Most college students in today’s society pay for college using resources other than cash. With the cost of tuition rising sharply in accordance with the cost of living, the price to attend college is out of reach, unless you consider other financing options that are available to most students. No matter which alternatives you choose, you should still fill out the FAFSA, Free Application for Federal Student Aid, as well as any forms required by your school.
LOANS
Most students turn to some type of loan to cover the cost of their college tuition. These loans can be used, not only for tuition, but for books and other educational related expenses as well.
Stafford Loans: These are loans that are available to most students regardless of income and credit history. They are either subsidized or unsubsidized depending on your financial need, which is determined by the government. If your Stafford loan is subsidized, then the U.S. Department of Education will pay any interest that accrues on your loan while you are in school or while the loan is in deferment. If your loan is unsubsidized, then you, as a student, are responsible for the interest. These are not need-based loans, however there are borrowing limitations depending on your enrollment status and class (freshman, sophomore, etc.).
PLUS Loans: If you are a dependent student, your parents can apply for a federal PLUS loan to cover the expense of your college education. PLUS loans are credit based, therefore your parents should have a good credit history in order to be approved for these types of loans.
Perkins Loans: These are low-interest loans available to students based on financial need. The U.S. Department of Education distributes funds to different schools for use in the Perkins program. The individual schools will then use the government formula to determine which students need the loans the most. Some schools will allocate some of their own funds to this program as well.
Private Loans: When all other loan options have been exhausted, you can always apply for private educational loans. These can be obtained from any bank or credit union. These loans are not need based; however they are credit based. Therefore it is wise to apply with a co-signer if you do not meet the income and credit requirements.
GRANTS
Educational grants are funds that are allocated to students that meet the requirements of the giver. Some schools are given money by donors to use for their grant program. The federal government provides a PELL GRANT to financially needy undergraduate students. Grants do not have to be repaid.
SCHOLARSHIPS
Scholarships are financial awards based on a student’s academics or other requirements, depending on the benefactor. Student’s can apply for scholarships through companies, states, or even through their own college. These also do not have to be repaid and are not usually based on any type of financial need.
WORK STUDY
Have you ever wondered how that one student you know got that job in the school bookstore? It was most likely given to them through a federal work-study program. This is when a student is given a part-time job, usually on campus and the earnings from the job are allocated to pay for the student’s tuition. These jobs are usually awarded to financially needy students first and then any and all other students if jobs remain available.
As stated before, you must fill out the FAFSA to be eligible for Stafford Loans, Work Study, grants and even some scholarships. Check with your school for additional paperwork regarding any of these alternative resources as well as a complete list of scholarships available.
The Federal Perkins Loan Program is a program established by the government to provide low-interest loans to help students receive the required financials needed for postsecondary education. The United States currently has over 1,800 participating postsecondary institutions that allow students to pursue these federal loans.
As a general rule of thumb, loans that are cancelled will generally see the schools get reimbursed 100 percent by the government and in return, they must reinvest the money back in the school’s revolving loan fund. The money in the program comes mainly from newly appropriated FCC contributions and loan cancellation payments, institutional matching contributions equaling at least one-third of the FCC contribution, and school-level collections on prior-year student loans.
A student is eligible for a Perkins loan if the U.S. Department of Education determines that the financial need meets their standard formula. This formula evaluates the information presented on a student’s FASFA and proceeds to determine the EFC (expected family contribution). The primary factors in this formula include the student’s income, the parents’ income, the family’s household size, and the number of family members currently enrolled in postsecondary institutions (fancy name for colleges and universities). The EFC on the other hand, is the sum of a percentage of net income, a percentage of net assets, and a combination of assessment rates and allowances that vary per each individual applicant.
To be considered for The Federal Perkins Loan Program, one must file a FASFA and wait to receive the Student Aid Report to see what options are available to you. Additionally, your institution will also receive an Institutional Student Information Record which will allow them to grant you loans according to the data.
A Stafford Loan is a student loan that is offered to eligible students in order to facilitate financing for their education. The loan itself is described in detail in Title IV of the Higher Education Act of 1965 that guarantees full payment to a lender if the student does not satisfy the terms. The loan offers rates that are much better than private loans since the US Government guarantees them in full.
With that said, these loans do have a very strict eligibility requirement that needs to be met before any money is given out. Students applying for these types of loans must first fill out a FAFSA. The Stafford Loan is available directly through the FDSLP (Federal Direct Student Loan Program) or from a private lender through the Federal Family Education Loan Program. (FFELP).
Students receiving these types of loans are not required to pay off the loan until they stop being a full or half time student in college. After the student leaves school, either by graduation or by not fulfilling the minimum credit requirements, a 6 month grace period kicks in. After that 6-month period, the loan repayment process begins.
Stafford Loans are available both as subsidized and unsubsidized loans. The difference being that subsidized loans are technically interest free for the time you are in college and for the 6 month grace period as the federal government will pay those recurring interest rates for the student. On the other hand, unsubsidized loans have interest added to the total amount even while you are still in college.
The Federal Pell Grant is a post-secondary educational federal grant program sponsored by the U.S. Department of Education. These types of grants are awarded based on a “financial need” formula that is determined by the U.S. Congress via the FAFSA application.
