Grants are
generally awarded by federal and
state governments for students in
extreme financial need.
The
grant is gift money that does not
have to paid back. All federal grants require you to file the FAFSA form to determine eligibility. Grants are administered and disbursed by the schools.
There are four types of Federal Aid Grants:
Pell
Grant:
The most common
federal grant. It is awarded to
undergraduate students only (and in some cases, post-baccalaureate students in teacher certification programs).
The
amounts awarded range from $400-to-$4,050
per academic year. The Pell Grant
is reserved for the neediest students.
To see if you are eligible for
the Pell Grant, you
must first submit the Free Application
for Federal Student Aid (FAFSA)
form.
It will use a formula
to estimate the qualified amount
based on the EFC and cost of attendance (see
aid note1 for EFC information).
Any eligible amount will be noted
in your financial award letter from
your school:
Federal Supplemental
Education Opportunity Grant (FSEOG):
This grant is available for qualified
undergraduate applicants who show
exceptional financial need. The
amounts awarded range from $100-to-$4,000.
You must first compete the Free
Application for Federal Student
Aid (FAFSA) form to see if you qualify.
It will use a formula to estimate
the qualified amount based on the
EFC and cost of attendance (see
note 1 for EFC information).
Any eligible amount will be noted
in your financial award letter from
your school:
An Academic Competitiveness Grant will provide up to $750 for the first year of undergraduate study and up to $1,300 for the second year of undergraduate study to full-time students who are eligible for a Federal Pell Grant and who had successfully completed a rigorous high school program, as determined by the state or local education agency and recognized by the Secretary of Education.
Second year students must also have maintained a cumulative grade point average (GPA) of at least 3.0. The Academic Competitiveness Grant award is in addition to the student's Pell Grant award.
A National SMART Grant will provide up to $4,000 for each of the third and fourth years of undergraduate study to full-time students who are eligible for a Federal Pell Grant and who are majoring in physical, life, or computer sciences, mathematics, technology, or engineering or in a foreign language determined critical to national security.
The student must also have maintained a cumulative grade point average (GPA) of at least 3.0 in coursework required for the major. The National SMART Grant award is in addition to the student's Pell Grant award.
download the US Department of Education Student Aid Booklet for more detailed information about federal grants
note5: review aid options
Federal Work Study
Federal
Work-Study Program offers work-study
programs
For both undergraduate
and graduate students where
the student can work part-time on
campus or in the community to earn
money to help pay for education
expenses.
Students are
paid at the federal minimum wage
(or more) on an hourly basis
The wage is dependent upon
your skill set and work requirement.
Graduate students may be paid hourly
or by salary.
Work assignments can be on-campus
and off-campus work in public-related
services. The amount of work is
determined by your school and cannot
exceed the Federal Work-Study award.
Contact your school's financial aid office for information about the Work-Study program.
You must first
compete the Free Application for
Federal Student Aid (FAFSA) form
download the US Department of Education Student Aid Booklet for more detailed information about federal grants
note5: review aid options
Scholarships
About Scholarships:
Scholarships are available from
many private and educational institutions.
This type of financial aid does
not have to be paid back.
There are 3 categories of scholarships:
Institutional Scholarships:
scholarships from the college to the student for
achievement in athletic, academic, and extracurricular activities such as music, art and other.
Many colleges likewise award scholarships for certain majors; i.e., academic achieved students majoring in mathematics. So complete a thorough research potential awards.
Private Scholarships:
generally from employers, religious and ethnic affiliations.
Service Scholarships:
national and community associations and the military
. These scholarships are awarded in exchange for community or military service after your graduate.
Take note that many non-funded scholarships
may be from your own local area
area businesses and associations.
Scholarship Search:
You need to start early to find
all available scholarships. Check
your field of study, ethnic background,
social and religious affiliations,
parent's employment, family club
memberships, and local businesses
and clubs.
