Financing Higher Education

FAFSA Form

All U.S. males aged 18-25 must register for military service, with limited exceptions. If not previously registered, they can register through FAFSA. Step 1 is just about identifying information. Step 2 is about you and your family's tax returns and other financial information. When filling out, you are either dependent or independent. If you meet at least one qualifier in Step 3, they classify you as an independent. You must also report your spouse's financial information if you have one. If you do not meet at least one qualifier for being independent, you are dependent and must report your and your parents' financial information.

529 Plan

An education savings plan that has tax benefits, which could make a big difference over time.

Federal Work-Study Program

Another option to help pay for education. Can work as a part of federal financial aid package where you will work part-time to earn money for education while in school. Qualifications: high school diploma, been accepted or are enrolled in an eligible degree or certification program, a valid SSN, U.S. citizenship, permanent residence, or refugee status

Unsubsidized Loans

Available for those with and without financial need and can extend to graduate school. You will have to stay on top of interest payments, but you'll get a higher borrowing limit. Characteristics: Can qualify no matter the need, Undergraduate or graduate, You have to pay interest while you're in school, Higher borrowing limit than the other type of loan.

Subsidized Loans

Based on need and are available to undergraduates. You don't have to pay interest while in school, but there's a lower borrowing limit than for unsubsidized loans. Characteristics: Undergraduate, Interest paid by the U.S. Department of Education while you're in school, You qualify based on financial need, and Lower borrowing limit than the other type of loan

Scholarships and Grants

Both give money to pay for school expenses without needing to pay it back. Scholarships are mainly merit-based, and grants are need-based.

Earning a degree can be expensive but which example shows why it might be worth it?

Individuals with a bachelor's degree typically earn a higher annual salary than those without one.

Everyone interested in post-secondary education should complete the Free Application for Federal Student Aid (FAFSA) because...

It allows you to be eligible for federal student aid and other scholarships and grants.

What are the benefits of attending a local community college?

It is cheaper to earn an Associate's degree at a community college and then transfer to a four-year college to finish. You can live at home and save dorm fees while earning an Associate's degree. Choosing a local community college within closer driving range saves on transportation costs.

Military Service Grants

Students whose parent or guardian died as a result of military service after September 11, 2001, or in Iraq or Afghanistan, and who meet other eligibility requirements may qualify.

All of the following are true about the Free Application for Federal Student Aid (FAFSA) EXCEPT:

The form is only available online.

Private Loans

Used for additional money if all other options and other ways to reduce education costs are insufficient. It may be available from banks, credit unions, and other lenders are available but generally cost more than federal loans and the interest rates can change over time.

A 529 plan can help you save more money than a traditional savings account because...

it is a tax free.

Textbooks, transportation and room and board are all...

Additional costs for attending a college or university.

Community College

Advantages include saving money, staying close to family, and making it easier to get into a 4-year university.

Federal Student Loan

Government loans that must be repaid in full plus any interest you owe over loan period. Interest rates on these loans are lower than private loans and are offered at a fixed rate.

Trade School

Great place to get hands-on experience and training for a specific job. They can also include focuses on automotive technology, culinary arts, cosmetology, and a number of other areas.

Federal Supplemental Educational Opportunity Grant (FSEOG)

Help low-income undergraduate students who need a lot of financial aid to help pay for college.

Which of the following answers lists 4-year colleges from generally the least expensive to most expensive?

In-state public university, out-of-state public university, private university

Maria is a high school senior. She wants to go to the local community college and become a nurse. Her grades are average, but she comes from a low-income family. What could she do to in order to afford the next step in her dream to become a nurse?

Maria could apply for federal grants to help pay for college. Maria can apply for need-based scholarships.

Federal Pell Grants

Primarily for undergraduate students and funding depends on your need and cost of education.

FAFSA

Processing time is 3 days - 3 weeks to process information and send out Student Aid Report, Review Student Aid Report to make sure info is accurate, Report will be sent to schools applied where federal and non-federal student aid and award packages will be determined, Must update FAFSA every year to ensure maximization of financial aid, Schools may waive application fees and some could qualify for school-specific financial aid.

Living at home while enrolled in post secondary school or training can save money on....

Room and board but it raises costs for transportation.

TEACH Grants

Students who agree to teach in a high-need field in a low-income community for four years may be eligible for these grants.

Two Types of Federal Loan Options

Subsidized Loans and Unsubsidized Loans

It does not make sense to avoid post secondary education because of its cost since in the long run:

The salary you will earn with a degree will pay back the cost of college over your career

Making the choice to spend money on post secondary education pays off in the long run because:

The salary you will earn with a degree will pay back the cost of college over your career.

If someone doesn't want to spend a lot of money on student loans, and does not qualify for grants. What is their best option for affording a Bachelor's Degree?

They can attend the local community college whose courses transfer to the public four-year college.