Paying for a College Degree

Q: Dream College accepted my son. We are thrilled, yet confused. 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. Check with the high school counselor, scholarship books at the library, and www.fastweb.com. HINT: Peek at other schools’ scholarship bulletins. Bellaire High School in Houston ISD and North Shore Senior High School in Galena Park ISD post relevant scholarship information.

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.