One of the great benefits of a Federal Pell Grant is that it does not need to be repaid like a loan. They are usually awarded to undergrad students who have not earned a bachelor’s or any other type of professional degree. In this sense, a Pell Grant is considered as federal financial aid and more aid from other sources, either federal or nonfederal, might be added on top.
The maximum award for the 2008-2009 award year is $4,741. The amount available usually changes every year depending on the funds that the program has available. The maximum that an individual can get depends solely on the individual’s financial need, their cost to attend school, and their status as full-time or part-time students.
Federal Pell Grants are usually applied toward tuition costs but arrangements can be made to pay a student directly (most likely via check). During limited occasions, a combination of these methods might be used. As far as regulations for the school, they must tell you in writing how much your award will be and the method that you will receive payment. Additionally, schools must disburse funds at least once per term. Schools who do not uses semesters will have to disburse funds at least two times per academic year.
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More than half of all college students receive some form of financial aid, whether it is loans, grants, or even work-study. These funds are essential for most students as it is the only way for them to complete their college education. However in order to obtain these funds, every student must fill out a FAFSA, Free Application for Federal Student Aid. This form must be filled out for every year that the student attends college. This form can be overwhelming at first, however it does not have to be. Follow some of these tips and advice and you will soon be able to complete this application with your eyes closed.
DEADLINES
Even if you want to apply for grants or loans from your school, you still need to fill out the FAFSA. There are deadlines in place to make sure that your application gets reviewed in time for certain funds. If you miss this deadline, you can still submit your application, just be sure to work with your school’s financial aid office to ensure that your request is reviewed for any remaining funds. You should also check with your state AND your school to verify their specific FAFSA deadlines.
PIN NUMBER
The FAFSA has come a long way in the past ten years. You can now file your application online and electronically sign your form with a pin number issued by the U.S. Department of Education. Filing electronically will speed up the submission of your application as it is then sent electronically from the Department of Education, directly to your school. If you do not have a pin number, then you can apply for one by visiting the FAFSA website.
DOCUMENTS NEEDED
In order to fill out the FAFSA you will need specific documents to ensure that you complete your application accurately. Use the checklist below to determine if you have all of the necessary materials to proceed with your application:
W2 and/or Tax Forms- If you are a dependant student, you will need copies of this information from your parents. If you are an independent student, you can use your own tax information. If you are married, be prepared to enter your spouse’s information. It is best to complete your tax return BEFORE filing your FAFSA; this will ensure you receive the correct amount of funds for the current year.
Other Income- If you receive other income besides your employment, such as unemployment, Social Security, child support, etc., then be prepared to enter these amounts.
Bank Statements- One of the questions on the FAFSA will ask you what the current account balance is in your bank account, so you should be prepared by having your most current bank statement or contacting your bank for your balance.
SSN and Drivers License Number- If you do not have your social security number and driver’s license number memorized, then have these documents ready as well.
Assets- If you have any other assets or investments, you will need to know the current value of them so have these documents ready for reference.
Non US Citizens- If you are not a U.S. Citizen, you will need to make sure you have your permanent resident ID Card.
Finally, check with your school for additional financial aid forms that they may specifically require. Some schools will require a separate packet of forms and may also require additional financial information to determine if you are eligible for any kind of state aid or maybe even specific funds from the school.
Any college student can assure you that you need to take good notes during class, in order to capture the main ideas of the lecture and succeed on the exams. For some students this can be a difficult task for a variety of reasons, however with a few tips and some guidance you can take notes in your classes that will be helpful to your success in college and beyond.
Use your Text
While your professor is giving the lecture, have your textbook open to the chapter that is being discussed. This way you can refer to any important ideas quickly and efficiently. If your professor tells you that you need to know the definition of a certain word, you can jot the word and the chapter page numbers in your notes. Later when you are studying, this will make for easy reference.
Read Ahead
Most professors will distribute a syllabus at the beginning of the semester so that you know exactly what will be discussed in class and on which days that will be done. If you read ahead of time, then you will be more than prepared for the lecture, which in turn will make for easier note taking.
Don't Write Everything
Professors talk a lot and there is no way that you will be able to write down every single thing that is mentioned during class. Try to keep alert for important ideas or items that you may think are on upcoming tests. By doing this you will actually be alert during class, and still write down important subjects presented during class.
Compare Notes
Make friends with a few of the other students in your class and see if you can set up study sessions with them. This way you can compare your notes with your peers because chances are you may have missed an important note that the student next to you may have caught. This also helps reinforce the material for upcoming exams. If you cannot meet in person, then see if you can email or instant message someone for comparisons.
Take your Laptop
Take advantage of the technology in today’s society and take your laptop to class. Of course you should double check with your professor ahead of time to be sure that this is alright with them. Most people type faster than they write; therefore you can probably take more notes via your laptop than you would with pen and paper.
Digital Recorders
Again, check with your professor to see if you would be allowed to use a digital audio recorder in class so that you can record the lecture. This way you can be 100% focused on the professor and you can listen to the lecture again later and take notes while studying. This will also help because you will have the ability to pause the lecture while you write down important terms and ideas.
Don’t be intimidated by the whole note taking process. Every student learns differently so just because the girl next to you can sit and listen to the lecture without writing a thing down does not mean you will be able to do so as well. Try a few different techniques and use the one that works the best for you.
Selling back textbooks can be a great way to recoup some of the costs of the outrageous prices of textbooks. Unfortunately school bookstores usually...
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