Will Wisdom

The cost of college is not getting any cheaper. In fact, the price for four-year private colleges has increased 6% since last year and the price for four-year public colleges has increase 10.5% since last year. The good news is that there is more financial aid available than ever before – over $122 billion! The trick is knowing where to look and how to get it.

Financial aid comes in many forms, including grants, scholarships and loans, and it can come from a number of different places.

Grants

Grants are gifted financial aid, that is they don’t have to be repaid. Grants can from almost anywhere, including the federal government, state agencies, private businesses, foundations, community organizations, towns, and high schools. Generally grants are based on financial need. A well known grant is the Pell Grant, which is a federal grant based on financial need.

Scholarships

Scholarships are also gifted financial aid; however many are not given based on financial need. Instead, many scholarships have other special qualifications. For example, some scholarships are based on academic achievement, some on artistic talent, some just require you to live in a certain area. Like grants, scholarships can come from any number of places. You may have heard of some famous scholarships like the National Merit Scholarship and the Rhodes Scholarship.

Loans

Loans are another way to pay for college. Unlike grants and scholarships, loans have to be repaid. Loans generally come from the federal government, though private institutions, some colleges, and even some foundations provide college loans. Many loans are need based. These subsidized loans generally have very low interest rates and the federal government will pay the interest while you are in school. Unsubsidized loans are not based on financial need; however, students are responsible for paying the interest while in school.

Other Ways to Pay for College

Work Study – Work study money is awarded by colleges to students who the federal government feels need it (based on FAFSA information). The students earn the money through employment provided or arranged by the college.

Military – If eligible, a student may receive money from the U.S. armed forces, who have a variety of financing options, including the Reserve Officer Training Corps (ROTC) and the Montgomery GI Bill.

Americorps – Americorps allows eligible students to do community service in return for college money.

How to Get The Money

The key to getting financial aid of any kind is organization and timeliness.

1.	Know how much you need – To know how much financial aid you will need, you need to know how much school will cost. To start, you should make a list of five to seven schools that you are thinking about applying to. If you have already thought about college, this step shouldn’t be difficult, but if this is the first time you have even considered school, this step will take a little more thought. Once you have a list of the schools that you are considering, you should add up the tuition, room and board, books, and any other expenses that you will incur once at school. This total amount is the amount you are looking to fund.
2.	Search, search, search – The next step to finding financial aid is searching out your options. The internet has made searching for grants and scholarships much easier than in the past. There are a number of web site that allow you to search, such as Fastweb.com and Scholarships.com. Be wary of scholarship search engines that cost money, most of these are scams. If you have a lot of time on your hands or just like to look through books, the library is also a great resource for finding grants and scholarships. Keep a list of the scholarships and grants that you are considering. Also keep a detailed list of their due dates and requirements, as many grants and scholarships have strict requirements and if you don't meet them there is no reason to spend the time applying.
3.	Complete your FAFSA – The Free Application For Student Aid (FAFSA) is a government form that determines your eligibility for federal financial aid (including grants, loans, and work-study programs). It consists of numerous questions regarding your finances and your family's finances, which are used to calculate the Expected Family Contribution (EFC). The EFC is then used to determine how much money a student is eligible for. You can complete the form at http://www.fafsa.ed.gov or you can pick one up at any college's financial aid office; your high school guidance counselor's office should also have forms on hand.
4.	Narrow your prospects – Review your list of scholarships and grants. Find the ones that best apply to you. The more specialized, the better. For example, if you happen to be left-handed, there are scholarships just for you. Generally the more specialized and applicable the scholarship is to you to fewer number of people will be applying, which means your odds of getting it are better.
5.	Apply – Apply for all the scholarships that you fit the requirements for.
6.	Double check your applications – Nothing will get your application thrown out quicker than a misspelled word, so be sure to double check all of your hard work.

Timeline

Freshman and Sophomore Years, High school
•	Concentrate on getting good grades
•	Get involved in extracurricular activities
•	Think about what career you may want
•	Take you PSAT (this is the qualifying test for National Merit Scholarships, National Scholarship Service and Fund for Negro Students, and National Hispanic Scholar Recognition Program)
Junior Year, High school
•	Continue concentrating on good grades as well as community and activity involvement
•	Request information from the colleges you are interested in
•	Think about who you will be asking for recommendations
•	Start to look for scholarships and grants
Senior Year, High School, Fall
•	Take the SAT and/or ACT
•	Attend college information sessions held at you school or locally
•	Complete your FAFSA (due January 1)
•	Apply to colleges
•	Think about how you are going to pay for college
	•	Sports Scholarships: National Letters of Intent come out in November, which should have scholarship information
	•	Military: ROTC applications are due in November
•	Apply to scholarships and grants (many have January deadlines)
Spring
•	Contact college financial aid offices to see if all requirements have been submitted
•	As you start to get college acceptance letters compare their financial aid packages
Summer
•	Work to save money
•	Apply for loans