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

Find Funding for College 5: You Deserve the Money

This continues our series on finding funding for college—let someone else pay for it. You can learn more at the federal student aid web site.
You must believe that you deserve the financial aid. Too many people doubt that they deserve the money that is available. They list many reasons why they do not deserve the rewards offered by the sources of student financial aid.

• The committees only give money to the rich, the poor, athletes, student leaders, performers, and anyone else but them
• They or their parents make too much money
• Their grades do not warrant a reward
• They lack the smarts or intelligence
• They failed to do anything deserving a reward.

Committees Reward Subject Criteria
Some sources of financial aid choose to highlight a certain subject. For example, Duct Tape offers a scholarship for those who create prom outfits out of Duct Tape. In addition, some professional associations provide scholarships for those interested in pursuing that particular occupation.
Subject criteria include:

• States requirements of the sponsor for the award
• Service to others
• Academic achievement
• Extracurricular activities
• Leadership and participation in school and civic clubs or organizations
• Traits specific to that grant, scholarship, loan, or assistance
• Goals or values of the organization

Committees Reward Personal Qualities
In addition to the subject criteria, financial award committees enjoy rewarding people who possess certain personal qualities. Typically, financial aid sponsors want to promote certain characteristics and traits in society. The personal traits they seek include people who demonstrate:

• Hard work
• Overcoming obstacles
• Teamwork
• Perseverance
• Individual initiative
• Passion & enthusiasm
• Responsibility
• Civic duty
• Purpose
• Character

An Exercise to Confirm You Deserve the Money
Let me share an exercise that will help you recognize that you represent the type of person the financial aid committees wish to reward.

• Review the lists in both of the sections of today’s blog
• Write down any of the items on the list that you do not possess
• You are someone they wish to reward if you wrote down less than three of the items

Friday we explain the need to act, act with confidence, and act with excellence

Find Funding for College 4: Need vs. Merit Financial Aid

This continues our series on finding funding for college—let someone else pay for it. You can learn more at the federal student aid web site.
You can divide student financial aid into two categories. First, financial aid awarded based on the need of the recipient. Second, financial aid awarded based on who the recipient is and what they did to deserve it. Few people—especially teens—recognize the difference between the two when they apply for financial assistance. Especially, when so sources of student financial aid exist.
Government Responds to Student Financial Crisis
Wikipedia makes an interesting observation

“With the yearly rising cost of tuition among schools across the nation, low-income students are finding it harder to pay for their education. In an attempt to help students meet the high, costly demands of college, schools have increased merit-based grants, for students with outstanding academic position, involvement in organizations, or high athletic talent. The issue is that these reasons for awarding scholarships take away from low-income students who often do not meet these merit standards. In other words, funds for merit-based scholarships are taking away from the already small amount of federal aid available to low-income students who simply cannot pay for college without some kind of financial aid. It was clear that with a continuous rise in college costs, action needed to be implemented in order to assist students in paying for the education they need to succeed.
In recent years, government has responded to the financial crisis students are facing and therefore passed legislation that boosted the value of grants for low-income students and trimmed subsidies for private education lenders. Schools have also taken action for the sake of students. ”

Needs versus Merit Based Rewards
Need-based financial aid includes:

• Pell Grants
• Federal Supplemental Educational Opportunity Grants
• Federal Work-Study Programs
• Stafford, PLUS and other loans
• State student incentive grants

  Merit-based finance aid includes:

• Scholarships
• Perkins loans
• Awards
• Tuition waivers

Understanding the difference between need and merit based financial assistance helps you focus on applying for the most appropriate aid.
Wednesday we explain why financial aid committees want to give you money

Find Funding for College 3: Establish How Much Money

This continues our series on finding funding for college—let someone else pay for it
An irritated mother approached my staff after a scholarship workshop. She and her 17 year-old son attended the workshop 12 months earlier. Since then, he applied for 9 scholarships and received 7 for a total of $47,000. Her comment, when they asked why she was upset, defines a lot of people’s idea. “He qualified for 148 and stopped at 9. Now I have to pay the rest!” Parents should not pay for schooling if children  stop looking. Too many people only consider paying tuition. They forget the other costs of college.
College Costs Much More Than Tuition
You will need more money than just tuition. Some examples of college costs include:

