Federal Aid vs Private Aid

While considering going into online education, you’ll have things on your mind other than choosing an institution and degree. Paying for distance learning might be on the top of that list. A number of people cannot pay for school themselves for of different reasons. Maybe you’re having marital problems, which are leaving you in debt and with a desperate need for money. Or, you’re a student and paying for your own education, but are unable to find time to work and study simultaneously. Or, the current state of the economy has hit you, and you’ve lost your regular flow of income. If you find yourself in one of these categories or more, don’t worry. We have a solution.

#1: Federal Student Aid

The first investor you should look at is the government. They provide loads of financial aid in the form of loans, grants, and work-study programs, even for online schooling. Here’s a breakdown of the different types of federal financial aid:

FAFSA

So the FAFSA isn’t financial aid in itself, but it is required that you fill it out if you want to receive any other type of federal financial aid. FAFSA, or the Free Application for Federal Student Aid, is a form you can fill out and submit online in about an hour. Through the FAFSA, the government decides your need for financial aid, and awards you money based on that amount. In order to receive a federal grant or loan, you must submit the FAFSA. Also, many institutions require that you send in the FAFSA, so they can assess your financial need, as well. So, before applying for any grants, scholarships, or loans, fill out the FAFSA. You can read about the requirements and steps to submit the online FASFA at www.fafsa.ed.gov. Fill it out earlier than later, because the FAFSA can take a lot more time to complete than you think.

Student Loans

The government offers five different student loans, of which the Stafford Loan is the most popular. Basically, when a student receives a loan, that person gets a certain amount of money to pay for his or her education. However, student loans act like any other loans and have an interest rate, albeit lower than regular loan’s interest rates; but, the student only has to pay for interest until his or her graduation. Another thing to consider when applying for a loan is subsidy. Depending on the student and the family’s financial need, subsidized or unsubsidized loans could benefit or worsen the student’s financial status during school. (learn more…)

Student Grants

Unlike student loans, student grants do not have interests and student’s do not have to repay them. However, like for loans, for federal grants, students must submit the FAFSA. Once again, there are five types of federal grants available to students. Some are based on financial need and others are based on the student’s area of study. The most popular student grant is the Pell Grant, a need-based grant for U.S. Citizens attending a federally approved school (this includes online institutions). In order to receive two of the other four grants, students must apply for and receive the Pell Grant. Federal grants attract a large number of students, but remember to check the eligibility requirements of each one, as they may restrict or exempt students from applying for a grant. (learn more…)

Work-Study Programs

Though the government awards money for work-study programs, or FWS, the institutions must participate in work-study programs for a student to have it as an option. This is a way for students to pay as they go through college. The financial aid administrators of the institutions must work with the government to determine the student’s financial need after acceptance into the program. Then, the student can work part-time for no less than the federal minimum wage per hour. Once again, the FWS requires that students fill out the FAFSA in order to determine their financial need. (learn more…)

Remember to contact the college you’re interested in to check if they work with the federal aid agencies to meet your needs, some online colleges may not have such program because you do not go to a physical campus. If you want to find out about your other options, then check into private and institutional financial aid.

#2: Private Student Aid

Many private agencies and sectors offer forms of financial aid, such as employers, individuals, companies, high schools and colleges, religious groups, and professional associations, to name a few. With all these groups and individuals looking to hand out money to students, it should be easy finding a donor to help you get through school, right? Unfortunately, it’s not as easy as it sounds. But we’ll help you through the tough spots in our step-by-step guide to receiving private financial aid!

Step 1: Know what you want

Many scholarships, grants, or loans are offered by the area of study, the type of school you wish to attend, and the qualifications of the student. So, once you confirm what you want to study and what type of college you wish to attend (online, 4-year, 2-year, etc.), you can narrow your search of private aid agencies down a lot, saving your time and energy.

