What’s The Difference?

The main difference between a grant and a scholarship is that a scholarship has far more restrictions placed upon it than a grant. Both grants and scholarships are non-repayable, that is, unlike a loan you don’t have to pay them back when you are done your schooling, which basically means you’re getting free money. So if at all possible, try to get a grant or a scholarship. Scholarships are for specific academic or athletic categories, whereas grants are awarded primarily on financial need only.

MORE >>>> http://globaleducationsearch.com/financial-aid/what-are-scholarships-and-grants/

Your decision to apply to college is a very important one. You will be getting specialized training and education that can help you get the career of your choice. The biggest problem, however, is paying for this education. There is financial aid available to help you on the way to your future success.
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Financial aid is simply the assistance you can get to pay for your education. This can be provided by a number of sources, including the state, government and private sources. It may come in the form of a grant, a loan, a scholarship or even work-study arrangements. Billions of dollars are given to students every year – meaning that half of students will receive aid for their education.

MORE >>>> http://www.globaleducationsearch.com/financial-aid/student-aid-how-to-pay-for-college/

It often seems that the star athlete, musical prodigy or class valedictorian has a lock on lucrative college scholarships.

Yet there are ways to get financial assistance for higher education even if a student isn’t team captain or doesn’t make the grade on academic merit.

Many universities and private sponsors make scholarship money available to students who don’t particularly excel on the field or in the classroom.

In fact, fewer than 1 percent of students receive athletic scholarships, said Mark Kantrowitz, publisher of college financial-information Web sites.

“There are plenty of scholarships out there that don’t require you to be a star athlete or the top of your class,” Kantrowitz said. For example, the David Letterman Scholarship at Ball State University rewards students with “an average yet creative” mind, he said.

“There’s even a scholarship from a duct-tape manufacturer for making a prom outfit out of duct tape,” he added.

If you need aid for the school year beginning this fall, apply now because many deadlines have already passed.

“There are still some scholarships with August deadlines that pay the award in September, but once we get into the fall, what you’ll find will be entirely for the next academic year,” Kantrowitz said. “Start searching now so you know what’s available.”

The first step when looking for financial aid for any student – all-star, academic or average Joe – should be to fill out the U.S. Department of Education’s Free Application for Federal Student Aid, or FAFSA.

Completing the FAFSA helps determine whether a student is eligible for aid from the school as well as federal and state governments in the form of grants and low-interest loans. The FAFSA can be found online at www.fafsa.ed.gov.

“If you’re looking for ways to help finance your educational expenses, absolutely, unequivocally, filing the FAFSA is the most important thing, and is the starting point,” said Richard Bellows, executive director of financial aid at Butler University.

The FAFSA, which has to be refiled for each school year, can be submitted as late as the end of the academic year for which you’re looking for aid – but it’s best to fill the form out early each calendar year.

Filing in January or February means there’s more money to go around, but aid is still available for students who start school this fall and haven’t submitted the FAFSA – if they file as soon as possible, Bellows said. He noted that needy students can still qualify for the federal Pell Grant, for example.

“There’s still the opportunity for some financial aid, but if you don’t file the FAFSA and you don’t look into it, you’re not going to know whether you’re qualified.”

Those getting ready to begin their senior year of high school should use the time they have to prepare and research financial aid deadlines and school procedures, said Cindy Bailey, a senior policy analyst and former executive director of education finance services at College Board, a not-for-profit organization that serves students.

“One of the first things they should be thinking about is where they want to go to school, the tests they have to take, the timetable and then beginning the conversations with institutions,” she said. “Most colleges will be happy to talk to kids about their financial aid options early in the process.”

It’s beneficial for students to use other areas in which they excel – whether their abilities are in cooking or mechanical engineering – as a means for obtaining scholarships, Kantrowitz said. Students looking for niche scholarships should create an “accomplishments resume,” where they list hobbies and areas in which they excel, he said.

