Our friends at UCanGo2 have produced two new videos about financial aid!
FAFSA and Financial Aid provides an overview of the Free Application for Federal Student Aid and how it is the first step in successful financial aid!
Scholarships 101 provides an overview of looking for and applying for scholarships.
You can also view these two videos on our Videos page!
When you receive your financial aid offer from a college you may be interested in attending, it’s quite possible that one or more student loans will be included in the offer. If you need a student loan(s) to help cover the costs of college, you’ll want to borrow smart from the very start of your college experience to minimize your debt after graduation. Here are some things you need to know as you consider student loans.
Happy Financial Aid Awareness Month! February is the time to learn how you can fund your education with various financial aid options. In order to receive federal financial aid, you must submit a Free Application for Federal Student Aid, or FAFSA. Once your FAFSA has been submitted, your school’s financial aid office will notify you of your aid eligibility. Before you decide which options you’ll accept, take time to learn about the different kinds of aid that are available to you. Since they’re all beneficial, here’s an overview of each type of financial aid.
Now that you know a little more about financial aid, use this month to decide which options could be right for you. For more financial aid information, go to StudentAid.gov.
The new year often comes with fresh enthusiasm for a renewed lifestyle. Whether it’s working out regularly, eating out less or resisting the snooze button, there is no time like the present to commit to new habits.
In addition to health and financial goals, there are some helpful academic goals that will prove beneficial from this school year to the next.
Scholarships: By completing the Free Application for Federal Student Aid (FAFSA), you’re considered for a variety of state and federal financial aid. We encourage you to “start” with FAFSA, and then continue seeking scholarship opportunities throughout the year. Check out UCanGo2.org for new scholarships by category and by deadline. Make a profile on OKcollegestart.org to view scholarship applications that are the perfect fit for you. It’s important to apply for as many scholarships as possible year-round, so make a habit of applying for 2-3 scholarships a week.
Study Habits: While your grades and GPA are not taken into consideration with your FAFSA, schools will look at your academic achievements when deciding academic scholarship offers as well as acceptance to their school. Your grades in college will also determine if you maintain certain scholarship offers from year to year. To start or keep up good study habits, check out these study tips: https://ucango2.org/publications/student/Perfect_10.pdf
Extracurricular Involvement: Many schools take more than just your grades into consideration. Join a club or volunteer in your community after school hours. Your involvement will look impressive on a college application. Are you already in college? Join a club or find opportunities in your community to share the skills and knowledge that you’re developing. It looks great on resumes for future employers. Whether you’re still in high school or you’re headed into the career field, extracurricular involvement is a good commitment to make in the new year.
By now you probably know that it’s important to submit the Free Application for Federal Student Aid, or FAFSA, but do you know what you’re actually submitting? This application allows colleges to see which types of financial aid you’re eligible to receive. Financial aid can help you cover educational expenses and comes in the form of grants, work-study and student loans.
Grants, sometimes referred to as gift aid, are need-based aid that usually don’t have to be repaid. The most common federal grant is the Pell Grant. This form of financial aid is available for undergraduate students (those who haven’t received their first bachelor’s degree). The maximum amount of Pell Grant a student can receive is $6,195 for the 2019-2020 school year. Financial aid offices will determine students’ financial need and inform them of their Pell eligibility. Another federal grant that’s available is the Federal Supplemental Educational Opportunity Grant, or FSEOG. Only students who have extreme financial need are eligible to receive this grant. Other grants require students to meet certain criteria. The TEACH (Teacher Education Assistance for College and Higher Education) Grant is an example of aid that has conditions attached to it, as it requires students to take certain courses and work specific jobs. There is also the Iraq and Afghanistan Service Grant that’s available for students who lost a parent or guardian as a result of military service in Iraq or Afghanistan after the events of 9/11. Eligible students should contact their school if they have any questions. Some states offer grants to their residents as well. Oklahoma has the Oklahoma Tuition Aid Grant, or OTAG, for eligible state residents who will be attending an Oklahoma public or private institution.
Work-study is also a type of financial aid that can help with the costs of college. Eligible students who receive this aid will have the chance to work a part-time job and earn money for educational expenses. Undergraduates and graduates with financial need are able to receive a work-study opportunity. Talk with your financial aid office to learn about potential places, on or off campus, that are hiring.
