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Introduction 
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PAIS Calculator
Scholarship Search
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Financial aid is money or assistance to help you pay for college. While most colleges will expect you and your family to contribute toward your education, financial aid helps to close the gap between your resources and college or training costs. Most financial aid is awarded based on your calculated financial need rather than academic achievement. The federal government is the largest source of money for college. But student aid is also available from your state, college, community organizations and private foundations. See your high school counselor or college financial aid office to learn more, and remember: the first step toward receiving any form of state or federal financial aid is preparing and filing the federal government's Free Application for Federal Student Aid (FAFSA). The four most common types of financial aid are grants, scholarships, loans and work study. Grants are financial aid you never have to repay. They're usually based on need. Federal Pell Grants are the largest source of free money from the government. Federal Supplemental Educational Opportunity Grants are awarded to students with the greatest financial need. In addition, your state may have its own grant programs. Work-study programs offered by the federal government and many states let you earn money for college through a job on campus or in the community. Scholarships are also money you never have to pay back. Usually, scholarships are not based on financial need. Instead, they may be awarded for academic achievement, talent, career interests, academic major, heritage, athletic or leadership ability or community service. Colleges, community organizations, private foundations, large companies and some states offer scholarships. Click here for the ArizonaMentor scholarship search. Loans are borrowed funds that you must repay with interest. There are federal student loans and private loans. Your parents may also want to consider a federal PLUS loan to help pay your college bills. A number of colleges have their own loan programs. In addition to the four major types of financial aid, you and your family might be able to take advantage of other opportunities to help pay for your education: Financial Aid from the Federal GovernmentFederal Pell GrantsA federal Pell Grant is money awarded based on demonstrated financial need to every eligible undergraduate student. (You can't already have a bachelor's, master's or professional degree.) Pell Grants never have to be repaid. They can be used for tuition, fees and living expenses. You can even receive a Pell Grant if you're attending college less than half time. In some cases, you may receive a Pell Grant to attend a teaching credential program if the program isn't part of a master's degree. Check with your college's financial aid office to see if you qualify. You can receive only one Pell Grant a year, and you may not receive Pell Grant funds to attend more than one college at a time. Recently, Pell Grants for full-time students ranged from $400 to $4,050. The amount of your Pell Grant will depend on your financial need, your college costs and whether you're attending college full time or part time. Federal Supplemental Educational Opportunity Grants These grants of between $100 and $4,000 per year are awarded to undergraduate students who have exceptional financial need. These grants don't need to be paid back. Priority is given to Pell Grant recipients. Unlike Pell Grants, there's no guarantee every eligible student will receive one, because funds are limited. Federal Work Study Federal Work Study provides jobs for undergraduate and graduate students with financial need so you can earn money to pay for your college expenses. If you're offered Federal Work Study as part of your financial aid package, your college will help you find a part-time job on or off campus. If possible, you'll be placed in work related to your studies or career plans, or in community service. You'll earn at least the federal minimum wage. Your total award depends on when you apply, your level of need and the funding available at your college. Scholarships and Other OptionsDon't assume you or your family makes too much money to rule out financial aid. You should still file the FAFSA to create a safety net if your financial situation suddenly changes.Other factors will also affect your financial need, such as the number of children in your household that are enrolled in college and the age of your older parent. What's more, a number of colleges require students to submit a FAFSA before considering them for institution-based financial aid. If it turns out you don't qualify for need-based aid, look into private scholarships, low-interest federal student loans, fee waivers and other ways to defray your college costs. Private Scholarships Many community organizations, foundations, religious organizations and employers offer scholarships. Start with the civic organizations in your community such as Rotary Club, 4-H and others, as well as those offered by banks and businesses. Browse the scholarship directories on the Web and use the free search engines. Check out the directories in the library and talk to your high school counselor. You may need to write letters and essays or be interviewed as part of the application process, so start your research early. You can apply for private scholarships and grants throughout your college years. Private organizations will notify you directly of an award, its requirements and how you'll receive the funds. Keep in mind that colleges must apply any outside scholarships toward your unmet need or reduce other aid — scholarship dollars will not replace your expected family contribution. Be sure to let your college know about any outside awards as soon as you receive them. You'll need to be wary when in your scholarship search. Watch out for companies that make generous scholarship promises, charge you money to receive a scholarship, try to get you to send money by claiming you're a finalist in a scholarship contest, or request your credit card or bank account number to hold a scholarship or grant for you. Scholarships