Paying For College

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When it is time to pay for college, you do not have to rely on current income and college savings alone. Additional funding can come from financial aid, scholarships, grants, loans and other sources.

Apply For Financial Aid

Whether your family receives financial aid depends on your Expected Family Contribution (EFC). Your EFC calculates the income and saved assets of parent(s) and child and compares it to the cost of attending college. If there is a gap, you may be eligible for needs-based aid.

Complete and submit the FAFSA even if you do not think your family will qualify for aid. Colleges can fine-tune eligibility formulas to meet their own needs. File your FAFSA early, immediately after January 1 of your child’s senior year in high school. Colleges often award available aid on a first-come, first-served basis.

Grants

The federal government sponsors:

• Pell Grants. Eligible students may receive a maximum of approximately $4,310 annually.
• Federal Supplemental Educational Opportunity Grants (FSEOG). Undergraduate students with exceptional financial need may receive from $100 to $4,000 annually.

State governments also offer grant programs, with varying eligibility and application requirements. Contact your state’s Department of Education for information.

In addition, local governments, private organizations and individual colleges and universities may offer grant funds to students with financial need. Contact a high school guidance counselor or college financial aid office for information.

Scholarships

• Scholarships do not need to be repaid.
• In most cases, students are eligible regardless of financial need.
• Many types of scholarships exist. Not all are based on academic achievement.
• When applying, focus on local scholarship opportunities, as these are often the least competitive.

Loans

• Stafford Loans
• Perkins Loans
• Federal Parent Loans for Undergraduate Students (PLUS)
• Consolidation Loans

Remember, before borrowing money from any source, make sure you understand the terms — total cost, repayment schedule, grace period and other related information.

Federal Work-Study Programs

Military Assistance

Anyone who enlists in the armed forces may be eligible for one of the following education assistance programs.

• The Montgomery GI Bill — Active Duty
• The Montgomery GI Bill — Selected Reserve
• Veterans Educational Assistance Program
• Survivors’ and Dependents’ Educational Assistance Program

For details of these programs, visit www.gibill.va.gov or call (888) 442-4551.

Each service branch also offers its own scholarships, college funds, tuition assistance, work-study programs, loan repayment programs and other forms of assistance.

The Reserve Officer Training Corps (ROTC) offers scholarship programs that allow students to attend school full time while participating in a part-time or summer officer training program. Competition for ROTC scholarships can be intense.

Military academies are among the most prestigious colleges in the United States. If accepted, a student can expect to attend school tuition free and receive an annual salary in return for a commitment to serve at least 5 years of active duty military service.

For additional information, see the College Financial Resources article.