Student loans are another type of financial assistance. Different than other aid, student loans must be repaid with interest. There are various federal loans available for students. One type is the Direct Subsidized Loan for undergraduates who demonstrate financial need. The maximum amount for freshmen in the 2019-2020 school year is $5,500, with a fixed interest rate of 5.05 percent. A fixed interest rate means that the interest won’t change over time. The federal government will pay the interest on a subsidized loan while the student is enrolled in school at least half-time. In contrast, Direct Unsubsidized Loans are not based on financial need and are given to undergraduates and graduates. Students are responsible for the interest on this loan during all periods. The interest rate on an unsubsidized loan is 5.05 percent for undergraduates and 6.6 percent for graduate students. Other borrowed aid that isn’t based on financial need is the Parent PLUS Loan. This is available for parents of dependent students who need extra assistance with college expenses. In addition, parents must also be credit worthy to qualify for this type of aid. PLUS Loans have a 7.6 percent fixed interest rate. Speak with your financial aid office to learn more details.
There are a variety of resources available to help you pay for college. Not all schools offer each program, so be sure to contact your financial aid office with any questions. For more information about grants, student loans and work-study go to studentaid.ed.gov.
As you begin exploring different forms of financial aid, three terms will stand out: grants, work-study and student loans. These are the three primary forms of aid that the federal government distributes through the Office of Federal Student Aid (FSA). By completing the FAFSA (Free Application for Federal Student Aid), you’re applying to receive these various types of financial aid for school.
Grants and scholarships, which are given to eligible students to help them pay higher education expenses, are the best form of aid you can receive, as they typically don’t need to be repaid. The Pell Grant is the most notable federal grant; it’s awarded to undergraduate students based on financial need. Students can receive up to $6,095 from the Pell Grant for the 2018-19 school year. The OTAG is awarded to eligible Oklahoma residents enrolled in schools within the state and the FSEOG (Federal Supplemental Educational Opportunity Grant) is awarded to students with exceptional financial need. Some grants do have obligations attached to them, such as the TEACH (Teacher Education Assistance for College and Higher Education) Grant. This grant is designed to assist students who plan to teach and meet certain requirements for the grant. Not all campuses participate in this program, so students will need to check with their campus about available types of financial aid offered.
Work-Study is the form of federal aid that allows undergraduates to work part-time jobs on or off campus to earn money for school expenses. This program is administered by the school, and like grants, is based on your financial need.
The third type of aid is a federal direct student loan. A student loan is a form of aid the federal government provides to help students bridge the gap between family savings, scholarships and grants, and work study and remaining college costs. Unlike most grants or work-study, this money must be paid back with interest. While federal student loans need to be repaid, the interest accrued is often lower than it would be with a private lender, and federal student loans have more flexible repayment options than private or alternative loans.
The Direct Subsidized Loan program will lend students up to $5,500 annually depending on grade level, financial need and dependency status. The interest rate for subsidized loans first disbursed on or after July 1, 2018 is set at 5.05 percent, and the government will pay your interest costs while you’re attending school at least half time. The Direct Unsubsidized Loan is available to undergraduates (5.05 percent interest rate) and graduate students (6.60 percent interest rate). The government does not pay interest costs during school for unsubsidized loan borrowers, but students may make interest payments while in school to save money. If there is still a balance remaining after using all other available forms of aid, parents of dependent undergraduate students may apply for a Direct PLUS Loan. PLUS loan applicants must meet credit requirements, and the interest rate is currently set at 7.60 percent.
If you must accept a student loan to help pay for college, focus on federal loan options, and limit your borrowing to the amount you truly need to pay school expenses. For more information about paying for college, check out UCanGo2.org/pay.
If you don’t already plan to work while attending college, you should be aware that there are some real advantages to it. It can help pay for college without adding to your future student debt and help you build your resume.
When you fill out the FAFSA, you may find that you qualify for the Federal Work-Study Program. Work-Study provides part-time jobs for eligible students on a college campus or in an approved nonprofit organization or public agency. The program encourages community service work and employment related to the student’s course of study. Students work a specified number of hours each week and typically earn minimum wage. When assigning work hours, your employer or your school’s financial aid office will consider your class schedule and your academic progress. You will be paid directly unless you request that the school use the money to pay for your outstanding education-related institutional expenses such as tuition, fees and room and board.
Whether through Work-Study or not, having a job while attending college will give you a head start in job hunting after you graduate. Most entry-level jobs will give you skills that employers are looking for, like customer service, money handling and organization. If you can find a job or workplace related to the career field you’re planning on, all the better. You’ll also meet people that you can list as references for future job applications.