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IT'S A RICH MAN'S WORLD: FINANCING YOUR EDUCATION IN THE UNITED STATES.
Going to college is a huge expense. Every year more than 7 million U.S. college students receive financial aid. The good news is you do not need to be a straight-A student or an athlete to qualify for aid. To help pay for college the US Department of Education offers a variety of student financial aid programs including loans, grants and work-study programs. Information on how to apply and some of the various loans and grants that are available are contained in this article.
You can learn about state programs by contacting your state Department of Education, your high-school counselor or the college you hope to attend.
Applying for federal student aid is easy (laughs hysterically) and free. All you need is to complete a Free Application for Federal Student Aid (FAFSA) available from your school counselor or complete an on-line application by going to. The mailing address for FAFSA information is: Federal Student Aid Information Center, PO Box 84,Washington, DC, 20044 or phone 1-800-433-3243. They will not accept photocopies or faxes of FAFSA's.
Your eligibility is determined one award year at a time (from July 1 to June 30). Therefore you should re-apply for aid every year using a Renewal FAFSA, even if you do not think you are eligible. There are many factors that will affect your eligibility for financial aid. If you aren't eligible one year, you may become eligible the following year if your family circumstances change (if a brother or sister enrolls in college for example, or a job loss curtails the family's budget).
You should apply (for 1999-2000), as soon after January 1, 1999 as possible. You should not apply before this date. This means you cannot apply on the web and do not sign, date or mail your postal application before January 1,1999.
You will need information from the following documents to complete the FAFSA and other financial aid application forms:

driver's license and social security number
income tax returns, W-2 forms, and 1099 forms for the previous year. (If you are a married student, you will also need the documents for your spouse.)
parent's income tax returns, W-2 forms, and 1099 forms from the previous year
current bank statements and mortgage information (if applicable)
records relating to stocks, bonds, mutual funds, and other investments (if applicable)
documentation of non-taxable income, such as Social Security income, AFDC, and Veterans Benefits.
business and farm records (if applicable)
records relating to any unusual family financial circumstances, such as medical and dental expenses not covered by health insurance, tuition expenses at elementary or secondary schools, unusually high child care costs, death, divorce, and loss of employment
the Federal School Code for each of the schools you are applying to (available from the college or your high school counselor).

Most of you will be entering college straight from high school and will be considered dependent students. This means both you and your parents will have to report financial information on the FAFSA.
To be considered an independent student, you must meet at least one of the following criteria:

You were born before January 1, 1976
You are married
You are enrolled in a graduate or professional educational program
You have legal dependents other than a spouse
You are an orphan or ward of the court (or were a ward of the court until age 18)
You are a veteran of the US Armed Forces

If you are independent, you must report only your financial information (and your spouse's if you are married). See www.ed.gov for information regarding special or unusual circumstances.
If you have any queries about completing the FAFSA, call the Federal Student Aid Information Center at 1-800-4-FED.
Making a mistake on your FAFSA can delay the processing of your application. Most mistakes on the FAFSA can be avoided by carefully reading the instructions and questions.
Make copies of everything before you send it.
The deadline for receiving the application is: June 30, 2000 for the 1999-2000 school year. If your application has not been received by this date, it will NOT be processed, and you will not be eligible for federal student aid for that academic year.
About two to three weeks after you submit the FAFSA (4 - 6 weeks if you sent it by mail), you will receive a Student Aid Report (SAR). The SAR will reflect the information that you provided on the FAFSA. If the information you provided is complete, your SAR will also have your Expected Family Contribution (EFC).
The EFC is the amount of money your family will be expected to contribute to your education. Using your EFC, your financial aid administrator determines how much federal student aid you can get.
Carefully review all of the information on the SAR to make sure there are no errors. You can correct any mistakes by writing the correct information on Part 2 of the SAR if you applied by mail. If you applied electronically and there are errors on your electronic SAR you will need to ask your school to make any corrections electronically, or get a copy of your SAR from Federal Student Aid Information Center (1-319-337-5665).
Each school sets its own deadline for students to apply for aid from campus-based programs and for applying for its own aid. The deadlines are likely to be much earlier than the FAFSA deadline of June 30, 2000.
Despite the cost of post-secondary education, knowledge is a valuable commodity and worth the effort of paying off your student loans at the end of your university or college life. There are loans, grants and scholarships available and you should take some time to fill out a few application forms. You never know what financial aid might come your way!
LOANS
FEDERAL GRANTS
OTHER FEDERAL AID PROGRAMS
SCHOLARSHIPS
MILITARY AID AND NATIONAL SERVICE
LOANS
A loan is money you borrow to help meet the costs of your education. You will need to pay it back.
There are several types of loan programs available to you: Federal Perkins Loans, Subsidized Federal Stafford Loans, Subsidized Federal Direct Loans, Unsubsidized Federal Stafford Loans, Unsubsidized Federal Direct Loans among others.
Federal Perkins Loans
A Federal Perkins Loan is a low interest loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender, and the loan is made with government funds.
Depending on when you apply, your financial need, and the funding level at the school, you can borrow up to $3,000 for each year of undergraduate study. The total amount you can borrow as an undergraduate is $15,000.
If you are attending school at least half time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin paying the money back. Your monthly payment amount will depend on the size of your debt and the length of your repayment period.
Federal & Direct Stafford Loans
Direct Stafford Loans are available through the William D. Ford Federal Direct Loan Program and Federal Family Education Loan (FFEL) Stafford Loans are available through the FFEL Program.
The terms and conditions of a Direct Stafford or a FFEL Stafford are similar. The major differences between the two are the source of the loan funds, some aspects of the application process and certain repayment aspects.
If your school participates in Direct Loans, the FAFSA serves as your Stafford Loan application. If your college participates in the FFEL Program, the school may give you a separate Stafford Loan application to fill out.
A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during authorized periods of deferment. The federal government 'subsidizes' the interest during these periods.
An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it is paid in full. An unsubsidized loan is not awarded on the basis of need, therefore, your EFC is not taken into account. If you do not receive enough need-based aid to meet your cost of attendance, you can pay for some of your remaining costs with an unsubsidized loan.
For both the Direct Loan and FFEL programs, you'll be paid through your school in at least two installments. Your loan money must first be applied to pay for tuition and fees, room and board, and other school charges. If other loan money remains you'll receive the funds by check or in cash.
If you are a dependent undergraduate student you can borrow up to:

