Sources of financial aid

You can find good general Information about student loans at eStudentLoan.com - Compare Student Loans and Apply Online!. In addition, here are some other options and sources to consider.

College scholarships

Most colleges now give merit scholarships for strong academic achievement, academic potential, participation in sports or activities, leadership, or community service. In many instances you must apply for these scholarships; however, often you will receive a pleasant surprise (a merit scholarship) when you receive your acceptance. You are most likely going to receive a merit scholarship from a school where you are considered a particularly strong candidate. Some schools use it as a way to 'buy' good students. Most of the most selective colleges in the country do not give out merit scholarships; however, even this is changing. Merit scholarships are grants and do not have to be paid back. They will usually be renewed for the second year if you have a strong freshman year in college.

Colleges also offer need-based scholarships that are based on acceptable academic credentials and financial need as determined by the FAFSA (Free Application for Federal Student Aid), that is issued by the Department of Education. These forms cannot be started until January 1 and may be obtained from the College Counseling Office or the college of your choice. It is necessary for you to have most of your tax forms started in order to complete the FAFSA. This will determine the parent contribution to your education that will then determine how much will need to be covered by scholarships, work study, or loans. The FAFSA may also now be completed on the web at www.fafsa.ed.gov. This is the easiest and fastest method. Some of the most selective colleges in the country also use the CSS Profile, a copy of which may also be picked up in the office or completed on the web. You should start filling this out in the fall of your senior year.

If you are not sure whether you will qualify for need-based aid, use the EFC (Estimated Family Calculator) that is part of the College Board site: cbweb9p.collegeboard.com/EFC/. You may find out information about the FAFSA or fill one out online at www.fafsa.ed.gov. Online Profile is available on the College Board site: www.usnews.com/usnews/edu/college/coworks.htm

• Supplemental Educational Opportunity Grant (FSEOG)
  • In order to receive this grant (no repayment), one must demonstrate need through FAFSA. A student applies for this grant through the college financial aid office. This supplemental grant ranges from $200 to $4,000. This will usually be included in the financial aid package that the college financial aid office will present to you.
• College work study (federal work study)
  • In order to be eligible for college work study, a student must qualify through FAFSA. These jobs must be either on campus or off campus with a non-profit organization. The number of hours during the school year will be limited. Once again, this will generally be included in the financial aid package from the college.
• Perkins Student Loans
  • This is a very advantageous loan that one must qualify for through the FAFSA form. The maximum amount of the government-subsidized loan in 1998-99 was $4,000. No repayment is required while a student is still in school, in the military, in VISTA, or in the Peace Corps. Other deferments are permitted if repayment would cause a financial hardship. The entire loan could be cancelled if a student teaches in a school in a low-income district where there is a teacher shortage, or if a student becomes a nurse or medical technician. There is no interest until repayment begins. The interest is 5% for four years, then 8% thereafter.

From the federal government

• Pell grants
  • This is a grant (no repayment) that can range from $200 to $4,500, depending upon level of estimated family contribution (EFC) as determined by FAFSA. A student needs to apply for this through the college's financial aid office
• Stafford subsidized loans
  • This loan is obtained through a bank or credit union but is subsidized by the federal government. There is a 5% origination fee. There are yearly and career maximums placed on the amount that can be borrowed. There is no repayment while a student is in school, the military, Peace Corps, or VISTA. A student has up to ten years to repay.
• Robert Byrd Scholarship
  • Robert C. Byrd Scholarships provide federal money to promote academic excellence and achievement. The individual states administer these programs and determine the criteria.

From the state government

In Florida, through the Bright Futures Scholarship program, students who qualify are able to receive up to 100% of tuition and fees plus a stipend if attending a public university. This grant can also be used at private Florida colleges. In order to determine if a student qualifies, a student must fill out a Bright Futures Student Authorization Form in the college counseling office. A summary of these programs:

• Bright Futures
  • The Bright Futures program provides funding for resident to attend public and private colleges in the state of Florida. The program changes yearly and may be in for some big changes because of problems with funding. For the 2003 school year there are two programs that affect our students: Bright Futures program also provides funding for Florida private institutions.
• Florida Academic Scholars Award
  • Requirements: a weighted GPA of 3.5 and a 1270 on the SAT or 28 on the ACT.
  • Award level: 100% tuition and fees (plus up to $300 in lab fees) and $300 per semester for college-related expenses.
• Florida Medallion Scholars Award
  • Requirements: a weighted GPA of 3.0 and a 970 on the SAT or 20 on the ACT.
  • Award level: 75% tuition and fees (plus up to $300 in lab fees) and $300 per semester for college-related expenses.
  • Students must register online in order to be eligible for Florida Bright Futures awards. We encourage even those students who will be attending colleges out of state to register in case they return to a Florida institution. Students may register at anytime, but must register before graduation. Registration is available on line at www.MyFloridaEducation.com/brfuture.

From local or national scholarships

Many scholarship opportunities will be made available to students during the year. In addition, make sure you read the newspapers carefully; many scholarships are publicized in small print. Episcopal also has a couple of databases that include many scholarship options. And make sure your parents investigate what scholarship programs are available through their employers; many large companies have special scholarship opportunities for children of their employees.

Many web sites include scholarship searches. Be wary of companies that offer to find you scholarships for a nominal fee; some of them are scams, and many simply search sources that are free and available to anyone. Two of our favorites sites are www.finaid.com and www.fastweb.com.

Another way of reducing or eliminating college costs is through ROTC scholarships, or by enrolling in one of the service academies. Information about future veterans benefits can be obtained through www.va.gov/education. This alternative is not for everyone.

Alternatives to financial aid

• Unsubsidized Stafford loan
  • This is for students who cannot demonstrate financial need. The terms are the same as the subsidized Stafford Loans, except interest on the loan begins while the student is still in college.
• PLUS loans and other educational loans
  • A PLUS loan is paid by the parent, and one does not have to demonstrate financial need. It is limited to the cost of education minus financial aid. The interest rate goes up and down depending on the prime rate. A parent must start paying this loan back immediately. There are many private corporations that will work with you to obtain the PLUS loan.
• Payment plans
  • Almost every college offers some kind of a payment plan allowing the parent to pay in ten installments.
• Home-equity loans
  • Home equity loans can be excellent ways of paying for college tuition because rates are low, and parents can often deduct the interest paid from their income tax.