Find Funding for College 12: Subsidized & Unsubsidized Loans

This continues our series about paying for college with someone else’s money

You can apply for loans through the federal student loan programs, or loans through private institutions. Yet, more students take out loans than ever before. Many students will still pay for student loans when they are 40 and 50 years-old. When you think about taking out a loan, remember this saying “Those who understand interest, earn it. Those who do not understand interest, pay it.” Buyer beware!

Student Loans

The federal student aid web site provides information about student loans:

• Federal Perkins Loan for undergraduate and graduate students with “exceptional financial need”. The school acts as the lender. ($5,500 for undergraduate and $8,000 for graduate students)
• William D. Ford Federal Direct Subsidized Loan Program “is the largest federal student loan program. The U.S. Department of Education is your lender. There are four types of Direct Loans available:
  • Direct Subsidized Loan “for undergraduate students who demonstrate financial need to help cover costs at a college or career school. ($3,500-$5,500 a year depending on the school).
  • Direct Unsubsidized Loan “for undergraduate, graduate, and professional students that do not have to demonstrate financial need.” ($5,500-$20,500)
  • Direct PLUS Loan “are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid.”

Subsidized Loans

The U.S. Department of Education pays the interest for a subsidized loan,

○     while you’re in school at least half-time,
○     for the first six months after you leave school (referred to as a grace period*), and
○     during a period of deferment (a postponement of loan payments).

Unsubsidized Loans

You are responsible for paying the interest during all periods for an unsubsidized loan, . 

• Your interest will accumulate and be added to the principal amount of your loan if you do not pay the interest while you are in school, during grace periods, and deferment periods.
• All student loans for graduate students became unsubsidized as of July 1, 2012

Monday we will explore finding funding from parents and tax-deferred education funds

Find Funding for College 11: Federal Work-Study Program

This continues our series examining how you can find funding for college—others pay for it

Most of you will recognize the work-study program from movies. I refer to the movies that involve an Ivy League University with a student who works in the cafeteria, or as a janitor, or some other situation. The rich student may refer to him or her as the “scholarship” student or the “hardship” case.  Work-study program pays for these students.

Overview of the Federal Work Study Program

Undergraduate and graduate students, who can show need, may use the work-study program. A simple explanation

• A student works on or off campus doing some job that benefits the school
• The school reduces their tuition, housing, or other fees
• The federal government reimburses the school for the cost of reductions

Not all schools participate in the federal work-study program.  Some resist based on a “Don’t take federal money” principle. Some find the restrictions and regulations too cumbersome. Others compensate by reducing staff positions for student employment opportunities.

You can find out more about the work-study program at the Student Financial Aid web site.

How Much Can You Earn?

“You’ll earn at least the current federal minimum wage. However, you may earn more depending on the type of work you do and the skills required for the position. Your total work-study award depends on:

• when you apply,
• your level of financial need, and
• your school’s funding level

How will I get paid?

How you’re paid depends partly on whether you’re an undergraduate or graduate student.

• If you are an undergraduate student, you're paid by the hour.
• If you are a graduate or professional student, you're paid by the hour or by salary, depending on the work you do.
• Your school must pay you at least once a month.
• Your school must pay you directly unless you request that the school
  • send your payments directly to your bank account or
  • use the money to pay for your education-related institutional charges such as tuition, fees, and room and board.”

Friday we analyze problems and benefits of subsidized and unsubsidized student loans

Find Funding for College 10: Work & Reimburse Education

This continues our series on getting someone else to pay for college

I frequently speak to college groups. A majority of the students complain that employers require 1-2 years experience. They do not know how to qualify because they have not worked. Too many college students do not work. Work not only helps pay for college, but prepares you for better jobs after you graduate.

Work Your Way through School

I suggest you work in the industry you wish to pursue after graduation. Start in a preliminary job. For example, potential

• Architects or engineers may work in drafting
• Accountants may work as an accounting clerk
• Graphic designers may work at copy centers or ad agencies

Gaining experience in your future industry helps you:

• Verify you will enjoy the occupation
• Gain experience in the field
• Surround yourself with experts who can help you with your studies
• Pay for school
• Provide good experience for your resume

Educational Reimbursement

Many employers will pay you to go to school. Usually, you pay the tuition first. Then, your employer reimburses you after you complete the course. Typically, the company pays a percentage of the tuition depending on your grades. Higher grades receive higher percentage reimbursement.