• Tuition
• Text and other books
• Lab and other fees
• Computer (probably two: one at the beginning and an upgrade in three years)
• Housing (including if you get married while in college)
• Food
• Transportation to and from school (and home if you study out-of-state)
• Clothing
• Dating (One person wanted $6,000 just for dating—and got it)
• Other unforeseen expenses

Some funding sources define how you must use the money. Others merely stipulate that you must be a student. Get as much as you can of both. Many adult students believe they cannot use student funding to pay for housing, food, and other costs. While each funding source will have its own restrictions you will usually not find an age restriction on many sources.
Set a Goal for How Much Money You Want
We encourage you to evaluate how much money you will need to cover all costs listed above. The following tips will help simplify the process:

• Estimate costs in semester or trimester blocks rather than a whole degree or program
• Evaluate 4-5 schools adjusting costs for tuition, fees, housing, & transportation
• Use a spreadsheet to track cost estimates, create a column or row for each school
• Create some sort of chart to indicate money earned—keep it visible to motivate you

Monday we convince you that committees really want to give money to someone like you

Find Funding for College 2: Challenges Facing Students

This continues our series on how to pay for college especially using someone else’s money
Before exploring how to find funding for college, you should understand the benefits and challenges of attending college in today’s economy. A recent study by Rutgers University shed additional light on the plight of students and their parents.
How Students and Parents Pay for Schooling
The Rutgers’ study stated

• “6 in 10 (56%) of recent graduates borrowed from government or private banks
• 8% said they borrowed money from a parent or relative that they will pay back
• 4 in 10 (41%) students paid for their education from personal earnings & savings
• 8 in 10 (82%) students worked during the school year (36% full time)
• 9 in 10 worked during the summer between semesters at school
• Other sources for funding for college education included
  • Scholarships from colleges
  • Direct payments by parents and relatives”

Financial Obligations Connected to Getting an Education
Rutgers reported “Upon graduation, the majority of students (55%) owed $20,000 (median) to pay off the costs of their education…For example,

• Median public college or university debt was $18,680.
• Private college debt was $24,460.
• Male graduates owed $5,000 more than female graduates ($25,000 versus $20,000)
• College graduates enrolled in graduate and professional programs already owed $10,000 more than those who have not pursued additional education ($20,000 versus $30,000)
• College graduates already in the workforce who earn less than $30,000 per year owed the same amount in college loans compared with the $20,000 owed by working college graduates who earn between $30,000 and $60,000.”

Difficult Paying Loans
“The current earnings of those who are employed full or part time also do not leave much room for paying off outstanding loans.

• Median starting salaries were $30,000 for 2006 and 2007 and $27,000 for those entering the workforce in 2009, 2010, and 2011.
• Moreover, students earning less than $20,000 per year were more likely to have borrowed money from non-family sources (42%) than those earning $50,000 or more (30%).”

Friday we discuss the need to act, act with confidence, and act with excellence to find funding

Find Funding for College 1: Overview

This begins our series explaining how to find funding for college so you can let someone else pay for it
College tuition rates for both private and public colleges and universities increased significantly in the past 10 years. At the same time, incomes and investments for students’ parents decreased significantly. As a result, both students and parents find paying for college increasingly difficult. We will explore, in this series, a variety of methods for paying for college and a system for applying quickly and very effectively.
Realities of Attending & Paying for College
A recent study by Rutgers University and another by the Census Bureau describe challenges facing today’s college student and their parents. In addition, NPR recently concluded a series on families including one about paying for college.
Mental Preparation
You need to prepare mentally to apply for the money with confidence. You will enhance your success if you:

• Act, act in faith, and act with excellence
• Accept that committees want to give the money
• Establish exactly how much money you want—not just need

Sources of Funding
You may consider several methods to pay for college

• Grants
• Scholarships
• Work study programs
• Student loans
• Parent loans for children’s education
• Educational trusts
• Parents
• Student employment