$2,625 if you are a first-year student enrolled in a program of study that is at least a full academic year.
$3,500 if you've completed your first year of study and the remainder of your program is at least a full academic year.
$5,500 a year if you've completed two years of study and the remainder of your program is at least a full academic year.
If you are an independent undergraduate student or a dependent student whose parents are unable to get a PLUS Loan, you can borrow up to:

$6,625 if you are a first-year student enrolled in a program of study that is at least a full academic year (only $2,625 of this amount may be in subsidized loans).
$7,500 if you've completed your first year of study and the remainder of your program is at least a full academic year (only $3,500 of this amount may be in subsidized loans).
$10,500 a year if you've completed two years of study and the remainder of your program is at least a full academic year (only $5,500 of this amount may be in subsidized loans).

The interest rate is variable. Fees are charged and deducted proportionately from each disbursement of your loan.
PLUS Loans (Parent Loans)
To be eligible to receive a PLUS Loan, your parents generally will be required to pass a credit check. A parent cannot be turned down for having no credit history - only for having an adverse one.
If your parents do not pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan. An endorser promises to repay the loan if your parents fail to do so.
Your parents might also qualify for a loan even if they do not pass the credit check as long as they can demonstrate that extenuating circumstances exist. You and your parents must also meet other general eligibility requirements for federal student financial aid.
The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you get. If your cost of attendance is $6,000, for example, and you receive $4,000 in other financial aid, your parents can borrow up to $2,000.
Either yourself or your parents will pay a fee of up to 4 percent, deducted proportionately from each disbursement of the loan. The interest rate is variable.
There is no grace period for these loans. Generally, the first payment is due within 60 days after the final loan disbursement for the year.
FEDERAL GRANTS
The federal grant programs are aimed at the neediest students, and provide aid that does not have to be repaid.
Pell Grants
Pell Grants are awarded only to undergraduate students who do have not earned bachelor's or professional degrees. Awards for the 1999-2000 academic year will depend on Congress. However, last year the maximum amount was $3,000. The average grant was $1,700.
How much you get will depend not only on your financial need, but also on your cost of attending school, whether you are a full-time or part-time student, and whether you attend school for a full academic year or less.
Your school can apply Pell Grant funds to your school costs, pay you directly, or a combination of both.
Federal Supplemental Educational Opportunity Grant (FSEOG) Program
The FSEOG program provides grants to low-income students, and generally helps supplement the aid they receive from Pell Grants and other sources. Federal funds provide for 75 percent of the award; the college or university contributes the remainder.
OTHER FEDERAL AID PROGRAMS
Federal Work-Study (FWS) Program
The FWS Program provides part-time jobs for undergraduate and graduate/professional students who use the earnings to finance their educational programs. Federal funds cover up to 75 percent of wages, with the remaining 25 percent or more being paid by colleges/universities or businesses.
You are paid at least once per month by the hour and not by commission or fee. Wages must equal at least the current federal minimum wage but may be higher, depending on the type of work and the skills required. The amount you earn cannot exceed your FWS award.
If you work on campus, you will usually work for your school. If you work off campus, your employer will usually be a private non-profit organization or a public agency, and the work performed must be in the public interest. The type of job must be relevant to your course of study.
Trio Program
This program is designed to help low-income Americans enter and complete college. TRIO provides services to over 700,000 low-income students including: assistance in choosing a college, tutoring, personal and financial counseling, career counseling and workplace visits. Two-thirds of the students served must come from families in which neither parent is a college graduate and total income is less than $24,000.
SCHOLARSHIPS
Generally, scholarships are reserved for students with special qualifications, such as academic, athletic or artistic talent. They do not have to be repaid. Scholarships are usually available for students who are:

