Getting money for school

Finding money to pay for your college education is not an easy thing to come by. Students are constantly trying to find ways to offset the costs of a 4-year college degree which can cost upwards of $35,000. In a poor economy, it is even harder to find money for school because some companies are not offering scholarships and employers are not offering tuition reimbursement.

Banks and other lenders have even cracked down on their student loan policies, making them harder to get. Several students are turning to credit cards to pay for their groceries and other expenses because part-time jobs are not available. Before your turn to credit cards and other loans, look for scholarships and financial aid first. You may be able to get at least $900 in scholarship funds, which can at least cover the cost of your books for the year.

Federal Pell Grants
The best place to look for money for college is with a Federal Pell grant. This money is completely free, meaning you do not have to pay it back. It is the best way to pay for your college education if you do not have the money saved-up on your own. Pell grant money is based on `need' and it is given out on a first-come, first-serve basis. The sooner you fill out the forms, the higher chance you have at obtaining a Pell grant. In order to qualify for a Pell grant, your income must be at a lower level. If you are living off your parent's income, their income must be at a lower level, or they must have multiple dependants.

Federal Pell grants vary in size, from a few hundred dollars to a few thousand. If you are granted a complete Pell grant, you will receive enough money to pay for full-time enrollment plus extra money for books. In order to receive the money, you must attend a college or University that offers financial aid. Each college will receive a set amount of money from the government to give out to students, once they hit their limit, the money is gone. This is why it is important to get your application in as soon as possible so you can get some money.

Students that demonstrate a strong `need' will be awarded a Federal Supplemental Education Opportunity Grant. This is basically like a full-ride scholarship because it will pay for all of your schooling and books. You will apply for this like you would with regular finical aid. Speak to the financial aid department at your college if you think you may qualify for this grant.

Another type of grant is given through your state. Most states have a set amount of money they are able to award to students that need money for college. In order to qualify for a state grant, you must meet all the financial requirements and you must major in one of the designated programs. Since there is a nation-wide shortage of nurses, several states are offering grants to multiple students that will study to become nurses. States like California are offering full-tuition grants to individuals that want to become teachers. They will even assume your student loan debt if you will become a teacher in California. Always look for incentives that are being offered in your state, this is a great way to find money to pay for your college education.

The last form of grants is called an institutional grant. The individual schools will award this money to the students with the most need. It is different from a Federal Pell grant or a State grant because they can actually supplement the money you have already been given. This means, if you are awarded a $4,000 Pell grant, the University can also give you another $800 or so to pay for the left-over costs. Normally, you need to demonstrate a strong need in order to qualify for institutional grants.

Student Loans
If you make too much money to qualify for a Pell grant, you may want to look into a student loan. Student loan programs are important to Universities and colleges because it increases their profit. They want students to use student loans or other sources of income to pay for college because it increases their student base, which makes them more attractive to other students. Depending upon the college or University you have chosen to attend, you could pay upwards of $35,000 for your schooling. If you are like most people, you probably don't have that kind of money lying around so you will need to turn to student loans to cover the additional costs.

Normally a student loan is not due until after graduation, giving you 4 years or so before you need to worry about paying back the money you borrowed. Most student loans will start accruing interest during your time in college, so you should pay some money to the student loan just to knock down the interest amount.

Student loans can be given through the government, through the school, or through private lenders. Companies like Wells Fargo and Wachovia often contract with schools to offer student loans directly to their students. This is a win-win situation for the school and the bank because they both make a profit. Students also benefit from student loans because the interest rates are much lower than credit cards and personal loans. The repayment period of a student loan can stretch over 10 years, giving you plenty of time to come up with they money to re-pay them.

How to apply for Student Loans and Pell Grants
If you want to use government money to pay for your education, the student loans and Pell grants both require that you fill out a Free Application for Financial Aid (FAFSA). You will provide information about your financial situation, last years' tax information, and select the school of your choice. If you do not qualify for a Pell grant, you will be directed to the student loan web site. This web site will provide a list of all the qualified lenders that have money to give you. There are 2 major types of student loans available, a Perkins loan and a Stafford loan. When you obtain a Perkins loan, you will need to sign a promissory note and you will be allowed to borrow $4,000 each year. If you obtain a Stafford loan, you will have a set number as to how much you can borrow the first year and then it only goes up from there. This is where banks like Wells Fargo and Wachovia come in to provide you with money for school.

If the FAFSA informs you that you are not eligible for a student loan through them, you will need to contact private lenders for a Stafford loan. The difference in using a private lender is that interest will start accruing from the day you sign the paper and you must start paying on the loan within 30 days. The payments may not be too big, but you need to pay enough money to at least cover the interest fees.

Improving Your Chances of Receiving a Loan or Grant
The best thing you can do to improve your chances of receiving a loan or a grant is to file early. The FAFSA web site will provide you with information about all the filing dates and the information you need to provide in order to be considered for a grant or a loan.

If you are applying for a loan, make sure you have a good credit score. Lenders only want to give the best rates and the best loans out to people that can control their spending and can prove they are worthy of a loan. If you have a poor credit score, you won't even be considered for a loan. Try having your parent co-sign on the loan. As long as you have a good co-signer you will be able to receive the funding you need and your interest rates will be smaller.

Pell grants are normally given to students that make under $35K with one child or make under $12K with no dependants. Even though you probably want to make more money, you might want to consider living on a lower income during your college years so you can qualify for a Pell grant.

If you don't qualify for student loans or Pell grants, always look into scholarships. Local businesses are always offering free scholarships to qualified students. Speak to the scholarship office at your school to find out what scholarships you may qualify for. You also need to look at your local library for businesses that are offering free scholarships.

If all else fails, ask your employer if they will consider tuition reimbursement. Several employers are more than willing to pay 30 percent or more of your schooling if you are willing to remain with their company for 3-5 years or longer. You may even find out that your employer does offer scholarships and you didn't even know about it.