Paying for College
The most daunting challenge in deciding to go to college is figuring out how to pay for it.
| The Cost of College |
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The cost of college depends on the type of institution. Below is a chart of average per year tuition expenses. |
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Two-year colleges: Average published tuition and fees at public in 2007-08 are $2,361, $95 higher than in 2006-07. |
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In-state students at public four-year colleges and universities: Average published tuition and fees in 2007-08 are $6,185, $381 higher than they were in 2006-07. Average total charges, including tuition and fees and room and board, are $13,589 than a year earlier. |
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Out-of-state students at public four-year colleges and universities: Average published tuition and fees in 2007-08 are $16,640, $862 higher than they were in 2006-07. Average total charges are $24,044 higher than a year earlier. |
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Private four-year colleges and universities: Average published tuition and fees in 2007-08 are $23,712, $1,404 higher than they were in 2006-07. Average total charges, including tuition and fees and room and board are $32,307 higher than a year earlier. |
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For-profit institutions: Average published tuition and fees in 2007-08 are $12,089, $703 higher than in 2006-07. |
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| Financial Aid |
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Luckily, there are easily accessible forms of financial aid including grants, loans and scholarships available to assist you. |
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Grants |
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Also called gift aid, grants don't have to be repaid and you don't need to work to earn them. Grant aid comes from federal and state governments and from individual colleges. One of the most popular grants is the Federal Pell Grant This grant is a form of need-based financial aid, and unlike a loan, the money does not have to be repaid. Eligible students receive a specified amount each year under this program. You can apply for this and other grants by completing the FAFSA (Free Application for Federal Student Aid). |
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Click here for more information about the Pell Grant (http://www.collegeboard.com/student/pay/scholarships-and-aid/36318.html) and FAFSA (http://www.fafsa.ed.gov/) |
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Loans |
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Most financial aid comes in the form of loans, aid that must be repaid. Education loans come in three major categories: student loans (e.g., Stafford and Perkins loans), parent loans (e.g., PLUS loans) and private student loans (also called alternative student loans). |
Student Loans:
Most loans that are awarded based on financial need are low-interest loans sponsored by the federal government. These loans are subsidized by the government so no interest accrues until you begin repayment after you graduate. Student loans include the Federal Stafford and Federal Perkins Loans.
For more information about Stafford and Perkins loans or how to apply visit http://www.finaid.org/loans/studentloan.phtml
Parent Loans:
Parents can take out loans to cover any costs not already covered by the student's financial aid package, up to the full cost of attendance. There is no cumulative limit on how much a parent can borrow and like the Stafford Loan, PLUS loans are either FFELP (provided by private lenders, such as banks) or Direct (funds provided by the government). Unlike the Stafford and Perkins loans, Plus loans are not subsidized (interest is accrued immediately) and repayment begins 60 days after the funds are fully disbursed.
For more information about Parent Loans visit http://www.finaid.org/loans/parentloan.phtml
Private Student Loans:
Private Education Loans, also known as Alternative Education Loans, help bridge the gap between the actual cost of your education and the limited amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete. Eligibility for private student loans often depends on your credit score.
Private education loans tend to cost more than the education loans offered by the federal government, but are less expensive than credit card debt. Check with your bank and other institutions for more information.
Scholarships:
Scholarships are another type of financial aid that does not have to be repaid. Most scholarships are awarded to students with special qualifications, such as academic, athletic or artistic talent. Awards are also available for students who are interested in particular fields of study, who are members of underrepresented groups, who live in certain areas of the country or who demonstrate financial need.
There are thousands of scholarships available and just as many search engines to help you find them. You can search for scholarships using your favorite web search engine by including the word "scholarships" with your search keywords. Here are a few sites to visit:
You should also check out the scholarship page on this site.
Saving: Saving is another way to pay for your college education. It's a great way to decrease the amount of money you have to borrow and repay. Saving is also a great way to ensure that you have money for expense not covered by financial aid including school and dorm supplies, school clothes, and extra spending money.
For more tips and information about saving for college, click http://www.finaid.org/savings/
More Resources
Your college's financial aid office can provide you with information about paying for you education. For more resources on paying for college, visit www.collegeboard.com.
Here is a great financial aid checklist that will help you when applying for financial aid:
http://www.collegeanswer.com/global/checklists/PayingChecklist.pdf
http://www.collegeboard.com/student/pay/index.html
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