The best way to save money on college payments for your kids is to take the time to learn about all of the available resources. Financial aid and scholarships are a great way to boost your college financing plans.
- Fill out the Free Application for Federal Student Aid (FAFSA). Beginning October 1st of your student’s senior year of high school completing the FAFSA is the first step in the financial aid process. The FAFSA offers favorable student loans and grants for eligible students. For many students, federal financial aid forms the foundation of their financial plan to pay for school so the earlier it can be completed, the sooner you can start putting together a plan. www.fafsa.ed.gov.
- Apply for Grants. Like a scholarship, a grant is another form of assistance that does not have to be paid back. Every grant program has a different way of determining qualifications. Upon submitting the FAFSA, students are considered for three different grants: the State of Illinois Monetary Award Program (MAP) for Illinois residents learn more about ISAC and MAP, the Federal Pell Grant, and the Federal Supplemental Educational Opportunity Grant (SEOG). When the college notifies the student of financial aid, it will also inform the student if he or she has been awarded any of these grants.
Research Scholarships. Scholarships are provided for academic achievements, sports abilities, talents and career fields, as well as for financial need. The best time to start looking for scholarships is a few years before college to learn about the requirements to apply. The best way to research scholarships is to talk to your child’s high school guidance department. Guidance counselors will have the most information about school and local scholarships available, and those are often the easiest to obtain. The next best way to research scholarships is through your teen’s college of choice, either via its website or financial aid department. - Take Out Loans. A loan is a tool that can be given out by the government, college, or banks and credit unions. The government gives two different types of loans — the subsidized loan, based on financial need, or the unsubsidized loan not based on financial need. The unsubsidized loan starts to accrue interest from the day that the loan is disbursed, whereas the subsidized loan does not start to accrue interest until six months after the student graduates or enrolls for less than half-time.
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