Source: CreativeCareerSchools.com

According to Educationpays.org, “The important thing to note is that even a small difference in education can have a huge payoff in your future financial success. Just completing a high school diploma will cut your likelihood of being unemployed by almost 4 percent and increase your lifetime earnings by over $300,000. Going on and completing even some college could boost pay by another $164,000 over the course of your lifetime. In today’s world of global Internet access, education must be a life-long commitment. It is the single most important factor in your ability to earn a good living and weather tough times.”

So, a college degree or continuing education seems like a great idea. However, college can be expensive. Fortunately, most college funding obstacles can be overcome making your education investment of one the best places to invest your or your parent’s money!

About two-thirds of financial aid comes from the U.S. Department of Education grant, work-study and student loans. Much of this funding is awarded based on financial need. In addition to the government sources, there are other ways to help fund your college education.

http://studentaid.ed.gov/students/publications/FYE/index.html

School Loans

You can borrow money in the form of student loans that you repay with interest, over time, after you finish your degree or leave school. School loans are available to both undergraduate and graduate students. There are three federal government student loans:

• Federal Perkins Loans – These are available to full-time or part-time students demonstrating the greatest financial need.

• Stafford Loans – These loans are made available through two programs: 1) William D. Ford Federal Direct Student Loan, also known as Direct Loans or Direct Stafford Loans, where the funds come from and are repaid to the U.S Department of Education; and 2) FFEL Stafford Loans or Federal Stafford Loans that come from a bank, credit union or other lender and is paid back to the lender or its service agent. Most schools participate in one or the other type of Stafford Loan. For Stafford Loans do not have to demonstrate financial need, and you must be enrolled in school at least half time.

• PLUS Loans – Parents take out these loans on the behalf of their dependent children enrolled in an undergraduate program for at least half time. These loans are made the two Stafford Loan programs above. More information on PLUS Loans.

  Information and comparison of these Federal loan programs.

Pell Grants

Unlike a student loan, a federal Pell Grant doesn’t have to be paid back unless you withdraw from school. Pell Grants are awarded to undergraduate students who have not earned their bachelor or professional degree. The maximum Pell Grant awarded (2004-05 school year) is $4,050. The amount you may be awarded depends on financial need, school costs, attending school full-time or part-time, and if you attend for the full academic year or less. Pell Grant information.

See additional sources for grants, fellowships and scholarships below.

Work-Study

The Federal Work-Study program provides eligible students with part-time jobs in order to earn money for your education. The program is available to both undergraduate and graduate students who attend college part-time or full-time. Where possible, the Work-Study program provides community service work and work related to your course of study. Students are paid at least minimum wage and students may receive more depending on the nature of the work. Students are paid by the hour or paid a salary, and they are paid at least once a month.

Scholarships

College scholarships come in many shapes and sizes. There are scholarships from government agencies, colleges, companies, organizations and private sources. Their amount and eligibility requirements vary widely. Check with the colleges you are interested in attending to see what scholarships are available. Also, you need to be aware of scholarship scams. Search for scholarships at: FastWeb or at Federal Student Aid web sites.

529 College Savings Program

Enroll in one of these programs as early as possible! 529 savings program is similar to a 401(k) retirement savings program but it offers tax advantages for saving for college instead of retirement. 529 savings programs are operated by states or educational institutions to help parents set aside funds for future college costs. For more information on 529 programs read, “The 529 Solution,” on CNN/Money web site.

Upromise provides a great way to start saving for college for your children, nephews, nieces, neighbor’s kids, etc! It is FREE to join and a percent (%) of your purchases goes into the designated 529 program.

Part-Time Jobs, Internships, Co-Op Programs and Summer Jobs

Part-time or summer job, internship, or a co-op program (cooperative education program) are all good ways to help pay for college. Summer jobs have been a traditional source for college students to have extra money for supplies, books or social activities while at school. Part-time jobs are also a good source of money, but can present time-management challenges for many college students. However, if you are great at balancing a job and study time, then a part-time job can really help cover many college costs.

Many colleges and companies offer internships or co-op programs that give students a way to earn money and gain experience. Internships are usually a part-time job during the school year, or a part-time or full-time job during the summer. Students participating in co-op programs typically take a semester off of school to work full-time for the company sponsoring the co-op work program. Check with the colleges you are interested in to see if they have internship or co-op programs.

In addition to earning money, students who work during school can gain excellent employment experience and can be better prepared to enter our competitive work environment.

Resources

Financial Aid Resources

Scholarship Scams Information from Federal Trade Commission

Federal Student Aid “Coach” / Federal Student Aid

Student Guide 2005-06 on Federal Financial Aid

Funding Your Education 2005-06

Other grant, fellowship or scholarship sources:

Federal Student Aid Scholarship Search

National Endowment for the Arts

National Endowment for the Humanities

Scholarships For Military Children

Fulbright Scholarship

U.S. Dept. of Education’s Office of Vocational and Adult Education Grants

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