interested in a particular field of study,
who are members of an underrepresented group,
who live in certain areas of the country or
who demonstrate financial need.

There are a number of internet sites that offer free search services for scholarships, for example, www.fastweb.com and www.scholarship-page.com There is no point paying money for a scholarship search when free services are available on the web.
Remember....Do not pay money for a scholarship. If you are offered a scholarship for sale, it is probably a scam.
MILITARY AID AND NATIONAL SERVICE
Students who are interested in pursuing a career in the military, or who are veterans or dependents of veterans can earn money for college while serving the country. The Army National Guard, the Army Reserve, Montgomery GI Bill, ROTC scholarships, and College Community of the Air Force are just a few of the many programs available.
Volunteering can not only help the disadvantaged but it can also provide money for scholarships. The National Service Scholarship Program, AmeriCorps, Learn and Serve America and the National Civilian Community Corps all offer financial aid programs.

Back to coursearch.com
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&#copy; Copyright 2000. Galt Western Personnnel Ltd. you may reprint this article, quote from it, use it in research or projects, duplicate it or distribute it. Credit of authorship and source MUST be given to course411.com and goodstaff.com. Ownership of Copyright remains with Galt Western Personnel Ltd.


	Return to financing article.
IT'S A RICH MAN'S WORLD: FINANCING YOUR EDUCATION IN THE UNITED STATES. Going to college is a huge expense. Every year more than 7 million U.S. college students receive financial aid. The good news is you do not need to be a straight-A student or an athlete to qualify for aid. To help pay for college the US Department of Education offers a variety of student financial aid programs including loans, grants and work-study programs. Information on how to apply and some of the various loans and grants that are available are contained in this article. You can learn about state programs by contacting your state Department of Education, your high-school counselor or the college you hope to attend. Applying for federal student aid is easy (laughs hysterically) and free. All you need is to complete a Free Application for Federal Student Aid (FAFSA) available from your school counselor or complete an on-line application by going to. The mailing address for FAFSA information is: Federal Student Aid Information Center, PO Box 84,Washington, DC, 20044 or phone 1-800-433-3243. They will not accept photocopies or faxes of FAFSA's. Your eligibility is determined one award year at a time (from July 1 to June 30). Therefore you should re-apply for aid every year using a Renewal FAFSA, even if you do not think you are eligible. There are many factors that will affect your eligibility for financial aid. If you aren't eligible one year, you may become eligible the following year if your family circumstances change (if a brother or sister enrolls in college for example, or a job loss curtails the family's budget). You should apply (for 1999-2000), as soon after January 1, 1999 as possible. You should not apply before this date. This means you cannot apply on the web and do not sign, date or mail your postal application before January 1,1999. You will need information from the following documents to complete the FAFSA and other financial aid application forms: driver's license and social security number income tax returns, W-2 forms, and 1099 forms for the previous year. (If you are a married student, you will also need the documents for your spouse.) parent's income tax returns, W-2 forms, and 1099 forms from the previous year current bank statements and mortgage information (if applicable) records relating to stocks, bonds, mutual funds, and other investments (if applicable) documentation of non-taxable income, such as Social Security income, AFDC, and Veterans Benefits. business and farm records (if applicable) records relating to any unusual family financial circumstances, such as medical and dental expenses not covered by health insurance, tuition expenses at elementary or secondary schools, unusually high child care costs, death, divorce, and loss of employment the Federal School Code for each of the schools you are applying to (available from the college or your high school counselor). Most of you will be entering college straight from high school and will be considered dependent students. This means both you and your parents will have to report financial information on the FAFSA. To be considered an independent student, you must meet at least one of the following criteria: You were born before January 1, 1976 You are married You are enrolled in a graduate or professional educational program You have legal dependents other than a spouse You are an orphan or ward of the court (or were a ward of the court until age 18) You are a veteran of the US Armed Forces If you are independent, you must report only your financial information (and your spouse's if you are married). See www.ed.gov for information regarding special or unusual circumstances. If you have any queries about completing the FAFSA, call the Federal Student Aid Information Center at 1-800-4-FED. Making a mistake on your FAFSA can delay the processing of your application. Most mistakes on the FAFSA can be avoided by carefully reading the