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Finding Funding for Your Child’s Education
Many parents begin to think about their child’s college education when their child is young, and many parents worry about how they will pay for it. The cost of a college education continues to escalate and it is a serious concern for most parents who know that the best investment they can make for their child is education. However, some parents believe that the only thing harder than helping their child get into college is paying for it. The truth is that paying for college can be possible for most families as long as all the options are explored. There are many sources for funding, including grants, scholarships, loans and work-study programs — the challenge is to know where to find more information. Here are some useful tips for tracking down the funding that will help your family pay for your child’s college tuition.

What is a grant? A grant is awarded (usually through the federal or state government or a university) based on need rather than merit. Grants are a desirable way to pay for college because the money is tax free with no obligation to repay. (To learn more about grants and how to apply, visit www.studentaid.ed.gov.) They are most often awarded to students who fall into the following categories:

Student-specific grants: These grants are often awarded
to students who are disadvantaged, low income or have decided to attend college later in life. There are even grants available to students who are the first in their family to attend college. Companies like Sallie Mae and Coca-Cola
provide grants to first-generation college students from disadvantaged backgrounds.

Subject-specific grants: These grants are awarded to students who agree to study a specific subject in college. The military offers many subject-specific grants for engineering, medicine and other professions that will help men and women in uniform. In addition, there are many undergraduate grants given by universities to students wishing to study science, math, engineering and technology. Corporations spend millions of dollars offering internships, fellowships, scholarships and grants intended to attract academically driven and talented minority and disadvantaged students to their corporate folds.
Degree-level grants: Graduate and doctoral students have grant options available to them through private funding or their university, especially if they must travel or participate in study-abroad programs. These grants often support research and living expenses.

Minority grant opportunities: Many federal, state, college or private organizations subsidize need-based aid awards for minority students. There are many grants available for women, African-American, Hispanic, Native American and Asian-American students.

What is a scholarship? Just like grants, scholarships are tax free and do not need to be paid back. A scholarship is earned based upon specific criteria. Several different scholarships exist, including:

Athletic scholarship: Typically offered only to the best athletes, these desirable scholarships are awarded by colleges and universities and require superior athletic ability that is recognized by college scouts. If your student is athletically talented, contact your child’s high school coach, who may
be able to help.

Academic scholarship: These scholarships are often — but not only — awarded to students with excellent academic success. Sometimes scholarships are awarded to students who may not have received all A’s for four years, but
have shown dramatic scholastic improvement, overcome difficult obstacles, or shown outstanding success helping their communities. Chances are there is a scholarship that will match well with your child.

Private scholarship: There are many privately funded scholarships available. Some are awarded by random lottery, some to students who show interest in a given field, and some to students who write a winning essay. Receiving one of these scholarships might be as easy as applying.

Begin your search as early as middle school to see if you can find the perfect scholarship for your budding college student.

What about exploring a work-study program? Many financial aid packages include a work-study component, where the student has a (usually on-campus) job and most, if not all, of the wages go toward education expenses. Research indicates that students who work while attending school learn to balance school and work and perform better in school.

The Government is an Excellent Source
of help for college-bound students. Although you may not think you qualify for financial aid, you might be surprised. Besides, it’s never too early to start planning to minimize financial stress. That is why it is important to fill out a Free Application for Federal Student Aid (FAFSA) before your child applies to college. The FAFSA should be carefully completed by January of your child’s senior year in high school. This form will help your family obtain federal grants as well as state aid. Log on to www.fafsa.ed.gov for more information.

You may need a loan. If you must borrow for your child’s education, look into subsidized loans. In a subsidized loan, the government pays the interest on the loan while a student is still in school. This loan can help pay for books and other necessities, and it won’t require repayment to begin until six months after graduation.

It is never too early to start a 529 savings plan. A 529 plan is an excellent way for families with children of any age to start saving for college. The interest
and withdrawals used to pay for college are tax free, making it a great savings opportunity. For more information, www.savingforcollege.com.

In addition to working with your child’s guidance counselor, the Internet has become a powerful tool to help parents secure college funding. These sites will provide more information to help students plan for financing their college education:
Petersons.com
Scholarships.com
FastWeb.com
Princeton Review