Paying for college is an important step in securing a degree.
The National Center for Education Statistics reports that between the academic years of 1998-99 to 2008-09, tuition and room and board increased 32 percent at public colleges, and 24 percent at private institutions. With costs on the rise, students and parents need to be aware of the choices available for financial aid.
Scholarships
Scholarships are monetary awards used to pay for an education, and they do not require re-payment. Colleges often provide scholarships to students for specific academic reasons, such as earning a particular grade point average or seeking a certain major. Financial assistance is also available for students that possess certain athletic or artistic skills, like football and volleyball scholarships for outstanding players, or aid for students that have the ability to play musical instruments.
In addition, companies may provide scholarships to the children of employees, and many community organizations, foundations and churches offer financial aid for students. Be aware that all colleges have policies for students receiving scholarships from sources other than the school or government. Students are required to provide information about non-school and non-government aid to the college to ensure the institution stays within its guidelines for providing financial assistance.
Student Loans
Student loans are money that is borrowed to pay for college that is required to be paid back with interest. These loans are available in two types, a private student loan and a federal student loan. Private student loans can be obtained from many commercial lenders, often require a co-signer and will be subject to a credit check, which can be difficult for a student that has a limited credit history. Federal student loans, such as a Stafford Loan, require certain qualifications but can be more flexible. This kind of loan, issued through a bank or other lending institution but paid for by the government, provides manageable repayment terms, low-interest rates and does not require payments to be made until after schooling is completed. To apply for a Stafford Loan or similar type loans from the government, students must first complete a Free Application for Federal Student Aid (FAFSA) form.
Federal Grants
The federal government offers grants of money to assist in a college education. These grants are not required to be paid back. Students must meet certain qualifications based on such things as income level, family size and the amount of financial support the family is expected to contribute to a child's education. One form of aid, known as the Federal Pell Grant, is awarded through a formula that takes into consideration the cost of attending a particular school and whether the student will attend classes on a part-time or full-time basis. As is the case with Federal Student Loans, the Pell Grant and similar government awards require completion of the FAFSA form prior to applying for assistance. Additional grant opportunities include financial aid based on a student's academic performance, leadership abilities or specific courses of study.
Military Personnel Assistance
Former military personnel who were honorably discharged from service can receive financial assistance for education through the U.S. Department of Veterans Affairs as part of the Post-9/11 GI Bill. To qualify, individuals must have at least 90 days of accumulated service on or after September 11, 2001. In addition, personnel who were discharged due to a disability connected with their service may receive financial aid. Assistance is available for men and women seeking graduate and undergraduate degrees or vocational training. Funding amounts for tuition are based on several factors, including where the student lives and the type of education they wish to obtain.
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