Financing Your Education
Paying for College 101
There's no way around it. A college education is expensive, especially if you or your child goes to a private school. How much it will cost depends on the college you choose. Once you've narrowed your choice of college, contact them to find out how much the total cost will be and what scholarships and financial aid are available.
High schools often hold free seminars on choosing and paying for college. Another source of information on financial assistance from both private and government sources is www.finaid.org.* This site also offers calculators that can help you figure out how much school will cost, how much you need to save, and how much aid you will need.
Many state governments have created programs to make it easier
for families to save for the education of their children. Visit www.collegesavings.org* for links to
information on the various state programs, such as 529 plans.
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Federal Student Aid |
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Many helpful publications are available at www.studentaid.ed.gov/pubs* or you can call 1-800-433-3243. The federal government s direct loan website, www.dl.ed.gov,* includes a servicing center. The U.S. Department of Labor's Occupational Outlook Handbook, www.bls.gov/oco* provides information on various careers and their earning potential. The U.S. Department of Education's site, www.edu.gov,* offers several financial aid guides for consumers. The National Association of Student Financial Aid Administrators provides a Cash for College Guide with advice, tips and information on financing your education at www.nasfaa.org.* |
Student Financial Aid
Student Financial Aid is available from a wide variety of sources including the federal government, individual states, directly from colleges and universities, as well as from numerous other public and private agencies and organizations. Whatever the source, all forms of college aid fall into four basic categories:
- Grants. Gift aid that does not have
to be repaid and is generally awarded according to financial
need.
- Work Study. The Federal Work-Study
Program (FWS) is a federally funded source of financial assistance
used to offset financial education costs. Students who qualify earn
money by working on campus while attending school. The money does
not have to be repaid.
- Loans. Funds that are borrowed and
must be repaid with interest. As a general rule, educational loans
have more favorable terms and interest rates than traditional
consumer loans.
- Scholarships. Offered by the school, local/community organizations, private institutions and trusts, scholarships do not have to be repaid and are generally awarded based on specific criteria.
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Beware: Scholarship and Financial Aid Scams |
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Scholarships and financial aid do not require upfront fees. While there are legitimate companies who will help guide you through the financial aid and college application process for a fee, disreputable companies may ask you for money up front and provide nothing in return. Red flags to watch out for include the following: A "money-back guarantee" to secure a scholarship. Don't believe it. Unscrupulous companies attach conditions that make it impossible to get the refund. "Secret scholarships." If a company claims to have inside knowledge of scholarship money, they're lying. Information on scholarships is available freely to the public. Ask your librarian or school counselor. Telling students they've been selected as "finalists" for awards. If they ask for an up front fee, head for the nearest exit. Asking for a student's checking account to "confirm eligibility." If they want bank account information or your credit card number to confirm or reserve a scholarship, it's a scam. Quoting a relatively small "monthly" or "weekly" fee. Then asking for authorization to debit your checking account for an unspecified length of time. Ongoing fees are a sure sign of a scam. Unsolicited offers. Whether it's an e mail, phone call, or it arrived in your mailbox, if you didn t request the information, ignore the offer. |
Federal Student Aid Information Center
The Federal Student Aid Information Center (FSAIC) can answer
your federal student financial aid questions and can give you all
the help you need for free. You can also use the FSAIC automated
response system to find out if your Free Application for Federal
Student Aid (FAFSA) application has been processed and to request a
copy of your Student Aid Report (SAR).
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Federal Student Aid Information Center |
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Diploma Mills |
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If you're ever tempted by an e-mail or ad claiming you can earn a degree based on life experience, don't fall for it. Any company that offers degrees for a flat fee and requires little course work is a diploma mill. If your school is not recognized as an accredited institution by the Secretary of Education, you may not be able to receive financial aid and employers won't recognize it. To check on a school s accreditation by the Department of Education, visit www.ope.ed gov/accreditation* or search the Council for Higher Education Accreditation's database at www chea org/search.* |
* Links to external sites are provided
solely as a courtesy to our members.
Source: U.S. Consumer Product Safety Commission, 2010.
This publication is for general informational purposes only and it is not intended to provide any reader with specific authority, advice or recommendations. Where you deem necessary, we suggest that you seek advice regarding your particular situation from the appropriate professional.
Consumer Product Safety Commission (CPSC).
