Pay for School
The Smart and Simple Guide to Federal College Funding
Recent statistics detailing student loan trends can be alarming to families of current
and future college students. According to a 2008 report released by the
National Center for Education Statistics (NCES), the primary federal entity
responsible for collecting, analyzing and reporting data related to education in
the U.S. and abroad, 73 percent of all dependent student borrowers took out the
maximum sum allowed in both subsidized and unsubsidized Stafford loans during the
2003-2004 school year.
Those who, after taking advantage of all federal loans, still needed money to pay
for school often turned to private, more expensive student loans for assistance.
Were these students more aware of different federal aid opportunities, they may
have been able to save thousands. Myriad federal grants and financial aid programs
have been created to help students pay for school. Before turning to student loans,
or at least before repaying them completely, students should research the options
below.
Federal Grants
Completing
the FAFSA on the Web is one of the easiest ways for students to obtain the
money they need to pay for school. Because the most commonly awarded government
grant, Federal Pell Grants
are based on financial need rather than grades, students can receive thousands just
by filling out the form. Another option, the
Federal Supplemental Education Opportunity Grant (FSEOG), is a Pell Grant
adjunct that can help undergraduate students with exceptional need pay for school.
Between $100 and $4,000 per year is available to those who are eligible.
Students who are interested in teaching and those who plan to major in the math
and sciences may also receive assistance based on major. To help them pay for school,
the government has developed the
Teacher Education Assistance for College and Higher Education Grant (TEACH Grant)
as well as
The National Science & Mathematics Access to Retain Talent Grant (National SMART
Grant). Those who are not interested in the aforementioned fields but have
demonstrated exceptional academic merit and have completed a rigorous high school
curriculum may still find funding through the relatively new federal grant option,
the
Academic Competitiveness Grant.
Federal Loan Repayment Options
When students have used up all grants and scholarship awards, there may be no alternative
but to pay for school with borrowed money. However, under certain circumstances,
students may be eligible to have their loans discharged (canceled). Individuals
who choose to take out student loans should familiarize themselves with their options.
If all criteria are met, their loans may be sizably reduced.
Those who plan to teach math, science or special education at elementary or secondary
schools deemed low income by the government may be forgiven up to $17,500 in
Stafford Loans. Those who become full-time teachers for at least five years
but do not teach the aforementioned subjects may still have $5,000 in student loan
bills cancelled.
Students who do not plan to enter the teaching field but are still interested in
certain public service professions may still be eligible for a discharge through
the Loan Forgiveness for Public Service Employees program. If they serve the government,
the military, the law enforcement, libraries and certain tax-exempt organizations,
among others, student may meet the requirements for a partial loan cancellation.