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Work And Pay Part Of Your Tuition

tuition Work And Pay Part Of Your TuitionWorking to pay off tuition is becoming increasingly popular among college students. In the past, students would get student loans to help pay for college tuition. While this is a viable away to meet the demands of high tuition, student loans do have their drawbacks.

The main problem is that student loans can drag on for years after a student graduates. It is hard enough trying to make your way after you graduate without having a significant portion of your earnings taken up with student loans. In addition, having an outstanding student loan can make it more difficult to apply for an apartment, credit card, or other type of loan. This is especially true if you miss a payment, which will affect your credit rating.

These are all the darkest possible circumstances regarding student loans, but they should be mentioned. A work study program in which students work and pay off tuition while still in school is becoming increasingly popular. In effect, students will pay off student loans in real time. Instead of being saddled with student loan payments that will come out of future paychecks, students work their way through college.

The set-up is similar to a student loan. A student gets a select amount of money to put toward tuition. Unlike a scholarship, which is “free money,” the student has to then work off the grant. This is preferable to a student loan because it will be paid off by graduation.

However, with tuition on the rise, work study programs will not always cover the entire tuition, just a portion. It still may be necessary to apply for separate student loans and scholarships. Even so, the amount of a student loan will be severely diminished if included with a work study program.

One misconception among college students is that you can only participate in one kind of program. Certain programs do have restrictions, but it is possible to get a scholarship, student loan, and participate in a work study program. If a scholarship only covers $2,000 of tuition, you may need to explore other avenues as well. At the same time, if you default on student loan payments, you may be ineligible for certain work study programs.

Remember that much of student loan payments go to interest—especially for young, high-risk borrowers who will likely have high interest payments. Interest is basically lost money—it does not go towards paying off the loan. The higher the interest rate, the longer an outstanding student loan will last. It is imperative that you combine student loans with other types of payment plans in order to not be saddled with high student loan payments long after you leave college.

Work study programs do not have the same problems with interest. Normally, you will have a portion of the tuition pre-paid, which you then work off. You will not have to pay extra for interest, but instead your paycheck goes towards paying off the grant. If you need extra spending money as well, you may need to get another job or save a portion from the work study program—if the program allows you to pay a set amount every month.

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posted by EDUwithPassion in Paying for School,Reducing Cost/Tuition and have No Comments

Use Your Resources To Plan For College

Planning to go away or to start college is a fun and exciting time for those students who are planning on attending. The stressful part usually comes from finding the resources to pay for your college education. It is important that you and your parents plan out together how much money you are going to need for college and where the money will come from to cover your college expenses. You will need to sit down with a pad of paper and a pen in order to write everything out. The earlier you start planning, the better. This way if you or your parents need to make adjustments, you can do so before it is time for you to head off your freshmen year.

Figure out your costs:

1.Tuition & Books: Contact the colleges and/or universities that you are interested in attending. Ask specifically about the estimated costs for tuition and books. Usually the estimate of these costs is provided in the college brochure.

2.Housing: If you are planning on living on-campus, you will also need to obtain housing information. Housing information should include the cost and what the cost includes. Some colleges and universities offer meal plans to students who live on-campus, which provides you with a certain amount of money to eat at the campus restaurants, cafeteria and cafes. If you are planning on living off-campus, you will need to do a little research on the average cost of rent for the area. Also be sure to include extra costs such as electric, phone, water, etc.

3.Food: You have to eat, so be sure to include spending money for food in your calculations.

4.Spending money: College is more than just academics. There are student activities that you are going to want to participate in throughout the semester. Be sure to allocate a certain amount of money to spend on going out with friends, going to the movies, participating in a sorority or fraternity, etc.

5.Tally up your costs on an annual basis and then be sure to multiply the annual cost by how many years it is going to take you to complete your particular major. Usually, 4 years is the number you will need to multiply by, unless you already know that you will be going to on to graduate school, law school, medical school, etc. If that is the case, you will need to go through the same 5 steps for the costs involved with these types of schools (adding it to your undergraduate college costs).

Tapping Into Your Resources:

Once you have an idea of what the cost of your college education is going to be now it is time to list out all of the possible resources that you can tap into to pay for everything. You will need to sit down with your parents and go over all of these costs that you have tallied. Find out from them what source of funds they have and are willing to contribute. You may also have some resources of your own that you can contribute.

Here is a list of possible resources to consider:

1. Savings or Investment Accounts
2. Pre-paid College Tuition Program
3. Education IRA, ROTH IRA, or Retirement IRA
4. Savings Bonds
5. Contributions from Grandparents or other family members
6. Scholarships*
7. Grants*
8. Student Loans*

*You may not know the contribution amount of these resources yet.

