Students across the nation are feeling the economic pinch when it comes to their education.  With college costs rising, there are more students who are discovering they just don’t have the money to fund their education alone.  In fact, the Department of Education reports that $100 billion in federal student loans and $10 billion in private student loans were originated last year.

Many families have a main salary earner who has been laid off or reduced to part-time status.  The unemployment rate is now just below 10%, and more families are finding themselves in dire straits when it comes to paying for school.  They know they won’t have the funds to pay for tuition, much less books and other expenses; they need help.

Fortunately, they too can take advantage of the billions of dollars in federal student loan money that is available.  Although in most circumstances the money does have to be repaid, having a modest amount of student debt at graduation is much preferable to not being able to go to college at all.  In most cases, government loans have up to ten years to be repaid after graduation, but some loans can be repaid over a 25-year repayment period, depending on the amount borrowed and the repayment terms chosen.

In order to find the best type of loan for a particular student, they need to first fill out and submit the FAFSA (Free Application for Federal Student Aid).  This form calculates the family’s ability to contribute to educational costs (EFC, or expected family contribution).  It then calculates what type of loan and how much money students can borrow.

The most common federal student loan is the Stafford loan.  A Stafford loan approval is not based on the applicant’s credit score, which may be very good for families that have been in financial constraints.  The maximum amount students may borrow annually is $20,500, depending on the year in college the student is enrolled in, and the type of degree being sought.  Another very good benefit of the Stafford loan is that it does not have to be repaid until after a student graduates.

A loan option for students who are in the lowest income brackets is the Perkins Loan.  This loan is designed to assist students with little or no money to contribute to their educational expenses.  The loan has a nine-month grace period after graduation, and no interest accrues on it while the student is in school.  The maximum amount of money available for a Perkins loan is $60,000.  Students may apply up to $27,500 of Perkins loan money to undergraduate expenses, and $32,500 toward graduate expenses.

Another loan option for families is the federal PLUS (parent loan for undergraduate students) loan program.  Parents or legal guardians are allowed to take out a loan on behalf of their undergraduate student.  The interest rate is fixed at 7.9%, and a 3% origination fee applies; a 1% federal default fee may also apply.  PLUS loans are designed to cover the gap between the remainder of the other available student aid and the tuition that is still owed.  It is not designed to help cover living expenses.

The financial aid office at a student’s school will schedule entrance and exit counseling sessions with students when they get a loan and when they graduate. At the counseling meetings, financial aid officers will explain the terms and conditions of each loan, as well as student’s options regarding payment options and financial planning. When a student takes out a federal student loan, they are taking an opportunity to enrich their life with education and the chance for a job with much greater earning power. No matter if the monies are to be used for on-campus schools or distance learning degree programs, every student will feel more confident after a thorough exploration of all government grants options prior to a financial commitment to college.

Technorati Tags: grants, online degree, scholarships

College students are discovering that paying for college isn’t always easy. Not only do they have to cover the cost of tuition and various fees, but books and other supplies are getting more expensive with each passing year. Some textbooks cost in the hundreds of dollars and when you have to buy several books each semester that can really add up.

Students who have planned ahead and saved some money for tuition may find themselves in a better position than those students who don’t, but that doesn’t mean everything will be covered. When you take into account additional expenses like food, clothing, and housing, it’s not very likely that your savings will be enough to cover everything. Students shouldn’t get discouraged, though, because there is financial assistance available that won’t cost them a cent.

The free money that is available to students is in the form of grants. Grants are a type of financial assistance that is given to students that meet certain criteria; the money is given gratis. That means it never has to be repaid. What many students don’t realize is that there are thousands of different grants available each and every year for students who need them and who meet the qualifications.

For the purpose of this discussion, we’re going to break the grants down into four basic categories, and within each category, there are different types of grants. The two basic types of grants are need-based and merit based grants. A need based grant is given based on a student’s economic need, i.e., the ability or inability of a student to pay for a college education. The other type of grant is a merit grant, and that means the grant is based on the student’s merit, usually a talent, skill, service or academic standing.

