Financial Aid 101: Part 2

The last post covered the different types of financial aid. Now, let's examine ways of finding and applying for financial aid.

To apply for any type of federal financial aid (Pell Grant, Federal Work Study Program, Loans, etc) you must complete the Federal Application for Free Student Aid or FAFSA form for short. You will need your prior year's taxes to file this form. If you a dependent student, you will need your parent or guardian's tax information. While you can apply using a paper application, you are better off applying online. You're information will be received and processed much faster if you apply online. To apply online go to http://www.fafsa.ed.gov/. To electronically sign the form you will need to request a PIN number (if you're a dependent student your parent/guardian will need one too). This is easy and free to get, but it will take a few days before the PIN is sent to you.

The key to the FAFSA is to apply as soon as you can. As soon as your taxes have been filed, you'll want to file for financial aid for the next academic year. Remember, this is federal money and students from all across the United States are applying for this money. There's only so much that's available, so apply early to make sure you get your maximum award.

To find other types of student aid (scholarships and private grants) you'll have to do some research. If you're a high school student your number one resource is your guidance counselor. They will know about lots of local scholarships that are available. Local scholarships (or scholarships provided by groups or organizations in your local area) are what I call the low-hanging fruit. You will be competing against a smaller pool of applicants so you're chances of winning one of these awards are better than competing for national scholarships.

If your parents belong to any clubs or organizations (Lions Club, Rotary Club, etc) ask them if these groups offer any scholarships for its members. You may be able to compete for some of these scholarships because of your parent's group memberships. Along those lines, inquire with your house of worship. Often churches or church associations offer some type of educational assistance.

One of the best scholarship resources online is www.fastweb.com. Fastweb acts will alert you a large number of scholarships that you may be interested in. Fastweb is free to join.

This brings up a key point: When you're looking for scholarships beware of scams. Anything that requires you to pay or send money is a big red flag. You're looking for free money--so why would you need to send in money? Well, you shouldn't. If you come across a website that guarantees you scholarship money for a fee leave the site immediately.

If you're a resident of Southern Virginia you should look into the Southside Tobacco Loan Forgiveness Program. This money is available to individuals who live in the VA Tobacco Commission's large reach. They treat the money awarded as a loan, BUT for every year you work in Southern Virginia in the field you were trained in they will forgive one year of your loan. The goal is to have students stay in the region, working and contributing to the economy. If you're willing to do this you won't have to repay the money. Go to www.tic.virginia.gov to learn more and to apply.

Finally, when you're thinking about what school you'll attend, ask them what type of financial aid they offer. Most if not all will have some type of scholarships and grants available to students. Some schools automatically consider you for this money when you apply; others require a separate (usually short) scholarship application. You'll want to ask about this very early in the process.

Financial Aid Resources

www.fafsa.ed.gov
www.fastweb.com
www.collegescholarships.org
http://www.tic.virginia.gov/

Hope Harris-Gayles, M.Ed

Financial Aid 101: Part 1

Financial aid is the broad umbrella term that covers all money you can get to pay for college. There are several types of financial aid:

1. Grants
2. Scholarships
   
3. Loans

This post will examine the three types of financial aid; part II will look at ways to find and apply for financial aid.
Grants
People will often refer to grants as "free money." That's because this type of financial aid does not have to be repaid. Grants are generally need based, meaning you generally have to demonstrate a financial need to be eligible for them. There are 2 types of grants: federal and private.
Federal grants, as you may think, comes from the federal government. The federal government sets aside a large sum of money that's specifically available for students to use to go to college. This is not a gimmick--it really does exists and it does not cost you anything to get it.
Private grants are made available through private citizens generally through foundations or civic organizations. Again, this money does not need to be repaid. The eligibility and criteria for receiving this money will depend on the organization or group offering the money. You will need to read the eligibility guidelines and application materials carefully.

Scholarships
Like grants, scholarships are "free money" for educational purposes. There are all sorts of scholarships given for any number of reasons. Some are given for academic achievement (merit based); others are given to student athletes so they can play sports in college; still other scholarships are given to students who have certain characteristics (like being of a certain religious sect or being a minority for example). Scholarships are offered by a large number of private citizens, foundations, and organizations, each one with its own set of applicant criteria. If you search on the web or go to the public library, you will find a number of resources to help you find scholarships. In addition, if you are a high school student consult your guidance counselor. They will often be the first point of contact when scholarships become available.

