Paying for college has always been a matter of huge concern for the families, and the amount of money required to pay for the college comes just second to the cost incurred while buying a home.
Even the families with above average income require some or the other kind of financial help to pay for the college. Luckily, there are many sources that help the students pay their college fees, and make their college life more affordable.
The Financial Aid Scenario (Options & Opportunities)
A year ago, there were more than $249 billion in student financial aid funds stores, accessible to help students and their families pay for their college education. Nearly two- thirds of the aggregate, that is $161 billion, came from the government (counting $96 billion in federal education loans), $10 billion from state governments, $51 billion from schools and colleges, and $27 billion from private sources (such as private student loans and scholarships, and various employer tuition fee waivers).
Basically, there are four types of student financial aid - grants and scholarships, work- study, education tax benefits and education loans.
- SCHOLARSHIPS AND GRANTS: These are the best kind of aid, as they won’t have to be repaid. While grants are given solely on the basis of the student’s demonstrated financial need, the scholarships are allotted on the basis of merit, such as academic, athletic, or artistic talent. Each year, the government awards $100 billion worth of grants, and the scholarships come from various private sources.
- EDUCATIONAL TAX BENEFITS: Through this program, the families get back the money on their income tax return, on the basis of the amount paid to incur college costs. American Opportunity Tax Credit, Lifetime Learning Tax Credit, Student Loan Interest Deduction and other Tax Credit and Deduction, come under this program.
- WORK-STUDY: The Work-Study programs help students by providing them part-time employments, so that they can use the earned money for their education.
- Education Loans: The college helps the student avail loan from various sources to pay for their college education
Other lessons on FAFSA