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Paying
for a
College
Degree |
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Q:
Dream
College
accepted
my
son.
We
are
thrilled,
yet
confused.
Besides
paying
out-of-
pocket, How
do
we
pay
for
his
college
education?
A:
Follow
these
4
steps
before
the
letter
of
acceptance
arrives.
1.
Learn
the
financial
aid
terms:
Scholarships: Awards based on merit, financial need, or a combination of the two. This money does not have to be repaid. HINT: The best sources for scholarships are local private and public organizations.
Grant: This money does not have to be repaid. The federal government, state governments, and colleges award this money. Generally, financial need determines the grant recipients and dollar amounts.
Loan: Money that must be repaid by the student or the student’s parents. Subscribe to ScholarSpot, the newsletter, and learn the differences between public and private loans and subsidized and unsubsidized loans.
Work-study: A student works part-time to pay for school expenses. Typically, work-study employers are on campus, pay more than the minimum wage, and offer flexible hours.
2.
Start
applying
for
scholarships
as
early
as
ninth
grade.
Ms.
Jennifer
won
enough
scholarships
to
pay
for
4
years
of
out-of-state
tuition
and
fees.
She
shares
5
steps
to
finding
the
money
you
need.
Read
More>>>
3.
Submit
the
Free
Application
for
Federal
Student
Aid
(FAFSA)
as
soon
as
you
can
after
January
1st
of
the
need
year.
For
example,
students
who
need
college
financial
aid
for
Fall
2008
or
Spring
2009,
will
submit
the
FAFSA
beginning
in
January
2008.
The
FAFSA
will
reflect
income
from
2007.
4.
Make
a
friend
in
Dream
College’s
recruitment
office.
These
insiders
know
about
scholarships
and
financial
aid
programs
that
don’t
appear
on
the
websites
or
brochures.
Caution:
Document
all
information
from
these
conversations.
Parents
and
students
should
record
the
time,
date,
and
the
university
representative’s
name.
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Q:
I just graduated from high school and will
start college in August. The university gave
me a $30,000 scholarship to be spread over 4
years. My mom calculated that the
scholarship would pay $3,750 each semester.
My counselor told me to look at the TOTAL
costs of going to school, not just tuition
and fees. |
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When I add food, housing, books, and
transportation to tuition and fees, my costs
will be $7,500 a semester. I received a
$2,000 per year (for 4 years) scholarship
for any college/university from my mom's
job. After scholarships, I will still owe
the school $3,500 a semester. It's my dream
to go to this private university, but I
can't afford it. Help! — Finance-minded
freshman |
Dear Finance-minded freshman,
It's great that you calculated all of your
expenses prior to enrolling. Many students
discover these mounting costs weeks into the
semester. Here are options that can help you
with the $3,500 shortfall: |
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1. Compare costs. Have you been
accepted by other schools? I'm assuming that
you filed the FAFSA. Did they offer you any
financial aid? Remember, you can take the
$2,000 scholarship to any school. Determine
which school is the best buy. |
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2. Talk to the financial aid
administrators and recruiters at Dream
University. They might point you to a
work-study job, scholarship, or grant that
another student turned down at the last
minute. |
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3. Become a responsible borrower.
Contact Dream University's financial aid
department and request a
government-sponsored student loan. These
loans offer low interest rates and restrict
the amount you can borrow to your financial
need. |
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4. Borrow early. The money from
government-sponsored student loans come from
private banks. In today's economy, these
financial institutions have been crippled by
bad home loans. This is causing a domino
effect in the student loan market, and banks
are going to issue fewer loans to college
students than in the past. |
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5. Keep your grades up. You can't
afford to lose your Dream University
scholarship. Plus, you might earn more
scholarships in the coming years. Remember,
you have to apply to win. |
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6. Discuss these options with your parents. |
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Persist |
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Scholarship
winners hit walls, yet they persist. |
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In Matthew
9:37, Jesus said to His disciples: “The harvest is
plentiful, but the workers are few.” |
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Hundreds of
thousands of dollars in scholarships are available; you
just have to be willing to work to get the money. |
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3 ways to persist in your pursuit of scholarships: |
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1. Write
your scholarship target – the exact dollar amount – and
post it everywhere. Your mirror, your locker, your
cell phone, your computer, and your closet should
display this number. Focus on that dollar amount when
you glimpse others winning scholarships that you wanted.
Some of my classmates earned the Jesse H. Jones and Mary
Gibbs Jones Scholarship ($13,000;
http://www.houstonendowment.org/scholarships/jones.htm)
and the Coca Cola Scholarship ($20,000;
https://www.coca-colascholars.org) when I had zero
dollars for college, but I remained committed to
reaching my goal. |
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Although any
amount of money is a lot of money when you don’t have
it, realize that you’re not raising a million dollars.
Remember that your community, state and prospective
university yearn to give money to deserving students. |
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2.
Maintain a positive attitude in the face of rejection.
I applied for over 30 scholarships and won a
fraction of them. |
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3. Push the Haters to the left—or the right
—as long as they move out of your way.
