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Scholarships & Grants (continued)
2. Successfully searching for scholarships and grants is time-
a. While applications for scholarships are not generally due until the senior year of high school, searches that commence as early as the freshman year of high school provide a better chance of receiving one or more scholarships. This permits the student more opportunity to identify potential scholarships, and to better tailor the classes they take and activities they pursue, in order to meet the requirements of the scholarship or grant.
b. Earning good grades and participating in extracurricular activities will help earn scholarships. Colleges often award scholarships or grants to students with strong grades, community service or demonstrated abilities in music, writing, math, athletics, etc.
c. Look for colleges that offer the courses you really want, and where your grades and admission test scores would enhance the school’s admission standards. If a school really wants a student, they will often find financial assistance in the form of scholarships or grants to entice you to attend.
d. If you don’t find the right scholarship initially, continue to look and look often. New opportunities arise on a regular basis. Apply for as many scholarships as possible. Also, just because you did not receive a scholarship for your freshman year, many scholarships and grants are available throughout your college stay. Good grades earned in college, additional activities pursued and other events may enhance your ability to earn a scholarship.
e. Once you have identified scholarships or grants that you may qualify for, start the application process early. Make sure you know the deadlines so you will have plenty of time to gather materials and finalize and submit the application. Also, make sure you have a qualified person (perhaps a professor or teacher) look over your applications and accompanying writings, to catch any mistakes that could disqualify you from being awarded the scholarship.
If you can’t afford college expenses and sufficient scholarships and grants are not available, student loans and campus jobs can help fill the void.
1. Student loans are available through the federal and state governments. Check
with your high school counseling office, your State Department of Education and the
Federal Department of Education for government loans. A free booklet titled The
Student Guide is available from the Federal Student Aid Information Center (800-
2. Generally, federal or state loans are more affordable than private loans and offer better terms. The government offers several types of loans to students, with the cap on the loan generally set by the school you are attending. Government agencies will use several factors to determine the type of loan you can obtain, including income level. Some loans are subsidized, with the government paying the interest on the loan, and other loans are not subsidized with interest accruing while you are attending school.
3. For students who don’t qualify for government loans, for whatever reason,
there are private loans, generally from banks. Bank loans require that the student
has established a sufficient credit history or has a co-
4. Keep in mind that each time you apply for a loan you may be offered different loan terms, depending on changes in your or your parents’ financial situation and market conditions. So if you at first do not succeed, try again.
5. While often difficult to arrange, a loan or gift from a relative or friend may also be available to help fund your college education. Generally, gifts paid directly to a college for tuition are tax free to the student and do not incur any gift tax. Make sure to check with a qualified tax advisor.
6. Remember, student loans need to be repaid. Keep in mind the following:
a. If you have more than one student loan and their interest rates are higher than what’s currently on the market, you may want to consolidate your loans. Combining all your loans into one larger loan may significantly reduce your monthly payment, although it may also extend the term of the loan. However, don’t combine private loans with government loans, or you may lose federal benefits such as deferments and subsidized interest.
b. Choose the repayment option that is right for you. Options available may include fixed monthly payments, monthly payments adjusted based on your annual income, and graduated payments where initial payments are low and gradually increase.
c. Consider automating your loan payments so you won’t make a mistake and be late. Many lenders will offer a reduced interest rate for loan payments made directly from your checking or savings account. If you do not have the funds to make a monthly payment, contact your lender to try to work out a solution.
d. Ask your lender if they offer incentives, such as a cash-
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