instructions and questions. Make copies of everything before you send it. The deadline for receiving the application is: June 30, 2000 for the 1999-2000 school year. If your application has not been received by this date, it will NOT be processed, and you will not be eligible for federal student aid for that academic year. About two to three weeks after you submit the FAFSA (4 - 6 weeks if you sent it by mail), you will receive a Student Aid Report (SAR). The SAR will reflect the information that you provided on the FAFSA. If the information you provided is complete, your SAR will also have your Expected Family Contribution (EFC). The EFC is the amount of money your family will be expected to contribute to your education. Using your EFC, your financial aid administrator determines how much federal student aid you can get. Carefully review all of the information on the SAR to make sure there are no errors. You can correct any mistakes by writing the correct information on Part 2 of the SAR if you applied by mail. If you applied electronically and there are errors on your electronic SAR you will need to ask your school to make any corrections electronically, or get a copy of your SAR from Federal Student Aid Information Center (1-319-337-5665). Each school sets its own deadline for students to apply for aid from campus-based programs and for applying for its own aid. The deadlines are likely to be much earlier than the FAFSA deadline of June 30, 2000. Despite the cost of post-secondary education, knowledge is a valuable commodity and worth the effort of paying off your student loans at the end of your university or college life. There are loans, grants and scholarships available and you should take some time to fill out a few application forms. You never know what financial aid might come your way! LOANS FEDERAL GRANTS OTHER FEDERAL AID PROGRAMS SCHOLARSHIPS MILITARY AID AND NATIONAL SERVICE LOANS A loan is money you borrow to help meet the costs of your education. You will need to pay it back. There are several types of loan programs available to you: Federal Perkins Loans, Subsidized Federal Stafford Loans, Subsidized Federal Direct Loans, Unsubsidized Federal Stafford Loans, Unsubsidized Federal Direct Loans among others. Federal Perkins Loans A Federal Perkins Loan is a low interest loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender, and the loan is made with government funds. Depending on when you apply, your financial need, and the funding level at the school, you can borrow up to $3,000 for each year of undergraduate study. The total amount you can borrow as an undergraduate is $15,000. If you are attending school at least half time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin paying the money back. Your monthly payment amount will depend on the size of your debt and the length of your repayment period. Federal & Direct Stafford Loans Direct Stafford Loans are available through the William D. Ford Federal Direct Loan Program and Federal Family Education Loan (FFEL) Stafford Loans are available through the FFEL Program. The terms and conditions of a Direct Stafford or a FFEL Stafford are similar. The major differences between the two are the source of the loan funds, some aspects of the application process and certain repayment aspects. If your school participates in Direct Loans, the FAFSA serves as your Stafford Loan application. If your college participates in the FFEL Program, the school may give you a separate Stafford Loan application to fill out. A subsidized loan is awarded on the basis of financial need. You will not be charged any interest before you begin repayment or during authorized periods of deferment. The federal government 'subsidizes' the interest during these periods. An unsubsidized loan is not awarded on the basis of need. You'll be charged interest from the time the loan is disbursed until it is paid in full. An unsubsidized loan is not awarded on the basis of need, therefore, your EFC is not taken into account. If you do not receive enough need-based aid to meet your cost of attendance, you can pay for some of your remaining costs with an unsubsidized loan. For both the Direct Loan and FFEL programs, you'll be paid through your school in at least two installments. Your loan money must first be applied to pay for tuition and fees, room and board, and other school charges. If other loan money remains you'll receive the funds by check or in cash. If you are a dependent undergraduate student you can borrow up to: $2,625 if you are a first-year student enrolled in a program of study that is at least a full academic year. $3,500 if you've completed your first year of study and the remainder of your program is at least a full academic year. $5,500 a year if you've completed two years of study and the remainder of your program is at least a full academic year. If you are an independent undergraduate student or a dependent student whose parents are unable to get a PLUS Loan, you can borrow up to: $6,625 if you are a first-year student enrolled in a program of study that is at least a full academic year (only $2,625 of this amount may be in subsidized loans). $7,500 if you've completed your first year of study and the remainder of your program is at least a full academic year (only $3,500 of this amount may be in subsidized loans). $10,500 a year if you've completed two years of study and the remainder of your program is at least a full academic year (only $5,500 of this amount