College Education – Scholarship Grants or Financial Aid

For some, going to college means spending lots and lots of money. And why is that? Mostly it is because of the high cost of college education and tuition fee, not to mention the everyday expenditures (food, transportation, board and lodging, pocket money, etc.) that the student must bear and the numerous miscellaneous fees that are accumulated. This is one of the major problems of today’s parents.

Let’s face it, college education is very expensive. That’s a fact. That is why it is very important for a parent to plan ahead their children’s education. Even those who are in the upper class of society are having difficult times once they sent their kids to college. That is why every parent these days are looking for college scholarship or college financial aid.

A college funding and scholarship program does not oblige students or the parent to reimbursement what was spent for the education of the student. There are two possible types of college funding and scholarship. The first type is based on the need, this type of funding and scholarship is granted to a student wherein the student and its family (as a whole) are unable to pay for the education. The second type is based on merit. This type of funding and scholarship is given to those students who excel in a certain field, for example are sport athletes. Also, student who excel in the academic field also fall under this type of college funding and scholarship.

There are also some instances wherein the two types of funding and scholarship are combined to make the financial aid process easier. Lots of parents and students are looking for this type of financial aid. Unfortunately, there are not enough college funding and scholarships these days to compensate the increasing number of students yearly.

There are some federal and state scholarship programs these days that a qualified student can avail. Below are just some of the federal and state scholarship programs that a student can apply.

Federal or National Pell Grants – this nationally funded program is aimed to provide assistance to qualified undergraduates that want to purse post secondary education. This type of financial aid is given to individuals who have not completed a baccalaureate degree. This type of financial aid provides students to avail subsequent financial assistance from the national government.

Federal Supplemental Educational Opportunity Grant (FSEOG) – a program that is intended for continuing undergraduate students that has unresolved financial need. Unfortunately, this type of financial assistance is limited and not all students can avail this type of financial assistance. These are only awarded to students who are qualified and this also depends on the availability of the finances of the concerned educational institution.

Another type of financial assistance that a student or a parent can obtain is through loans. However this type of financial aid must be paid back. However, the financial need of the student or student’s family must greatly be considered first before availing this type of financial assistance to prevent high interest rates.

Always bear in mind that college education grants and scholarships, funding and other types of financial assistances are very complicated and quite frustrating. Fortunately, college education is an excellent type of investment.

3 Things to Consider When Comparing Your Financial Aid Packages

1. Rank all of your schools according to their rankings nationally

The first thing that you need to do is to rank all of the schools that you have been accepted to. You will find these forms that can help you to rank these schools in your guidance office or the Internet. You can go to the US News Rankings to find where the schools on your list are ranked nationally. There are many factors to be taken into account when you are ranking these schools such as their retention rate, size of classes, percentage of classes been taught by TA, number of successful alumnus, rates of graduates finding employment, etc. This way you can see how your schools stack up to the schools around the country. You want to attend the best school on your list that you can afford. This process has to be very practical and doable for you and your family.

2. Rank all of your packages according to the amount of free money offered to you

Free money is any money that you and your family don’t have to pay back. These monies will come under scholarships and grants (Federal grants and State grants). Rank the school that gave you the most free money number 1 down to the school that gave you the least amount of free money. Keep in mind that your favorite school may not give you the best package. This is a practical and non-subjective process. They will offer you a package based on your household income and assets depending on whether the school is private or public school. The schools will give you their money and the government’s money based on your financial need and the type of profile that you have created.

3. Rank all of your schools from the school that you like to attend to the school that you are the least likely to attend: Conquering college attendance

Now, start with your favorite school. This is the number 1 school that you would like to attend from your accepted list to the least favored school on you list. This is that one school that you would like to attend if you and your family can afford it without going into deep debt. Again, here, you and your family have to be practical and realistic because neither you nor your family should go into deep debt to get your education. You are investing in your future but your parents are getting closer to retirement so don’t ask them to take loans or refinance their home to send you to your dream school. Remember that you are going to have to pay for your loans and that you are not going to pay off their debt. It is your future, so invest wisely.

One consolation here is that you and your parents can always contact the financial office and explain your family’s financial situation and ask them if they can give you a little more help because you would really like to attend their institution.