Loans
Student loans are the "black sheep" of the financial aid family. Why? Because this is money that you are borrowing, and therefore must be repaid. But, for people who are unable to receive grants or scholarships, student loans provide a way for you to still afford a college degree. So student loans are not necessarily evil; if handled responsibly they can be an important means you of reaching your career goals and investing in your future.
There are loans available through the federal government as well as private lenders (banks, etc). If you must get a student loan you want to try to get a federal student loan. Private loans, for a whole host of reasons, is not the road you want to travel down. Federal loans will have the lowest interest rates and best terms for you in the long run. The government offers 2 types of loans (keeping in mind that both types must be repaid): subsidized and unsubsidized.The main thing to remember about any loan is this: do not as in never no matter how tempting, borrow more money than you need. Believe me, you'll regret it 20 years later when you're still (literally) paying that student loan.
Subsidized Loan: With any loan, interest must be paid. It is simply the cost of you using the money. With a subsidized loan, however, the federal government pays the interest for you while you are a student. That means when you graduate and begin repaying your loan you start out repaying only the amount you borrowed. Now, as you enter the repayment phase you will become responsible for paying the interest.
Unsubsidized Loan: With unsubsidized student loans the federal government does not pay the interest for you. That means that even while you're in school interest will be accruing (or building up). You can choose to may interest payments while you're in school, or choose to have the interest capitalized (that means the interest is added to the amount you borrowed).

Now that you have a basic understanding of the types of financial aid the next post will explore ways to find and apply for financial aid.

Hope Harris-Gayles, M.Ed

How Do I Find the Right College/Program for Me?

Finding the right program can be a stressful experience. You may feel that if you don't find the perfect program then your entire professional life is doomed. You need not feel this pressure. First, studies tell us that the majority of people will change jobs 7-10 times in their working lives. I know I didn't believe it either, but at the ripe old age of 28 I'm currently on my 4th career since earning my undergraduate degree.

Now, how to go about a college/program search. First, let's look at how to find a suitable program. If you know the type of job you eventually want to do, that may determine what program you need to find. For example, if you want to be a graphic designer, you'll want to pursue a graphic design or art degree. That in turn, may lead you to the right school (as you'll want to attend a school with a strong graphic design and/or art program).

If you don't know what you "want to be when you grow up" then start by evaluating your interests and hobbies. What are the things you love to do? What are the things that make you feel at peace? What would you do for free? Tap into those things and then research ways to use those skills or work in that industry and get paid. If you don't have a clear idea, or if you have 20 things you'd love to do it may help to take a career assessment. The HEC Career Office offers free career testing and advising. You need only call and make an appointment. Taking assessments like CareerScope or personality assessments like the Strong Interest Inventory or the Myers-Briggs Personality Type Indicator are helpful ways of pointing you in the right direction.

Once you've made sense of what you enjoy doing or a career you're interested in, look for programs and schools that are strong in those areas. In college, I had a friend who wanted to be a journalist, but was attending a school that did not have a journalism degree. While she loved everything about the college, she had to transfer to another that would prepare her for her chosen career. She's a great example for another reason: she didn't find the right school on the first try. Don't make a challenging decision any harder with undue stress of making the perfect choice. If you start a program or enroll at a school and you realize it's not where you need to be, then it's ok to transfer.

Finally, it's always helpful to talk to people who have walked the path you're about to embark on. Talk to people who work in the field or industry you'd like to enter; talk to people who are enrolled at the college you'd like to attend; talk to people who are majoring in the subject you'd like to pursue. Ask them how they like the program/school and what they dislike. If you're speaking to someone working in your chosen industry ask them what a typical day is like. Ask them how they entered the field, and what advice they have for you. There's nothing like learning from someone else's life experience.

Did you have difficulty finding your eventual college program? Still undecided about what you want to pursue? Leave a comment. Let's get the discussion started!

Hope Harris-Gayles, M.Ed

Is College Right For Me?

The short answer is yes. Yes, college is for you; it's for me...college is for everyone. Whether it's a community college, trade school, or 4-year university, post-secondary training of some kind is for you. And more importantly, in today's global economy it is extremely necessary. The jobs of today, and the future, require highly skilled workers. The low or no-skilled, high-paying manufacturing jobs of years ago are gone never to return. The HEC is located in South Boston, Virginia--a region in Southern Virginia hit hard with the loss of its 2 dominant industries: tobacco and textile manufacturing. As this region has learned, those jobs that once sustained an entire economy have been forever lost, and we must think differently and educate ourselves differently to survive. The same is true for you, no matter where you live. Some form of training and education after high school is a neccessity. Increasingly, the minimum standard to gain employment is a college degree. So, yes college is definitely for you.
Ready to go to college but don't know how to find the right program or school? Be sure to read my next post.

Hope Harris-Gayles, M.Ed