may be in subsidized loans). The interest rate is variable. Fees are charged and deducted proportionately from each disbursement of your loan. PLUS Loans (Parent Loans) To be eligible to receive a PLUS Loan, your parents generally will be required to pass a credit check. A parent cannot be turned down for having no credit history - only for having an adverse one. If your parents do not pass the credit check, they might still be able to receive a loan if someone, such as a relative or friend who is able to pass the credit check, agrees to endorse the loan. An endorser promises to repay the loan if your parents fail to do so. Your parents might also qualify for a loan even if they do not pass the credit check as long as they can demonstrate that extenuating circumstances exist. You and your parents must also meet other general eligibility requirements for federal student financial aid. The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you get. If your cost of attendance is $6,000, for example, and you receive $4,000 in other financial aid, your parents can borrow up to $2,000. Either yourself or your parents will pay a fee of up to 4 percent, deducted proportionately from each disbursement of the loan. The interest rate is variable. There is no grace period for these loans. Generally, the first payment is due within 60 days after the final loan disbursement for the year. FEDERAL GRANTS The federal grant programs are aimed at the neediest students, and provide aid that does not have to be repaid. Pell Grants Pell Grants are awarded only to undergraduate students who do have not earned bachelor's or professional degrees. Awards for the 1999-2000 academic year will depend on Congress. However, last year the maximum amount was $3,000. The average grant was $1,700. How much you get will depend not only on your financial need, but also on your cost of attending school, whether you are a full-time or part-time student, and whether you attend school for a full academic year or less. Your school can apply Pell Grant funds to your school costs, pay you directly, or a combination of both. Federal Supplemental Educational Opportunity Grant (FSEOG) Program The FSEOG program provides grants to low-income students, and generally helps supplement the aid they receive from Pell Grants and other sources. Federal funds provide for 75 percent of the award; the college or university contributes the remainder. OTHER FEDERAL AID PROGRAMS Federal Work-Study (FWS) Program The FWS Program provides part-time jobs for undergraduate and graduate/professional students who use the earnings to finance their educational programs. Federal funds cover up to 75 percent of wages, with the remaining 25 percent or more being paid by colleges/universities or businesses. You are paid at least once per month by the hour and not by commission or fee. Wages must equal at least the current federal minimum wage but may be higher, depending on the type of work and the skills required. The amount you earn cannot exceed your FWS award. If you work on campus, you will usually work for your school. If you work off campus, your employer will usually be a private non-profit organization or a public agency, and the work performed must be in the public interest. The type of job must be relevant to your course of study. Trio Program This program is designed to help low-income Americans enter and complete college. TRIO provides services to over 700,000 low-income students including: assistance in choosing a college, tutoring, personal and financial counseling, career counseling and workplace visits. Two-thirds of the students served must come from families in which neither parent is a college graduate and total income is less than $24,000. SCHOLARSHIPS Generally, scholarships are reserved for students with special qualifications, such as academic, athletic or artistic talent. They do not have to be repaid. Scholarships are usually available for students who are: interested in a particular field of study, who are members of an underrepresented group, who live in certain areas of the country or who demonstrate financial need. There are a number of internet sites that offer free search services for scholarships, for example, www.fastweb.com and www.scholarship-page.com There is no point paying money for a scholarship search when free services are available on the web. Remember....Do not pay money for a scholarship. If you are offered a scholarship for sale, it is probably a scam. MILITARY AID AND NATIONAL SERVICE Students who are interested in pursuing a career in the military, or who are veterans or dependents of veterans can earn money for college while serving the country. The Army National Guard, the Army Reserve, Montgomery GI Bill, ROTC scholarships, and College Community of the Air Force are just a few of the many programs available. Volunteering can not only help the disadvantaged but it can also provide money for scholarships. The National Service Scholarship Program, AmeriCorps, Learn and Serve America and the National Civilian Community Corps all offer financial aid programs. Back to coursearch.com This community service site is sponsored by www.goodstaff.com &#copy; Copyright 2000. Galt Western Personnnel Ltd. you may reprint this article, quote from it, use it in research or projects, duplicate it or distribute it. Credit of authorship and source MUST be given to course411.com and goodstaff.com. Ownership of Copyright remains with Galt Western Personnel Ltd.