The federal government is the largest supplier of grant money to U.S. students. The Pell Grant is a need-based grant that is probably the most sought after because of its relatively large award: up to $5,550 annually. The federal government also has several other grants that they award to students, and many of them are in conjunction with the Pell Grant. For example the Federal Supplemental Educational Opportunity Grant and SMART (Science and Math Access to Retain Talent) Grant are awarded to students who are also receiving Pell Grant money. Another federal grant that is highly sought after is the Academic Competitiveness Grant, for students in extremely challenging coursework or highly sought after foreign language studies.

At the state and local level, grants are available from governments to residents of each state or city based on certain criteria that each government entity determines. Most state grants require that recipients be residents of that state for a period of time (usually 12 months) before the grant can be awarded. The types of grants that are available vary state by state and locale by locale. Some states award grants to students who are in the top percentile of their graduating class, while others have grants that are available to students based on their economic status. To find out specifically what grants are available in your state and city, you can contact the financial office at the school you plan to attend, or you can visit your state’s Department of Education website.

The final two categories of grants are awarded by private groups or institutions. They are Profession-specific grants and student specific-grants. Profession-specific grants are usually awarded to students who plan on entering a specific profession or field of work. These grants are often awarded by professional associations or groups, but can also be awarded through educational institutions through a particular major that a student may be involved in. The best way to find out about these kinds of grants is to speak to the financial aid office at your university, as well as the advisor in your particular department. Finally, student-specific grants are available to students based on their inclusion in a particular category or group. For example, some grants are awarded based on minority status, while other may be based on a certain kind of disability or ability. There are hundreds of these types of grants available, and the awards range anywhere from $100 to well into the thousands.

Don’t be one of the students who fall short on money; make sure to apply for as many grants as you are eligible for. Millions in scholarships for college students money goes wasted because students don’t apply for it; they may not know that so much money is available for free. Take advantage of this opportunity to get a college education through online degree programs at no cost to you.

Technorati Tags: grants, online degree, scholarships

US News & World Report’s “America’s Best Colleges 2011” edition is out, and it includes what it calls “Best Value” national universities. The University of California-Irvine, University of Southern California and University of Notre Dame are included, although they might not necessarily offer the lowest tuition rates. These institutions made the US News & World Report “best value” list because of what some consider their “net cost,” which is what students and families are advised to look at as part the college and university decision-making process.

Colleges, universities and technical schools have published tuition rates and net costs that are determined after factoring in scholarships, grants and other forms of financial aid. To figure out an institution’s net cost, some organizations figure student loans into the equation. Others factor in tax deductions and credits. These net costs don’t necessarily consider room and board, meal plans, travel costs or books.

US News & World Report did just this. The publication, in analyzing the scholarships and financial aid offerings at the top 1,800 colleges and universities in the nation, came up with those where students might expect to pay less out of pocket than $20,000 for tuition and fees, room and board, meal plans, books and travel. It can be hard for families in tough economic times particularly to reason with taking on large college debts when the future seems uncertain, an article in an August edition of Forbes magazine noted.

For Forbes own “Best Buy Colleges and Universities,” the publication came up with a list based on the average published tuition rates and fees at quality schools for 2008. Service academies, such as the Coast Guard and Air Force, don’t charge tuition and made the top 10. Also on the top 10 were colleges and universities that, through special aid programs, are tuition-free. There were also a few institutions that charge tuition that garnered a top 10 “Best Buys” spot. They included the University of Florida, which came in at no. 9.

Scholarships are a common way for colleges, universities and technical schools to draw students. After finding quality institutions that might best fulfill their needs and goals, students are typically advised to figure in scholarships and other forms of financial aid and compare actual costs. To pay for college last year, families relied on more money from all sources, including scholarships and grants, according to a recent Fannie Mae report. Some lesser known institutions are actually offering scholarships to every student who is admitted, US News & World Report noted.

There are sources other than colleges and universities that provide scholarships, however. Non-profit organizations, large corporations and community and civic groups are among them, as are some churches. In instances where students obtain scholarships such as these, the assistance can often be applied to any institution that’s accredited by a nationally recognized agency. Students are often able to apply scholarships to online degree programs and courses in instances where this accreditation is in place as well.