“There are essay competitions, artistic competitions, competitions for every hobby under the sun,” Kantrowitz said. “If you want to attract schools’ attention or scholarship sponsors’ attention, pick your favorite hobby and try to go all the way in that hobby.”

Once students have outlined a clear picture of what they’re good at, it’s time to do the homework.

“They can use (the resume) as a basis to start searching for scholarships that match their background,” Kantrowitz said. For instance, FinAid.com provides a list of scholarships for average students as well as scholarships for volunteering and community service.

Students and their families should look at scholarship search engines and publications about the student’s financial aid options, added Bailey.

Applicants should also discuss scholarship options with high school guidance counselors and university personnel.

In addition, some fraternal organizations and unions sponsor scholarships for students whose family are members, she said.

Said Bailey: “Research as much as you can.”

source: http://www.gainesville.com/article/20090813/ARTICLES/908131035/1002?Title=Scholarships-for-non-scholars-

This week’s U.S. News and World Report has an excellent section on financing education during this endless recession. One of the issues they address is the availability of student loans to adults who have seen one career sink beneath the waves and want to educate themselves for another business, another profession, another set of skills that matter in today’s information based economy.

Adults returning to school can qualify for student loans in much the same fashion as first-time college students do, if they aren’t at the limit on student loans already, or delinquent on loan payments from a previous stint in post-secondary education. The range of Pell grants and Stafford grants that are the two cornerstones of federal school loans are available to adults. The theory behind these loans is that students qualify for a loan that will cover the costs that the student’s family cannot. That figure is generated by the baseline document for all student loans, the Free Application for Federal Student Aid, popularly referred to as the FAFSA.

Adult applicants for student aid should discuss their eligibility with the student financial office at their prospective school. Adults who may have filed a FAFSA some years ago probably aren’t meeting that income level today if they are returning to school in search of a new career. Some of the most adept student finance offices on this issue are found at the online schools, because they provide educational services to so many returning adults.

According to U.S. News & World Report, low-income upperclassmen who get good grades and major in computer science or other tough, in-demand subjects at least half time could also qualify for $4,000-a-year SMART grants. (SMART stands for Science and Mathematics Access to Retain Talent.) This profile fits thousands of returning students who have chosen to study for careers in the IT industry. There are other grant programs, including one for students pursuing a career in the highly under populated teaching profession.

The federal government is also intervening in the formula for calculating loan eligibility. The FAFSA formula bases the prospective student’s eligibility on household income from the previous year. Because so many people who had good incomes in 2008 are now unemployed and in debt, Department of Education has asked colleges U.S. Department of Education this spring asked colleges to help those whose families have recently unemployed breadwinners be estimating a family’s need for aid based on this year’s lower income instead. Aid officers are also taking into account expenses that aren’t reported on the FAFSA, such as medical bills.

There are some good recommendations in the magazine’s report, but there is a wealth of up-to-date knowledge on student loans to be found in college financial aid offices. Accredited for-profit and online institutions know what it takes to establish eligibility for loans. If you need to utilize online coursework, you may find that the established distance learning institutions are as inexpensive, or more so than some of the traditional four year colleges. Some of those that are rolling out online class programs today are treating them as an added service subject to a surcharge.

source: http://www.getdegrees.com/distancedaily/scholarships/federal-school-loans-available-for-returning-adults-too/