The following tips will improve your chances of getting an educational reimbursement:

• Discover the deadlines for  your company and apply early
• Describe 2-4 benefits the company will receive if you attend the courses
  • Better productivity or efficiency
  • Quicker and more accurate results
  • New capabilities in areas of interest to the company
• Ensure that your supervisor and human resource representative will and can defend the request
• Work hard on the classes and homework to get the best possible grades
• Communicate the improvements you are making as you take the course
• Submit paperwork immediately after finishing the course and express appreciation
• Submit evidence to management of the improvement in your work from the course

Educational reimbursements provide the majority of money going to graduate students. Many companies that used to provide educational reimbursement stopped doing so. You won’t get money unless you ask.

Wednesday we will study the federal work-study program

Find Funding for College 9: Lists of Scholarship Sources

This continues our series exploring how to find and compete for money to pay for college

You may find scholarships through search engines, your high school or college financial aid counselor, books, community organizations, and other sources. Some sources will share a limited number of scholarships. Others provide information about thousands of scholarships. Still others will only discuss one scholarship at a time. You can even just Google the word scholarship, your state, or school and see millions of responses (of course they will not be checked for scams). Today we will share lists of sources of information. You will need to create accounts for almost everyone of these sites.

Sites that Provide Articles, Cautions, & Helpful Information

This list does not include every one that provides articles—most sites do. These are the ones that we have found especially helpful.

• www.ScholarshipHelp.org Avoid Ads by Google. Explore the left side navigation
• www.FinAid.org Click on scholarship on the left navigation. Follow every link.

Sites that Maintain Lists of the Lists

These sites are not search engines, but they maintain lists of search engines.

• Office of Prestigious Scholarships and Fellowships (search engines) part of this site requires a BYU log-in, this part does not
• Office of Prestigious Scholarships and Fellowships (list of Scholarships) part of this site requires a BYU log-in this part does not. You may search for scholarships by area of study and other criteria
• www.LDSJobs.org Create an account. Select “Find Jobs and Other Opportunities”.  Select “Educational Resources” from the pull down menu. Click the radial buttons for “Search for a school”, “Scholarships”, and “Search for online schools only”. Click search to list more than 245 sources.
• High schools: Under Counseling and/or “Scholarship”

Search Engines

• www.Fastweb.com Always click “no thanks” when offered
• www.Scholarships.com Beware, they put 3-4 sneaky offers per page with one legitimate profile question, but also give you lots of good offerings at the end
• https://bigfuture.collegeboard.org/scholarship-search 
• www.ScholarshipExperts.com Avoid ads and say no thanks
• www.Petersons.com we found real problems with this engine and no longer recommend it

Monday we will discuss working your way through college and educational reimbursements

Find Funding for College 8: Scholarship Search Engines

This continues our series on how to pay for school with someone else’s money. Today we will describe how to use scholarship search engines. Friday we will provide you a list of scholarship search engines.
Scholarships reward you for what you have done and who you are. Scholarships do require payback. They may require you to maintain certain standards to continue receiving the award. Some scholarships insist you must use the money for certain expenses (tuition, books, computers, housing or other). Other scholarships allow you to use the money to pay for any expense related to being a student (food, transportation, housing, equipment, lab fees, and more).
Scholarship Search Engines Help Identify Scholarships
Scholarship search engines identify billions of dollars of scholarships. They ask you to create an account and complete a profile. Usually each question opens the door to more money:

• Education info: current status, interested colleges, possible majors
• Personal info: birthdate, gender, citizenship, ethnic heritage, religion, and sports
• Student activities: memberships, performing arts, work history, leadership
• Parents activities: work history, memberships, and more

Search engines provide a list of scholarships matching your answers. Review 10-15 a day from your list. Decide to save, delete, or apply. The list includes:

• Name of the scholarship with a link to a summary and to the sponsor
• Amount
• Deadline
• Frequency they offer it
• Type of award: scholarship, essay, grant, contest, survey, promotion
• An action button to let you determine future action

Tips for Using Search Engines
You need to exercise both wisdom and caution when using a scholarship search engine:

• Click it if you did it: click basketball if you played on any organized teams
• Click it and join it: click clubs or activities you have not joined—then join them
• Always click no thanks: they get very tricky: big banners saying “YES!” and .5pt fonts saying “No Thanks”.  Always click “No thanks” or get spammed
• Avoid all surveys and most contests: delete all surveys (or promotions) immediately and most contests. You seldom win and always get spammed.

