- Gift, Loan and Self Support Aid
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Gift Aid: Just as the name implies gift aid is given
to you as a gift. It does not needed
to be repaid. Gift aid may
include grants,
tuition waivers
and scholarships
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Loan Aid: Once again with the name we know that loan aid is a loan of money to help you get through college. Once you quit
or graduate from college you are expected to begin paying back
your loans. Interest may be payable in addition to principle. Loans
for students make up the majority of the financial aid packages. Most loans are the
student's responsibility to pay back after they leave college.
Some loans are the parents responsibility to pay back. These are called PLUS
loans.
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There are some
loans known as conditional loans. These awards are given as loans but if you meet certain conditions the loan
may be partially or completely forgiven. Teaching, nursing/medical careers and some other areas with shortages often
have conditional loans for college students. Ask your college financial
aid officer (FAO) about this option.
Money for Future Teachers
If you're
considering a teaching career, take a look at these federal, state, and
college financial aid programs for future teachers. Federal Loan
Forgiveness for teachers benefits allow federal Stafford loan borrowers
to have up to $5,000 of their loan debt forgiven in return for five
years of teaching service at a designated K-12 public school, and up to
$17,500 if they are highly qualified math, science, or special education
teachers in certain communities or schools.
Federal Perkins Loan
Forgiveness benefits forgive Perkins loan debt for those who teach at a
designated low-income public school, in a designated subject area, or to
children with disabilities. Teach for America participants are generally
eligible for postponement of loan payments (forbearance) and interest
payment benefits on qualified student loans for graduates who teach for
two years in the country's most disadvantaged school districts. Click on
www.teachforamerica.org to learn
more
There are many different loan programs which we will
examine later.
- Self Support Aid: This kind of
aid takes the form of helping yourself earn your way through
college. Work Study is the most well know program where your
earnings through
part-time employment arranged by the college
are applied to your college expenses. These college awarded work
study jobs are supported by state and
federal aid sources and at some independent colleges by private
donations or foundations. Students must
qualify for work study and may be considered part of a need based aid package.
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- Part
time work you find on your own is not Work Study, but part time work is
a very popular method to pay for college. Some students work
during the school year, others only on the weekends or summer time.
With part time work you do support yourself, but the wages are paid
to directly to you. The student must make their own payments
to the college from this income.
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- College Savings Plans. These
are another form of self support aid, While there are many types of
aid, it always best for you and your family to save some for
college. Saving your summer work money will give you more
flexibility in the activities you want to pursue at college.
Hopefully the family started these several years ago rather than
waiting for the senior year. The federal government has set up
some tax advantages for families who save such as with the Coverdell
Education Savings Accounts, 529 Plans and Tax Benefits for
college expenses.
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- 529 Savings Plans: A 529 college
savings plan helps you save money for college. There are two types
of 529 plans. One allows you to purchase tuition today that will be
safe from inflation. You save money because you buy tuition in
advance. The other kind relies on economic markets and a base
investment that acquires interest based on the economic performance.
Often such plans deposit a certain amount into your savings plans or
loan accounts every time you purchase goods from certain retailers.
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Guaranteed Education Tuition (GET):
This is Washington state's 529 Prepaid College Tuition Program. The
state of Washington guarantees that the money you save in this
program will keep pace with the rising cost of Washington public
college tuition. GET shares can be used to pay for part of your
tuition at independent colleges, too.
- Other Savings Plans
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Independent 529 Savings Plan: The Independent 529 Plan allows
you to prepay tuition today that your child can later use at any
member college. It provides a guarantee against tuition inflation,
and the flexibility to choose from some of the nations’ top
colleges. Independent 529 Plan has no start-up fees, no maintenance
fees, no annual fees, and is free from federal taxes.
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U Promise: The U Promise
organization allows you to set up a 529 account and receive tax
benefits, but also has member businesses and corporations who will
contribute to your college fund based on your purchases with them
(similar to bonus points, rebates or sky mile programs but with the
money going back into your 529 account.)
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BabyMint: The BabyMint
Program is offered to you by Vesdia Corporation. Through the
BabyMint nationwide network of retailers and name brands, our
proprietary savings engine enables individual investors to save
towards a child's college tuition or for other major life events
without incurring out-of-pocket expenses. BabyMint members receive
rebates up to a 30% on every-day purchases made through BabyMint’s
network of hundreds of merchants (e.g., Target.com,
1-800-FLOWERS.COM, Gap.com). They track, collect and deposit the
earnings into the stduents tax-free 529 college savings plan or
Coverdell account or make payments on their student loans. Parents,
grandparents, family members and friends can also participate in a
single child’s account.
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- Other Programs Providing Self Support Options in Paying
for College
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- Families can also check with their bank or financial advisor
to determine if there is a different or complimentary program that
would help you and your family save money for college.
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- AmeriCorps: By becoming a
volunteer with
AmeriCorps, a network of national
and community service programs, you'll receive an education award of
up to $4,725 each year for up to two years to pay for college or
repay federal student loans. In addition, you may be eligible for
forbearance and possibly deferment on your federal student loans
while you're an AmeriCorps volunteer. If you serve full time, you
will also receive a modest living allowance.
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- Peace Corps: At some
colleges, you can incorporate your
Peace Corps service into a master's
degree program and may receive financial assistance for doing so. In
addition, up to 70 percent of your Perkins Loan debt may be forgiven
if you serve as a Peace Corps volunteer.
- Teach for America
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Teach for America, a member of the
AmeriCorps programs, sends recent college graduates to teach for two
years at disadvantaged schools. You'll be paid for teaching and
participate under an alternative teaching certification program. You
may also receive forbearance and interest payment benefits on your
student loans. You may earn an education award of $4,725 a year to
repay your student loans or for more education.
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- The Military:
Military enlistment and service often offers bonuses, tuition
assistance, college fund programs which is another form of self
support aid. Scholarships are available from the Army, Navy, and Air
Force through the Reserve Officers Training Corps programs at
hundreds of colleges in return for serving at least four years on
active duty after graduation. To learn more, go to
www.armyrotc.com,
www.afrotc.com,
www.nrotc.com, or contact the
Zillah High School recruiters (contact information can be found at
www.zillahschools.org/military
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- All branches of the military provide tuition assistance for
college courses and some offer loan assumption benefits. To learn
more, go to
www.todaysmilitary.com or contact the Zillah High School
recruiters.
Finally consider the Washington Army or Air National Guard
programs. The National Guard is a citizen soldier/airman who commit to
being a back up to the regular Army or Air Force in time of
crisis. Normally the commitment is for 1 weekend a month and 2
weeks summer camp during the year for a 5-7 year period of time.
Guards are paid for this service. In addition then, the Washington
Guard has many college plan and tuition assistance programs available
for those students not wishing full time military commitments.
While deployment to full time service in time of crisis or war is
possible, the National Guard does offer some guarantees about college
before deployment. Contact the ZHS recruiters for further
information on National Guard options.
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