There Are Many Various Financial Aid Packages

All too frequently, parents and or students believe that they have no choice but to pay every cent of tuition and fees, room and board, books, and all other college-related expenses, without any financial assistance from any other source.

They have been told (erroneously), heard, or thought that they could not qualify for any aid because they make too much money. There are various aid opportunities that are not based on financial need and are available to students regardless of their income.

There are many different kinds of financial aid. Just like there are many different kinds of students that desire to attend college according to the best fit for them.

Financial Aid Other Than Need Based

If you are not eligible for any need based aid, there are other types available. There are thousands of scholarships from private organizations and through schools that are given based on factors such as what high school you graduated from.

Also, whether you are left handed, your major or program of study, your ethnic background, gender, and of course your scores on college entrance exams and high school or previous college GPA.

You can apply for scholarships through your school and also for private scholarships as well. Some scholarships require you to write an essay, some just want an application. You can search for these on-line, at the library, or through your financial aid adviser.

Finding College Deals

In addition to thousands of college funding consultants around the country who can guide you through the maze of financial aid options, there are also other ways to identify college bargains.

BestCollegeDeals contains more than 4,000 unique and unknown college bargains, including often overlooked tuition breaks for academic merit, sibling discounts, first generation college student, and minority student scholarships.

A Word On Loans

Another way to fund your education is through student loans. Students of any economic background can take out unsubsidized loans. And parents can take a loan out to pay for their child’s education in their own name, which is called a PLUS loan. These loans are available to everyone and are based on creditworthiness.

A Little Help Coming Your Way

Parents can get college tuition tax breaks if you are paying the bills for your kids. Parents can deduct up to $4,000 of tuition expenses if their adjusted gross income is $130,000 or less ($65,000) for singles). If your income is between $130,000 and $160,000, there is a $2,000 deduction.

Also, you can claim the lifetime learning credit for 20 percent of up to $10,000 in tuition paid for college or graduate school. Or, for the freshman and sophomore years, there’s the HOPE credit. (I’ve always found this to be an interesting name!)

The HOPE credit can offset 100 percent of the first $1,100 of tuition and fees and 50 percent of the next $1,100, for a total credit of $1,650 per year. The complexity of the financial aid application process is intimidating for most people, regardless of income.

The key for high-income families or students is identifying possible funding sources and solutions for higher education. Staying focused, persistent and educated about emerging opportunities can do this.

The Four Primary Sources of Financial Aid

Before applying for a school, it is important to know what percentage of “need” based financial aid the school will be from gift aid (free money, i.e. grants and scholarships) and self-help aid (loans, work-study). Not every school will give the same type of award package.

Some schools will meet 100% of your ‘need’ in grants and scholarships, and some will meet 100% of it in loans and work-study. For the most part, it will definitely be a combination of grants, scholarships, loans, and work-study.

The majority of financial aid comes from four primary sources:

• Federal Government
• State Government
• Campus-based programs
• Private Scholarships

Federal Government Based Programs

There are three major federally based programs: 1) Pell Grants, 2) Subsidized and Unsubsidized Stafford Loans, 3) Parent PLUS LOANS.

Pell Grants: The Federal Pell Grant does not have to be repaid. Pell Grants are awarded only to undergraduate students with extreme financial need.

Subsidized and Unsubsidized Stafford Loans: These loans are available through the Federal Family Education Loan (FFEL) from a bank, credit union or other lenders that participate in the program. Subsidized loan is based upon the need of the student and the unsubsidized is available to families regardless of the need.

Parent PLUS/SLS Loans: PLUS stands for “Parent’s Loans for Undergraduate Students.” These loans are in the parent’s name and aren’t based upon ‘need’ but on credit approval.

State Government Based Programs

Each state differs in its own special programs. These can include grants, scholarships, tuition assistance, and loans. There will be more benefits most likely if you are registered as an in-state student.

The best thing for you to do is to contact the state in which you are planning to attend school at and contact the Office of Higher Education Student Assistant Authority and ask for a complete guide to the programs available to you as a student.

Campus Based Programs

Campus based programs are funds that colleges and universities receive from the Federal Government and from private endowments. A specific amount of money is given to a college each year. Once that money is awarded, there are no more funds available until next year. This is why it is so important to file your financial aid form on time and correctly since aid is awarded on a first come basis.

The four main sources of campus based aid are: 1) SEOG grants 2) work-study 3) Perkins Loans and endowments.

Supplemental Educational Opportunity Grants (SEOG): these are “need” based grants awarded to students with extreme financial need. Priority is given to students who receive the Pell Grants.

Federal Work-Study: This award is based upon “need”. The student is offered an amount of money for the year and is expected to work part-time on the campus for the Federal, minimum wage to pay back the funds until the student has earned the amount awarded.

Federal Perkins Loan: These are low interest subsidized loans that are offered by colleges and subsidized by the Federal government. The Government also subsidizes the interest.

Endowments: Endowments are funds that are given to schools from private sources such as alumni, corporations and other foundations.

Private Scholarships

Millions of dollars are given away each year to deserving students by private organizations. Finding these scholarships and applying for them can be a frustrating, but rewarding process. It is recommended NOT to pay for scholarship searches.

The best place to start is in your high school guidance office, then move onto searches on the Internet. Be persistent and apply for all that you can.