Friday we will provide a list of scholarship search engines

Find Funding for College 7: Find Federal & Private Grants

This continues our series on finding ways for other people to pay for your college

The government web site Studentaid.ed.gov states “Grants and scholarships are often called “gift aid” because they are free money—financial aid that doesn’t have to be repaid. Grants are often need-based, while scholarships are usually merit-based. In other words, you must typically show a financial need to receive a grant. They award scholarships, on the other hand, based on what you have done or personal qualities. Today we focus on grants, but we will not include research grants.

Sources of Educational Grants

Student Aid continues “Grants and scholarships can come from the federal government, your state government, your college or career school, or a private or nonprofit organization. Do your research, apply for any grants or scholarships you might be eligible for, and be sure to meet application deadlines!” 

Federal, state, and college grants require you to complete a Free Application for Federal Student Aid (FAFSA) to apply for the grant. Private or nonprofit grants may use the FAFSA or their own application. You must submit a FAFSA each year by June 1. (See tips for completing the FAFSA).

Federal /Grants

Pell Grant: typically for undergraduate students. Family income cannot exceed $23,000 (reduced from $33,000). Also, you may only receive the grant for a total of 12 semesters.

Federal Supplemental Educational Opportunity Grant (FSEOG): for undergraduate students with exceptional financial need. Awarded first come, first serve (submit FAFSA by March 1 instead of June 1).

TEACH Grant: for students who plan to become teachers in a high-need field in a low-income area. Warning if you do not fulfill the obligations related to this grant you will need to repay it with interest.

Iraq or Afghanistan Service Grant: for veterans and family of those who served in these two conflicts.

State Grants US Department of Education and College Scholarships list grants for each state

Private or Nonprofit Grants EduPlace and Southwest CC list of private foundation grants

Wednesday we will outline sources to find 100s of scholarships to help you pay for school

Find Funding for College 6: Act, Act with Confidence, & Act with Excellence

This continues our series explaining how to get someone else to pay for college
Three things may prevent you from getting the money: 1) don’t do anything, 2) do it with doubt, and 3) do it poorly. In other words, you will not receive the funding for college if you do not act to find it and apply for it. You application will lack conviction if you doubt you deserve the money or you doubt the process of applying. Finally, committees will reject your applications if they contain errors, typos, blanks, and unimpressive answers.
Act
You must act to get funding for school. You need to

• Find sources of funding
• Prepare a reusable master application
• Write 5-6 reusable essays
• Obtain 6-7 letters of recommendation
• Complete a Free Application for Federal Student Aid (FAFSA) by March 1 each year
• Complete 3 scholarship applications a week

You may feel several emotions that cause you to hesitate or fail to act. :

• Confused
• Unsure
• Overwhelmed
• Unprepared
• Undeserving
• Self-doubt

Act with Confidence
Doubt may paralyze you into inaction. It also robs you of the confidence you need to get the funding for college. Without confidence you understate your experience, abilities, and qualifications. Understating your qualifications denies the committee from knowing the real you. You can gain confidence through several actions:

• Analyze what kind of person they want to reward and recognize how you meet those requirements
• Collaborate with others; groups tend to strengthen one another’s confidence
• Prepare home run statements that help you realize the good things you have done
• Say 3-4 of your home run statements aloud each day
• Seek professional help with a therapist for severe doubt

Act with Excellence
You must submit excellent materials for the funding:

• Prepare materials filled with impressive, honest, and filled with facts and numbers.
• Ensure your materials share themes, categories, and home run statements
• Ask someone to edit your materials to ensure proper  grammar, spelling, and syntax.
• Fill in every field of the applications, essays, and letters of recommendation

Monday we share how to find federal & private grants and changes in their requirements