| With college tuition prices on a steady incline | | | | textbook costs. |
| that’s outstripping inflation, more and more | | | | - Know the consequences. Failure to adhere to your |
| students may need to rely on financial aid to help pay | | | | scholarship and grant requirements could cause you |
| for school. | | | | to lose your funding. Improper use of scholarship |
| Trying to decipher what your financial aid award | | | | funds could even result in you having to pay taxes |
| letters mean can seem complicated, but | | | | on the money you received. |
| we’ve got some basic guidance and insider | | | | Federal Work-Study Awards |
| know-how for you to help make the process a little | | | | Like scholarships and grants, work-study awards |
| more manageable. | | | | don’t have to be repaid and may be able to |
| Find Free Money First, Private Student Loans Last | | | | reduce the amount of money you need to take out |
| The rule of thumb when it comes to making the | | | | in. |
| most out of your financial aid options and minimizing | | | | The Federal Work-Study Program helps subsidize the |
| your student loan debt when you graduate is to first | | | | wages for certain school-approved part-time jobs |
| seek out funds that won’t need to be paid | | | | that are reserved for financially qualified students. |
| back — the scholarships and grants that are | | | | Federal work-study jobs are required to pay at least |
| essentially free money. | | | | the federal minimum wage. |
| Next, take advantage of all your available federal | | | | If you qualify for work-study, you may be able to |
| financial aid, like work-study and government-backed | | | | find a work-study job related to your academic or |
| student loans. In order to qualify for need-based | | | | personal interests that could not only help you pay |
| federal grants, work-study, and student loans, | | | | for college, but also boost your professional r?m?or |
| you’ll need to submit the Free Application for | | | | the future. |
| Federal Student Aid (FAFSA) each year. | | | | Federal Student Loans |
| Finally, if you’ve maxed out your scholarships, | | | | Many financial aid packages will include federal student |
| grants, and federal financial aid but still have | | | | loans when scholarships and work-study aren’t |
| education-related expenses to pay, you may be able | | | | enough to cover your full cost of attendance. |
| to get the additional money you need from private | | | | Although federal student loans will need to be repaid |
| student loans. Because federal student loans typically | | | | to the government, they offer low, fixed interest |
| offer more attractive terms than private student | | | | rates, low fees, and deferment and forbearance |
| loans, you should always look into your federal | | | | benefits. |
| financing options first. | | | | - Subsidized Stafford loans are awarded on the basis |
| Scholarships & Grants | | | | of financial need. The federal government pays the |
| Scholarships and grants should be the first funding | | | | interest on these students loans while you’re |
| source you look to because they don’t | | | | in school at least half-time, in your grace period, or in |
| require repayment and they won’t necessarily | | | | an authorized period of deferment. |
| require that you demonstrate financial need. Except | | | | Â |
| for the rare full-ride scholarship, most scholarships and | | | | - Unsubsidized Stafford loans are awarded without |
| grants won’t cover all your college costs, but | | | | regard to financial need. Although you won’t |
| you should still use them, whenever possible, to help | | | | be required to make any payments on these student |
| you tackle your education expenses. | | | | loans while you’re still in school at least |
| Schools will often deduct the amount of any | | | | half-time, interest is accumulating, and you’ll be |
| scholarship and grant awards from your student loans | | | | responsible for paying all accumulated interest, in |
| before reducing your institution-based aid. And | | | | addition to the principal. |
| anything that can help you keep your student debt | | | | - PLUS Loans are credit-based loans awarded to |
| to a minimum is a good thing. | | | | eligible parents of undergraduates. These college loans |
| Some scholarships and grants can be highly | | | | are awarded without regard to financial need and in |
| competitive; you should start searching and applying | | | | amounts up to 100% of your cost of attendance. |
| as early as possible to maximize the number of | | | | Private Student Loans |
| awards you have a chance to apply for. | | | | You should only turn to private student loans as a |
| Business Week magazine recommends paying close | | | | source of funding once you’ve exhausted all |
| attention to the terms, restrictions, and requirements | | | | your other college financing options. |
| of grants and scholarships because they can be very | | | | Private student loans are credit-based, not |
| specific and costly if mismanaged (“Comparing | | | | need-based, student loans. They typically carry |
| Financial Aid Offers,” Feb. 3, 2008). | | | | variable interest rates and may not offer the same |
| - Check award length. Grant and scholarship award | | | | deferment and forbearance benefits you get with |
| durations can vary from a semester to multiple | | | | federal college loans. |
| years, and you’ll want to know how long you | | | | Since federal student loans generally offer more |
| can plan on that award amount in your budget. | | | | attractive terms than private student loans, you |
| Â | | | | want to make sure you take advantage of your |
| - Keep requirements in mind. Some scholarships may | | | | available federal student loans first. |
| require you to maintain a certain GPA to keep your | | | | Learn more about Private Student Loans and Private |
| award or may stipulate that the money can only be | | | | Student Loan Consolidation. |
| used for specific purposes like tuition payments or | | | | |