrator will be the best source of information
for you if you have questions specific to your aid package or about a campus-based
award program. While there is a good chance that your school’s financial aid office
will alert you to college-specific awards you may be eligible for, you should still
always do your research, especially at larger schools where the number of aid programs
may be vast but the number of financial aid administrators may be small.
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You should always plan to fill out your FAFSA, even if it’s a renewal FAFSA, as
soon as it’s made available to you Jan. 1 of each year. While the application isn’t
technically due until July 1 of each year, by then, much of the campus-based aid
has been allocated to those who filed for financial aid early. Federal aid programs
have a set annual total of funding that is disbursed to each school as well, so
apply early for the best shot at landing an impressive financial aid package. Be
very mindful of important deadlines, as you don’t want to miss out on funding opportunities
because you missed a due date.
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Federal Pell Grants are the most popular federal grant program. Your eligibility
is determined based on the results of your FAFSA, and you must prove a high level
of financial need to be considered for the award. While the grants are typically
given to undergraduate students, those pursuing certain teaching programs on the
post-undergraduate level may also be eligible. Pell Grants are usually a foundation
of financial aid, and often determine your eligibility for other federal grant programs
like the Federal Supplemental Educational Opportunity Grant (FSEOG) and the Academic
Competitiveness Grant (ACG).
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Campus-based aid programs are financial aid programs that are administered directly
by the financial aid office of your intended college. Federal programs such as the
Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Perkins Loan,
and Federal Work-Study programs are considered campus-based aid programs because
those awards are disbursed by college financial aid administrators, and schools
must choose to participate in these programs. Your eligibility for this funding
will be determined by the results of your FAFSA, so if you find on your SAR that
the above source of aid aren’t listed, it could be because you’re planning on attending
a school that doesn’t participate in those programs.
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Federal Stafford Loans are the most popular student loans guaranteed by the federal
government because of the low interest rates they offer and their flexible repayment
options. Schools may participate in the Federal Family Education Loan (FFEL) Program,
the William D. Ford Federal Direct Loan (Direct Loan) Program, or both. The loans
may be subsidized or unsubsidized. Subsidized loans are awarded based on financial
need, and the government pays the interest while the student is in school, in deferment,
and during the grace period before repayment begins. Unsubsidized loans are not
awarded based on income, and the borrower is responsible for any interest accrued
while the students is in school, in deferment, during the grace period before repayment
begins.
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The Federal Parent Loan for Undergraduate Students (PLUS) is taken out by the parents
of dependent undergraduate students or graduate and professional school students.
This option, while not as popular as Federal Stafford Loans, is still a low-interest
option for those who must take out student loans while funding their college education.
As a federal loan, PLUS loans are guaranteed by the federal government, and schools
that participate in the FFEL Program or in the Direct Loan Program offer PLUS Loans.
If your parents are borrowing for you, they must have an acceptable credit history
to be eligible for the loan.
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Funding your education with student loans can be a complicated process if you’re
not sure what you’re getting yourself in to. While scholarships and grants are the
ideal sources of funding because they don’t have to be repaid, most college students
will need to borrow some amount to cover their college costs, and you need to know
that there are low-interest loans out there for students like you who need a little
extra funding assistance. If you do your research and make sure you have all of
your questions on how you’ll be repaying your loan answered before you borrow, you’ll
feel a lot better about the process. If you do find yourself unable to start paying
those loans back immediately after graduating, there are options.
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Reducing the cost of school is on most students’ minds both when they’re already
on campus and when they’re making a decision on which college to attend. Some options
such as working your way through school or applying to lower-cost colleges such
as two-year schools or state universities may require some sacrifice on your part.
Other options, however, may be available to you to reduce the cost of the school
you’re already at or have already graduated from. Make sure you do your research
on things like tax credits for students and loan forgiveness programs, because a
little work on your part could decrease your student debt load significantly.