There are many ways for Hispanic families to use financial aid to pay for their child’s education. Here are some resources to guide you in your research.
1. Financial Aid Information
Financial aid is money offered to college students for paying for college. It is also offered to career school students. Types of financial aid are; grants, scholarships, or work-study loans. They help make the relatively expensive college fees affordable. Financial aid can be offered by a school, state, private financiers, or federal. Students are encouraged to think of other ways to lower spending costs when in college. The most popular financial aid in the United States is the Free Application for Federal Student Aid (FAFSA).
2. Federal Work Study
Federal work study is a program that offers part-time jobs to college students, especially those in dire need of financial aid. It offers actual work where you work to earn a paycheck. The program enables the students to earn money. This makes paying for college expenses affordable. The program recommends employment in a field related to your course of study.
This gives students an early hands-on experience. It is important to note that the program is offered only by colleges that participate in the program. Federal work-study can be on-campus or off-campus. On-campus means you work at your school. Off-campus is working with a private, public, or non-profit organization.
Overview of federal work study:
- You are provided part-time employment while you are taking a study course
- Undergraduate, graduate and professional students are eligible
- Both full-time and part-time students are eligible
- It is only offered by schools enrolled in the program. Get advice from your school’s financial aid office on whether the school is enrolled in the program.
3. College Savings Accounts (529 Plans)
529 plan is a savings plan that encourages saving for education costs. It has a tax-advantage. They are legally referred to as ‘qualified tuition plans.’ State agencies and educational institutions sponsor the plans. The plan offers tax-free earnings and withdrawals. This is only when used to pay for education expenses that one is qualified for. An example is; paying for college tuition fees, books, and equipment. There are two types of 529 plans;
- College savings plans: You invest your after-tax contributions in mutual funds. The plan has a variety of investment options to choose from. The performance of the investment options directly influences the value of the account. Review the quarterly 529 plan performance rankings to know how investment options perform.
- Prepaid Tuition Plans: It provides an option of pre-paying all or a fraction of costs in public college education. This payment can be converted to be used in private or out of state colleges if an investor wishes. Note that 529 plans for a private college are separately prepaid specifically for private colleges. Over 250 private colleges sponsor the plan.
4. College Scholarships
Scholarships are one of the types of financial aid. They are not repaid. However, there are full and conditionally paid scholarships. They are offered by schools, communities, professional and non-profit organizations, just to name a few. Some are merit-based, where you earn them by meeting standards set by the scholarship giver.
This is awarded based on academic performance or talent. Some are based on financial need. Among types of financial aid, full scholarships are the most attractive. Most scholarships are set out for a particular group of people, for example, women and marginalized groups. Hispanic scholarships are offered through various companies and organizations. All scholarships are worth applying for since they will relieve you of your education expenses.
Find out about the scholarship opportunities available from your financial aid office in school. You can also check independent sources online. However, be careful of scams. You are not required to pay to earn a scholarship. Other FREE sources of scholarships information are;
- Financial aid offices in schools
- Trio and career counselors in high school
- Federal agencies
- State grant agencies
5. Federal Aid
Federal student financial aid is a key part of paying for college. Applying for financial aid requires preparation, time, and organization. FAFSA is the ideal federal financial aid. You require to have your documents to carry out the process easily. Federal financial aid helps in paying for college expenses such as tuition fees, books, and accommodation. There are three types of federal student aid namely;
- Grants: Free financial aid that is not repaid unless under special circumstances such as withdrawing from a school.
- Work-study: A program whereby students are offered work opportunities to earn as they study. This facilitates them in paying for college expenses.
- Student loans: Money loaned to students by colleges. This money is repaid with interest.
Some of the requirements you have to meet to be eligible for federal financial aid:
- Prove to be in financial need
- You must be a U.S citizen or an eligible resident
- Be accepted or already enrolled for an eligible degree or certificate course
- Maintain required academic qualifications.
How to apply for Federal Student Aid?
- Be aware of the deadlines for submitting applications. The deadlines may vary between states and colleges
- Create an FSA ID account before applying for FAFSA online. This is to help in tracking application status. You don’t require this if you submit your application by mail
- Complete your application and submit.
6. School Grants
The federal government offers school grants to students in college and career school. Most grants are free money that is not repaid. Grants can also be offered by state governments, colleges or career schools, private and non-profit organizations. Carry out thorough research when applying for grants and ensure to apply before deadlines.
The requirements for eligibility vary between programs. Check out individual pages for grants relevant to you and find out the requirements. In some cases, you may be required to repay a federal grant. Such cases include, but are not limited to;
- Withdrawing pre-maturely from a program for which a grant was offered to you
- Your enrollment status changed, for example, from a full-time to a part-time student. This reduces your eligibility status. Your grant can be reduced or entirely revoked depending on the circumstances
- Receiving other grants apart from the federal aid grant. This reduces your need for federal financial aid.
7. Student Loans
Among the types of financial aid, student loan terms can be termed as the most ‘unfriendly’. When you apply for financial aid, you can be offered student loans, especially if you are ineligible for other types of financial aid. Students’ loans are paid back in full and with accumulated or fixed interest.
Before taking a student loan, ensure you fully understand the terms and conditions of the loan. Student loans are offered by the federal government, financial institutions, and other organizations. Loans offered by the federal government have more benefits than loans from private financial institutions.
Types of student loans are:
- Direct Subsidized Loans: These loans are eligible for undergraduate students. They must prove to be in financial need. The loans are meant to help them in paying for college or career school education
- Direct Unsubsidized loans: These loans are offered to undergraduate, graduate, and professional students or rather students in career schools. Unlike the direct subsidized loans, these are not limited to students in financial need.
- Direct Plus Loans: These are loans offered to graduate or professional students. They are also provided for parents of a dependent student to help in catering for other education expenses. These other expenses may not be covered by financial aid.
Financial need is not an eligibility requirement for these loans. However, a credit check is required. Applicants with adverse credit history have additional requirements they have to meet to be eligible. Parents
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