My motivation was zero when applying to schools and looking for money to go to college. If it wasn’t for my parents, I might still be working my summer job. College applications are overwhelming and stressful. I found it difficult to take any time between school work, athletics, clubs, boyfriends, dances, and the list could go on forever. Who has time to think about what you want to do in 9-12 months? Well, in no time at all my parents let me know that not only did I have to fill out all of the applications on my own, but that my next step in education would not be a free ride courtesy of them. My parents were generous enough to make up the difference after scholarships, grants, and a loan. I was fortunate enough to have had an older brother that finished college right before me, so my parents were very familiar with filling out the FAFSA (Free Application for Federal Student Aid) form. The FAFSA is your application for federal aid in loans, grants, and work-study programs (this application is also used for most state and some private aid). It is important to have all of your financial information and your parent’s financial information in front of you when getting started on your student aid paperwork. It is also important to be on top of this paperwork, because there are deadlines that you have to meet in order to be considered for student aid. Visit the financial aid office of the school you plan to attend, or visit your high school guidance office for information. To get started go to http://www.fafsa.ed.gov and fill out your FAFSA.

Here are the top financial resources used when paying for college (in no particular order):

1. Student loans that you can find on the student aid website are the Perkins loans, Subsidized Stafford loans, Unsubsidized Stafford loans, and PLUS loans. Effective July 1, 2010 all of these loans except for the Perkins will come from the Direct Loan (William D. Ford Federal Direct Student Loan) Program. Previously, funds could also come from financial institutions through the FFEL (Federal Family Education Loan) Program. The primary difference between subsidized and unsubsidized loans is that on a subsidized loan interest is charged when the money is disbursed and is most often paid as it accumulates to avoid having the interest applied to your principal. A subsidized loan is based on your financial need and the federal government subsidizes the interest so that you are not charged the interest until you start repaying the loan. The Perkins loan is a direct loan from your school.
2. Savings is a great way to pay for college. As soon as you turn 13, you can open a Connections™ Checking Account at UECU and start earning the same rate that you earn on your Share Savings account. The great thing about this checking account is it travels easily wherever you go with up to $12.00 a month of ATM rebates when another institution charges you to use their ATM.
3. Grants are a gift, so you do not have to pay them back like a loan. You can find federal grants online like the Pell Grant, FSEOG (Federal Supplemental Educational Opportunity Grant), ACG (Academic Competitiveness Grant), National SMART Grant (National Science & Mathematics Access to Retain Talent Grant), TEACH Grant (Teacher Education Assistance for College and Higher Education Grant), and Iraq and Afghanistan Service Grant. The transition to all of the federal loans issued through the Direct Loan Program should increase the funds available for the Pell Grant thus increasing the amount of funds available for students that they will not have to pay back.
4. Scholarships are similar to grants in that you do not have to pay them back. They are usually awarded based on need or an achievement. As a member of UECU, you can enter a video or essay for the annual UECU scholarship contest. Take a look at the entries for 2010 and check back in the Spring of 2011 for our annual contest. Another great place to start looking for scholarships is with the schools you are applying to, your guidance office at your high school, and online. Be careful when searching online for scholarships and do not provide information such as bank account, credit card information, etc. to avoid possible fraudulent sites that may put you at risk for identity theft. Some great websites to check out are: College Board, Fast Aid, Fastweb, and Petersons.
5. A home equity loan and a home equity line of credit is a great option for parents or non-traditional students to pay for educational expenses. There are even some great tax benefits when you save ahead of time with a Coverdell Educational Savings Account. You can also withdraw from a Roth IRA or Traditional IRA with no early withdrawal penalty for qualified education expenses.
6. Work-Study programs on campus or off campus are another great way to pay for college. FWS (Federal Work Study) is administered directly by the financial aid office at the school. You will be paid based on the work you do and the skills required.

Give UECU a call at 800-288-6423 or visit our website at www.uecu.org to help you start your journey to higher education.

Written by Jaime B