Financial aid

College costs may be high, but that doesn’t mean that college is out of reach. There are many ways to make college more affordable. Loans, scholarships and grants, and work-study programs will help you make paying for college possible.

Loans

Loans are a source of financial aid that you borrow and then must repay. Some loans are sponsored by the federal government, such as Stafford and PLUS loans. Others are offered by private lenders such as banks and credit unions. There are limits on the amount of federal loans you can borrow per year, but you will usually be able to borrow the rest of the cost of attending your school in private loans if you need to. If you are funding most of your education through student loans, you will probably need to borrow a combination of federal and private loans. When it comes time to repay your loans, American Student Assistance will help you manage your debt responsibly.

Grants and scholarships

These sources of aid do not have to be repaid, so you should apply for any grants and scholarships for which you may qualify. Grants are usually based on economic need. Scholarships may be based on academic achievement, economic need, or extraordinary skill in sports or the arts. However, some scholarships are open to almost anyone who applies. No matter how qualified you are, the competition for scholarships and grants will be intense. You will need a lot of skill and a little luck to win most of these awards, so while you should apply, you should not count on getting a “free ride” for your college education.

If you’d like to start making yourself the best candidate possible for a scholarship, check out the criteria and scholarship information you’ll find at these sites:

• – www.collegeboard.com
• – www.nationalmerit.org
• – www.mapping-your-future.org

Work-study

Colleges will sometimes award Federal Work-Study as part of financial aid. Work-Study students hold jobs offered through the school to help pay for some of their education and living expenses. Students selected for Work-Study are typically those with greater financial need.

Saving for college

You’re at an age where you may do a little babysitting or have a paper route. It’s a good feeling to know you have worked hard when you can go to the movies or buy some new music without having to ask your parents or grandparents for money. If you started saving now, could you save enough to pay for college? Maybe, but the more important thing is that you’ll be contributing to your future. To start saving, ask a parent or guardian to help you open a savings account at a bank. Since your money will earn interest in the bank, the amount you save will actually grow as long as you have it in the account. Keep in mind, the earlier you start saving, the more you’ll have when you need it.