Several new and expanded scholarship programs have been announced recently. One of the most far-reaching was in Arkansas, where the Arkansas News Bureau noted that a new state lottery helped more than 25,000 students qualify for what’s known as Academic Challenge Scholarships. Without the lottery last year, 8,282 students qualified for these same scholarships, the Arkansas News Bureau reported.

Scholarships are available to students of different ages and backgrounds and for reasons other than academic or athletic performance. Some scholarships are intended to help boost the populations of those who are underrepresented in specific fields, while others are designed to increase studies in specific areas. There are also scholarships that recognize students’ leadership abilities and community service efforts. Students seeking scholarships have a number of search engines from which to choose and, with a little time and effort, they might even be able to combine scholarships and earn a degree tuition-free through traditional and online course programs.

Technorati Tags: grants, online degree, scholarships

We’ve all heard about the scholarships for the star quarterback or the valedictorian of the class, but they aren’t the only students who can get scholarships these days. Today, there are scholarships for just about every category of student, from artists to scholars, athletes and more. The most important factor in finding scholarships is to match the student with the right scholarship.

Nowadays there are more scholarship opportunities than ever before. If a student is willing to put in some time and elbow grease, there’s a good chance they will go to college with some scholarship money in their pocket. Students who are really diligent may even discover that there are more scholarships available to them than they have time to apply for.

Students need to look to the future as far as scholarships are concerned. Waiting until a few months before college is probably too late to start applying. When you are ready to start, you should put together a list of things about you and your family that make you distinctive. Start with things as generalized as your race and ethnicity, and then start narrowing it down to more specific things like culture, religion, academics, outside activities and family connections like work. Remember, when you start narrowing down your list, you want to be as specific as possible.

After you get your list together, you can start searching for scholarship opportunities. Don’t spend unnecessary time on those that don’t concern your identity. Look for scholarships that match your list and eliminate those that don’t. Remember, it’s much better to focus on a few quality applications than a lot of applications you may not be a good candidate for. The foundations and companies that are offering these scholarships are not looking for an identical group of students; they want unique individuals who meet the criteria of the scholarship that is being offered.

Students who come from backgrounds that involves some kind of hardship also have more chances for scholarship than ever before. These types of scholarships are called adversity scholarships, and will often include an essay or story of some kind that encompasses how the student overcame an adverse situation. Only students who are comfortable sharing these kinds of details should apply for this type of scholarship, because the essays often become public when the scholarship is awarded.

There are several ways to find scholarships and you should explore all of them. If you are a high school student, the first place to look is the counselor’s office. They will generally have an extensive list of scholarship opportunities available. Non-traditional and traditional students should utilize the power of the Internet to find scholarship opportunities, too. There is an incredible amount of scholarship information on the web, but it’s important to be cautious when you are searching. You shouldn’t ever have to pay money to find scholarships; the information is generally available for free online. Be sure to look for scholarship money through your family’s work affiliations. Often corporations offer scholarships to employees or their children as a way to build goodwill or for students who are potentially interested in entering a particular field of work.

After you have found the scholarships that interest you, be certain that you are in fact eligible to apply for them. There is usually an eligibility checklist that will help you determine that. When you send your application in, make sure it has all of the necessary portions filled out, as well as any additional application material such as essays or photographs. Don’t make the mistake of sending in your application too late; it will not even be considered if it is received past the deadline.

Many colleges and universities, both traditional and distance learning degree programs, offer some type of scholarship to help their students pay for school. They often do this to help bring enrollment numbers up, or as part of a diversity program to help students who might not otherwise have the opportunity for a post-secondary education. These monies are available for the new student entering college all the way to busy professionals who are obtaining their online master. Be sure to check with the educational and alumni foundations of the school you are planning on attending so you don’t miss an important source of funding. If you are diligent, you may find that your college costs can be greatly covered by scholarships for college students.

Technorati Tags: grants, online degree, scholarships