Paying for higher education has become a great concern for many families. Fortunately, colleges and graduate schools are aware of costs and make great efforts to help students pay for education without going deeply into debt. Contacting the financial aid office of the college you want to attend is an important first step to meeting the requirements for help.
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History
- Paying for college has been a struggle for working families for many years. Because the growth of the American economy necessitated the training of workers beyond secondary school, the U.S. government made its first entry into helping families pay for education by offering college tuition to soldiers returning from World War II, in the form of legislation that became known as the "GI Bill." Once started, this support became so popular that today the U.S. Department of Education offers several kinds of outright grants to low-income families and low-interest loans to help students pay for college and advanced degrees. The best-known of these funds are known as Pell Grants and Stafford loans.
Function
- The aim of these government funds and many other funding sources is to assist students to get the education they need to participate in and contribute to the U.S. economy. Students and their families are, however, often concerned about whether they qualify for student aid, and may worry that they will be classified as poor people if they accept help.
Surprisingly, a larger number of families qualify for financial aid than they might imagine. Colleges define financial aid eligibility thus:
The cost of tuition and necessary equipment: (for example, $18,000 per year) LESS any contribution students can make ($5,000 per year in summer-job earnings) LESS Family ability to pay (for example, $9,500 per year, calculated via formula from annual income, taking into account obligations such as severe family medical problems or a second child in college at the same time) EQUALS Financial aid needed for student to attend ($3,500)
Features
- The formula displayed above might well apply to a family of three or four earning $50,000 or more per year in income. Graduate school education, such as law or medical school, is even more expensive. Some schools require that parents contribute to their child's education even if a child is of age to be legally independent. Others, with more school funds available, exempt parents earning as much as $80,000 to 100,000 a year from paying a share.
Therefore, families who regard themselves as fairly well-off, good financial managers, and able to pay their bills, no matter what it takes, should investigate the possibilities of financial aid; they may be surprised at the results. The other reason that families not sure whether they are eligible for financial aid should look into it is that financial aid is specifically designed to pay the costs of education--tuition, lab fees and books. Financial aid does not pay for housing, room and board, clothing or any personal or living expenses related to attending school.
Types
- In addition to Federal grants and loans, there are numerous other types of financial aid available. School financial aid offices usually have college scholarship and loan funds available. Students and their families can also make a great deal of difference in the cost of education by conducting their own search for funds. Public libraries have directories, either in book form or online, of scholarship opportunities--at state and regional levels, through philanthropic organizations, religious organizations, and private foundations.
A large number of scholarships recognize that schools vary widely in their ability to prepare students for college, and economic, cultural and other factors mean that students need to be evaluated on the basis of out-of-school activities, community involvement and leadership, and general potential. Scholarships exist for students who sing, play sports, organize community-service clubs, paint, volunteer and do many other things. One scholarship is offered by the Veterans Administration for VA volunteers; the children of union members, Avon representatives, and Hispanic-heritage families will all find funds available.
Grants are offered, sometimes on a one-term basis and sometimes on a repeating basis, by many community organizations. They may have special requirements: playing on a particular high school's football team, attending a particular local college or selecting a particular field of study. Hospitals trying to build staff may offer health-career grants; communities building an engineering or tourism industry may favor local students planning to study engineering or hotel management.
Considerations
- Loans are an additional source of college funding, but loans mean the perpetuation of debt, often long after education is completed. Educational loans need to be examined carefully and completely understood, especially from private lenders. Be sure that you understand interest rates and repayment terms completely. Further, it is important to know what assets are needed to support a loan. Whether parents or students are repaying loans, it is critical to understand the terms of repayment.
Benefits
- Paying for college will become more manageable if a family seeks financial aid opportunities. Students who participate in the process are likely to take school more seriously, since they are aware of how it is financed.
Financial aid isn't just for poor people or bad planners. Using funds to pay for college is an educational process in itself, and going through the process will make college more productive for students and families.
Warning
- All financial aid offices agree: Especially if you are new to the college experience or to the financing process, remember that financial aid is just that--financial aid. Do not pay scholarship-search companies or educational consultants that guarantee your child a scholarship for a fee. Information is free from high-school college-prep counselors and college financial aid professionals. Working in partnership with them, you and your family will obtain far better results than someone who offers to do the work if you will pay them.
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