Paying for College: A Brokeman’s Ultimate Guide (Part 2)

Welcome back to the second part of our comprehensive guide, A Brokeman’s Ultimate Guide to Planning for College. In Part 1, we covered the essentials of state-specific financial aid and leveraging your family’s background to secure funding. We looked into grants, scholarships, loans, and work-study programs to help you navigate your educational journey effectively.

With a solid understanding of your state’s offerings and how your family’s experiences can support you, you’re ready to take the next crucial steps.

In this second part, we will focus on Step 3: Reflect on Yourself. We’ll delve into additional financial resources such as grants and loans, and discuss how to maximize these opportunities.

Prepare to dive deeper into the complexities of funding your college education. With the right tools and mindset, you’ll be well-equipped to make your college dreams a reality. Let’s get started on making your educational goals achievable.

Step 3:  Reflect On You 

Now that you’ve explored how your family background can support your college journey, it’s time to focus on yourself. Grab that piece of paper again and start answering some basic questions about yourself. This self-reflection will help you identify the resources and opportunities you can leverage for funding your education.

• Have I gotten stellar grades and am likely to qualify for merit-based assistance? Reflect on your academic performance. If you have excelled in your studies, you might be eligible for various merit-based scholarships and grants.
• Am I middle class or above? This will depend on several factors such as family size, number of family members in college, and general guidelines. While it’s difficult to pinpoint a specific amount, understanding your financial standing can help you identify the types of financial aid you might qualify for.
• What tools/resources do I have? Consider the resources at your disposal, such as access to a car, a computer, or internet access. These tools can significantly impact your ability to manage your time, work part-time, and complete your studies.
• What can I handle? Think about your capacity to balance multiple responsibilities. Can you manage working part-time while attending school? Or do you need more time for tutoring and academic support? Understanding your limits will help you plan. 
• What are my long-term career goals? Identifying your career aspirations can guide you in selecting the right scholarships, grants, or programs that align with your goals. Some financial aid opportunities are tailored to specific fields of study or career paths.
• What is my health like? Consider your physical health and how it might affect your college experience. Are you perfectly healthy and ready to consider physically demanding programs like ROTC? Or do you have health considerations that need to be factored into your plans?

By taking the time to reflect on these questions, you’ll gain a clearer understanding of your strengths, resources, and needs. This self-awareness is crucial as you navigate the myriad of financial aid options available and create a plan that suits your unique circumstances and goals.

How Do Grants Work and How Can I Qualify?

Grants are a form of financial aid that do not need to be repaid, making them a highly sought-after option for students. They can come from various sources, including federal and state governments, institutions, and private organizations. Understanding how grants work can help you to qualify for them can reduce the costs of college. 

Federal Grants 

Federal grants are grants offered by the federal government through the U.S. Department of Education. At this time, they have four different grant programs: 

• Pell Grants: These grants are primarily awarded to students with exceptional financial need, however, can also be for individuals that were “confined or incarcerated and enrolled in an approved Prison Education Program or are subject to an involuntary civil commitment upon completion of a period of incarceration for a forcible or nonforcible sexual offense.” For the 2024-2025 award year the max award is $7,395 for the year. 
• Federal Supplemental Educational Opportunity Grants (FSEOG): This is a grant program that only some colleges elect to participate in. Recipients are selected based on financial need and can receive between $100 and $4000 a year. 
• Iraq and Afghanistan Service Grant: A specialized federal grant designed to help college or career school students whose parent or guardian died as a result of military service in Iraq or Afghanistan after the events of 9/11. Like other federal grants, it provides money to help pay for education expenses, but it has unique eligibility criteria.
• Teacher Education Assistance for College and Higher Education (TEACH) Grant: This grant provides up to $4,000 annually to students pursuing coursework necessary to become teachers. However, recipients must commit to teaching in a high-need field at a low-income school for at least four years within eight years of completing their degree. Failure to meet this service obligation converts the grant into a loan, which must be repaid with interest.

In order to apply for federal grants, you must complete the Free Application for Student Aid (FAFSA). 

State Grants 

State grants are another valuable resource for students seeking financial assistance for college. There are two main types of state grants: merit-based and need-based. 

• Merit-based grants are awarded to students who demonstrate exceptional academic performance, leadership skills, or other achievements. These grants reward students for their hard work and accomplishments. 
• Need-based grants are awarded based on the financial need of the student and their family. These grants aim to provide access to higher education for students who might not be able to afford it otherwise.

Both types of grants play an important role in making college more accessible and affordable for students. Here are examples of states that offer grants:

• Georgia: The HOPE Scholarship and HOPE Grant programs provide merit-based awards to Georgia residents attending eligible colleges and universities within the state. To apply, students must complete the FAFSA or the Georgia Student Finance Application (GSFAPPS) and maintain a minimum GPA requirement.
• Texas: The Texas Educational Opportunity Grant (TEOG) provides need-based grants to Texas residents attending eligible public two-year colleges. The program is designed to help financially needy students cover the costs of tuition and fees.

To find out if your state offers grants, follow these steps:

• Utilize Online Resources: Websites like the U.S. Department of Education and Ameribrights offer directories and resources to help you identify your state education department and their contacts. These platforms can guide you to the right state agencies and provide additional tips for applying for state grants.
• Research on Your State Education Department Website: Once you locate your state’s education department, their website will typically have a section dedicated to college financial aid, where you can find information about state grants and contact details.
• Read Eligibility Requirements Carefully: Pay close attention to the eligibility criteria for state grants. Some states may require you to complete both the FAFSA and a state-specific financial aid application. Additionally, you might need to provide additional documentation or meet specific deadlines. Understanding these requirements in advance will help ensure you complete all necessary steps and submit a complete application.