After you have a list of your possible fund sources and the total amount that each resource can provide, total everything up. Where does this leave you? Do you have enough to cover your college education or are in the hole? If you are in the hole, then you should come up with a plan on how you and your parents can make up for the difference. Research scholarship and grant opportunities that you may be able to qualify for or pick-up a part-time job after school to help contribute to your college savings. Your guidance counselor at school and the Internet should be able to help you find scholarships and grants that you may be eligible for. Especially, if it is your senior year of high school, contact the financial aid department of the college you will be attending. Find out when they deadline is and what forms you have to complete to apply for financial aid.

There are resources available to you for paying for your college education. Just be organized and diligent about finding out what the costs are, what resources you have available to you, and whether or not you to find additional resources to cover your college expense.

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Can I Automatically Renew My Student Loans Each Year?

When applying for financial aid for undergraduate, graduate or professional degree programs, you’ll likely hear a lot about scholarships touted as being renewable for a year or two at a time.

While scholarships and other forms of non-loan financial aid do have the ability in some cases to renew, student loans generally do not. At least, not in the conventional understanding of the term “automatically renew.”

Meaning, you will probably not receive the exact amount every year, and it will require at least a cursory update of information to the lender, whether it’s the federal government or a private lender.

Starting with federal student loans: the aid definitely does not automatically renew every year. It does not simply replenish every year because the amount you receive depends on your family’s current financial situation and updated government legislation.

So, a renewal of your FAFSA (Free Application For Student Aid) every year is necessary. An online personal identification number will be sent to returning students each year for online applications, or a student will be required to fill out a paper renewal to make the changes.

Private loans may require a less rigorous change process each year or semester, but there will still be some, for many of the same reasons a federal loan does, minus the federal guidelines.

Financial aid need needs to be evaluated each year or semester to account for a student’s evolving circumstances, as well as that of the economic and legislative environment, to make sure there is fairness in distribution of the aid.

A student’s tuition, housing or expenses might go up one year or semester, making it necessary to increase their aid amount. He or she might have become eligible or non-eligible for scholarships, grant programs or work-study situations that might impact the amount of money needed.

Additionally, his or her family finances could alter slightly or dramatically, making adjustments in the FAFSA or private loan calculation necessary.

Academic progress is an important factor in determining a student’s aid package each year, especially with regard to federal loans. If a student does not maintain a satisfactory grade point average, course load or has some disciplinary actions taken against him or her, aid could be restructured.

Funding and allowances from state, federal and university endowments might change, making the amount of funding from these sources fluctuate and the need to pull money from other private or federal sources necessary.

So, when considering your financial aid needs, remember that they are not automatically renewed each year, although major pieces of information (name, social security number, credit history, tax history) remain on your permanent file and the bulk of your initial information will probably not have to be redone.

Be sure to stay organized and aware of any “new” or “renewal” application dates, and submit all your paperwork on time. This will ensure a smooth financial aid transition throughout all the years you are in school, and be as close to an “automatic renewal” as possible.

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A Guide to Work-Study Programs

What are Work-Study Programs?

The Federal Work-Study program is funded by the U.S. Department of Education and subsidizes part-time jobs for undergraduate and graduate students who have financial need. These programs are a great way to earn extra money for school, gain valuable work experience, and contribute to your community. Many available work-study jobs are for on-campus work, but some students work off-campus for private businesses. In most cases, your school will try to match you with a job that relates to your area of study whenever possible. The number of hours you work each week will vary based upon your work-study award, your class schedule, and your academic progress.

How Much Can Students Earn Through Work-Study Programs?

The amount of money you can earn through a work-study job varies depending on your job, your financial need, and when you apply. All students participating in the work-study program will earn at least minimum wage, but you can earn more depending upon the type of work you are doing and the skills your job requires. Undergraduate students are paid by the hour, while graduate students are sometimes paid a salary. Students with greater financial need are usually offered a higher award amount.

Payments will be made directly to you at least once a month. If you prefer, you can sign up to have your earnings direct deposited into your bank account. Students who apply for the work-study program early usually receive a larger award and are more likely to find employment through the program.

What Are the Eligibility Requirements for Work-Study Programs?

Your eligibility for work-study programs is based upon financial need. The amount of money you qualify for will be determined based upon the amount you are expected to contribute to your education and the estimated cost of attendance. If you qualify for other types of financial aid such as Pell Grant and federal loans, you will also qualify for work-study.

How Can Students Apply for Work-Study Programs?

Students can apply for work-study programs by filling out a Free Application for Federal Student Aid (FAFSA). You can pick up paper copies of the FAFSA at your schools financial aid office or you can fill out an application online. The FAFSA requires information about your earnings from the previous years, your parent’s earnings from the previous year, and the total number of people living in your household.

The information you provided on your FAFSA will determine whether or not you are eligible for financial aid. Your financial aid package will likely include several different types of aid, including Pell Grants, loans, and work-study awards. Once you have been approved for a work-study award, contact your school about employment opportunities. Counselors advise that work-study positions are in high demand, so apply early for the best chance at finding a work-study job.

