Today's student will pay an average annual tuition, $2,848.00.  More elite schools cost the student a whopping $33,000!  And that is not including room and board, books, transportation, etc. 

But financial aid, now at $60 billion nationally, makes it affordable.  

The U.S. Department of Education is considering a congressional proposal that would lift restrictions on distance learning programs, making them eligible for federal funding (Pell Grants).

Financial aid is now available for practically everyone. Every school has some sort of financial aid department to help students pay for their education. It comes in three basic forms: grants, loans, and scholarships.

GRANTS:

Grants are gifts, based usually on need, and do not require repayment. The following is a partial list of Federal grants available to students:

Federal Pell Grants: Undergraduate only based on need.

Federal Supplemental Educational Opportunity Grants: Awards up to $4,000 annually for very needy students.

Federal Work-Study: Needy students paid minimum wage for hourly work.
 

LOANS:

Must  be repaid. Interest rates are frequently below market.

Federal Family Education Loans: Must be a U.S. citizen.

Federal Parent Loans for Undergraduate Students: For middle-income families. Students must attend at least half-time. A variable interest rate with a 10% cap.

Federal Perkins Loans: Undergraduates may borrow up to $3,000 annually. Graduate students up to $5,000.

Federal Stafford Student Loans: Students who attend at least half-time don’t have to pay interest on these loans. Undergraduate students may borrow up to $5,500 annually. Graduate students up to $8,500. (800) 433-3243.

Unsubsidized Stafford Loans for Middle Income Students: Not need- based. Loans are from banks or credit unions and are federally guaranteed up to $5,000 a year for undergraduate students, and up to $10,000 for graduate students.

Some sources for loans include:

The Education Credit Corp.: Offers students unsecured lines of credit. (800) 477-4977.

The University Support Services: Also offers unsecured loans to students. (800) 767-LOAN.

SCHOLARSHIPS:

Scholarships are  gifts,  based on merit (i.e., high GPA). Some are based on need or some particular qualification. There is a wide variety of scholarships available, with qualifiers which will astound you.   There are scholarships for left-handed people, people who ride horses in Montana, people who raise frogs, ex-prostitutes in Seattle, etc. To learn more about these, visit the reference section of your local library.

WARNING: Be extremely cautious of ads offering "guaranteed scholarships." Most of these are run by unscrupulous individuals who require you to prove you applied and were rejected by every source they send you. Most from these sources are not truly available, e.g., one scholarship is awarded annually to a left-handed student but every left handed student who pays for these scholarship search services is sent to that source. Obviously out of the scores of thousands of applicants only one will get the grant and each student has to pay the application fees to the school...first!

The Federal Trade Commission (FTC) published a warning on these scams in February 1998. You can receive a free copy by calling them directly in Washington, DC, or by downloading a similar report from the Internet at the following URL:
http://www.ftc.gov/opa/9609/scholar.htm

RESOURCE LIST:

DEPARTMENT OF EDUCATION & FINANCIAL AID:

The Department of Education can be contacted at http://www.ed.gov/money.html
They offer publications including: The Student Guide to Financial Aid, and Funding Your Education.

Also available is downloadable software which allows users to complete and submit the Free Application For Federal Student Aid (FAFSA) on-line to the Department’s central processor. They also offer information about current contract and grant opportunities and forecasts for possible upcoming opportunities.

INTERNET RESOURCES

- Financial Aid Information Page: www.ed.gov/offices/OPE

- Scholarship Search: www.fastweb.com

- Signet Bank’s College Money Matters:
- www.signet.com/collegemoney

- Sallie Mae site: www.salliemae.com

- Federal Application For Student Aid Page:
www.fafsa.ed.gov

ATHLETES:

Peterson’s, "Sports Scholarships and College Athletic Programs"

GENERAL:

"USA TODAY Financial Aid For College,"

"Winning Money For College: The High School Student's Guide to Top College Scholarship Contests (4th Ed). Published by Peterson’s.

"Paying Less For College," also published by Peterson’s.

"Finding Money for College" by John and Mariah Bear. A manual written specifically for students attending non-traditional colleges. Ten Speed Press (510) 559-1600

"Financing Your College Degree: A Guide for Adult Students," by David Finney. Published by College Board, 1997.

"The Graduate Student’s Complete Scholarship Book: Featuring Financial Aid Opportunities for Students Pursuing Masters Degrees or PhDs." Published by Sourcebooks Trade, 1997.

"The Distance Learning Sourcebook," 1996 (800) 228-0810
http://www.technogrants.com

"The Scholarship Book," Career Press (800) 227-3371

MILITARY PERSONNEL:

"How The Military Will Help You Pay For College"

"Need a Lift to Educational Opportunities, Careers, Loans, Scholarships?" Contact the American Legion at P.O. Box 1055; Indianapolis, IN 46268 (317) 328-4603.

"Financial Aid for Veterans, Military Personnel, and Their Dependents" Reference Service Press; 10 Twin Dolphin Dr., Suite B 308; Redwood City, CA 94065 (415)594-0743

MINORITIES:

"Dollars For College: The Minority Guide"; Tinsley Communications; 101 N. Armstead Ave., Suite 208; Hampton, VA 23669 (804) 723-4499

WOMEN:

"Financial Aid: A Partial List of Resources for Women"; Project on the Status & Education of Women; Association of American