Step 2: Look at the right private aid agencies

For instance, if you are a single mom applying to an online school, it wouldn’t make sense for you to look at scholarships offered to undergraduate students attending a 4-year campus college. So, by doing your research properly, you could find financial aid that covers all of your costs because of what the agency supports and what you have to offer. Also, remember to check with the college whether they give financial aid or not, and how to apply.

Step 3: Read through the benefits, rates, and terms THOROUGHLY

Once you find private aid that suits your needs perfectly, your first impulse is to fill out the application and send it in as soon as possible, especially after all the hard work you went through to find it! However, it’s important to slow down just enough to read through the “fine print”. Though the scholarship you find is for a person going into your area of study, double check what type of institution it’s for. Also, private aid usually contains many eligibility requirements, such as religious affiliation, sexuality, fiscal status, etc. If the private aid you have found still contains what you want once you read through it, then you’re ready to apply!

Step 4: Downplay your weaknesses and exalt your strengths

When applying, it’s important for the person reading your application to think you are the best student who has ever come to Earth, even if you’re not. Each person has different strengths and weaknesses, and the agencies are looking for the people who have the most unique set of characteristics who will make good use of the aid they are offering. So, dedicate yourself to showing the private aid agencies why you need the money from them, and how they are making a good decision by awarding it to you.

Step 5: Wait and see!

Finally, you’ve finished all the hard work, so now all you have to do is wait! Even if you don’t receive the scholarship, loan, or grant that you apply for, remember that there are tons of other financial aid opportunities out there for you to apply to. There’s always a way to pay for school, so sit back, relax, and get ready to study! Congratulations!

Below, www.OnlineCollegeGuru.com has started off your search by giving you some names of institutions targeted at assisting certain types of students. Remember, this is just the catalyst to what should be a very vigorous and exciting search!

For Women

  • American Association of University Women – grants, fellowships, awards
  • Business and Professional Women’s Foundation – career advancement scholarships to women
  • Society of Women Engineers
  • Association for Women in Science
  • Educational Foundation for Women in Accounting
  • ExcelsiorCollege

For Military Officials

Spouse & Family

  • Career Advancement Accounts Program
  • Dependents Education Assistance Program
  • State Education Benefits
  • Stateside Spouse Education Assistance Program
  • Spouse Education Assistance Program
  • General Henry H. Arnold Education Grant Program
  • General George S. Brown Spouse Tuition Assistance Program (STAP)
    • Undergraduate level - maximum of $300 @semester and $1500 @ year.
    • Graduate level - maximum of $350 @ semester and $1750 @ year.
  • VADM E.P. Travers Scholarship and Loan Program
    • 1000 grants are awarded each academic year at $2000 each
    • Applicants are also evaluated for an interest-free student loan of up to $3000.
    • The loan repayment begins within 30 days ofaward and must be repaid by allotment within 24 months.
    • Application deadline is 1 March of each year.
    • Late applications will not be considered for the scholarship; however they will be evaluated for a loan.
  • Coast guard – cgfdn.org

  • SOCMAR – Service member’s Opportunity Colleges degree program for Marines

  •   [TheNavy-Marine Corps Relief Society (NMCRS)]

  • The Admiral Mike Boorda Seaman-to-Admiral Educational Assistance Program

  • Enlisted Commissioning Program

  • Marine Enlisted Commissioning Education Program

  • Medical Enlisted Commissioning Program

For Working Professionals

  • Working to maintain or improve standing in current profession:
  • Tax deductions
  • Life time Learning Credit
  • Kiplinger.com
  • Age:
    • Between ages of 60-65
    • Save 50%-100% of cost of tuition
    • Attend state college or university
    • Individual institutions that offer tuition discount
  • Service Programs:
    • Pay for school by doing service
    • AmeriCorps, Learn and Service America, Peace Corps
    • Require that you serve for period of time first
    • Pay for part or all of college education
  • Job Experience:
    • Credit of experience you’ve gained
    • Don’t take as many courses to complete degree
  • IRA funds:
    • Borrowed to pay for continuing educational expenses
    • Interest free
    • Precise terms and stiff penalties

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