Guide to Student Grants, Loans and Financial Aid for Parents

Finding Financial Aid for your child entering college can seem very overwhelming and absolutely impossible to do. This guide is very comprehensive in telling you exactly where to go to find aid and what steps you need to take in order to apply.

FAFSA:

The first step you'll want to take in seeing if you qualify for financial aid in the first place and how much, is to fill out a FAFSA. FAFSA determines if and how much you qualify for Pell Grants, student loans, workstudy and the figure amount of financial need. Financial need is calculated by determining factors such as tuition, books, school expenses, fees, dorms or housing, and other factors relating to school. What the financial need amount can then do for you is see how much financial aid is available to you. For example, if you are applying for a $50,000 scholarship and your financial need is only $20,000, you can not accept the full amount. If you're child is still a dependent, then you'll need to enter your tax information on the FAFSA as well. Head to your child's Financial Aid Office on campus, or visit www.fafsa.ed.gov to fill out an application.

Workstudy:

Workstudy is an excellent opportunity for students to make some wages, usually on campus. Workstudy employers seek out students for their positions to benefit their services. Such positions include tutoring, on-site childcare, research in various departments, office receptionists, and many more. By getting a workstudy job, you are benefitting the department you are working for because it is free service to them and it's a benefit to you as well. Less taxes are taken out of workstudy jobs with the idea that these students will serve our community after graduation. Jobs on campus might help parents feel at ease since they are getting a legitimate job at a respected university. It will also look great on their resume after graduation.

Student Loans:

Student loans are designed to be repaid after graduation from college. Of course there are exceptions to this. The student must remain in school at least part time and if their course load falls below this any given semester, they have 6 months forbearance until student loans go into repayment mode. (Of course every loan has its own set of rules, but these listed practices are the most common. You'll have to read the rules carefully to see what applies to the loan you have taken out.) If you want your child to learn responsibility and pay back their own student loans, they can sign for one themselves. However, if you wish to aid in that repayment, you may co-sign with your child. If possible, go for the subsidized loans, which are unlike the unsubsidized loans that accrue interest all throughout college. That interest does not have to be paid until the loan itself goes into repayment. Student loans also have the added benefit of a much less interest rate than that you would get at a bank.

Pell Grants:

Not everyone qualifies to receive Pell Grants. Pell grants are really great. They are grants given out by the government to students who come from families with a low income. They never have to be repaid and are used to pay for one's higher education expenses. How much a qualifier receives depends on the amount of family income and financial need of the student. Note that graduate students are not eligible for Pell Grants. If your family is low income and think you can not send your child to college, Pell Grants just might be the resource you need. Remember to fill out the FAFSA to see if you qualify.

Scholarships:

There are literally millions or billions of scholarships (as well as stipends and grants) out there for the taking. Most require an essay but occasionally they are given out based soley on merit. Start by visiting the Scholarship Office at your child's school. Pick up any and all applications in which your child qualifies. Some scholarships are affiliated with the school itself and those who earned high grades in high school qualify to apply. Others are given out by local companies, chapters, groups and societies sometimes to their own members and other times simply to college age students. There are scholarships out there for everything and everyone. You'll even find a lot based on the occupation or area your child wants to get a career in down the line. If you belong to any local groups, inquire as to whether they give out any scholarships as well.

Fastweb:

Fastweb.com is by far the largest scholarship internet source online. They have over a billion scholarships available on their site. They connect with the groups handing out scholarships, do the research for you on who qualifies and delivers the information to those who match its criteria, all based on your profile settings. They offer lots of help in writing a winning essay, excellent resumes, interview tips, finding a job, and even finding a college that fits your needs! Sign up right away at http://www.fastweb.com. They also always have a promotion on how you can win a fastweb.com sponsored scholarship, and they are usually fun to do!

Prepare now:

If your child has not already entered college, it's important to start preparing now. Set aside money in every paycheck to go to college expenses. If your child has a job, have them do the same. Encourage them to get a higher education and talk about the importance of it. Another way you can begin saving early on is by using a tax-free 509 savings account. A favorite and easy way for many parents to earn on purchases they already make is by signing up at Upromise.com which hooks up with partners all over the nation to help you earn a percentage back on purchases you'd normally make anyway. You'll earn 29% more money by investing in a 509 savings plan as opposed to a regular savings account at a bank.

Be weary of free grants:

There are many scams out there that will promise you a wealth of information if you give them money for their book or ebook. Don't fall for it. Any information you seek to find on grants should always be 100% free. There is no need to pay any special fees to find grants or even apply for one. The best way to find out information on these grants is to head to your local library or the library on campus. They have huge, thick books dedicated to listing information on obtaining these grants. Libraries are free, so take advantage of this. Ask your librarian for help, that is what she/he is there for, and good luck!