Prepare Reusable and Impressive Materials
The process I will share will allow you to complete an application in 30-60 minutes. The secret consists of preparing materials that you can reuse repeatedly. Following the guidelines we will share as sources of funding, you will apply for 50-150 different sources. Beginning from scratch each time would waste too much time.
Your reusable materials will include:

• Free Application for Federal Student Aid (FAFSA)
• Master application containing 80% of the information you will need
• Themes and 36 home run statements
• Reusable essays
• Letters of Recommendation

We will explore the realities of paying for school, how to find each one of the sources of funding in separate posts, and tricks and tips about each of the reusable materials. Please follow and comment on the posts to follow.
Wednesday we review a study by Rutgers University college results, payments, & jobs

Success in Work 5: He Found His Own Hedgehog Concept

I share success stories to inspire you to achieve your own success

Bob discovered the benefits of focusing on one concept, long before Jim Collins outlined The Hedgehog Concept as a key element of transforming good companies into great ones. Bob’s story highlights two concepts: 1) doing one thing exceptionally well, and doing it over and over breeds success; and 2) you can succeed in work without upward promotions.

Bob’s Story

Bob, in the twilight of his career, managed a branch of a nonprofit employment service in Idaho. He wanted to give something back to society after a successful career in procurement and accounting for institutions of higher education. The nonprofit’s strategy included using volunteers in local congregations to help people find jobs.

Bob recognized the power the volunteers could add to productivity. He realized that adding 20-30 additional job coaches in 6 communities—at no cost—could exponentially increase results. He concentrated his entire efforts to enhancing the volunteers ability and motivation to help people find jobs. He restructured the entire operation to share job leads found by the volunteers quickly. Where other managers viewed the volunteers as secondary to the professional staff, he elevated their importance above the paid staff and rewarded them with justified recognition and praise.

Productivity of his branch soon exceeded other branches by 10, then 50 times. Some jealous managers decried his efforts and questioned his integrity. Many more listened to him, asked him questions, and tried to copy what he did. A younger generation of managers, using Bob’s ideas, carried the nonprofit to worldwide recognition. Productivity of the entire service increased from 23,000 people finding jobs a year to 225,000.

Bob never accepted a promotion. He loved his little community in Idaho. His tenacious focus on training volunteers extremely well—over and over—however, influenced an entire generation of managers.

What Did You Learn?

• Why did Bob see what others didn’t?
• Why did his idea increase productivity?
• How did he achieve his results?
• What opportunities exist in your organization that others cannot see?

Monday we will begin a series examining finding funding for college—let someone else pay

Success in Work 4: Established Her Own Direction

Frequently, I share success stories of people who illustrate how to get ahead at work

Many people don't understand why others get promoted and why they don't. I think that people get the biggest raises and the best promotions because they 1) Do the job management wants done--and more, 2) Fit into the work team or organization, and 3) Deliver a great return on their investment.

Cheryl's Story

Cheryl started in a temporary position at divisional headquarters . She worked hard, built strong relationships, and improved efficiency in her job. Consequently, they gave her more responsibilities that she also performed well. Soon, another division offered a permanent job.

After a few months, she accepted a promotion back to the original division. Once again, she excelled at the job. Cheryl's team consistently exceeded expectations and performance. She also maintained relationships in all the divisions at headquarters.

Five years later, Cheryl found her job unsatisfying and frustrating. She she could not continue doing it. Luckily, she received an unexpected profit from the sale of some property she owned.

So, Cheryl quit her job. She ensured that no bridges were burned. She maintained positive relationships with her past co-workers. She left the country and visited Europe for 10 months to sort out what she wanted in life.

At the end of the 10 months, she knew. She approached the same company for a job. They hired her because of her past performance, current relationships, and previous reputation. This time, however, she did not return to the last division. Instead, she worked in the division that had employed her for just a few months. She has received three promotions. She now acts as the divisional president. Currently, she loves her job and her life.

What Did You Learn?

• Why was she promoted?
• Why did the company rehire her?
• How did Cheryl build her reputation?
• What changes would you like to make on your job?
• Not all of us can go to Europe. What can you do to establish your direction?

Friday we examine another story of success at work focusing on benefits of networking