College Financial Aid

Students have come to rely on college financial aid more than ever before. In recent years, there has been a proliferation of new tuition funding options to aid students with the skyrocketing cost of college. Federal student loans, private loans, grants, and scholarships are all available to help undergraduate and graduate students pay for college. Here are some of the more popular funding programs and why you might choose one over the other.

Federal Student Loans

There are many types of federal student loans. Perkins loans, Stafford loans and Parent PLUS loans are the most common federal student loans. While Perkins and Stafford loans are in the student's name, Parent PLUS loans are, as the title suggests, loans taken out in the parent’s or guardian's name to help fund the child's education. Also, a credit check is required to obtain a Parent PLUS loan. Each of these loan types are regulated by the federal government and will generally have more favorable interest rates and repayment terms than other loan types.

Private Student Loans

Private student loans are available from many sources including banks and credit unions. Private loans are typically given based on the applicant's credit history and often must have collateral backing the loan. These loans should be considered only after all other options such as federal funding, scholarships and grants are investigated. If no other source of funding is available, a private student loan can help the student remain in school. When using private student loans, it is important to borrow only what is absolutely needed. The re-payment terms of these loans can be the most stringent, and deferment or forbearance may not be an option.

Student Grants

Grants are a form of tuition funding that do not have to be repaid. Grants are often need-based, but there are many grant options available based on merit. Some of the more popular grants include:

• The Pell Grant – Pell Grants are made by the federal government to low-income students who qualify. This is a huge source of funding and should be considered. Even if you're not sure you will qualify, it's worth looking into it.
• Academic Competitiveness Grant – This program awards grants based on merit. If you have particular aptitude or excel in a certain academic area, this may be a grant program to consider. (NOTE: This program is scheduled to end at the close of the 2010-2011 award year.)
• SMART Program – Science and Mathematics Access to Retain Talent Grant program provides funding for students enrolled in math and science programs. (NOTE: This program is scheduled to end at the close of the 2010-2011 award year.)
• State Programs – Many states have their own grant programs to help with tuition in the event of financial need or if a student shows academic merit.

Scholarships

Scholarships are an excellent way to secure tuition help for college. Too numerous to list here, there are thousands of scholarship programs that may be considered. The most difficult part about securing a scholarship can be locating the scholarship and the scholarship application in the first place. WiseChoice has a database of over 2.4 million scholarships, worth over $14 billion, including many athletic, academic, and other scholarships. Not only are there many scholarship types available, there are options available from many sources including the federal government, state governments, corporations, non-profit organizations and more. You need a way to find the scholarships that are available to you. The many sources of tuition assistance available can make securing college financial aid a challenge. Sorting through the options and finding the funding mix that works best for you can take time and energy. WiseChoice has tools, including the Scholarship Finder and a Cost of College Calculator that includes federal and state aid estimates, to help you identify scholarships and other sources of financial aid. We'll help you stay on track through the college application and tuition funding process.