How to Finance a College Education      

        Several resources are available to help finance a college education. Different types of financial aid are scholarships, grants, loans, and work-study programs.

        Scholarships are gifts of money or other things, like books and tuition waivers that do not need to be repaid. Grants are awards of money or other things that do not need to be repaid. Loans are money given to students to pay for educational expenses, which need to be paid back. Work-study programs are jobs available for students to earn money for school.

        Financial aid offices, Internet resources, and the library are good places to begin searching for financial aid.

        Financial aid offices at colleges and high schools have information and forms students need to apply for financial aid. The staff is trained to help students fill out forms and clarify confusing information. They can recommend the types of financial aid that students qualify for.

        Financial aid offices have pamphlets and information from banks that offer loans to students. They give students information about the different loans available, and terms of the loans. The Internet has several sites which list scholarships and grants. Students can enter their profiles and find the scholarships best for them. Two sites are CASH (http://dbserver.its.hawaii.edu/cash/) and Fastweb (http://www.fastweb.com).

        CASH allows a student to search a database of scholarships based on different criteria, such as academic major, high school, and ethnic background. Students can broaden or narrow their search based on the criteria they select.

        Fastweb provides a "mailbox" for students where scholarships are recommended based on the students’ individual profile. The database is updated each time a new scholarship becomes available. Students are given a username and password that they can use to access their fastweb mailboxes.

        Books available in public, college, and high school libraries list scholarships and grants. These books sort the scholarships by school or state and give addresses where a student can get applications or information. The books list hundreds of scholarships for students of various backgrounds going into different fields.

        Books in the library also provide information about how to fill out forms and applications. They provide students with information about the different steps to take when applying for aid.

        Financial aid comes in several different forms. There is aid that must be paid back, and aid money that is just given to students. Scholarships, grants, and loans are the three basic types of financial aid.

        Scholarships are moneys given to students that do not need to be paid back. Scholarships are usually awarded to students who meet certain criteria, like academic achievement. Scholarships may also be given for students who excel in extracurricular activities such as sports

        Scholarships come from several different places. Colleges and universities give scholarships to students from their own funds. Private organizations set aside money for scholarships. Many high schools also provide scholarships for their students.

        In Hawaii, the Kamehameha Schools provide scholarships for students of Hawaiian ancestry. The University of Hawaii also gives scholarships and tuition waivers to students who show academic achievement.

        The United States military has programs for students who want to pursue careers in the armed forces. Students can get money for tuition and books for promising a certain amount of service, or enlisting in the military.

        Grants are also moneys that don’t need to be paid back. Grants are often given to students who can show financial need. The federal government provides much student aid in the form of grants. e Federal Pell Grant program is provides the most need-based student aid. In the academic year 1996-97, students received an estimated $19,000 million dollars in federal, institutional, and other grants (College Board, 18).

        Student loans are student aid which needs to be paid back. Student loans may be given to students or to parents who need help paying for their child’s education. The interest on these loans is usually fixed. The federal government assists students who demonstrate need by subsidizing interest rates. For certain loans, repayment of the loan may begin after graduation.

        Most colleges and universities have work-study programs for students who need financial assistance. In most cases, students must qualify based on their amount of financial need. Students work at different places on campus. The compensation is either money for tuition and books, or tuition waivers.

        Students need to prepare before applying for financial aid. Students need to get good grades and become involved in school. Students should get to know their teachers because they will need letters of recommendation. Scholarships based on merit are awarded to students who show they strive for excellence. Community service shows that students care about the world around them and they can give back something.

        Colleges and the government use the Federal Application for Student Aid to determine student's financial need. Need-based scholarships also use the data provided in a FAFSA form. Appendix A is a copy of the FAFSA form for the 1999-2000 school year.

        Students can get the FAFSA form from their high school or college financial aid office. Students can also fill out the form over the Internet. It requests information regarding the student’s and the student’s parents’ income. The deadline to turn in the FAFSA form depends on the deadline for individual schools or scholarships.

        Many scholarships require an essay that ranges from one to five pages. Topics include the student’s future goals, the student’s accomplishments, or how the student plans to contribute to the world. Students can begin to think about how they would answer these types of questions.

        Students should begin requesting scholarship applications as soon as possible. Applications are long and require time to complete. Most application deadlines are in March and April.

College Costs and Financial Aid Handbook 1999. New York: The College Board, 1998.

Scholarships and Financial Aid Available to High School Graduates in the State of Hawaii. Hawaii: 1998.

Finding Out About Student Aid. Student Guide 1999-2000. Online. Jan 25 99 <http://www.ed.gov/prog_info/SFA/StudentGuide/1999-0/index.htm> Apr 2 99

The Smart Student Guide to Financial Aid. FinAid. Online 1999 <http://www.finaid.org> Apr 2 99.

Introduction to Financial Aid. College Edge. Online. Mar 13 99 <http://www.collegeedge.com/fa/intro.stm> Apr 2 99.