When Cost Matters—Find Financial Aid
How to Access College Money
Ironically, for the price of a so-called degree from some diploma mills—between $1000 and $5000—you could have a real college degree. Over the last decade or so, money for college has become available from all types of sources.
The College Price Tag
Colleges come in a variety of shapes and sizes and so do the tuition costs. Static does not describe the cost of any college tuition; they have been heading up for years. Private, four-year colleges top the list of pricey. The average cost for these high-end digs is $22,000. Public universities are right around $6,000 and two-year colleges average $2,200.1 Focus on other aspects of college as opposed to costs. Tuition is a variable, but factors such as curriculum, location, and size of student body are more unchangeable.
Federal Aid
The Free Application for Federal Student Aid (FAFSA) is the key to accessing federal funds. It is also a necessity for many state programs and for some scholarships, so it must not be overlooked. Students must explore federal student loans before any others. The FAFSA is a controversially lengthy and convoluted document, but it’s also a collegiate rite of passage. There are plenty of resources for assistance with the FAFSA. The website offers tips for filling out the form, student loan providers make the rounds of high school campuses to assist students each year, and increasingly popular rallies like College Goal Sunday provide a nationwide effort to get kids and parents on board with the confusing process.
Federal Student Loans Include:
- Stafford Loans are some of the most widely disbursed; almost every college student is approved for some funds through the Staffords. The loans come in two types: subsidized and unsubsidized. Subsidized Stafford loans are awarded to economically needy students. The interest on the loan is paid by the federal government while students are in school, thus the prefix, subsidized. Unsubsidized Stafford loans are available for everyone else, including students who think they don’t need the money.
- Parent PLUS Loans provide financial funds for the parents of college students. In the past, parents took out second mortgages and borrowed on their home’s equity to put kids through college. The PLUS loans take the sting out of paying for college.
- Graduate PLUS Loans are a new loan product specifically designed for graduate and professional students. Advanced degrees can pack a bigger debt whallop, a reason for the loans.
State Aid
Students can access the same federal loans above through state agencies and partner lenders. Outside the direct federal system, the student loans are collectively known as the Federal Family Education Loans.
Private Student Loans
Most students’ federal student loan awards fall very short of the tuition cost. Enter private student loan lenders with their own brand of student loans. Alternative student loans are credit-based, but also provide high credit limits and long-term payment terms. Some of the leading private student loan lenders include Sallie Mae and Nelnet. Banking institutions like Bank of America and Chase have expanded their products to offer loans for students.
Scholarships
Scholarships really do come in all shapes and sizes. You’ve likely heard there’s a scholarship for everyone; believe it. There are millions of dollars in scholarships. The Internet is an excellent tool to shop for funds. Be patient, diligent, and organized.
Above all else, do not overlook deadlines for scholarships. And remember, many scholarships require you to have completed the FAFSA, which comes with its own hard deadline. The biggest error students make when filling out scholarship applications is ignoring the directions on the application. Always provide fresh letters of recommendation and original essays. Some sources for reliable scholarships include:
- Federal scholarships and grants are typically awarded based on academic prowess or for financial need.
- State scholarships are not offered everywhere, but are common in states with lotteries. Tennessee has a lottery scholarship, as well as North Carolina. But many states offer other types of merit scholarships.
- Colleges and universities provide their own scholarships. Shop directly through the institution.
- Corporations are well known for making scholarships a part of their community development. Some even use monetary awards to recruit their next generation of employees. Coca Cola, Wal-Mart, and Microsoft are only the tip of the iceberg in corporate scholarships.
- Private organizations provide one more source for scholarships. These programs are often modest, but every little bit counts. Students should ask at their church, community center, and local businesses for any scholarships.
Financial excuses are not a sufficient argument opposing a real college education. With an array of financial aid and scholarships available, it’s absolutely possible that you could have almost all of your college tuition funded.
Footnotes
- 2006-07 College Costs, College Board, http://www.collegeboard.com/student/pay/add-it-up/4494.html.