Few things are more demoralizing than receiving a bill that exceeds the amount of money in your bank account. Especially if your child’s future hangs in the balance.
That’s the predicament facing many cash-strapped parents of college students as bills for the upcoming semester start to arrive in the mail.
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Fortunately, even at this late date, you have options. Among them:
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•Extended-payment plans. These plans let you pay your tuition bill in monthly installments instead of one lump sum. You’ll typically pay a fee of $50 to $100 to set up a payment plan. The plans are provided through colleges and universities, so contact your school’s financial aid office for more information.
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You don’t have to put the entire amount you owe on a payment plan, says Thomas Blair, director of financial aid at Roanoke College in Salem, Va. But paying even a small amount of the balance in monthly installments will reduce the amount you have to borrow, he says.
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FIND MORE STORIES IN: Roanoke College
•Federal student loans. Unsubsidized federal Stafford loans are available to all full-time students, regardless of financial need. They carry a fixed rate of 6.8%. For the 2009-10 academic year, dependent students can borrow up to $5,500 for their freshman year. Sophomores can borrow up to $6,500 and juniors and seniors can borrow up to $7,500.
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To qualify for a federal student loan, you must fill out the federal Free Application for Federal Student Aid, or FAFSA. You can find the form online at www.fafsa.ed.gov.
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•PLUS loans. If federal loans won’t cover all of your costs, you can apply for a federally guaranteed Parent Loan for Undergraduate Students to fill in the gap. Parents are responsible for repaying the loans, but have the option of deferring payments until the child finishes school. PLUS loans carry a fixed rate of 8.5%.
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That’s higher than the current rate on some private loans, but private loan rates are variable, which means they could become a lot more expensive if interest rates rise.
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You don’t need a high credit score to qualify for a PLUS loan. However, PLUS lenders can reject applicants who have a foreclosure or bankruptcy on their credit report, says Mark Kantrowitz, publisher of Finaid.org, a financial aid website. A debt that’s more than 90 days overdue could also disqualify you for a PLUS loan.
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But even then, you have options. Dependent students whose parents have been rejected for a PLUS loan are eligible for higher Stafford loan limits.
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For example, a freshman whose parents were denied a PLUS loan would be eligible for up to $9,500 in federal student loans.
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•Private loans. In the past, many families used private loans to cover costs that weren’t covered by financial aid or federal student loans. But in the wake of the credit crunch, many private lenders have left the business. Lenders that are still offering them have tightened their standards, says Brian Cox, chief business developer for TuitionU.com, a social-networking site that links students to lenders.
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Recently, though, some credit unions have started offering private student loans, often at more favorable rates than for-profit lenders.
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More than 80 credit unions are participating in Credit Union Student Choice, a group that helps credit unions offer private student loans, Executive Vice President Scott Patterson says.
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The average interest rate on the loans is 5.8%, with no origination fee. Like interest rates on most private loans, rates on these loans are variable, so they could go higher.
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To find a list of participating credit unions, go to www.studentchoice.org.
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•Financial aid. Most schools award their financial aid packages in the spring, but if you’ve suffered some fiscal setbacks since then, ask the school’s financial aid office to review your situation. Depending on your circumstances, you may be eligible for more aid, Kantrowitz says.
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Be prepared to document your troubles. If you’ve been laid off, for example, show the financial aid office a letter verifying your eligibility for unemployment benefits.
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Financial aid is based on your income and assets from the previous year, but schools have the authority to consider the current year’s income and assets instead, Kantrowitz says. You may be eligible for more aid if you’ve lost your job, if your wages or hours have been cut, or if you’ve been hit with large unreimbursed medical bills.
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source: http://www.usatoday.com/money/perfi/columnist/block/2009-08-10-financial-aid-for-colllege_N.htm

Have you heard of the Perkins student loan? The Perkins loan works similar to other programs with a few enhancements. Look below for information on this little brother to the Stafford student loan program.

In addition, you’ll find some hints on how to get one, where to look, and other tips for finding more financial aid.

What is a Perkins Student Loan?
The Perkins program offers federally sponsored student loans to university and college students for undergraduate and graduate studies. Unlike the Stafford program, which any college student can apply to, the Perkins limits applications.

With a Perkins, you actually borrow from your school, not a bank. And you repay the school, too. To get one, you have to demonstrate financial need. You have to fill out a FAFSA form, the Free Application for Federal Student Aid, online and you’ll get an answer telling you if you qualify.

One cool aspect of the Perkins, sometimes you can get them cancelled if you are a public school teacher in a shortage are or subject. You have to apply for cancellation. Nice if you qualify.

