Jan 13
12
Financial Resources for Students Who Need Money for College
College can be very expensive and not everyone has the cash to pay for the tuition and all the school needs. This is why a lot of students are looking for means that would help them pay for their college education. The good news is that, there are several ways on how to make this happen. Students who need money for college may apply for scholarships, grants and student loans.
Scholarships and Grants
Scholarships and grants are somewhat the same, though scholarships usually have more requirements. However, they are both free money that may come from the government or other private organizations such as businesses and schools. Some of the grants available include Federal Supplemental Educational Opportunity Grant or FSEOG, Federal Pell Grant, TEACH Grant and Iraq and Afghanistan Service Grant.
FSEOG are given to students with higher financial needs. Those who would like to verify their eligibility must go to the financial aid department of their school. If eligible, the school account may be credited or cash may be provided to the student. Depending on the needs, the student can get from $100 to $4,000.
Pell Grant is also awarded to those with higher financial needs. Those who would like to get this grant may send their Free Application for Federal Student Aid or FAFSA. The United States Department of Education would then determine the students who are eligible for the grant. Those who were awarded with this grant may get the amount on their school account or they could also be paid directly. One can get up to $3,040 from this grant.
The TEACH or Teacher Education Assistance for College and Higher Education Grant is for students who are getting or completing a course in teaching. Students may receive $4,000 up to $16,000 from this. Since not all colleges participate on this grant program, students must check with their school first to ensure that they can use the grant if awarded. They can then send their FAFSA, have preliminary counseling and sign a service agreement.
The Iraq and Afghanistan Service Grant is for students whose guardian or parent was in the army and died in Afghanistan or Iraq after September 11, 2001 while in service. Those who do not qualify for the Pell Grant may apply for this one. Also, a student must be below 24 years of age or he is enrolled in college at the time of death of the guardian or parent.
Loans for Students that Need Money for College
Aside from grants and scholarships, students who need money for college may also resort to student loans. There are federal and private loans. The government provides federal loans, while private lending institutions give private loans. Government loans generally have lower interest rate with more flexible payment method. This is why it is best to apply for those offered by the government first before deciding to get a private loan.
Some of the government loans that one can apply for are Stafford, Graduate PLUS and Perkins loans. Stafford is a non-credit based loan that eligible students can get. They must apply for FAFSA to be considered. Those having financial difficulties could get subsidized loan, in which the interest rate is paid for by the government. Perkins loan is also for those with financial needs. The school gives this type of loan, though the fund used is from the government. It has a very low interest rate of 5%, which is beneficial to students. Graduate PLUS is available for graduate students. This requires credit check though cosigner is not necessary.
Students that need money for college may take advantage of the scholarships, grants and low interest rate loans mentioned to aid with their education.