Getting your finances in order to attend college is often more difficult than any admissions essay or placement exam. Attending community college may reduce the stress associated with admissions, but the finances are no less difficult. The financial aid available to you when attending community college is similar to the aid offered through a four-year university. The competition for merit-based or need-based aid, including grants and scholarships, may be stiffer because fewer opportunities exist.
Federal Student Loans
Federal student aid in the form of a Stafford Loan is guaranteed to you as long as you meet certain criteria including citizenship status and the lack of a felony drug conviction. You must also register for at least six college credits in a program working towards a degree. Federal student aid varies by your income and how many years you've been in school. Your expected financial contribution is determined by completing your Free Application for Federal Student Aid (FAFSA). Since a community college has a lower yearly tuition than a four-year university, your expected financial contribution to your educator may be higher depending on your income or your parent's income if you're a dependent. According to the Federal Student Aid website, the maximum student aid in DIrect Stafford Loans for a dependent student in the first year of college is $5,500. This maximum amount increases each year up to a maximum of $7,500.
Federal Pell Grants
A federal Pell Grant is a need-based education award. Your eligibility for a Pell Grant is determined through examination of your submitted FAFSA. Unlike a student loan, you are not obligated to repay a Pell Grant. How much money you receive in the form of a Pell Grant depends on your tuition costs, expected family contribution and income level. A community college's lower tuition may decrease the amount of any Pell Grant award. As of April 2011, the maximum Pell Grant award is $5,550 per academic year.
College Scholarships and Grants
Your community college may offer need-based scholarships or merit-based awards including department-specific grants. Your eligibility for these awards could depend on your income level or your GPA and academic accomplishments coming out of high school. The key to eligibility for these forms of aid is to apply for as early in the year as possible. A community college usually has fewer scholarship and grant opportunities than a larger four-year university. According to "Smart Money's" website, grant and scholarship money at any given school could be gone as early as February. You can also look for scholarships through other community sources or by searching online through various websites.
Private Education Loans
Private education loans may be available through a variety of lenders, including banks and credit unions. These student loans are based on credit history and may have higher interest rates than federally guaranteed student loans. The benefit with private education loans is the ability to secure all your aid in one location without the need of sitting and waiting for a response from the federal government. Private lenders typically respond faster because these lenders process fewer applications for student aid than the federal government. Because these loans are based on your credit history, any significant fluctuation in your credit score may affect your ability to consolidate these loans later and lower your payments.
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