How to Get Financial Aid for College Education for Single Mothers

Single mothers and mothers in the US can provide their family and children with a better future by securing a higher paid job. Well, this is possible only with the right kind of degree in hand earned at colleges. However, the road to success through education is quite tough as the costs associated with the higher studies at colleges are quite high, forcing many single mothers in the US to drop their higher studies in midway. High expenses apart, the additional crises of debt burden are there too, making college education an out of reach substance for single moms and mothers. Yet, there is a hope as the Obama administration has revamped grant programs for women, especially for single mothers or moms. This initiative has been taken towards empowering women and single mothers in the US so as to find them a better opportunity and make their lives better, leaving past the adversities behind.

The Obama Single Mother Grant is one of the best ways to help with college bills to avoid financial crises. Single mothers or mothers from low-income or no-income households can receive up to $5,000 as an educational benefit through The Federal Pell Grant program, also known as the Single Mother Grant. The US Department of Education monitors the entire program and pays out the financial assistance for higher studies for mothers through state-run organizations, participating colleges, action community agencies, charitable organizations and non-profit organizations. Always remember that female participants can easily receive free financial assistance through Obama approved government grant compared to male participants.

Considering Pell Grant, it is a need-based program; hence, it always aims at favoring the needs of single mothers. The federal Pell Grant offers you a great opportunity to escape the higher repayment rates of loans. Besides, it does not have to be repaid like loans. Earlier known as Basic Education Opportunity Grants (BEOGs), Pell Grant offers around $5,500 to the eligible single mothers for college tuition fees, as well as study materials and housing expenses.

How to Apply for the Federal Pell Grant

Remember, you are not entitled to receiving the Pell Grant for more than one college you want to pursue your higher studies. In order to receive the financial assistance, it is essential to complete the Free Application for Federal Student Aid, or (FAFSA). A proper application process is not complete without the filing of FAFSA. Once the FAFSA is filed, your financial needs are evaluated based on the information provided on the FAFSA. After the FAFSA gets processed, you are likely to receive a Student Aid Report, containing your eligibility for the Federal Pell Grant.

If you are interested, you can contact your state agency to apply for the Pell Grant or visit to apply online. Though it is a time-consuming process, benefits for college education earned through Pell grant is matchless.

How Savings Bonds Could Impact College Financial Aid Eligibility

U.S. savings bonds and notes come in several varieties and denominations. With regard to college funding, Financial Aid Officer (FAO)s view these as assets. Just as important is the FAO’s perception of the interest that accrues on your assets, Kalman Chaney, best selling author of “Paying for College Without Going Broke” says “nothing prompts a “validation” (financial aid jargon for an audit) faster than listing interest and dividend income without listing the assets it came from.”

This is not to say that interest is not good. Au contraire, do not stuff your money in the mattress. This interest is your only hope of keeping up with inflation and rapidly rising college costs.

So what is a parent to do? I always stress competent planning. When dealing with Series E and EE U.S. Savings Bonds, the investor has two options: he can report interest on the bond as its earned each year, or it can be reported in one lump sum the year he cashes the bond.

The second option allows the investor to hold the bond while accruing interest for years. He’ll never pay interest until the year he finally cashes in. In terms of college planning, that had better not be a base income year. That would definitely raise your EFC.

There are exceptions made for certain Series EE bonds bought after 1989. The government give tax breaks to low and middle income parents who purchased the bond specifically for college funding purposes. As of 2011 tax rates, this benefit applied fully to single parents making up to $71,000 and couples making up to $106,650; partially to any single parent making under $86,100 or couple making less than $136,650.

We still recommend that families cash these bonds after the student’s final base income year (after Jan 1 of the Junior year). Taxed or untaxed, the FAOs still consider the interest as income and assess it with the same methodology as your income.

Typically the investor has options to avoid cashing bonds in a base income year. E and EE bonds can sometimes be rolled over into H or HH bonds. No law says bonds must be cashed upon maturation. In many cases, the bond will be held and accrue interest beyond its face value.

In any case the scenario should be discussed with a qualified college funding counselor. Only professionals can assess holistically which move makes the most sense in any given situation.