Finding Money To Fund Your Post-Secondary Education

“No one should be denied the opportunity to get an education and increase their earning potential based solely on their inability to pay for a college education.” Bobby Scott

One of the most important factors for many students and parents in regard to whether one will be able to further their education and training beyond high schools is whether or not they will be able to afford it. Available funding can be a major obstacle for many who want to continue their education beyond high school. Such concerns are not unfounded in that the cost of post-secondary education is significant today and continues to rise year by year. As a matter-of-fact, according to data supplied by the College Board, the average yearly cost of tuition and fees is at approximately $34,740 at a private college/university, $9,970 for state residents at a public college/university, and $25,620 for out-of-state residents attending a public college/university. That is a chunk of money out of any family’s budget.

While the cost of post-secondary education or training can be a bit daunting and intimidating, the encouraging news is that there are means of financial help for anyone who has the will and desire to pursue that goal. That is why I want to start of this year of by looking again at what resources are available to anyone who has the desire to educate and train themselves beyond high school. Those financial resources are provided by our government at the federal and state level. Colleges/ universities, private organization and companies also provide financial assistance to students as well through scholarships.

Following is a listing of a few scholarship sources provided through private organizations and companies.

Scholarships

Jackie Robinson Foundation Scholarship

Deadline: February 1, 2018 Award Amount: Up to $30,000

Awarded to minority high school graduating seniors
plan to attend an accredited 4-year college or university in the U.S.
show leadership potential
show a commitment to community service
show evidence of financial need
have a minimum SAT score of 1,000 combined math and reading or an ACT score of 21
be a U.S. citizen.

Website to apply: Jackie Robinson

2. Excellence in Service Leadership Award

Deadline: February 15, 2018 Award Amount: $3,000

This award is granted to undergraduate and graduate students in the U.S. who apply their knowledge to serving others in their community.

Website to apply: Scholar Serve

3. The Davidson Fellows Scholarship

Deadline: February 14, 2018 Award Amount: $10,000 – $50,000

Be 18 years of age or younger as of October 1, 2018
be a U.S. citizen residing in the U.S., a permanent resident of the U.S. whose residing in the U.S., or be stationed overseas due to active U.S. military duty
have completed a significant piece of work in the categories of science, technology, engineering, mathematics, literature, music , philosophy or in a category entitled Outside The Box.

Website to apply: Davidson Fellows

4. UNCF STEM Scholars Program

Deadline: February 15, 2018 Award Amount: $20,000

Be of African American decent
be citizen or permanent resident of national of the U.S.
have a cumulative 3.0 GPA
have demonstrated high level of academic performance in math and science
show evidence of readiness for and commitment to pursue a STEM major
demonstrate financial need.

Website to apply: UNCF

5. Toyota Teen Drive365 Video Challenge

Deadline: February 28, 2018 Award Amount: $15,000

Participant must creat a 30-60 second video for their fellow teen driver that highlights the importance of safe teen driving.

Website to apply: Teen Drive365

6. Blacks At Microsoft Scholarship

Deadline: March 1, 2018 Award Amount: $5,000

High school senior of African decent
plan to attend a 4-year college or university in the fall following high school graduation
demonstrate a passion for technology
plan to pursue a degree in engineering, computer science, computer information systems, finance, business administration, or marketing
demonstrate leadership at school or in the community
have a cumulative GPA of 3.3 or higher
show financial need.

Website to apply: Microsoft

7. Scholarships 4Moms

Deadline: March 15, 2018 Award Amount: $10,000

Must be a resident of the U.S.
Must be at least 18 years of age.

Website to apply: 4Moms

8. Central Intelligence Agency (CIA) Undergraduate Scholarship

Application Start Date: April 1, 2018

This is a need based scholarship that offers undergraduate students the opportunity to attend an accredited college/university on a full-time basis and then work during their summer break at the CIA in Washington D.C. If you are selected as a scholarship recipient and accept the offer, then you would be agreeing, as well, to continue your employment with the CIA for a specified time frame upon graduation from college. As a scholarship recipient the following is what you would receive:

tuition assistance up to $18,000 per calendar year
daily allowance for meals and incidentals during your summer employment months
salary for your summer employment
health insurance
participation in the Federal retirement plan
paid time off, sick leave and holiday leave.

Website to apply: CIA

9. A Place For Mom Senior Care Scholarship

Deadline: April 1, 2018 Award Amount: $1,000

Student must be interested in the field of aging and gerontology
be citizen or permanent resident of the U.S. or Canada (excluding Quebec)
enrolled and taking classes at an accredited college or university in the U.S. or Canada (excluding Quebec).

