Given
the potential for earning significantly more over one’s lifetime, a college
degree is a worthwhile investment.
Research shows that the earnings difference between a 28 year old
Bachelor’s degree recipient and a high school graduate is typically more than
$400 a week or over $20,000 more a year.
Nonetheless, figuring out ways to pay for college can be challenging. Beyond personal savings, there are four
basic sources for college financial aid:
- Federal student aid
- State
of Ohio aid
- Institutional aid
- Aid from outside
organizations
Sources of Financial Aid
Federal
Student Aid
A
student must file the Free Application for Federal Student Aid (FAFSA) to determine eligibility for need-based
assistance from the federal government.
If qualified, this assistance can come in the form of student loans, grant money or possibly a work award for a job on
campus. The FAFSA can be filed online at: www.fafsa.ed.gov
Note: www.fafsa.com is a fee-based FAFSA preparation service, NOT affiliated with U.S. Department of Education, and not required to complete the FAFSA.
State
of Ohio Aid
The
State of Ohio has multiple grant programs designed to give students money for
college expenses. Eligibility for
most of these programs is also based on FAFSA results. Visit www.highered.org/sgs for more information.
Institutional
Aid
Each
college sets its own criteria for institutional aid. Admitted students might be eligible for aid based on
academic achievement, artistic ability, leadership, demonstrated need and a
host of other factors. Applicants
should check with each college individually about what opportunities might be a
match for them. It is critical to
meet the priority deadlines set by each institution to be eligible.
Aid
from Outside Organizations
Local, state and national businesses, charities,
churches, foundations and other groups offer money each year to help students
attend college.
It is often best
to start your search with sources close to home first. A Call to College offers need-based
Last-Dollar Grants for qualified graduates. The Newark High School
guidance office posts lists of available scholarships on Naviance and sometimes has the
applications on hand.
In addition,
The Licking County Foundation has multiple scholarships that target qualified
NHS graduates.
Talking with
friends who have already headed off to college is another great resource for
investigating possible scholarship opportunities.
Types
of Financial Aid
Scholarships
The
term scholarship refers to gift money that does not need to be paid back. Oftentimes this money is awarded on the
basis of academic achievement, test scores, special talents or unique
characteristics. Some scholarships
may require that a student maintain a certain grade point average once in
college. Scholarships can come
from the college itself or outside organizations.
Grants
The
term grant refers to gift money awarded simply on the basis of need, most often
as determined by the Free Application for Federal Student Aid (FAFSA).
Loans
For many
students it becomes necessary to borrow money to help finance college. The first option to consider are
loans offered through the federal student loan program. By filing a FAFSA, a student will automatically be eligible for either a
subsidized (interest free) or unsubsidized (interest charged) loan, or perhaps
a combination of both. Loans must
be repaid after the student leaves college or graduates. In addition, parent or alternative
student loans may also be available.
Work-study
Through
the FAFSA, students may qualify for the Federal Work-study Program which allows
them to seek campus employment and work a limited number of hours throughout
the school year. Paychecks are
either disbursed directly to the student or the student can arrange to have
these funds deposited into their account and thereby credit their bill.
The
Free Application for Federal Student Aid (FAFSA)
This
form is required by nearly all colleges to determine eligibility for federal,
state and some forms of institutional aid. It can be completed online at www.fafsa.ed.gov and must be filed each year
a student seeks need-based aid. Be sure to provide a stable, permanent email and mailing address when filing online.
Most
students are eligible for eight semesters or twelve quarters of financial
aid. Families of new or current
college students can complete the form after January 1. Once the FAFSA is submitted, the
results will be sent to each college listed on the form.
The
PIN Number
A Personal Identification Number (PIN) is required to submit a FAFSA online and acts as an electronic signature. The student and ONE parent must each have one. Visit www.pin.ed.gov to create a personalized PIN or it can be obtained while filing the FAFSA. This number will be used to update and correct FAFSA information throughout college.
Helpful
“Financing Your Education” websites:
www.fafsa.ed.gov To complete the FAFSA,
update information and view results online
www.pin.ed.gov To set up your Personal
identification Number
www.college.gov A comprehensive web site for parents and students about going to college
www.studentaid.ed.gov An “all-in-one” resource for financial
aid information
www.finaid.org An independent
source for general information about financing college and scholarship scam
information
www.fastweb.com
Detailed scholarship search site, including updates