and grants are free money — you should never have to pay for one and you should never give out personal information over the phone or Internet. Also be wary of free seminars that turn into high-pressure sales pitches for financial aid information that's readily available for free. Reputable companies do exist, but they neither guarantee scholarships nor use aggressive sales tactics. To learn more, visit www.ftc.gov/scholarshipscams or read the brochure, Looking for Student Aid, available at www.studentaid.ed.gov/lsa or by calling 800.433.3243. AmeriCorps By becoming a volunteer with AmeriCorps, a network of national and community service programs, you'll receive an education award of up to $4,725 each year for up to two years to pay for college or repay federal student loans. In addition, you may be eligible for a forbearance and possibly a deferment on your federal student loans while you're an AmeriCorps volunteer. If you serve full time, you may also receive a modest living allowance. To learn more about AmeriCorps, go to www.americorps.gov or https://recruit.cns.gov, call 800.942.2677 (TTY 800.833.3722) or write to AmeriCorps, Corporation for National and Community Service, 1201 New York Avenue NW, Washington, DC 20525. Peace Corps At some colleges, you can incorporate your Peace Corps service into a master's degree program and may receive financial assistance. In addition, up to 70 percent of your federal Perkins loan debt may be forgiven if you serve as a Peace Corps volunteer. Check out www.peacecorps.gov. Teach for America Teach for America, one of the AmeriCorps programs, sends recent college graduates to teach for two years at disadvantaged schools. You'll be paid for teaching and participate under an alternative teaching certification program. You may also receive forbearance and interest payment benefits on your student loans. If you haven't previously received an AmeriCorps award, you may earn an education award of $4,725 a year to repay your student loans or for more education. To learn more, go to www.teachforamerica.org. The Military Scholarships are available from the Army, Navy and Air Force through the Reserve Officers Training Corps programs at hundreds of colleges in return for serving at least four years on active duty after graduation. To learn more, go to www.armyrotc.com, www.afrotc.com and www.nrotc.com, call 800.USA.ROTC (Army) or contact your college's ROTC office if it has one. In addition, all branches of the military provide tuition assistance for college courses and some offer loan assumption benefits. To learn more, go to www.todaysmilitary.com. National Merit Scholarships The nonprofit National Merit Scholarship Corporation awards scholarships of up to $10,000 for academic and extracurricular achievements. Taking the Preliminary SAT®/National Merit Scholarship Qualifying Test in the fall of your junior year in high school will enter you in the competition. See your high school counselor to learn more or go to www.nationalmerit.org. Earn Credits in High School You may be able to take Advanced Placement® or International Baccalaureate exams to receive college credit and save the cost of up to one year of college. AP and IB tests are offered in a number of subjects but some colleges limit the number of units you can earn this way. Contact your high school counselor, or go to www.apcentral.collegeboard.com or www.ibo.org for more information. In addition, you may be able to take college courses while in high school through a "dual enrollment" program and save money. Ask your counselor if your school offers a dual enrollment program. If it doesn't, you may be able to enroll directly on your own. In addition, a number of colleges award academic credit to high school students through the College Board's College-Level Examination Program, or CLEP®, or offer their own programs for testing out of classes. Cooperative Education Cooperative education is a work-learn program that incorporates paid work experience with classroom studies. You may alternate full-time work with full-time school or work part time while attending classes. Cooperative education programs don't provide financial aid, but you'll often be able to earn enough to help pay for college. Go to www.co-op.edu and www.ca-co-op.org to learn more. Attend a Community College You'll save hundreds, even thousands of dollars in tuition and fees and have your general education requirements behind you by starting at a community college, and even more if you live at home. You can use financial aid to pay for books, transportation and living expenses. Credit for Experience If you're a nontraditional student — you didn't go to college right after high school, don't depend on your family for financial support, may not be a high school graduate or returned to college for job training — you may receive academic credit for your job, volunteer or travel experience through the College-Level Examination Program. For more information, call 800.257.9558, visit www.collegeboard.com/clep or e-mail clep@info.collegeboard.com. Part-time Job It may not be possible to earn all your own schooling costs, but a part-time or summer job can help. Check with your college's employment office as a start. Also contact your financial aid administrator if you're concerned your job might negatively impact your financial aid award. Veterans and Their Dependents At the federal level, the Montgomery G.I. Bill provides educational benefits for participating individuals who served on active or reserve duty, or in the Selective Reserves. Benefits are available through the U.S. Department of Veterans Affairs' Veterans Educational Assistance, Work-Study and Tutorial Assistance programs. Veterans can get more than $36,000 for tuition, books and living expenses if they use the money within 10 years of service. Education benefits are also available to survivors and dependents of veterans — and more recently, for certain reservists who were activated after September 11, 2001. In addition, service-disabled veterans may be eligible for vocational rehabilitation benefits. For more information, contact your college's veteran affairs office or the local office of the U.S. Department of Veterans Affairs (in the phone book under U.S. Government Offices), call toll free 888.442.4551 or go to www.gibill.va.gov. Foster