Finding Financial Aid

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Who can really afford college these days? As tuition continually rises with each academic year, it’s becoming increasingly difficult to cover the costs. According to the College Board, four-year schools have increased their published tuition and fees by an average of 24 percent from 2005-06 to 2010-11. Private colleges, which are notoriously more expensive than public colleges, saw a 17 percent increase during the same period of time. Fortunately, generous assistance is offered through government programs. A full-time undergraduate student received an average of about $11,500 during the 2009-10 academic year, including more than $6,000 in grants. That amounts to $154 billion in financial aid dispersed to students nationwide.

Finding federal aid is easy and can be accomplished with several clicks of the mouse. Simply venture over to the Free Application for Federal Student Aid (FAFSA) website and fill out the form. You’ll need your social security number, driver’s license number, W-2 forms from the previous year, your Federal Income Tax Return from the previous year, your parent’s Federal Income Tax Return from the previous year, your untaxed income records and current bank statements. It’s important that you submit accurate information so an appropriate award total can be determined by your school. The amount is based on your Expected Family Contribution (EFC) and other factors such as the cost of enrollment in your program.

There a several different ways to receive aid — the most common of which are from Stafford Loans, Perkins Loans, Pell Grants and the Federal Work-Study Program. Both loans feature low interest rates and if they’re subsidized, their interest is paid by the government as long as the student is enrolled at least half-time. The Pell Grant provides students with low EFCs with up to $5,500 that doesn’t have to be repaid. The Federal Work-Study Program allows students to work part-time toward a predetermined amount. In most cases, they work on campus or at nearby volunteer organizations such as Habitat for Humanity.

If push comes to shove, you can also seek funds from a private lender, though you’ll have to deal with higher interest rates. Generally, this should only be done after you’ve received the max amount of assistance federally. Private loans can supplement a Stafford or Perkins Loan that doesn’t completely cover your expenses for an academic year. Thankfully, there are numerous options that can enable you to receive the education you need for a successful and fulfilling life.

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