Editors: CU-Â鶹¹ÙÍø has joined with the U.S. Department of Education, the American Council on Education and other nationwide organizations to participate in "National College Week" Nov. 15-19. The campaign aims to inform Americans that, with proper academic preparation and financial planning, it is possible to achieve your college dreams. The following is designed to explain options and sources of assistance for student aid.
Christine, a graduate student at the University of Colorado at Â鶹¹ÙÍø, wanted to get an undergraduate degree at the best school possible in her field. But she and her parents couldn't afford it. Thanks to federal financial aid loan programs, Christine was able to make that dream come true.
"It was an honor to get admitted," she said. "I knew it was going to be a big debt, but I would have been sorry if I hadn't pursued financial aid possibilities. I think it's a waste not to go where you want to go to get the best education possible because you don't have the money now."
According to the Coalition of America's Colleges and Universities, approximately 16.7 million students are enrolled in postsecondary study in the United States. Over half of these students receive some form of financial aid.
Some $60 billion in financial aid was provided to millions of postsecondary students in 1997-98, including federal and nonfederal loans, federal and state grants and institutional grants.
Christine's situation is typical of many families. She was 17 years old at the time she applied for admission to college and her parents' finances were taken into account when she applied for financial aid. Their salaries, as well as Christine's college savings, determined the amount of financial aid she was awarded her first year in college.
Each year she reapplied for aid, the awards became bigger because there was less money in the bank. Bigger financial aid awards translated into bigger loans. Christine said it was worth it.
"I was glad to get the loans," she said. "I found that working took time away from my college experience and I needed time to focus on my studies."
For other students, holding down a job or getting a scholarship can provide a means of paying for tuition, books and housing expenses without incurring additional loan debt. Fortunately, there are a variety of financial aid programs available that can meet individual needs.
CU-Â鶹¹ÙÍø, along with the Coalition of American Colleges and Universities, wants to get a three-word message out to Colorado families: "College is Possible." More information on student aid can be found on the World Wide Web at . Information on CU-Â鶹¹ÙÍø admissions can be found at . Additional information on how to pay for an education can be found at , or from the U.S. Department of Education's special toll-free number for college information, 1-800-433-3243.
Following are some of the financial aid programs available to students:
Federal Grant Programs
The federal grant programs are aimed at the neediest students and provide aid that does not have to be repaid. They are often combined into a single financial aid package by institutions.
* Pell Grant Program: Provides grants to low-income undergraduates to help them pay for college. In 1997-98, individual grants ranged from $400-$2,700; the average grant was $1,700. In 1999-00 the maximum grant was $3,125.
* Supplemental Educational Opportunity Grant (SEOG) Program: Provides grants to low-income students and generally helps to supplement the aid they receive from Pell Grants and other sources. Federal funds provide for 75 percent of the award; the college or university contributes the remaining 25 percent or more.
* State Student Incentive Grant (SSIG) Program: Provides incentives for states to provide grants to students who attend college and has played a significant role in encouraging every state to create and maintain its own student grant program. States are required to provide at least 50 percent of the funding for this program.
Federal Loan Programs
These loans are guaranteed by the federal government and are designed to give students flexible repayment options.
* Federal Family Education (FFEL) Program: Makes loans available to students and their families through some 7,100 participating private lenders. The federal guarantee protects FFEL lenders against loss from borrower default.
* William D. Ford Direct Student Loan Program: Uses federal Treasury funds to provide loan capital directly to schools, which then disburse loan funds to students. Both FFEL and Direct Loans feature three types of loans with similar fees and maximum borrowing amounts. The Stafford Loan has a variable interest rate not to exceed 8.25 percent.
Subsidized Stafford Loans—The federal government pays the interest while the student is in school and during certain grace and deferment periods.
Unsubsidized Stafford Loans—The federal government does not pay interest for the student during in-school, grace and deferment periods.
PLUS Loans—These loans are available to parents of dependent undergraduate students and have an interest rate of no more than 9 percent. The federal government does not pay interest during deferment periods.
* Perkins Loan Program: Provides low interest (5 percent) loans to undergraduate and graduate/professional students who demonstrate exceptional financial need. Loans are provided through a fund consisting of new federal capital contributions (FCC), institutional contributions and loan repayments from prior borrowers. The FCC is matched 25 percent by colleges and universities.
Other Federal Programs
* Federal Work-Study (FWS) Program: Provides part-time jobs to undergraduates and graduate/professional students who use the earnings to finance their educational program. Federal funds cover up to 70 percent of wages, with the remaining 30 percent or more being paid by colleges and universities or businesses.
* TRIO Programs: Provides services to low-income students, including assistance in choosing a college; tutoring; personal and financial counseling; career counseling; and workplace visits. Two-thirds of the students served must come from families in which neither parent has a four-year college degree and total income is less than $25,000 for a family of four.
* Specialized Federal Programs: Federal aid is also available from a variety of agencies outside the Department of Education. This aid, including fellowships, internships, grants and loans, can be need-based or merit-based depending on the program. These programs include: Graduate Assistance in Areas of National Need, National Science Foundation pre-doctoral fellowships (minority and general graduates) and the Robert C. Byrd Honors Scholarship program.