By taking these steps, you can navigate the process of securing state grants and ensure you are utilizing all available resources to fund your education.

Institutional Grants

Institutional grants refers to grants offered by a specific college or university. The application process will differ depending on the specific college, but typically they will require that you submit the FAFSA and possibly even a CSS profile (which basically asks for in depth info on  your parents marital assets as well as income, assets, expenses etc). Not all colleges offer grants, so be sure to take this into consideration as you start researching schools. Here are a few colleges known for their institutional grants:

• University of North Carolina at Chapel Hill: UNC offers generous need-based financial aid and has a robust financial aid program that can help cover the cost of attendance for students from various financial backgrounds.
• University of Wisconsin-Madison: UW-Madison provides significant institutional grants and financial aid to meet the needs of its students. 
• Michigan State University: MSU offers a range of financial aid options, including institutional grants, to help students afford their education. 

What Are Scholarships and How Can I Find Them?

Scholarships are financial awards given to students to help pay for their education, and unlike loans, they do not need to be repaid. Scholarships can be awarded based on a variety of criteria, including academic achievement, athletic ability, artistic talent, financial need, or specific fields of study. 

To find scholarships, check out national databases like: CollegeScholarships.org, CollegeBoard Big Future, and Scholarshipships.com. These platforms aggregate a wide range of scholarship opportunities from various sources.

Also, some states offer their own scholarship programs to support residents pursuing higher education. To find state-specific scholarships, visit your state’s education department or higher education website, which often lists available scholarships and provides application details. Here are some examples of states in the central U.S. that offer scholarships:

• Kansas: The Kansas Board of Regents administers scholarships such as the Kansas Promise Scholarship, designed to help students pursuing higher education in specific fields or regions.
• Ohio: The Ohio Department of Higher Education offers the Governor’s Merit Scholarship, which recognizes high-achieving students in the state. This scholarship provides financial support to outstanding Ohio residents pursuing higher education.

Also, many universities and colleges offer their own scholarships, so it’s important to research directly the university you plan to attend by taking a look at their financial aid page.

By exploring national databases, as well as state-specific and university offered scholarships, you can maximize your chances of securing financial support for your education.

What Should I Know About Student Loans? 

Student loans are funds borrowed from a lender that you must repay with interest. Generally, lenders are either the federal government, state government, or private companies. Interest is charged on the loan amount, meaning you will repay more than what you borrowed because the lender earns a profit from the loan.

Federal Loans

Federal student loans are a common and often more favorable option for borrowing money for college. They come with benefits such as lower interest rates and flexible repayment options. Here are the main types of federal loans:

• Direct Subsidized Loans: These are need-based loans for undergraduate students. The federal government pays the interest while you’re in school at least half-time, during the grace period, and during deferment periods. This means your loan balance doesn’t grow while you’re in school or temporarily deferring repayment.
• Direct Unsubsidized Loans: Available to both undergraduate and graduate students, these loans are not based on financial need. Interest begins accruing as soon as the loan is disbursed, and you are responsible for paying all the interest that accrues over the life of the loan.
• Direct Plus Loans: These loans are available for graduate students and parents of dependent undergraduates. They are not based on financial need, but a credit check is required. Interest accrues while you’re in school and during deferment periods.

To determine your eligibility for federal student loans, you must complete the Free Application for Federal Student Aid (FAFSA). 

State Loans 

State-specific loans for college, often known as state-based student loans, are offered by many states to help students cover their education expenses. These loans are typically administered by state agencies or authorities and may have specific eligibility criteria and terms. Here is an example of a state that offers such loans:

• Texas: Offers the Texas Higher Education Coordinating Board (THECB) loan programs, such as the College Access Loan (CAL) Program and the Future Occupations and Reskilling Workforce Advance to Reach Demand (FORWARD) Loan Program. 

Private Loans

In addition to federal loans, private student loans can be another option to consider. Offered by banks, credit unions, and other financial institutions, private loans may offer competitive interest rates, sometimes even lower than federal loans depending on the economic conditions.

Some popular private loan companies include:

• SoFi: Known for competitive rates and additional benefits such as career counseling and financial planning.
• Earnest: Offers flexible repayment options and the ability to customize your loan terms.
• LendKey: Provides access to loans from community lenders and often features lower interest rates and flexible repayment plans.

Don’t be discouraged by the fact that these loans are private. Depending on the economic climate, the interest rates on private loans might be more favorable than federal or state loans. It’s worthwhile to compare all available options to find the best fit for your financial situation. Also, carefully examine the repayment schedules and terms for private loans versus federal options to ensure you select the loan that best supports your long-term financial goals.

Conclusion

In Part 2 of our guide, we’ve explored how to reflect on your personal situation and leverage state grants and loans to fund your college education. By assessing your own strengths and resources, and understanding the types of financial aid available, you’ve taken important steps toward making your educational goals more attainable.

As we move forward, Part 3 will focus on additional ways to support your college funding. We’ll cover the federal work-study program, job and paid internship opportunities, military educational benefits, and employer-sponsored programs.These opportunities not only provide financial assistance but also valuable experience that can enhance your career prospects.

Prepare to discover new opportunities for funding your education and gaining practical experience. Part 3 will be packed with essential information and actionable tips to help you maximize your college experience and set yourself up for success. Stay tuned!

Additional Resources
Paying for College: A Brokeman’s Ultimate Guide (Part 1)
Paying for College: A Brokeman’s Ultimate Guide (Part 3)
College Express: Everything You Need to Know About College