Website to apply: A Place For Mom

10. Dr. Angela E. Grant Memorial Scholarship

Deadline: May 1, 2018 Award Amount: Up to $5,000

Be a U.S. citizen
be a cancer survivor who is actively pursuing or plan to pursue a college education in any field of study or have a family member who has been diagnosed with cancer
exhibit leadership, community involvement, exemplary character and high academic standards.

Website to apply: Dr. Angela Grant

11. American Indian Graduate Center

Deadline: May 1, 2018 Award Amount: Varies

The American Indian Graduate Center administers a number of scholarships geared toward native americans. Please visit the below website for more information and to apply:

Website to apply: American Indian

12. Actuarial Diversity Scholarship

Deadline: May 2, 2018 Award Amount: $4,000

Must have at least one parent of African American, Hispanic, Native North American, or Pacific Islander decent
must be pursuing a career in the actuarial profession
will be a full-time undergraduate student at a U.S. accredited educational institution
must have a minimum GPA of 3.0 with an emphasis on math or actuarial courses
entering college freshman msut have a minimum ACT score of 28 or SAT score of 620.

Website to apply: Actuarial

The following websites list a number of scholarships sources you may be eligible for and should apply for. Most all of the sites are free and can be used by any and everyone to do continuous research on their own.

Scholarship Search Website

Regardless of a student’s family financial situation, (low-income, middle-income, or high-income) every student applying for and intending to go to a post-secondary institution should apply for federal financial aid. State-sponsored student financial aid, college and university provided scholarships, and scholarships offered by private organization may require you to first submit a FAFSA (Free Application For Federal Student Aid). That is why we want to highlight, via this post, all the possible federal financial aid sources a student may be considered for as a result of submitting their FAFSA.

Federal Financial Aid

Students who will be attending college during the school period of July 1, 2018 to June 30, 2019 was able to began the process of submitting the FAFSA application as of October 1, 2017. With the change in the application start date to October 1, parents and students will be using income and tax information from their previous year tax return. Therefore, with the application start date of October 1, 2017, parents and students will use the federal income tax data from 2016 tax return. Students can complete their FAFSA online by going to fafsa.ed.gov.

Once a FAFSA is submitted, students may be considered for federal aid in the form of grants, loans, and work study. Following is an explanation of each of these sources.

Federal Grants

There are approximately 4 grants that are available through the U.S. Department of Education. Those grants are the Pell Grant, Federal Supplemental Educational Opportunity ( FSEOG) Grant, Teacher Education Assistance for College and Higher Education (TEACH) Grant, and the Iraq and Afghanistan Service (IASG) Grant.

Pell Grant

The Pell Grant is awarded to a student who has not yet received a bachelor’s or professional degree and whose Expected Family Contribution (EFC) meet certain federal eligibility guidelines.

(Please note: The Expected Family Contribution (EFC) indicator lets you know the amount your family is expected to contribute toward your educational cost).

In addition, students who are in a post-baccalaureate teaching certification program may also qualify for the Pell Grant. A Pell Grant can be received by a student for no more than 12 semester periods (approximately 6 years)

If you are imprisoned or if you are under an involuntary commitment after completing a prison sentence for a sexual offense, you will not be eligible for the Pell Grant.

Currently, maximum award amount of the Pell Grant for the 2017-2018 school year is $5,920. The amount an individual receives, however, will depend on:

financial need
cost of attendance at their chosen school
whether they are a part-time or full-time student
whether they plan to attend school for the full academic year.

Federal Supplemental Educational Opportunity Grant (FSEOG)

The FSEOG is awarded to undergraduate students who will be receiving the Pell Grant but have also been identified as a student with exceptional financial need (e.g. students with the lowest Expected Family Contribution). Grants can range from $100 to $4,000 per year depending on the extent of a student’s financial need.

Not all schools participate in the FSEOG. A student will need to check with their chosen school’s financial aid office to determine if they do participate. Schools award the FSEOG on a first-come first-serve bases.

Teacher Education Assistance for College and Higher Education (TEACH) Grant

The TEACH grant was created in 2007 through the College Cost Reduction and Access Act. It’s purpose is to provide funding to students who plan to become teachers. Not all colleges and universities participate in the TEACH grant program, so students will have to check with their school’s financial aid office to verify if they do participate and which of their programs qualify for the TEACH grant.

Students who are eligible for the grant are:

undergraduate students
graduate students
students enrolled in a post-baccalaureate teacher certification program
current and former teachers who are seeking additional education.

Individuals, who are awarded the TEACH grant and are full-time students, may receive up to $4,000 per year for a maximum of $16,000 for undergraduate school and $8,000 for graduate school.

