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Cash for College

Financial aid mumbo jumbo explained:

Financial aid comes in various forms from the government, colleges and private organizations.

  • Grants or scholarships – money with virtually no strings attached, meaning you don’t have to pay it back.
  • Federal Work-Study – This is a program sponsored by the government in which you hold a part-time job, typically on campus or off campus at a nonprofit organization or public agency, while you’re in college. The downside is you will have to work and you will have less time to study (and goof off).
  • Loans – These are typically the easiest to qualify for, but that’s because they must be paid back with interest.
  • State aid – Individual states also award money, usually through their education agencies.

There are two general criteria for getting money for college – need-based and merit-based.

  • Need-based – The colleges and government will use the various financial aid forms you submit to determine how much you and your parents can afford to pay. Your financial need is the difference between how much you can pay and what your college costs.
  • Merit-based – This kind of aid is awarded for skills or talents that are not related to students’ financial need. For example, students can win scholarships based on their athletic, leadership or academic achievement.

Besides money from colleges and government, there are also private scholarships, which can be need-based, merit-based or both. This kind of aid is sponsored by groups including businesses, civic organizations, foundations, charities, churches and individuals.

Federal financial aid:

A significant chunk of taxpayers’ dollars goes toward funding student financial aid programs. Almost all government aid is based on financial need. You may qualify for:

  • Federal Pell Grants – for the 2004-05 school year the maximum award was $4,050 per student. The grants do not need to be repaid.
  • Federal Stafford Loans – available through the William D. Ford Federal Direct Loan Program (through the government) and through the Federal Family Education Loan Program (through a bank or credit union). The loans can be subsidized (the government pays the interest for the loan until you begin to pay if off) or unsubsidized (you owe the interest as soon as you take out the loan). Loan amounts vary from $2,625 to $5,500, and the interest rate varies from year to year.
  • Federal PLUS Loans – These loans are for your parents. The maximum amount that your parents can borrow is your cost of attendance minus other financial aid that you receive. Your parents will begin repaying the loan about two months after the final loan disbursement your senior year.
  • Consolidation Loans – These combine the different federal student loans that you receive so that it is simpler and less expensive for you to repay them.

Then there are campus-based programs, administered by the college financial aid offices. The funds come from the government, and the colleges are responsible for disbursing those funds.

  • Federal Supplemental Educational Opportunity Grants – awarded to students with the greatest financial need, but there is limited availability. The grants range from $100 to $4,000 per year.
  • Federal Work-Study – provides you with a job so that you can work and study at the same time.
  • Federal Perkins Loans – low-interest loans for students with great financial need. You pay the loan back to the college after you graduate or leave school. The current maximum loan is $4,000 per year.

Financial aid forms:

Filling out the forms is truly monotonous. You will need your parents’ help since the forms ask for tax return information and details of your family’s income and assets.

  • Free Application for Federal Student Aid (FAFSA) – The government uses information from this form to calculate your financial need and report the results to the colleges you have selected. After you are admitted you will receive an aid package that may consist of grants, loans and work-study based on your need. Get the form at or your high school counselor’s office. Complete it as soon after January 1 as possible; the deadline for submitting it is usually February 1. About a month after you submit the FAFSA, you will receive a Student Aid Report, which will indicate the amount your family is expected to pay toward your education.
  • College Scholarship Service (CSS) Financial Aid PROFILE Service – About 900 colleges require this service. Get a registration form from or your high school counselor’s office. Submit the form as soon as you can. Each college sets its own deadline, usually from December 15 to February 1.
  • Business/Farm Supplement – This form is required if your parents own a business or a farm. It is a part of the PROFILE application.
  • Noncustodial Parent’s Statement – Whether your parents are divorced, separated or never married, this form is required from the noncustodial parent and is a part of the PROFILE application.
  • College’s Financial Aid Form – Some colleges have their own form to learn about your available assets. Consult with your parents, and don’t be afraid to honestly describe your family’s financial situation.
  • Federal Income Tax Returns – The colleges may need to see copies of your parents’ and your federal tax forms and W-2 forms. Even if not required, you will need the information on these forms to complete your financial aid applications.

Tips for filling out the forms

  • Know which forms you need to complete.
  • Dedicate the time needed. Don’t wait till the last minute.
  • Follow directions.
  • Be thorough. Complete every blank.
  • Be honest.
  • Show that you need aid.
  • Make copies of all your forms (you’ll use them again next year).
  • Be on time. Don’t miss out on money by missing deadlines.
  • Don’t think you’re on your own. Get help from your high school counselor’s office, college financial aid office and the government’s FederalStudentAidInformationCenter.

How to find scholarships

Scholarships are awarded for all kinds of things, but scholarships are very competitive because they offer money with virtually no strings attached. Some of the best places to look:

  • Scholarship directories – Check out the public library or a bookstore.
  • Counselor or financial aid office – Meet with your high school counselor and someone from your college’s financial aid office.
  • Internet – Search free databases of scholarships at or
  • School activities – Bands, newspapers, academic clubs, athletic organizations and service organizations often have scholarships for outstanding members. Inquire with the officers or faculty advisors of the organization.
  • Your parents and your employers – Many companies offer scholarships to their employees’ children as a fringe benefit. Ask your parents to inquire with their employers’ human resources department. They should also check with any unions or professional organizations to which they belong.
  • Community organizations – Groups such as Lions, Rotary, Kiwanis, American Legion and other civic groups often offer scholarships to local high school students. Check with your counselor or call or write the groups directly.
  • Local government – Some cities and counties provide scholarships for local students. Call city hall to find out.
  • Local businesses – To support their community, many local businesses provide awards to students.
  • Local newspaper – Some local newspapers make announcements about students who win scholarships. Look at back issues to find out about awards and contact the sponsoring organizations to see if you can enter.

Strategies for winning scholarships

Most scholarships require that you submit an application form, write an essay and submit reference letters. Some even require interviews with the judges. Competition will be high. Here are some strategies to maximize your chances:

  • Apply to those that fit you best.
  • Check out the competition.
  • Show why you should win.
  • Write a powerful essay – The biggest difference between a college application essay and a scholarship essay is that for college essays you want to show why you are an overall good fit for an entering freshman class, but for scholarship essays, you need to show why you are the best fit for the often very specific requirements of the award.
  • Select the right recommenders.
  • Practice for interviews.
  • Be realistic about your financial need.
  • Follow directions.