Looking for ways to help pay for the journey

If your journey requires you to get additional training after high school, you’ll need a way to pay for it. Financial aid is a fiscal opportunity to pursue post-secondary education. Everyone qualifies, because financial aid ranges from loans to full-tuition scholarships. Once the college application process has begun, take note of each college’s financial aid deadlines and direct any questions to the school’s financial adviser.

The Internet is the best way to find the most current and accurate information on general financial aid issues. Resources include:
• U.S. Department of Education (www.ed.gov/finaid)
• Virginia Department of Education (www.doe.virginia.gov/VDOE/ Instruction/specprog/)
• FinAid.com

SCHOLARSHIPS
Scholarships are free money that is earned based on merit (academics; talent), financial need, and/or random drawings that can be used for post-secondary education. The Internet has the most current information about available scholarships. Several Web sites are listed on the Web resources on page 3. Check with your guidance counselor to see what local scholarships are available.

Beware of scholarship scams. Sometimes scholarship offices require an application fee or will offer a “guarantee” of financial aid. Be careful! The Federal Trade Commission has some guidelines on how to spot illegitimate scholarships. (www.ftc.gov/bcp/conline/edcams/scholarship/).

GRANTS AND LOANS
In addition to providing scholarships, colleges and universities offer other opportunities for financial aid. Most colleges will require you and a parent or guardian to complete the Free Application for Federal Student Aid (FAFSA) to be considered for financial aid. The FAFSA application is available on paper and online (www.fafsa.ed.gov), although the online version is simpler and quicker.
Government assistance can come in several forms. The first category, known as “gift aid,” does not need to be repaid. Gift aid includes:

• Federal Pell Grants, which help students who are attending eligible public or private post-secondary schools foot their tuition bills. Aid is primarily based on financial need.
• Federal Work-Study programs provide part-time jobs for eligible to pay for educational costs.
• Virginia Tuition Assistance Grants give up to $2,500 to eligible undergraduate students for tuition at private Virginia colleges.

The second category, known as “self-help aid” does need to be repaid. The federal government offers several low-interest loans:

• Stafford Loans are awarded on the basis of financial need and come in two forms. With a subsidized loan, the government pays the interest while the student attends school. Under an unsubsidized loan, the student is responsible for paying the interest.
• Perkins Loan is a low-interest loan to students who have exceptional financial need.
• PLUS (Parent Loan for Undergraduate Students) allows a parent to get a loan on behalf of the student and is not based on financial need.

If your combined loans, grants, and scholarships aren’t enough, private or alternative loans are your last stop. With private loans, interest rates usually are higher, but you can borrow more and apply your money to more institutions.

MILITARY STUDENT AID
Another financial aid option is the military. You can find information by visiting www.military.com and clicking on EDUCATION.

•Service Academies only accept well-rounded students with high academic records, but the payoff is immense. Service academy graduates have a guaranteed job after graduation and have all costs paid for, including a monthly stipend for expenses.
• ROTC Scholarships offer the opportunity to attend a civilian school while taking classes in military science and leadership development that will lead to a career in the military. Upon graduation, students are commissioned as officers in the military and must fulfill a service commitment.
• The Montgomery GI Bill and other programs allow students who enlist directly in the military to earn funds for college that can be used after leaving the military.

COLLEGE SAVINGS PLANS
The Virginia College Savings Plan offers three ways to save for college and get some pretty sweet tax advantages.

• The Virginia Prepaid Education Program (VPEP) locks in future college costs for students in the 10th grade or younger. VPEP covers full tuition and mandatory fees at Virginia public colleges.
• The Virginia Education Savings Trust (VEST) gives parents their choice of 11 investment funds, and all students can participate, regardless of where they live.
• The CollegeAmerica Program works in conjunction with American Funds, one of the largest mutual fund companies in the country. With CollegeAmerica, you can save for all major college expenses.

More detailed information can be found on their Web site – www.virginia529.com or by calling 1-888-567-0540.

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