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Are YOU Applying For Student Loans? Read This!

As the costs of higher education continue to rise, increasing numbers of students and parents are relying on loans to help pay for college. In order to successfully manage this debt, it is important to understand the loan process, including how student loans work, the types of loans available, and applying for loans. If you need additional money beyond savings, grants, and scholarships, consider accepting a student loan to pay the expenses associated with your education.

How do student loans work?

Loans allow students to borrow money to help pay for the costs associated with higher education. Payment of such loans can typically be deferred until the student has graduated from school. The U.S. Department of Education administers loans funded through the federal government. Federal loans are made available either by providing money directly to colleges and universities or by connecting students with private loans.

Types of Loans

1. Federal Stafford Loans: Federal Stafford Loans are available to both undergraduate and graduate students and must be repaid. First-year undergraduate students are eligible for up to a $2,625 loan. Second-year students can borrow up to $3,500 and up to $5,500 each following year. The total amount borrowed by dependent students can exceed no more than $23,000.

Graduate students can borrow more through Federal Stafford Loans, but the government can subsidize only $8,500 of this debt. Eligible graduate students can borrow up to $18,500 each year, but can borrow no more than a total of $138,500 during both undergraduate and graduate study.

The interest rate on Federal Stafford Loans varies, but will not exceed 8.25-percent. For qualifying students, the government will pay the interest while the student is in school. These subsidized loans are offered based on financial need and can save a considerable amount of money in interest. Students who do not qualify for subsidized loans will be expected to pay back the full amount of their loans plus accrued interest.

2. Federal PLUS Loans: Federal PLUS loans are loans made to the parents of students. To be eligible for a Federal PLUS Loan, students must be enrolled at least part-time at a participating college or university. Federal PLUS loans are very similar to Stafford loans, except they are made directly to the parent instead of the student. Parents may borrow up to the full amount of the student’s total tuition. Unlike Stafford loans, parents must begin to repay PLUS loans immediately.

3. Perkins Loans: Federal Perkins Loans are funded by the government and made available through individual colleges and universities. These loans are available to eligible undergraduate and graduate students who are enrolled full-time and meet all the requirements established by the individual college or university. Consult a financial aid or admissions counselor at your university of choice to learn more about the institution’s specific requirements. Perkins loans are offered at a low interest rate of 5-percent. Undergraduates can borrow a maximum amount of $4,000 per year, while graduate students can borrow up to $6,000 per year. Repayment of Federal Perkins Loans begins nine months after graduation and students have up to 10 years to repay the amount borrowed.

How do you apply for a loan?

Applying for loans through the United States government is accomplished by filling out a Free Application for Federal Student Aid (FAFSA). Paper applications can be found at the counselor’s office of your local school, but you can also fill out an online application at the FAFSA website. Students will need to request a PIN number before filling out the application online. For maximum financial aid benefits, complete an application sometime between January and March for the next school year. Some financial aid programs require an early application in order to qualify.

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The Cost of a College Education – Beyond the Tuition

When figuring the cost of a college education several factors come into play. Tuition is just one of the many costs that a student is responsible for while earning their college education. Some costs may apply to certain situations that do not apply to other situations, so it is very important to assess the individual situation when figuring out the total costs.

Here is a breakdown of some of the costs of college that need to be considered when trying to come up with the total figure.

1. Tuition: Contact the colleges and/or universities that you are interested in attending. Ask specifically about the estimated costs for tuition. Tuition is the fee that schools charge for students to enroll and attend classes. This is not an all inclusive cost. Usually the estimate of these costs is provided in the college brochure.

2. Books and Materials: Contact the colleges and/or universities that you are interested in attending. Ask specifically about the estimated costs for books and supplemental learning materials. Student materials include notebooks, paper, pens and pencils and any other materials that students will need to complete their classes. Usually the estimate of these costs is provided in the college brochure.

3. Housing: If students are planning on living on-campus, they will also need to obtain housing information. Housing information should include the cost and what the cost includes. Some colleges and universities offer meal plans to students who live on-campus, which provides them with a certain amount of money to eat at the campus restaurants, cafeteria and cafes. If students are planning on living off-campus, they will need to do a little research on the average cost of rent for the area. Also be sure to include extra costs such as electric, phone, water, etc.

4. Food: Everyone has to eat, so be sure to include spending money for food in the calculations.

5. Spending money: College is more than just academics. There are student activities that students are going to want to participate in throughout the semester. Be sure to allocate a certain amount of money to spend on going out with friends, football games, going to the movies, and participating in a sorority or fraternity, etc.

6. Other fees: Some distance learning programs or online programs charge additional fees on top of tuition. They charge for items such as technology usage and distance learning fees.

So there are other costs and fees associated with earning a college education. The cost of a college degree goes beyond the tuition itself. It is important that students are careful to obtain all of the fees and costs associated with obtaining their degree before making a final decision.

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