Beware of potential scholarship
scams. A general rule to follow
is, "if they request money
from you in order to get money",
they are likely a scam:
Many businesses offer educational
allowances to employees and their
families — check with your
parents' employee benefits department.
note5: review aid options
Government Student Loans
Perkins
Loans:
Low-interest (5% percent) federal
student loans awarded to undergraduate and
graduate students with exceptional financial need.
You can borrow up to $4,000 for
each year of undergraduate study; $6,000 for each year of graduate
or professional study.
The total amount you can borrow
as an undergraduate is $20,000 after
you complete two years of undergraduate
study; $40,000 for graduate and
professional.
The loan does not charge origination
fees. Your school becomes the lender
using funds shared by the federal
government. You must repay this
loan to your school.
download the US Department of Education Student Aid Booklet for more detailed information about federal loans
Stafford Student Loans
The most common form of self-help
aid. These are loans made to students
in undergraduate and graduate-level programs.
These student loans are insured by the federal
government that allow lenders to
lend money at lower-than-normal
rates.
Loan
Amounts
varies by
student grade and status: see loan chart
Payments Begin
180 days after graduation
or separation
Interest Rates
fixed for the life of the student loan: see rates
No Restrictions
no credit
check or co-borrower required
More information available:
link to our member site at www.SayStudent.com for a complete review of the Stafford loan program
PLUS Loan Programs: 2 Types
Parent PLUS Loans are federal-sponsored student loans for parents
who have dependent undergraduate and graduate students. Parents can borrow up to the full
cost of education minus any financial aid awarded to
the student.
Graduate PLUS Loans are federal-sponsored student loans for graduates and professional students. They can borrow up to the full
cost of education (including travel) minus any financial aid received.
PLUS Loans are available to all qualified
borrowers regardless of their financial situation. Borrowers must pass a credit check in order to qualify.
PLUS Loans do require your filing the FAFSA form.
Loan
Amounts
cost of education minus
aid given
Payments Begin
60 days after first disbursement for parents
180 days after graduation
or separation for graduates
Interest Rates
fixed for the life of the student loan: see rates
No Restrictions
no prepayment penalties; no collateral
Credit Review
must pass a credit check in order to qualify.
More information available:
link to our member site www.SayStudent.com for a complete review of the PLUS loan program
note5: review aid options
Private Student Loans
Private Student Loans
Many government
programs and loans do not cover the full cost of education
So
many students are turning to private
student loans to make up the difference
between total cost of school and
any financial aid you may receive.
Private Student Loans are offered
by financial institutions, educational
institutions, and professional associations.
They are not guaranteed by the government
so the interest rate and origination
costs may be higher.
The advantage
of Private Student loans is that
loan amounts are not tied to any
federal or college limits
You can borrow as much as
you need up to the approved loan
limit.
In addition, the funds can be used
for any education-related expenses,
including a new personal computer
for school use.
Rates and
origination costs are tied to the
applicant's credit history
The
better your credit history (as a
student and likely with a co-applicant
such as your parent), the lower
the rate and costs.
You need to consider the lending
terms of private loans borrowing
money comes with fiscal responsibilities.
Inability to follow repayment terms
can affect your credit rating, making
it more difficult to borrow in the
future.
Homeowners can
use the equity value in their homes
to pay for education.
Advantages include:
you are not restricted by federal
loan limits
the funds can be used for any
purpose — including auto
transportation — as determined
by the home equity owner
funds can be borrowed as they
are needed — not all at
once under many other programs
the home equity line can be
available from year-to-year without
submitting annual application
and qualification forms
interest rates for home equity
lines can be as low as the Prime
Rate
the interest costs for borrowed
funds may be deducted from your
taxes if your qualify —
see your tax advisor for further
information
The home equity
line of credit is the most popular
type of home equity for college
education.
The equity line
allows parents to draw upon funds
as needed for tuition, books, fees,
living expenses and other miscellaneous
expenses.
Use the Banker Line of Credit (BLOC) to manage your money and education expenses.
The BLOC has been designed to effectively pay education expenses with minimal borrowing costs. The programs works for applicants who have steady working income.
For a demonstration of the program:
link to our member site www.SayStudent.com for a demonstration on the BLOC program
see introduction and slide demo