Financial Aid for College

MoneyWatch for July 2008
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It is undeniable that a college education provides a lifetime of benefits.  According to CollegeBoard.com, college graduates can expect to make an average of $1 million more over their professional lives than their high school-graduate counterparts.  Unfortunately, this great opportunity has become increasingly difficult for many students and families to afford due to the rising costs of a college education.  Luckily, there are a whole host of financial aid options available to help pay for college.  Here are some tips and information about financial aid from Sallie Mae and Huntington Bank.

* First fill out the Free Application for Federal Student Aid (FAFSA). This application is necessary to receive any federal grants or loans. Many private institutions accept or require this application as well.
* Get the free money first! Grants and Scholarships do not have to be paid back.
* Take advantage of federal Work Study program. This allows eligible students to work a part-time job on- or off-campus for an hourly wage, which is then put towards their education costs.
* Apply for federal student loans. These loans are more attractive than private loans because they usually have lower interest rates, longer repayment terms, ability to postpone payments, and less stringent credit requirements.
* Fill in any gap with private loan. Private student loans (also known as alternative student loans or personal student loans) generally have better interest rates than other lines of credit.

Always apply for scholarships and federal aid, even if you believe that you don’t qualify.  You never know what you will get!

Remember to focus on the net cost of a college or university.  Some colleges might be more expensive, but they might also offer the most in terms of grants and scholarships, which could result in a less expensive education.

Click on these links for more tips and resources.

Local and State

Huntington Bank: Sources of Financial Aid
Key Bank: Plan and Pay for College
Dollar Bank: How to Find Financial Aid For College
Charter One: Understanding Financial Aid
US Bank: Financial Aid in 3 Easy Steps
Ohio Board of Regents: State Grants and Scholarships

National

Sallie Mae: 1-2-3 approach to paying for college
Department of Education: Student Aid on the Web
CollegeBoard: Scholarships and Aid
CollegeAnswer: Financial Aid Resources
FinAid: The Smart Student Guide to Financial Aid
HowStuffWorks: How College Financial Aid Works
Time: Finding Financial Aid

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Research assistance for MoneyWatch is from Cleveland State University Nance College of Business Administration. Information on the Nance MBD program is available here.