Paying for college may seem overwhelming and daunting for most parents. However, financial aid options are available that can greatly reduce or even eliminate out of packet expenses for a student’s college education.
Financial aid is distributed typically by the federal government and by colleges and universities. Outside organizations may offer scholarships and grants as well, so doing a thorough search of all available aid is a good idea. Financial aid comes in the form of scholarships, grants, loans, and work programs. Scholarships and grants do not have to be paid back, but loans do.
Financial Aid Sources
The federal student aid office doles out “more than $100 billion in new aid to nearly 14 million postsecondary students and their families”. The U.S. Department of Education’s office of Federal Student Aid administers federal Pell grants, supplemental educational opportunity grants, academic competitiveness grants, National SMART grants, TEACH grants, federal work-study programs, federal Perkins loans, federal subsidized and unsubsidized Stafford loans and plus loans, according to Studentaid.ed.gov.
Many state agencies also offer student aid. Families can check their local state agencies to find out what opportunities are available for student funding. Likewise, many private organizations offer employees and their family members different types of student aid. The United States military is another option for helping students pay for higher education.
Scholarships and Grants
Scholarships can be granted in varying amounts and different reasons. Believe it or not, many scholarships go unclaimed yearly due to lack of applications. Scholarship searches should be done on a regular basis as information is always updated. Application deadlines vary for each scholarship, so keeping up with application guidelines and deadlines is crucial. A good source for scholarship searches is through The College Board.
Grants do not need to be re-paid and can come from government entities, colleges and universities and private industry. According to collegescholarships.org, “The federal government is putting more money into the hands of college students than ever before and much of the impetus behind it is the No Child Left Behind Act”. The Pell grant is one of the most popular grants for low-income students. Many other grant programs exist, so doing the research on this can prove to be highly beneficial.
Since most families cannot afford four-year college expenses without financial subsidies, all of the college funding options should be explored. Applying for scholarships and grants should be the first choice before applying for loans. However, starting a college savings plan when a child is still young is always a great start!
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