Financial Aid—How to Get What You Deserve
No matter what year you’re in, you can get funding to help you pay for college.
By Anthony Everette, sophomore, Ashford University
As a first-generation college graduate, Anisha Byers did not have support from parents who had been there and done that. The knowledge Byers gained about financing her education came from talking to school counselors, reading articles, and giving it the good old college try. Compared to most students’ attempts at financing education, Byers’ was a success. Over five years, she earned $34,000 in grants, $16,000 in scholarships, and borrowed $19,000.
According to the 2007-2008 National Postsecondary Student Aid Study conducted by the National Center for Education Statistics, 86% of college students who graduated with a bachelor’s degree accumulated an average of $24,651 in debt.
“My first two years were completely covered, and I had excess money without the need for any outside loans,” says Byers. “So, I thought that for the next two years everything would be smooth sailing.”
Byers had received multiple scholarships made available strictly to incoming freshmen, and the question of how she would pay for expenses down the road never came to mind.
“My junior year is when I took out my first loan, and then I started thinking that I needed to cut costs and be more mindful of my debt because I was going to be responsible for paying it back,” says Byers.
By then, she had already moved off campus and become accustomed to an adult lifestyle as opposed to a student lifestyle; and when Byers walked across the stage and accepted her diploma, the $19,000 in loan debt remained on her financial record.
Today, Byers is pursuing a second bachelor’s degree from Winston-Salem State University in North Carolina and has had a difficult time obtaining the grants and scholarships she received the first time around.
“If I could do one thing differently, it would be to never lose the drive to look for the free money that’s available to college students,” says Byers. “It’s there for you, but you have to be willing to research and do whatever it takes to get it.”
Get Your Share of Financial Aid
With the cost of college continuing to climb every year, many students, like Byers, have to turn to financial aid to pay for college. Tuition and fees at private nonprofit four-year colleges and universities rose an average of $1,235 over last year to $28,500 for the 2011-12 school year, according to the College Board. Average costs including room and board bring that total to $38,589. Public schools cost significantly less, with the average in-state tuition and fees for a year at a public institution at $8,244, or $17,131 with room and board.
The good news is that in 2010-11, undergraduate students received an average of $12,455 per full-time equivalent (FTE) student in financial aid, including $6,539 in grant aid, $4,907 in federal loans, and $1,009 in a combination of tax credits and deductions and Federal Work-Study. Full-time graduate students received an average of $23,955, including $6,750 in grant aid, $16,423 in federal loans, and $782 in a combination of tax credits and deductions and Federal Work-Study.
Do Not Count Yourself Out
A great mistake that most students make when attending college is to not apply for aid or to not reapply. Some students think they have too much family income to qualify. But many types of aid are available for students at different income levels. If you’re a current college student, you have to remember to apply every year.
You may be satisfied with the aid package put together by your school, but you can help cut costs if you keep up the search for additional sources of aid. You may have to look beyond federal loans, grants, scholarships, and work-study. Consult with the financial aid officers at your school. They may be able to help you determine if you’re getting all the state and institutional aid that you qualify for. And keep up the hunt for private scholarships on your own.
Applying is Free – or Often Low-Cost
No matter what year of college you’re in, the first step is to submit the Free Application for Federal Student Aid (FAFSA). To find out more, CLICK HERE.
Some private institutions require students to complete additional forms, such as College Board’s CSS PROFILE, which obtains information not found on FAFSA. To find out more, CLICK HERE.
The second step is to use online services such as FastWeb to apply for scholarships and grants. Additionally, consult books, such as College Board’s Scholarship Handbook, which is published yearly and contains thousands of programs offering private, federal, and state funds.
Stay Organized
One of the greatest challenges that most students face when searching for financial aid is staying organized.
“Use file folders,” says Mark Kantrowitz, founder of FastWeb.com and FinAid.org. “Put the materials for each scholarship in a file folder and label the folder with the name of the award and the deadline date. Have a checklist of all the requirements on the front of the file folder, and then create a master calendar. Maybe put it into your smartphone, use Google calendars, or Microsoft Outlook’s calendar, and work your way through items systematically, obviously taking care of things that have the earlier deadline first.”
Paying for a college education should not be a stressful endeavor. Strive to educate yourself on the available options, understand the true cost of your degree, and take the necessary steps to minimize out-of-pocket expenses.
Rule of thumb number one: “Live like a student while you’re in school, so you don’t have to live like a student after you graduate,” says Kantrowitz.
Rule of thumb number two: It’s imperative that you remember to evaluate your financial aid package at least annually and apply for aid every year.
ANTHONY EVERETTE JR. IS A SOPHOMORE STUDYING JOURNALISM AND MASS COMMUNICATIONS AT ASHFORD UNIVERSITY ONLINE.
Find Out More
Click for more on students loans - and to submit a Free Application for Federal Student Aid (FAFSA).
Click for more on the U.S. Department of Education's Direct Loan Program.
Click more about finanial aid options through the CSS/Financial Aid PROFILE.
Is College Worth It?
If you ever start to question if college is worth it, consider this: The more college education you have, the more you are likely to earn and the more likely you are to be employed. The Bureau of Labor Statistics reports that the unemployment rate for individuals with at least a bachelor’s degree is consistently about half the unemployment rate for high school graduates. Latest statistics from the College Board show how median annual earnings rise with the level of education:
High school diploma $33,800
Associate degree $42,000
Bachelor’s degree $55,700
Master’s degree $67,300
Doctoral degree $91,900
Professional degree $100,000
Sources of Aid
The most common sources of aid are federal and state programs, and your financial aid advisor at your college may be best qualified to inform you of the available options and requirements. It is in the institution’s best interest to help you obtain financial aid, so do not be afraid to work with your adviser and share any and all information regarding your financial situation.
You should also remain proactive and strive to obtain aid from private sources. Websites and books are a great start. A little-known resource that may prove valuable is the Education Finance Council (EFC). To find out more, CLICK HERE.
The EFC is an association representing non-profit student finance organizations. The EFC does not normally work directly with students; however, through the use of its website, or by contacting a representative directly, students can find non-profit and state agencies that offer supplemental loans or grants.