To get one of these loans, you must attend a college that offers this program. Just call your financial aid office and ask if the school offers the Perkins student loan. Then, the school splits up the funds they have available among the students that qualify.

Can a Perkins Student Loan be part of a Consolidation Loan?
Your Perkins loan can be included in a consolidation loan package. You can usually lower your interest rate by doing this. Just make sure before you do it that you don’t qualify for loan cancellation.

Once you consolidate, you can’t go back and get it cancelled. If you don’t qualify, or don’t plan to teach school, it doesn’t really affect you.

Also, if your college or university doesn’t offer much in your Perkins loan, you may be able to get a Stafford instead.

What If You Don’t Qualify?
It happens. Your FAFSA doesn’t qualify you for student loans. First, apply for scholarships. You never know when you’ll win one. Apply at your college, in your home town, in your state, at your employer, at the local chamber of commerce. Apply wherever you see scholarships available.

And remember, new ones pop up every year. Not all scholarships are talent based or even based on grade point average. Some are like a lottery, given at random, and some are contests. Learn to apply to these and to do a good job with your application, and you will win more of them.

Next, if you have to borrow, be careful. You’ll have to pay this money back, and you don’t want to carry around a backpack loaded with debt your whole life. Keep the loans as low as possible to get an education and finish.

Then, pay them off as fast as you can.

Another tip: don’t make my mistake. Test out of as many college classes as you can. Use the Dantes or CLEP or AP program. And ask you university if they offer more classes you can test out of.

source: http://www.7books.com/Art/4506/297/The-Perkins-Student-Loan-Is-It-The-Best-Loan-for-You.html

Students applying for financial aid will find a much more streamlined application beginning in the spring of 2010.

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The Obama-Biden Administration announced this week that they will soon implement changes to the Free Application for Federal Student Aid in an effort to make financial aid funds more available to students.

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The reformed application will omit many questions regarding detailed personal information, making the form simpler and easier to complete. The Department of Education is also seeking to improve the online FAFSA application by enabling the Web site to automatically retrieve tax return data from the Internal Revenue Service, which will allow students to bypass complicated questions.

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Tom Melecki, UT Student Financial Services director, said the length of the application only makes it more difficult for the office to work out students’ aid awards.

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“The FAFSA is incredibly long and asks for a lot of duplicate information that the student or parent has already provided to the federal government on tax forms,” Melecki said. “It’s inefficient to ask them to provide that a second time just because the information is going to another office of government.”

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He said that the overly specific questions on the FAFSA may be too complex for applicants to answer.

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“We find that sometimes students and even parents will provide the wrong data,” he said. “The questions are often very complex, and they use legal or administrative terminology that the average person doesn’t understand.”

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Incoming freshman Stephen Jaquess said the FAFSA was the most difficult form he had to fill out during the college application process.

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“I know a bunch of friends who are economically in need, but they didn’t try and tackle the FAFSA because they thought it was too complicated,” Jaquess said. “It ultimately hurt them because they couldn’t afford to go to the schools they wanted and had to go to other places. If they develop a new image of the FAFSA, I think the number of people applying would definitely increase.”

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Undeclared business junior Matthew Diehl said that while the application is time-consuming, students will be required to complete several lengthy forms for college.

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“You have to be prepared to jump through hoops with things like financial aid and registering for classes,” he said. “If you’re not willing to do those initial things, maybe college is not for you.”

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Melecki said efforts to reduce the number of questions in the FAFSA are a step towards making common sense improvements to the financial aid process.

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“My hope is it would be much easier for students and their parents to complete the FAFSA and do so more accurately,” he said. “Our office will have to spend less time working with students and parents to collect tax forms and other documents to verify information that they provided to us on the FAFSA if they make fewer mistakes.”

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source: http://www.dailytexanonline.com/top-stories/fafsa-application-made-easier-and-less-exhaustive-1.1769973