Planning and Paying for
College
Grants, Scholarships, Loans and Other Money for College
10 Important Things to Qualify
1. Submit the FAFSA 2. Submit any other
applications
3. Demonstrate financial need
4. Have a high school
diploma or equivalent 5. Be a U.S. citizen or
eligible noncitizen
6. Be a state resident 7. Enroll in an eligible
degree or certificate program
8. Maintain satisfactory academic progress 9. Have a SSN
10. Register with U.S.
Selective Service
(males 18-25)
Types of Financial Aid
■ Grants: money you don’t have to repay, typically based on financial need.
■ Scholarships: free money, usually based on your area of study or merit.
■ Work-study or student employment programs: federal and college.
■ Loans: borrowed money that you must
pay back, usually with interest.
Free Money from the Government
■ Federal Pell Grant
♦ up to $5,550 a year
■ Federal Academic Competitiveness Grant
♦ up to $750 first-year students; $1,300 for second year
■ Federal Supplemental Educational Opportunity Grant
♦ up to $4,000 a year
■ National SMART Grant
♦ up to $4,000 junior and senior year
■ Robert C. Byrd Honors Scholarship
♦ up to $1,500 for up to 4 years
More information on page 4
Federal Programs for Teachers
■ Federal TEACH Grants
♦
up to $4,000 a year for tuition
■ Federal Loan Forgiveness for Teachers
♦
forgives up to $5,000 in federal Stafford loan debt
♦
up to $17,300 for highly qualified math, science or special education teachers
■ Federal Perkins Loan Forgiveness
♦
forgives part or all of a federal Perkins loan
■ Federal Pell Grants
♦
may be used to attend a teacher credential program
■ Teach for America
♦
forbearance and interest payment benefits on qualified student loans
♦
up to $4,725 a year to repay loans
More information on page 4
Financial aid for specific populations
■ Foster Youth
♦ College-based tuition waivers/scholarships
♦ Orphan Foundation of America
♦ State-administered grant programs
■ Athletes
♦ www.ncaaclearinghouse.net
■ Students with disabilities
♦ www.heath.gwu.edu
■ Students with dependents
■ Military and their dependents
♦ www.gibill.va.gov
More information on page 5
Work-study or student employment
■ Student employment
♦ Earn money to pay for college
■ Federal Work-Study
♦ Administered through select colleges or your college may have its own program
♦ Receive help getting a part-time job on campus or with a local nonprofit agency
♦ Amount of the award depends on how early you apply, your financial need and the college’s work-study or student
employment funds
♦ www.federalstudentaid.ed.gov
■ Employment related to your studies may be available
■ Visit the career center for help with general employment
More information on page 8
Other ways to pay for college
■ Private scholarships
■ National Merit Scholarships
■ Community service
■ Enlist in the military
■ Earn credit in high school
■ Cooperative education
■ Start at a community college
■ Credit for experience
■ 529 college savings plan
■ Part-time work
■ Company-paid education
■ Tax benefits
■ Jobs that help you repay your loans
Federal loans: The smart way to borrow
■ Federal Stafford Loans
♦ Subsidized Stafford Loans
• Based solely on financial need
• Federal government pays the interest while you are in school
♦ Unsubsidized Stafford Loans
• All eligible students can receive them, regardless of income or assets
• You’re responsible for paying the interest while
in school
A closer look at Stafford loans
■ How to apply:
♦ Submit the FAFSA; later you will be asked to sign a master promissory note
■ Interest rate
♦ Fixed at 6.8 percent for the life of the loan
♦ Subsidized loans for undergraduate study will see a decreasing interest rate until 2012
■ Fees
♦ Origination or default fees up to 1 percent
■ Enrollment at least half time
■ Funds sent directly to your college
■ Repayment begins six months after you graduate
Federal Stafford loan limits
Year Dependent
Undergraduates
Independent Undergraduates
Graduate and Professional Students
First year $5,500 $9,500 $20,500—no more than
$8,500 in subsidized loans
No more than $3,500 in subsidized loans
Second year $6,500 $10,500
No more than $4,500 may be in subsidized loans Third and beyond
(each year)
$7,500 $12,500
No more than $5,500 in subsidized loans Teacher
certification
$5,500 $12,500—no more than
$5,500 may be in subsidized loans Total amount you
can borrow
$31,000 $57,500
No more than $23,000 may be in subsidized loans $138,500—no more than $65,500 in subsidized loans