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As the cost of today’s college tuitions and fees continues to rise, the average student is finding it more and more difficult to cover the enormous expense of obtaining a degree. This article will give you several ideas on how best to cope with the hardship of paying for college.

College Loans

1. Stafford Loans
The Federal government has a subsidized (and non-subsidized) loan program for low and middle income students. Eligibility is determined through the Free Application for Federal Student Aid(FAFSA). Maximum allowed in the Freshman year is $3500, second year is $4500, while in the 3rd and 4th years, the amount is increased to a maximum of $5500. These figures are for dependent students. Independent students or students whose parents have been denied a PLUS loan are eligible for about double those amounts, though anything higher than these numbers will be unsubsidized.

2. Plus loans
Parents of students can apply for these loans and can borrow up to the amount of school expenses not covered by other financial aid.There are two types of Plus Loans, Federal Family Education Loan (FFEL) and Direct. Students must be enrolled at least half time in an undergraduate program to be eligible. Credit history is taken into consideration for the Plus loans, so those parents with poor credit may not be able to qualify for the PLUS Loans. These loans are not subsidized.

3. Perkins Loans
Federal Perkins Loans are low interest (5%) loans for both undergraduate and graduate students, depending on financial need. You can borrow up to $4,000 per school year. Perkins loans are made by and repaid to your school.

Grants
Grants are a different type of animal. They don’t have to be repaid, therefore are to be highly prized. Far scarcer than loans and scholarships, they are often dependent on the student’s financial need.

4. Pell Grants
The maximum award for the 2007-2008 school year is $4,310. Federal funding levels will determine the maximum award available each year. Eligibility depends not only your financial need, but also your school costs, whether or not you are a full-time or part-time student, and if you will be attending the full year or less.

5. FSEOG (Federal Supplemental Educational Opportunity Grants)
Similiar to Pell Grants, Federal Supplemental Educational Opportunity Grants are given to students of exceptional financial need. They can range from $100 to $4,000 per year and are distributed by the schools. The funds are awarded based on the availability of funds at that school. Pell Grant recipients with the lowest EFC (Expected Family Contributions) will receive priority on the FSEOG.

6. Other Grants
The Federal Government has started two new grant programs, the Academic Competitiveness Grants and the National SMART Grants.

Many colleges also provide grants to help make up the difference between college costs and the family’s expected contribution.

Other institutional grants, also known as merit scholarships or awards, are earned on the basis of academic achievement. Depending on the school, some merit awards are offered only to financially needy students, while others are awarded solely on merit. You need to check with the financial aid offices at the individual schools to see what is available.

7. Scholarships
Make sure you investigate scholarship opportunities. There are thousands of scholarships available based on financial need, academic achievement, home state, home town, employer, religion, club association, ethnicity and dozens of other criteria. Make sure you check your town newspaper, high school guidance office, library, college financial aid offices and online scholarship sites.

8. Mortgages/Home equity loans
One advantage to home loans is that you may be able to deduct the interest paid as long as you are itemizing your deductions on your income taxes. Check with your tax advisor to be sure. One disadvantage is that you may be paying for many years to come when you had hopes to own you home free and clear

9. Personal loans
While an expensive way to go, sometimes they are the only thing available.

10. Tuition reimbursement
Many companies provide some tuition reimbursement for employees taking university courses to further their careers. Check with your human resources department.

11. Armed forces
Each of the Armed Forces (Army, Navy, Marines and Air Force) have a tuition reimbursement program for their active duty personnel. Many men and women join the armed forces each year to take advantage of the educational opportunities.

College Loans, Scholarships and Grants