The slow-moving economic downturn has affected nearly everyone, but a group hit especially hard is students from low- and moderate-income families. The Advisory Committee on Student Financial Assistance reported to Congress that enrollment and graduation numbers among these students dropped dramatically in the last several years. What can we do to increase the likelihood that your child will be able to go to college and graduate with a BA or BS?
First, the sobering numbers: in 1992, 54% of low-income students and 59% of moderate-income students enrolled in four-year colleges. In 2004, only 40% of low-income students enrolled in four-year colleges. While the impact was not as severe on moderate-income families, those figures, too, declined to 53%. According to the Wall Street Journal:
“If that trend has continued, low- and moderate-income students who don’t move on to college face an even darker outlook. The unemployment rate for 16- to 19-year olds averaged 17% in 2004, the jobless rate for people over age 25 with just a high school diploma averaged 5% the same year. So far this year, those figures have jumped to 25.8% and 10.6%, respectively.”
Among those who do not enroll at all, a big factor is lack of knowledge about financial assistance. Low-income and first generation college students often do not know how to access aid. Approximately two-thirds of full-time college students receive some kind of financial aid.
The first and most important document for access to financial aid is the FAFSA, or Free Application for Federal Student Aid. This application is used by most colleges and other sources of financial aid to determine elligibility. Unfortunately, this is a complicated form, especially for low income families. High school guidance counselors and community college enrollment counselors can often assist low income students and their families with this form. Community based organizations may also provide assistance.
Once you have completed and filed your FAFSA form, all colleges at which you apply will have access to the form and will be able to advise you about many different funding opportunities.
When looking for financial assistance, we often hear of student loans. However, this is not the place for you to begin. You want to begin with grants. Grants,unlike loans, do not need to be repaid.
A Pell Grant is provided by the government for students who need financial assistance to pay for college. The maximum Pell Grant for the 2010 – 2011 award year is $5,550. Several factors will affect the amount of the grant, including tuition and fees, room and board, books and supplies costs, as well as whether you are attending full or part-time. You may receive Pell Grants for up to 18 semesters.
Many different forms of scholarships are also available to students. Once again, scholarships do not need to be repaid. Check with your high school counselor for local scholarships. Often local organizations such as churches, unions, businesses, civic clubs, and fraternities will offer scholarships. The college aid section of your local library will usually have a number of books about financial aid, including scholarship guides. If you have worked during high school, many fast food chains, department stores, and supermarkets offer scholarships to their student employees. There are also free scholarship search services accessible on the Web. At these search sites, you complete a brief questionnaire and the site provides a list of possible scholarships. Three sites you may want to check out are:
http://apps.collegeboard.com/cbsearch_ss/w... www.fastweb.com; and
www.collegeanswer.com/paying/scholarship_search/pay_scholarship_search.jsp. NEVER PAY A FEE FOR SCHOLARSHIP INFORMATION. Scholarship information is readily available for free. If someone asks you to pay a fee for scholarship information, it is usually a scam.
Most states have scholarship programs for residents. The State of Florida offers Bright Futures Scholarships to residents who attend in-state colleges and universities.
Colleges often offer scholarships. These scholarships can be awarded based upon merit, financial need, intended major, ethnicity or many other factors. If you have studied hard and earned good grades and scores on your ACT/SAT tests, you may be eligible for merit scholarships. There are many sources for merit scholarships including the colleges themselves. Check out the college websites and financial aid offices for this information.
Many national foundations offer scholarship competitions. Many of these focus on science, math and technology. The National Merit Scholarship Corporation, Gates Millennium Scholars, Intel Science Talent Search, the Coca-Cola Scholars Foundation and the Robert C. Byrd Honors Scholarship Program sponsor national scholarships. Your library and the Internet are good sources of information about these scholarships.
Most colleges offer some sort of work-study program. Under these programs, the college arranges for you to perform some work, usually on campus. The wages you earn are applied to your tuition or other expenses of your education.
If you have put together all of the grants, scholarships and work-study and still need a bit more, you may want to consider student loans. All loans are not created equal. Federal Perkins Loans are awarded by colleges to students with the highest need. The interest rate for these loans is quite low. Federal subsidized Stafford Loans are also available on a need basis. Unsubsidized Stafford Loans are not based on financial need. .
Finally, start early!
* During your freshman and sophomore years, begin to explore colleges online.
* During your junior year, try to visit colleges that are of interest to you.
* Determine their application for admission procedure and submit your application early in your senior year.
* Contact their financial aid departments. Find out what types of financial aid they offer and submit any necessary financial aid forms.
* Complete the FAFSA and submit it early in January of your senior year. Many colleges require this form for any financial aid.
* Once you receive your financial aid award, compare the awards from the different colleges. Select a financial aid package that works for your family.
More great information about planning for college is available at
www.collegeboard.com and
www.college.gov.
Posted By: Paul Adams
Friday, August 20th 2010 at 12:12PM
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