**Please Note**: As of the 2017-2018 school year, any TEACH grant first disbursed on or after October 1, 2017 but before October 1, 2018, will be reduced by 6.6% ($264) resulting in a maximum award of $3,736/year.

Anyone who receives and accept the TEACH grant will be required to sign an Agreement to Serve Contract. Within this contract the student is agreeing that they will be a highly qualified teacher who will teach a high need subject in an elementary or secondary school that serves students from low-income families. They are also agreeing to teach in a low-income school for at least 4 years. The high need subject areas include: math, science, reading, special education, foreign language, bilingual education, and English language acquisition.

If a student receives the grant but then choose not to teach or fails to meet the requirements of the Agreement to Serve Contract, then the TEACH grant will be converted into a Federal Direct Unsubsidized Loan. If that happens, a student will be granted a 6-month grace period upon leaving school before repayment of the loan began. Interest will be charged on the loan from the date the TEACH grant was disbursed to the student.

Iraq and Afghanistan Service Grant (IASG)

This grant is awarded to students whose parent or guardian was a member of the U.S. Armed Forces and died as a result of performing military service in Iraq or Afghanistan following the events of 911. Other qualifying criteria a student must meet for the award are as follows:

must not be eligible for the Federal Pell Grant on the bases of the Expected Family Contribution but can meet the other eligibility requirements for the Pell Grant
must not possess a bachelor’s degree and must be enrolled in college at least part-time
must be under the age of 24 or enrolled in college at the time of the parent or guardian’s death.

The award amount that a student can receive can be up to the maximum Pell Grant amount for the year, however, it will not exceed the student’s cost of attendance at a school. The award will also be prorated for students who are enrolled part-time.

LOANS

The federal government also provides a number of options that allow students to borrow money via low interest loans to fund their educational pursuits. Unlike grants, any monies you receive via a loan will have to be repaid. With that in mind, students and parents need to use caution regarding the amount of loan money they accept in order to guard against substantial debt once a student graduates. Remember that as you get your award letters, it is up to you to accept or reject loan money you have been awarded. Following are the federal loan programs students may be able to participate in.

Direct Subsidized Loan

This loan is made by the U.S. Department of Education and distributed to students through the college or university. It is available only to undergraduate students who have a demonstrated financial need as evident by the information provided on their FAFSA.

With this loan, the federal government is responsible for paying the interest on the loan while a student is enrolled in school at least part-time. They also pay the interest during the grace period (typically 6 months) after a student is no longer attending school and also during the periods in which a student is granted an authorized deferment of the loan. Once a student graduates and the grace period ends, then they assume the responsibility of paying the loan amount and the interest. The federal government will determine the interest rate for the Direct Subsidized Loan for the 2018-2019 sometime around July 1, 2018. The current interest rate is 4.45%.

The maximum amounts you may be able to borrow for each school year are as follows: $3,500 for your first year; $4,500 for your second year; and, $5,500 for years 3, 4, and 5.

Upon graduation or once you are no longer enrolled in school, at least part-time, you will be granted a 6 month grace period before you will be required to began repayment of the loan. You will have 10 years to repay the loan, during which time you can take advantage of a number of repayment options.

Direct Unsubsidized Loan

This federal loan program is available to undergraduate and graduate students. Students do not have to demonstrate a financial need , therefore, regardless of your financial situation you can qualify for the Direct Unsubsidized Loan.

Unlike the Subsidized Loan, where the federal government pays the interest while a student is in school, the actual borrower of the Unsubsidized Loan is responsible for paying the interest. This interest will start accumulating as soon as the money is disbursed to the student and will continue to accumulate until the loan is paid off. A student is not required to pay this loan while still in school, but the interest will still accumulate and be added to the balance of the loan. That is why, some students chose to at least pay the interest each month while in school to avoid an increased loan balance upon graduation. The interest rates for an Unsubsidized Loan for the 2018-2019 school year will be determined sometime arounf July 1, 2018. The current interest rate stands at 4.45% for undergraduate students and 6.0% for graduate students.

The amount you may be able to borrow under the Direct Unsubsidized Loan will depend on whether or not you are receiving a subsidized loan and also whether you are a dependent or independent student. As a dependent undergraduate student receiving the maximum subsidized loan, you may be eligible to borrow up to $2,000 additional in unsubsidized loan. As an independent undergraduate receiving the maximum in subsidized loans, you may be eligible to borrow up to $6,000 additional in unsubsidized loan. Graduate students may be eligible to borrow up to $20,500 per year.

Upon graduation or no longer enrolled at least part-time , you will have a 6 month grace period before you have to start repayment of the loan. You will have approximately 10 years to repay the loan.

