It pays for college students to know what kind of financial aid is available to them during their years of higher education. With so many different kinds of financial aid out there, it's easy to get confused or discouraged about the whole process. Here is a small guide to help anyone that is thinking about getting a higher education and thought that there was no way financially that it would happen. Here we will cover the basics of applying for aid as well as the different types.
Applications
Applying for financial aid is very easy, but takes some time to do. Make sure that you are thinking about applying for financial aid in January before the fall semester starts. The sooner you apply, the more money that will be available to give out. The first step is to apply for a pin through the Department of Education at: www.fafsa.ed.gov This is going to be the only website that you would use. Remember that it does not cost anything to fill out the form. There a few websites out there that will charge you a fee to complete the form, so watch out. What you will need is the previous years tax information (for yourself and possibly your parents). Once you have the pin, fill out the FAFSA form and play the waiting game. Also start filling out the schools scholarship application in the early year as well. You may be surprised as to how much money is out there for people that apply.
Grants and Scholarships
The "free" money that people usually talk about are the scholarship and grant section. These are organizations willing to give money that does not have to be paid back to students. There may be a few rules to follow, so check it out carefully before you accept any award. The most common is the Pell grant that is given out by the US government. Most of the grants out there from the government are typically need-based type grants. This means that there has to be a financial need proven before money can be disbursed. Scholarships come in all sorts of ways from need-based and merit-based. This basically means that there are scholarships designed for those with need and those that show a talent or high grades in a particular field. One grant that I partake in is called the SMART grant. This is given to college students in the field of science or math with a 3.0 GPA. They usually give out about $4000 per semester.
Loans
Loans are another way to help pay for college and are again divided into a few more categories. The first are known as government loans and are guaranteed by the US government. Stafford and Perkins loans are great for college students as you do not have to worry about the credit scores to get a loan. It is more of going through the formality of applying for the money more than anything else. Student loans are better than trying to put fees on a credit card as they have lower interest and do not have to paid back right away. Each student loan has specific criteria and perks in repaying the loan. Parents are able to get a student loan for their child under their name in the PLUS program.
Working somewhere, anywhere
Working and college just doesn't sound natural for some people, however it is a great time to save money for the future. Having a part-time time job off-campus can give some extra money in the pocket. Having a part-time job on-campus is a whole new game. Depending on the school and program, a tuition waiver can be applied to your account while giving a few extra dollars here and there. Consider being a tutor for a class and get extra cash, waivers and a refined skill of teaching others that can possibly open more doors in the future. Isn't working great.
A Word from the Wise
When getting financial aid, it is going to come at you as a huge check. Fight all temptation to spend it all at once. This is going to be backing up the income for the next semester and should only be used in emergencies. Letting out a small amount every month into a checking account is the best way to conserve the extra money that is on hand now. You may never know when that extra funds will be needed.
