THE BEST PLACES TO FIND FREE CASH FOR COLLEGE

By Gen and Kelly Tanabe

You might think that once you’re accepted to a college, you’re done. But there is one last hurdle to face—how will you and your family pay for it? Fortunately, there is help. While many students borrow money to pay for college and many parents have savings built up, there is actually free money you can use to pay for your education. Two of the best sources of free money for college are grants and scholarships. Here are details on how to tap into these two sources of aid.

GRANTS

The government awards three types of financial aid for higher education: grants, loans and work-study. Grants are at the top of the financial-aid food chain since they do not need to be repaid. They are, in effect, free cash for college. However, grants also have the strictest financial need requirements.

The following is a description of the two major grant programs: Federal Pell Grants and Federal Supplemental Educational Opportunity Grants.

FEDERAL PELL GRANTS

• Eligibility: For undergraduate study, with the exception of post-baccalaureate teacher certification programs. You may be enrolled less than half the time, and the grant provides every eligible student with funds.

• Based on: Financial need as determined by your Estimated Family Contribution and Cost of Attendance, full-time or part-time status and length of enrollment (i.e., full academic year or less).

• Note: Estimated Family Contribution (EFC) is the amount of money the government determines you can afford to pay for your education. The Cost of Attendance (COA) is an estimate of the total cost of attending a specific college and includes the annual tuition, room and board, books, travel and personal expenses.

• Amount: Varies based on funding. The maximum amount is $4,050.

• Cost: None.

FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS (FSEOGS)

• Details: Grants for undergraduates with the most financial need (i.e., the lowest Expected Family Contributions). FSEOGs do not need to be repaid. The government provides limited funds for individual schools to administer this program. This means that there is no guarantee that every eligible student will receive an FSEOG Grant.

• Based on: Financial need, other aid you receive and the availability of funds at your school. Priority is given to those who receive Federal Pell Grants.

• Amount: $100 to $4,000 per year.

• Cost: None.

How to Tap into Grants

Whenever the government is involved, you can bet that there are forms to fill out. For federal financial aid, including Pell and FSEOGs, this form is known as the Free Application for Federal Student Aid (FAFSA).

The FAFSA requires information about your family, employment, income and assets. Fortunately, the FAFSA is the only form you’ll need to complete to be considered for federal financial aid.

If you are an entering The FAFSA is available online at http://www.fafsa.ed.gov, or a paper version is available from high school counselors or college financial aid offices.

You must complete the FAFSA form as soon as possible AFTER January 1 for each school year. The deadline for submission is typically in July, and there are no extensions or exceptions. Individual schools may have earlier deadlines for the FAFSA and for their own financial aid forms to apply for school-specific financial aid. Pay attention to these important deadlines.

Scholarships

Besides grants, the other source of free money for college is scholarships. Unlike grants, many scholarships are based on merit and don’t take into account your family’s finances. This means if you don’t qualify for need-based grants, you can stillwin free money through scholarships.

If you take a look around yourself, you’ll find scholarships. Don’t believe us? Think about all of the groups, clubs, businesses, churches and organizations in your community. Each of these is a potential source for scholarships. On SuperCollege.com, we offer the most comprehensive directory of scholarships possible, but there are always new scholarships established that we haven’t yet uncovered. Here’s how to find them.

Counselor or Financial Aid Office

If you are a high school student, start with your school counselor. Make an appointment to discuss financial aid. Before your appointment, prepare information about your family’s financial background. Think about what kind of college you want to attend and what special interests or talents you have that would make you eligible for special scholarships. Explain your background to your counselor and ask for suggestions of where to find scholarships that match your experience. Ask if there are any scholarships for which your counselor can nominate you.

If you are an entering freshman or a current college student, make an appointment with your school’s financial aid advisor. For your appointment, think about what interests and talents you have that may apply to scholarships, and take a copy of your financial aid application as background. Mention any special circumstances about your family’s financial situation. Ask your advisor for recommendations of scholarships offered by the college or by community organizations. Inquire about being nominated for scholarships that fit your background.

It’s important whenever you speak to a counselor (either in high school or college) that you inquire about scholarships that require nomination. Often these scholarships are easier to win since the applicant pool is smaller. The largest hurdle is to get nominated. You have nothing to lose by asking, and if anything, it shows how serious you are about financing your education.

Scholarship Directories

Go the old-fashioned route and get ahold of a scholarship directory book. These directories will provide lists of scholarships you can use to find those that fit your background and experience.

School Activities

One unexpected benefit of participating in activities might be a scholarship sponsored by the organization. Inquire with the officers or advisors of the organization about a scholarship fund. Bands, newspapers, academic clubs, athletic organizations and service organizations often have scholarships that are awarded to outstanding members.

Community Organizations

If you think about what you do outside of school as well, you will find al another potential source for scholarships. But don’t limit yourself to only organizations you belong to. Community groups often sponsor scholarships that are open to all students who live in the community. Open a phone book and call the five largest organizations in your area. Chances are at least one will offer a scholarship.

Employer

Many businesses that employ young people offer scholarships as a way to reward students like you who both study and work. Ask your manager if your employer has a scholarship fund and how you can apply.

Parents’ Employers

Companies often award scholarships to the children of their employees as a benefit for their employment. Your parents should speak with someone in their Human Resources department about scholarships and other educational programs offered by their company.

Parents’ Union

Some unions sponsor scholarships for the children of their members. Your parents should speak with the union officers about scholarships and other educational programs sponsored by the union.

Parents’ Organizations

Are your parents involved in civic or other local organizations? These organizations may offer scholarships for members. For example, service, political, ethnic and recreational organizations often offer scholarships.

Church or Religious Organization

Religious organizations may provide scholarships for members. If you or your parents are members of a religious organization, check with the leaders to see if scholarships are offered.

Local Businesses

Local business owners want to see students in their community succeed, and some have set up scholarship funds as a way to thank customers and customers’ children. Contact your local chamber of commerce to see if there are local businesses that offer scholarships for students in the community.

Local Newspaper

Some local newspapers make announcements about local students who win scholarships. Keep a record of the scholarships printed or go to your library and look at back issues of the newspaper. Contact the sponsoring organization to see if you’re eligible to enter the next competition.

Internet

In addition to the scholarship database on SuperCollege.com, check out other resources on the Internet for finding scholarships, such as search engines and other free scholarship search sites. One of the most powerful things about online scholarship directories is that they can be updated at any time. Thus, if you search an online scholarship directory, you can find up-to-date information on new scholarships.

Now that you know where to find freecash for college, it’s time to take action. Good luck on your money hunt!

Gen and Kelly Tanabe are the authors of Sallie Mae’s How to Pay for College and 1001 Ways to Pay for College. Ask them your questions about financial aid or scholarships at www.SuperCollege.com. Also, search thousands of scholarships for free at www.SuperCollege.com.