Veteran college grants

Meeting College Costs Using Financial Aid

In academic year 2003-04, the average cost of attending a four-year private college in the United States was more than $29,000 a year, according to the College Board. The average cost of attending a four-year public college was $14,000 for an in-state student and $21,000 for an out-of-state student. Multiply that by four, and the average pricetag for a bachelor's degree is $118,000 at a private college and $57,000 to $84,000 at a four-year public college.

Understandably, prospective college students and their families often find these costs daunting, and most turn to financial aid to help foot the bill.

In fact, at least half of all students receive financial aid to help pay for college.

Financial aid is available from a variety of sources, including the federal government, state government agencies (listed on page 27), colleges, private foundations, community organizations, corporations and the military.

What are students and families expected to pay? That depends on their current financial situation and ability to help pay the cost of a college education. Students and families provide relevant information on the financial aid applications required by the colleges, who in turn decide what a family is expected to contribute.*

For starters, students and their parents need to complete the federal government's FAFSA (Free Application for Federal Student Aid) to be considered for any financial aid, including loans.

In addition to the FAFSA, colleges usually require students to complete a college financial aid application form. Some colleges also require their applicants to complete the College Board's application, called Profile, for awarding non-federal student aid funds.

The FAFSA asks students and their parents to report income from the previous calendar year and provide other information such as number of children in college and amount of money in bank accounts. The federal government calculates the Expected Family Contribution (EFC) and reports this information to the colleges selected by the student. A Student Aid Report is also sent to the student.

Colleges often use their own criteria to determine a student's EFC based on information from the applications they require. The colleges identify the student's eligibility for financial aid by subtracting the EFC from the Cost of Attendance.

What is the Cost of Attendance? The colleges determine the estimated full cost of attendance for their students, which includes not only tuition, fees, room and board, or the costs of off-campus living, but also books and supplies, transportation and personal expenses.

* Students who are independent report only their own income and assets (and their spouse's, if married). A student is considered independent if one of the following applies: Born before Jan. 1, 1980 (for 2003-04 academic year), married, enrolled in a graduate program (beyond bachelor's degree), has legal dependent(s), is an orphan or ward of the court or a veteran of the U.S. Armed Forces.

Types of Financial Aid

There are three basic types of financial aid: (1) scholarships and grants, (2) federal work-study and (3) loans.

Scholarships and Grants

Scholarships and grants are gift aid, because, unlike loans, they are not paid back. They are awarded based on financial need and other criteria, such as achievement, religious affiliation, ethnicity, memberships, hobbies or special interests.

Scholarships and grants are offered by the federal government, state financial aid agencies, colleges, private businesses, foundations and community organizations, towns, high schools, veterans' groups, etc. Information is available from colleges, high school guidance offices, public libraries, community organizations, scholarship directories and online resources (see page 26).

Federal Pell Grants and Supplemental Educational Opportunity Grants are awarded by the colleges to students who are identified as eligible by the federal government, based on information provided in the FAFSA.

Individual states have grant and scholarship programs for their residents. (See detailed list for New England states on page 27.)

Federal Work-Study Program

Work-study money is awarded by the colleges to students identified as eligible by the federal government, based on information provided in the FAFSA. The students earn the award amount through part-time employment provided or arranged by the college.

Loans for Students and Parents

Loans, which account for about 60 percent of all financial aid, can be taken out by students, parents or both. Students do not have to pay back their loans until after leaving college; however, parents must begin making payments soon after the loan is disbursed.

Federal Perkins Loans are very low-interest loans administered by the college for students with exceptional financial need.

Federal Stafford Loans for Students

Through the federal Stafford Loan Program, students can borrow up to a maximum loan amount each year they are enrolled and pay back the loan after leaving college. Loans are subsidized for eligible students (the interest is forgiven while the student is enrolled) or unsubsidized (the interest accrues while the student is enrolled). If the college participates as a lender in the William D. Ford Federal Direct Loan Program, students apply through the college's financial aid office. Otherwise, students apply to a bank, credit union or other lender that participates in the Federal Family Education Loans program (FFELP).

Federal PLUS Loans for Parents

Parents who take out federal PLUS loans begin payments within 60 days after the loan has been disbursed. If the college participates as a lender in the William D. Ford Federal Direct Loan Program, parents apply through the college's financial aid office. Otherwise, parents apply to a bank, credit union or other lender that participates in the Federal Family Education Loans program (FFELP).

Other loan programs are available from state financing authorities, as well as from private lenders and some colleges.

Armed Forces

The U.S. Armed Forces offer various college financing options to students who meet eligibility requirements. Information is available at the U.S. military's career guide site: www.myfuture.com. Options include the Reserve Officer Training Corps (ROTC) Program, which helps enrollees pay for some college expenses and the Montgomery G.I. Bill, which provides financial support to those who attend college after serving in the military.

other ways to meet college costs

* Use a tuition payment plan.

* Get an out-of-state tuition break: The New England Board of Higher Education's Regional Student Program provides New England residents with a tuition break when they study approved majors at public colleges and universities in other New England states. Eligibility is explained in the annual RSP catalog, available at www.nebhe.org or from NEBHE at 617-357-9620.

* Participate in community service: Americorps is a national program that allows college-age students to earn education awards in return for national service. Visit www.americorps.org/joining or telephone 800-942-2677.

* Attend college half-time or part-time and take longer to complete a degree, but still remain eligible for some financial aid (attending at least half-time is required for federal Stafford and Plus loan programs).

* Attend a lower-cost, two-year community college then transfer to a four-year college to earn a bachelor's degree.

* Commute to college instead of living on campus.

* Work for a company or organization that provides tuition assistance.

Financial Aid Resources: State Programs

Connecticut

Connecticut Department of Higher Education

61 Woodland Street

Hartford, CT 06105

www.ctdhe.org

860/947-1855

Fax: 860/947-1311

Valerie F. Lewis, Commissioner

John J. Siegrist, Director of Financial Aid

Capitol Scholarship Program

Eligibility: Connecticut residents who demonstrate financial need and attend an undergraduate college in Connecticut or a state which has a reciprocity agreement with Connecticut. Applicants must also have graduated in the top 20 percent of their high school class or scored above 1200 on the SAT. Award amount: Up to $2000 annually. Application: Apply at high school guidance office by February 15.

Connecticut Independent College Student Grant

Eligibility: Connecticut residents who are undergraduates at Connecticut independent colleges and demonstrate financial need. Award amount: Up to $8,500 annually. Application: Apply at college financial aid office.

Connecticut Aid for Public College Students

Eligibility: Connecticut residents attending Connecticut public colleges who demonstrate financial need. Apply at college financial aid office.

Minority Teacher Incentive Grant

Eligibility: Minority junior or senior-year students enrolled full-time in a teacher preparation program at a Connecticut college or university. Award amount: Up to $5,000 for junior and senior year. Application: Contact college's education dean. Information at 800-842-0229.