Some people, even the adults in your life,
will tell you that winning scholarships, or
even attending college, is not for you. Some
Black parents have told me that Black kids
can’t write personal essays. Well, I’m Black,
and I wrote my way into no student loan debt
and a future. |
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Q:
I wanted to see if scholarships are
available for adults like me (I'm older and
a mom). I need more resources to
complete my Bachelor Degree in Human
Services from the University of
Phoenix online. I used all the tuition
reimbursement money, $3,000, from my job. |
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I still have about two years to complete
this degree. I wish I could pay my way
through college, but unfortunately I cannot
at this time. Knowing that there are all
kinds of free money available for college, I
don't want to get any loans for school. |
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Recently, the school acknowledged my good
grades and added me to the Dean's List.
I can write essays, but I feel that they
are not good enough to get the scholarships.
Do you know the names of resources so that I
can help myself?— Motivated Mom |
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Jennifer: Congrats on making the Dean's List
and working toward completing your degree.
Submit the FAFSA (www.fafsa.ed.gov)
and use the following resources: |
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University of Phoenix Tuition and
Financial Options page:
Click here.
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BPW Career Advancement Scholarship:
Click here.
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Essay tips: |
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Start writing. The essay is about you so
it must be better than "good
enough."
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If you have questions about the essay
topic or requirements, contact the granting
organization.
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Revise after you read the essay aloud.
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Ask someone you trust to review the essay.
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Submit your type-written application and
essay on time.
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Q: Have I missed the January 1st deadline to
file the FAFSA for my 12th grade son? One of
my girlfriends told me that I am late. I
thought I was supposed to wait until I got
my tax return done. Which is true? —
Frazzled by financial aid |
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Dear Frazzled, calm down. Since your son
will begin college in Fall 2010, the first day
that he can submit the Free Application for
Federal Student Aid (FAFSA) is January 1,
2010. Even if you don't have your W-2 and
1099 forms and completed tax return, go to
http://www.fafsa.ed.gov/ and apply
now. This application is your son's gateway
to grants, loans, work-study programs, and
scholarships. Often, financial aid is awarded on a
first-come, first-served basis. Plus, the
FAFSA people will accept an estimate of your
2009 income. |
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How to afford College Textbooks |
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Free option
#1: If the library has the book, check it out before
anyone else does. Renew the book during the entire
semester. |
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Free option
#2: Borrow books from others who have taken the classes
that you are currently taking. Check with your professor
to see if an old edition is acceptable. After all, what
recent developments have occurred in College Algebra or
Colonial American History? |
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Free option
#3: Ask the professor if you can perform well in the
class without reading the textbook. |
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Cheaper than
campus bookstores option #1: Rent textbooks at
www.bookrenter.com
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Cheaper than
campus bookstores option #2: Purchase textbooks online.
Here are three websites:
Be sure
to understand the return policies before you buy. |
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Q:
Jennifer, my daughter will attend Texas A &
M University next year. My husband and I
want her to focus on her studies and not
work her freshman year. She loves to buy the
latest purses, shoes, and clothes. We are
worried that she will take out a loan to
support her spending habits. Is it true that
she can borrow $15,000 without our
permission? - Nadia J.
She can and she will. Two types of loans are
available for students: government-backed
and private. The limit for Stafford loans
(backed by the federal government) for the
2007-08 academic year for a freshman is
$3,500. Government loans are paid directly
to Texas A & M; private loans are paid
directly to the student. Exercise caution
when borrowing from private lenders. Unlike
Uncle Sam, these lenders don't consider
need. Foolishly, many students borrow more
than they need. I've known of students to
borrow $20,000 from a private lender in one
academic year.
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Q:
Jennifer
— I need your help. I mentor a family that
has heard that if they make more than
$50,000 a year they put themselves at risk
to not get scholarships for their kids.
Therefore the mother is thinking of delaying
her job search. The mother and father opened
a restaurant that failed, and they are left
with $40,000 debt. If the mother gets a job,
will the children be excluded from
scholarships? —Concerned community
leader.
A: No. Students may qualify for need-based
or merit-based scholarships or a combination
of the two. The student's family's financial
circumstances determine need-based awards; a
student's achievements determine merit-based
aid.
Mom must encourage her children to do the
following: take the most rigorous courses,
earn a high grade point average, and devote
their time and talents to school and
volunteer activities.
When applying to college (and every year
spent in college), her kids should submit
the Free Application for Federal Student Aid
(www.fafsa.ed.gov).
Increasingly, many universities require this
financial aid paperwork from would-be
need-based and merit-based
scholarship recipients. The U.S. Department
of Education will review the paperwork and
calculate the family's contribution (EFC).
Then, each school uses the EFC to establish
a student's need for help in paying for
tuition, fees, books, and other educational
expenses. It is ideal to have a low EFC: the
lower the EFC, the less the family has to
pay. If Mom feels that her kids deserve more
need-based aid, then she should meet with
the school's financial aid administrator.
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Q: Currently, me and my husband make close
to $100,000 a year. I even started working a
second job for college savings for our
oldest son to go to school. We have only
$2,000 set aside in savings for our son. He
finishes high school this May. I don't see
the point in applying for financial aid
because we make too much. My husband insists
we can qualify for something. Is this true?
- Strapped in the suburbs
1) Submit the Free Application for Federal
Student Aid (FAFSA;
www.fafsa.ed.gov ). Even if your family
earns below
the poverty level, grants, loans, and work-study
may come your son's way. Income is part of determining need. Other factors
include number of dependents and assets (or
lack of). Plus, many universities won't
award any scholarships without your son's FAFSA.
2) Submit the entire financial aid
application. Check with your university for
extra forms. Some private universities look
at net income and net worth (assets minus
liabilities) to award scholarships.
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