Perkins Loan

The Perkins Loan is a need-based loan that is made to undergraduate and graduate students who have exceptional financial need. The money for the loan is mainly provided by the federal government, but the actual college or university is the lender of the loan. Not all schools participate in the Perkins Loan, so students will need to check with the financial aid office of the school they will be attending to determine if that school participates.

Perkins Loans are awarded based on information from a student’s FAFSA. The awards are made on a first-come first-serve bases. Once funds are depleted for a year then no additional funds will be available.

Under the Perkins Loan, students can borrow up to a maximum of $5,500 per year for undergraduate and $8,000 per year for graduate or professional school. The loan carries a flat interest rate of 5%, however, that interest does not accumulate while a student is in school at least part-time. The interest will began once the repayment period starts and will remain at 5%.

Once a student graduates or is no longer enrolled in school at least part-time, they will then be granted a 9 month grace period before repayment. Repayment of the loan is extended over a 10 year period.

Students can also qualify for cancellation of payment of the amount they have received under the Perkins Loan, by working in certain occupations upon graduation. Those occupations include: nursing, Peace Corp volunteer, public defense attorney, law enforcement, teaching in low income elementary and secondary schools, and teaching in high need areas (i.e. bilingual education, math, science, English acquisition). Cancellation of the loan is done on a graduating scale of 15% for year 1, 15% for year 2, 20% for year 3, 20% for year 4, and 30% for year 5.

Direct Plus Loan

The Federal Direct Plus Loan is a loan that is available to graduate/professional students and to parents of undergraduate students for the purpose of helping the student pay their educational cost. The loan is granted by the U.S. Department of Education and administered through the school a student is attending.

In order to be considered for the Plus Loan, a graduate/professional student must first complete and submit a FAFSA. An undergraduate student must also complete the FAFSA in order for a parent to apply for the loan. The college/university will let the student know if additional paperwork needs to be submitted for consideration of the loan.

There is no limit on the amount that one can borrow via a Direct Plus Loan, except that the amount has to be based on a student’s Cost of Attendance (COA) minus any other financial aid the student might be receiving.

The Plus Loan differ from the Subsidized, Unsubsidized, and Perkins Loans in that a borrower will have to undergo a credit check (this applies to graduate/professional students and undergraduate parents). An applicant may be denied the loan if they are found to have an “adverse credit history”. An “adverse credit history” include:

one or more debts with a total combined outstanding balance greater than $2,085 that are 90 days or more delinquent on repayment or has been placed in collection or being charged off during the 2 years preceding the date of the credit check
you have a federal student aid debt that has been subject to bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment, placed in collection, or charged off during the 2 years preceding the credit check.

If you are found to have an “adverse credit history”you may still be considered for a Plus Loan with the following two methods:

obtaining a creditworthy endorser (co-signer)
documenting, to the U.S. Department of Education’s satisfaction, the extenuating circumstances that caused the adverse credit situation.

In the event a parent is denied the Plus Loan, the undergraduate student can then contact their school’s financial aid office to apply for a Direct Unsubsidized Loan in their name.

The interest rate for a Plus Loan currently runs around 7.0% and is fixed until the loan is completely paid off. The interest rate for the 2018-2019 year will be determined around July 1, 2018. The interest will accumulate each year after the loan is disbursed to the student, and will be added to the balance until the loan is paid off.

Graduate/professional students are not required to began repayment of the loan while they are still enrolled in school at least part-time. Once the student does graduate or is no longer enrolled at least part-time, they will have a 6 month grace period before having to began repayment of the loan. There are also a number of repayment options available to them as well which can extend their repayment period from 10 to 25 years.

The repayment period for a parent borrower can began as early as 60 days after the last disbursement of the loan to the undergraduate student. Parents may have the option to defer repayment while a student is enrolled in school at least part-time and also for 6 additional months after the student graduates or is no longer enrolled at least part-time. (**Important Note: A Plus Loan that is made by a parent can never be transferred to the student’s name and will remain the responsibility of the parent to repay.)

Federal Work Study

This portion of the federal financial aid program provides eligible undergraduate and graduate students with part-time jobs either on campus or through community organizations for the purpose of helping them pay their educational cost.

The federal government funds the work study program through participating colleges and universities. The actual college or university is responsible for administering the program and deciding on which student will be granted Federal Work Study (which they usually do on a first-come first-serve basis). Student are granted participation based on financial need.

Undergraduate students in the work study program are paid by the hour, while graduate students may be paid on an hourly or salary bases. The amount you can earn is at least the federal minimum wage.

You will need to be diligent in researching and taking advantage of all possible means of funding available to you.

Below is a tutorial that will help you in completing the FAFSA:

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