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Average
Tuition Costs: Public 4-year institution: $2,848 Public 2-year institution: $1,245 Private 4-year institution: $12,239 |
Figuring out how to pay for your education requires planning, perseverance, and learning as much as you can about the options available.
There are several types of scholarships. Some are based on merit and some are based on need. Many states base aid on regents exams. In New York, for instance, your score on the regents exam can earn you scholarships to New York universities and colleges.
Tax credits and other incentives are there to make paying for college less painful. Financial aid and loan programs can make a huge difference and help you go to the school of your choice.
NAVIGATING THE WEB OF FINANCIAL AID AND LOANS
The
U.S. Department of Education offers
a variety of student financial aid programs. Federal student aid includes grants,
work-study programs and loans. You don't have to pay back grants. Work-study
allows you to earn money for your education, and loans allow you to borrow money
for school. 
You'll
have to repay any money you borrow. You can fill out a Free
Application for Federal Student Aid (FAFSA) over the Internet. This site
gives you all the information necessary to begin the application process.
States offer their own programs, which you can investigate by contacting your state department of education. You can learn about other programs by checking with your high school counselor or the college or career school you plan to attend. You also might want to use a search engine on the Web with the key phrases "financial aid," "student aid" or "scholarships." Or check the reference section of your local library under those same phrases.
When
you apply for aid, an analysis is done of your family's financial situation
based upon a government-approved formula. The formula calculates the amount
you and your family are expected to contribute toward your college expenses.
This is called your Expected Family Contribution -- EFC. If this amount is equal
to or more than the cost at a particular college, then, of course, you have
no need for additional funds at that college.
In the table below you'll see that the federal government has several programs to make higher education easier to pay for.
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Federal Pell Grants: How much you can get: $400-$3,000 Maximum award for 1997-98 was $2,700. The amount you get depends on:
The best resource is the student guide to financial aid on the Internet. |
Stafford Loans: How
much you can get: In a subsidized loan, the government pays the interest on your loan while you're in school, and for the first six months after you leave school. You can check out details at the Stafford Loan Web site.
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Federal Perkins Loans: How
much you can get: up
to $3,000 per year. This is a low-interest (5%) loan for both undergraduate and graduate students. How you pay it back: If you're attending school at least half time, you have nine months after you graduate. This is called a grace period. You may be allowed up to 10 years to repay the loan in full. Your monthly payment amount will depend on the size of your debt and the length of your repayment period. |
Campus-Based Aid Programs: How much you can get: $100 - $4,000 Administered directly by the financial aid office at each participating school. The amount you get depends on:
You can apply for Free Application for Federal Student Aid (FAFSA) over the Internet. |
TAX BENEFITS AND GOVERNMENT INCENTIVES
Last year congress passed a couple of plans proposed by President Clinton.
The "Hope" Scholarship
Tax credit for "lifelong learning."
Deduction of student-loan interest.
OTHER OPTIONS...
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AmeriCorps is a program that allows participants to earn education awards in return for national service. For more information, contact the Corporation for National and Community Service: The Corporation for National and Community Service 1201 New York Avenue, N.W. Washington, DC 20525 1-800/94-ACORPS (1-800/942-2677).
The U.S. Armed Forces also offer educational programs and ways to pay for school. You can attend a college or career school and enroll in the Reserve Officers Training Corps (ROTC) Program, which will pay for your tuition, fees, and books and provide you with a monthly allowance. But in exchange, you'll have to participate in military training classes (which sometimes mean waking up at 5:30 AM for runs and physical training). You can join the Armed Forces before you go to a college or career school and take advantage of the Montgomery GI Bill, which provides financial support to those who attend school after serving in the military.
You can also earn college credit for some military training, possibly reducing the number of classes you'll need to graduate. As an active member of the military, you can take courses at a college or career school during your off-duty hours. Contact your local military recruiter for more information on these programs. There is also student assistance for children of veterans.
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