Youth Grants If you are or were in foster care, click on www.chafee.csac.ca.gov to learn how you may qualify for up to $5,000 a year in free money for vocational training or college on top of any other federal or state aid you may receive. In addition, many colleges offer tuition waivers and scholarships for foster youth. To learn more, talk to your local independent living coordinator, high school counselor or your college's financial aid administrator, go to www.statevoucher.org. Students with Disabilities All public and many independent colleges provide services to students with special needs. These services may include counseling, tutoring, readers, interpreters, note takers, special parking zones, or the loan of special equipment. Your cost of attendance should include all expenses necessary to accommodate your disability that aren't already covered by insurance or other programs. Be sure to work with the college's financial aid administrator when you're applying for admission so that he or she understands your particular circumstances. In addition, you may be eligible for services from your state's vocational-rehabilitation agency. For more information, contact your college's disabled student office, the national or local organizations serving your particular disability, or the local office of your state's vocational-rehabilitation agency. Save for College While You Shop With Upromise, Babymint, EdExpress and other loyalty buying programs, you can save for college or pay off your student loans when you shop. These programs offer rebates for purchases that are deposited into a 529 college savings plan or student loan accounts. For details, go to www.upromise.com, www.babymint.com, or www.edexpress.com. Athletic Scholarships If you're a student athlete considering a National Collegiate Athletic Association college, contact the NCAA for information on college recruiting rules as well as grade point average, testing and registration requirements. To learn more, log on to www2.ncaa.org, call 317.917.6222 or write to NCAA, PO Box 6222, Indianapolis, IN 46206-6222. There's also a free brochure, The Guide for College-Bound Student Athletes, available at www.ncaaclearinghouse.net or by calling 800.638.3731. Even if you're looking for a sports scholarship, you should still file a FAFSA. Money for Future Teachers If you're considering a teaching career, take a look at these federal, state and college financial aid programs for future teachers: Federal Tax BenefitsThe federal government offers several tax benefits aimed at helping families pay for college save for college or repay student loans. All have income limits.Hope and Lifetime Learning Tax Credits You or your parents may be eligible for a Hope or Lifetime Learning federal tax credit that lets taxpayers write off college costs dollar for dollar when they file their taxes. The Hope credit is worth up to $1,500 for each student for the first and second years of college. The Lifetime Learning tax credit picks up where the Hope credit leaves off. It gives a credit of up to $2,000 for undergraduate or graduate education and training. There is no limit on the number of years the Lifetime Learning credit can be claimed. The Hope and Lifetime Learning credits cannot be taken at the same time, for the same student. The credits can be taken even if Coverdell education savings (formerly known as Education IRAs) are used for college costs, as long as the credits are claimed for different college expenses. Both tax credits have income limitations. For more information, consult your tax advisor. Higher Education Deduction If you're not eligible for the Hope or Lifetime Learning tax credits, you still may be able to deduct up to $4,000 for 2005 in qualified tuition and related expenses from your taxable income. This deduction follows the same guidelines as those for the Hope and Lifetime Learning credits, but you can't claim both the deduction and one of the tax credits for the same expenses. This deduction has higher income limitations than the Hope or Lifetime Learning credits. (This tax break was slated to end in 2005 but may be extended.) Student Loan Interest Deduction You may be able to deduct up to $2,500 in interest paid on your student loans each year for the life of the loans. You may deduct interest paid on student loans you received for your own education or for your spouse's or child's education. This tax credit also has income limitations. Tax-Free Withdrawals Funds from your IRA, 529 college savings plan, or Coverdell Education Savings Account may be withdrawn without a tax penalty to pay for your qualified education expenses or those for your spouse, children, or grandchildren. There's also a savings bond tax break for higher education. Education Savings Accounts With state-sponsored 529 college savings plans, your contributions grow tax-free until at least 2010 (when Congress must renew the rule) as long as you use the money for qualified college expenses. For links to all the state 529 plans and more, go to www.collegesavings.org and www.savingforcollege.com. The Independent 529 plan allows you to lock in future tuition costs at today's prices for about 240 independent colleges. To learn more, click on www.independent529plan.org. With Coverdell Education Savings Accounts (formerly known as Education IRAs), investments of up to $2,000 per year per student grow tax-free and can now be withdrawn tax-free to pay for college and K-12 school costs. Financial Aid from My CollegeYour college's financial aid office has information on the major state and federal financial aid programs, as well as on the programs only it offers. You also can ask the financial aid administrator for:Most public and private colleges also have their own grant, loan and scholarship programs. Check with each college's financial aid office when applying for admission. Tuition Payment Plans Some colleges offer special installment plans with finance charges if you cannot afford lump-sum tuition payments. Other schools offer prepaid tuition plans that protect you from tuition increases, or they may provide discounts for paying in advance or if more than one family member attends the same college. Be sure to check with each college when applying for admission. |
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