University of Alaska Anchorage Parent Guide
Types of Financial Aid (and how to apply)
While preparing for college or even during those college years, parents and students will most likely find themselves trying to determine exactly how they will be able to pay for college. Many public colleges and universities cost thousands of dollars, while private colleges and universities can cost much, much more just to attend. Add cost of living, books and other needs and the costs of a college education reaches huge numbers very quickly. Read this article to explore the many available financial aid options and where to go online to learn how to apply.
While preparing for college or even during those college years, parents and students will most likely find themselves trying to determine exactly how they will be able to pay for college. Many public colleges and universities cost thousands of dollars, while private colleges and universities can cost much, much more just to attend. Add cost of living, books and other needs and the costs of a college education reaches huge numbers very quickly. Read this article to explore the many available financial aid options and where to go online to learn how to apply.
Before getting too worried about the high prices associated with a college education, it is important to know that help is just a click away, as the internet can help you to find the financial aid option that is right for your family. There are many financial aid options available to both undergraduate and graduate students.
- Grants are financial aid that does not have to be paid back.
- Work-Study lets the student work and earn money to help pay for school.
- Loans are borrowed money that must be repaid, with interest.
The U.S. Department of Education has the following major Student Financial Assistance (SFA) Programs:
- Federal Pell Grants
- Federal Stafford Loans
- Federal PLUS Loans
- Consolidation Loans
- Federal Supplemental Educational Opportunity Grants (FSEOGs)
- Federal Work-Study
- Federal Perkins Loans
Begin Investigating Options
The new FAFSA4caster provides parents and students with an early estimate of their eligibility for federal student financial assistance. Students considering furthering their education beyond high school can use this FREE tool to:
- Calculate their eligibility for federal financial aid, including grants
- Reduce the time it will take to complete the Free Application for Federal Student Aid (FAFSA), the qualifying form for all federal student financial aid
To access FAFSA4caster, visit www.FederalStudentAid.ed.gov
FAFSA First
Without knowing any of the options, it is important for students to first fill out a FAFSA form with your school's financial aid department. The FAFSA form allows you to tell the federal government all of your financial information. Once they have that in hand, they can determine what the best financial aid options are.
If you need help while completing the lengthy form, visit www.fafsa.ed.gov/help.htm for assistance.
You can also contact the Federal Student Aid Information Center with questions on either the paper or electronic FAFSA. Or, contact your school’s financial aid office. Remember, you can get the help you need for free from one of these sources; you don’t have to pay for assistance.
Loan Options
One option often used by students entering college is loans. Loans, like the federal PLUS loan, Perkins loan, Stafford loan, and FFEL loan, can all help you to pay your way through college without putting a dime down to do so. Borrowers will, of course, be required to pay back some or all of these loans (depending upon your financial status), but loans can be an effective way of financing your students way through college.
Grant Options
Another option is grants, which can be obtained through the government (like the Federal Pell Grant, for example) or through your particular school. Grants pay your way through college and do not need to be repaid once the student graduates. These grants are usually only "granted" to those who are in need of financial aid, but be sure to apply for them if you think that you are eligible.
Generally, grants are for Undergraduate students and the grant amount is based on need, cost of attendance, and enrollment status. Federal Pell Grants for 2008-2009 will range from $890 to $4,731. Federal Supplemental Educational Opportunity Grants will range from $100 to $4,000.
Scholarships and Other Financial Aid Options
Other less conventional methods of financial aid are also available to college students. Federal work study allows students to work at colleges and universities while they are enrolled there for several hours per week. Money earned can then be used as a means of financial aid. Check with your specific college or university for other financial aid options that may exist and be at your disposal.
Additionally, consider applying for scholarships and outside grants.
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