How to pay for college
[page 2 of 2]
Scholarships are also a great source of aid because they don’t need to be repaid either. Scholarships are offered by colleges and universities, most famously for athletics and academics. Millions of dollars in scholarship money are also available from other organizations, including your parents’ employers (or your own), national industry associations and local community groups. Most scholarships aren’t advertised as much as you might like, so it’s up to you to do some digging. The internet hosts a wealth of financial aid sources—just type “scholarship” into any search engine and you’ll be faced with millions of results. Online scholarship search services can also be very helpful. You’ll enter key information—where you live, where you’re going to school, your talents, etc.—and the results will be tailored to the information you provided. Beware of any scholarship search companies that ask for money. You shouldn’t have to pay for a scholarship.
Another source of college financial aid is a loan. Loans come in hefty packages—there are thousands and thousands of dollars available in loans, and some can be used for expenses other than tuition, like books, parking passes and even a computer. While one downside is that they have to be repaid in full plus interest, for some, like federal loans, repayment doesn’t start until six months after graduation and interest often doesn’t start accruing until then either.
You can apply for a loan at your local bank or you can check out federal loans, which are awarded using the same FAFSA application mentioned above. These include the Stafford, Perkins and two kinds of PLUS loans:
- Stafford loans are for students of all levels enrolled at least half-time (check with your school about what constitutes half-time status). Stafford loans are available regardless of financial need.
- Perkins loans are for both undergraduate and graduate students who have financial need. Funds are available to the neediest students first and the amount available depends on what your school has to offer. In 2007-08, undergrads could receive up to $4,000, while grad students could get up to $6,000 in aid in a single year.
- PLUS loans are aimed at graduate and professional students, while the Parent PLUS loan is designed for parents of dependent undergrads.
While the cost of college might seem incredibly overwhelming, there are many sources of financial aid to make your college dreams seem like more of a reality. You’ll have to put some time and effort into researching your options and filling out applications, but the investment pays off when you’re handed your diploma and have a world of career possibilities in front of you.
« previous page 1 | 2