The Pell Grant

     The Pell Grant is usually awarded to prospective or current students over the age of 25 (because at this age you are considered independent), and have a qualifying annual income.  The portion of the Pell Grant that you will receive is automatically calculated based upon your answers to the questions in the FAFSA online form.  The most important factors that determine your eligibility for this grant are:

1.  You are over the age of 25, or are otherwise considered to be "independent" (in other words, your parents/guardians do not claim you as a dependent on their tax returns).

2.  Your annual income.  Do not get discouraged if you do not initially qualify due to your annual income being too high; there are ways around this!  

     If your annual income is too high and you do not qualify, but you are either having your work hours cut or quitting work altogether in order to attend classes, you can still receive Pell Grant benefits by speaking with a financial adviser at your school and filling out a "Student Special Circumstances" (or similar) form.  This form serves the purpose of documenting the fact that, although you may have made a certain salary for the previous tax year, you will no longer have that level of income, or perhaps no income at all.  
     In order to complete this sort of form, you must provide a letter or some proof from your employer that you will no longer be working for them as of a certain date, or that you will be working much less due to your class schedule.  You will also be required to provide a copy of your last pay stub so that the adviser can calculate what you will actually make in that academic year, which will more accurately measure what you should be able to receive from the Pell Grant.  
     For me personally, I was able to go from not being able to receive any money from the grant to receiving the maximum amount simply because I filled out this form stating that I would have no income once I started classes.

The FAFSA

     A few things to keep in mind when you start adding up the costs of registering for classes at any school.  First and foremost, DON'T FREAK OUT!  Indeed, no matter what type of post-secondary school you are interested in, there will be a hefty bill.  Like I said, don't freak out!  There are plenty of options available for people from all walks of life.  The first step to receiving financial assistance is to fill out the financial aid form known as FAFSA.  This form asks you to answer anywhere from a few (if you're tax returns are simple), to a multitude (as your tax returns become more complex) of questions about your living and financial situations.  Some of these questions will apply to you, while others will apply to your family (mainly if you have dependents or are a dependent of someone else).  It can seem to be a tedious task, but the fruits of your labor will be more than worth it.  

     In many cases, filling out the FAFSA will qualify you for enough financial aid grants (which you do not have to pay back), and loans (which you DO have to pay back) to not only pay for your tuition and book costs, but give you some extra cash to live on during the course of the semester.  In the next post, I will go into detail about the "Pell Grant", which is mainly for those adults or young adults who file their taxes as Independents.  For now, remember that filling out the FAFSA is the best way to quickly gain access to grants and loans which will help you pay for school; it automatically figures an estimate of what you will receive based on the answers you provide (which, by the way, must be accurate). 


What is a Dependent? Independent?

     For some of you, this will be the first time you have heard the terms "dependent" or "independent", as some of you may have never had to file taxes before.  I will explain so that you will have a better idea of which to identify yourself as in your FAFSA.  If you have never heard these terms before, chances are you are filed as a dependent of your parents or guardians.  This means that you rely on them for most of your support.  If you want to be sure, ask your parents if they still file you as a dependent on their taxes.  After age 25, they are no longer able to file you as a dependent, so you are independent by default.  Independent means that you support yourself.  Make sure to put this in correctly, as it can make a huge difference in your FAFSA estimated aid. 
     You will receive much more aid as an independent than you will as a dependent.  Basically if you are dependent, you will have to ask your parents if they are willing to stop filing you as their dependent.  Most parents will be hesitant to do this, as it makes a big difference in decreasing the amount of taxes they pay or increasing how much they get back in their tax return.  Simply sit down and discuss the situation with them and decide together as a family what the best option is.  If they opt to keep you as a dependent, they will may end up having to take out a Parent Plus loan to help you pay for college anyway, so they will need to choose which option they are more comfortable with.  If they allow you to become independent, along with the Pell grant you will be able to take out Subsidized and Unsubsidized loans to help pay tuition and living expenses. 


What does Subsidized/Unsubsidized mean?

     Many people ask this question, and the answer is more simple than one may think.  Unlike the Pell grant or any other grants and scholarships you may receive, subsidized and unsubsidized loans must be paid back after you complete your education.  The difference between subsidized and unsubsidized is basically whether or not you accrue interest during the time between when you take out the loan and when you pay it back. 
     With a subsidized loan, you will not have interest added on to the amount you owe, it will simply be the amount you borrowed that you have to pay back. In unsubsidized loans, you will accrue (meaning build up) interest as you continue to attend college until you pay your loans back.  This is usually not a huge percentage of the total loan, but can still add up to a sizeable amount of extra money you have to pay back. 
     You also have the option to pay the interest as you go, so that it doesn't continue to build up.  If you can afford to do this, it pays dividends later because as you gain more interest, it gets placed into the principal loan amount (therefore charging you interest on the interest you have accrued already).  By the time you graduate (especially if you continue to graduate/professional school and attend another 4-6 years with higher tuition and loans), paying the interest as you go can save several thousands of dollars, if not tens of thousands. 


Are there other Grants and Scholarships to help me pay for classes?

     There are a lot of grants and scholarships out there for almost anything you can imagine.  Search the web or ask your high school or prospective college for information on possible options.  For many of these grants and scholarships, however, you will have to meet a very specific set of requirements.  They may also require you to write an essay stating why you deserve to receive the award. 
     Like I said before, there are tons of different grants and scholarships out there; the problem is that each one only awards the money one or a few students each year, and competition is usually pretty high.  This shouldn't dissuade you from trying though, because there is still a good chance you could be chosen.  Keep in mind also that most will also require you to keep a certain GPA and attend classes full-time (at least 12 credit hours or more per semester).
     Search the web for grants or scholarships in your state.  The earlier in the year, the better.  So January is the best time to apply usually, but some also open at other times of the year so make sure to check the application deadline and the date applications begin being accepted so you can apply at the earliest possible time.  Your school may also provide it's own internal scholarships or grants to students so make sure to check with them about that.  I have known some schools that provide students with different grant/scholarship amounts depending on their high school GPA or previous college GPA if transferring or entering their second or higher semester with the school.  It is definitely worth investing some time to find out what you have to work with, it can make a significant difference in the amount of loans you ultimately have to take out.

Financial Aid Page

 Financial Aid:

     Figuring out how to pay for the incredibly high costs of college is one of the biggest (and most frightening) hurdles to overcome for many of us when entering or returning to college. I myself returned to school after a 4 year leave of absence, and I know first hand how terrifying it can be to start looking at the costs associated with signing up for classes. This page will include tips and advice that I have learned from my own experience, as well as other info about financial aid I have personally reviewed and researched.
     Don't let fear of the paying for college stop you for a second.  If you file your own taxes and are not considered a dependant of your parents or guardian, you will easily be able to get the amount of financial aid and loans that you need, not only to pay for classes but also have enough left over to pay things like rent, food, and other "cost of living" expenses.
     If you are a high school student or just out of high school, you may need to have your parents sign for an extra loan if your normal loans can't cover the costs. There are loans known as Parent Plus loans that can help not only cover the cost of classses but also the cost of living.

To see all the posts I've made about Financial Aid, simply click on the "Financial Aid" tab at the top right of this page.