How You Can Finish A College Degree Without Scholarships

If you are currently in college without a scholarship, this guide offers information on obtaining finances to complete your degree. It may seem hard in the beginning, but successfully navigating the tricky waters of financial instability now aides in developing a more responsible approach to future money issues. Financial experts offer the following advice.

Borrow the Funds

Borrow educational funds in the form of low-interest federal student loans. Subsidized loans depend on financial need while unsubsidized funds are similar to a personal loan. If your award is not enough, parents, guardians or any credit worthy adult can apply for additional unsubsidized funds to close the gap.

Loan repayment does not begin until after graduation or if you drop below full-time enrollment status. Loan limits depend on your enrollment year, student status (graduate or undergraduate) and dependent status. Start the loan process by completing the Free Application for Student Aid (FAFSA).
 

Consider Alternative Loans                  

This type of loan is provided by a private lender as opposed to a federal source. Students and parents have the ability to loan 100% of tuition fee to support college expenses. Lenders have the ability to choose to whom they will disburse the fund, either to the school or directly to the student borrower.

The problem with considering private student loan is that interest rate increases over loan life. Parents and students, may then consider taking the equity of the home to fund college expenses. Usually, if you have 80-85% of the total equity of the house, you can file for home equity loan. The problem with this type of mortgage, is the possibility of losing your home once you are not able to repay on time.

Use Your Employer

Working at the right company can provide valuable tuition assistance. If you are currently working, ask your boss or the human resources department about educational programs that pay for classes. Some companies offer free tuition to full-time employees.

In addition to asking your employer about tuition programs, ask the school about special discounts or waivers available for certain occupations. A few institutions waive fees for state employees or public servants. Even a part-time occupation can result in substantial tuition breaks.

Switch Schools

Sometimes change is good. When you find yourself in the middle of a tuition crisis, ask if there is a cheaper alternative. State universities are cheaper than their private counterparts, instantly reducing your financial load. There are also tuition-free institutions with strong academic reputations. Closely investigate every option and discuss which existing credits will transfer before making any definite moves.

Explore Your Cultural Legacy

Talk with your family about their history. Ask about participation in notable wars and your ethnic makeup. Some state institutions offer tuition waivers to certain individuals of certain ethnicity or descendants of war veterans. Your mere existence might make you eligible for tuition assistance and fee waivers.

Consider Personal Obstacles

If you were on any form of public assistance immediately before entering college there may be a tuition waiver in your future. In some states, students enrolled in Medicaid programs receive free tuition at two-year institutions. Survivors of natural disasters and national tragedies also receive tuition waivers. Schools grant assistance on an individual basis, so bring plenty of documentation when pleading your case.

Become a Virtual Student

Take the remainder of your degree via online learning - but use extreme caution. Enrolling in an Internet-based curriculum at your current school could keep you in financial distress. Traditionally, virtual schools omitted classrooms and other objects that tend to bolster tuition rates. Larger colleges and universities build separate departments for Internet staff, causing massive tuition bills for students.

Once you compare tuition hour pricing, inquire with school administrators and state authorities regarding licensure. Make sure your potential degree will a creditable one. As with any transfer, ask which credits are transferable before committing to any program. Cheaper enrollment rates allow loans and income amounts to stretch further.

A money crisis does not automatically spell disaster for your academic future. Depending on the situation, applying for student loans, mining untapped personal resources or switching schools may provide an effective solution. Staying in control during such stressful times will effectively prepare you for the real world.

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Savings Plans to Pay for College

With college expenses getting costlier day-by-day, most parents are seen to have several saving structures at their disposal favoring the expenses of a traditional college degree. Until and unless, you have a good plan ready catering to your educational expenses, chances of falling short on higher education stands high. After all, with the present student loan debacle and the unpleasant employment scenario dominating the world, very few would like to take up the risk of pursuing college degrees on support of federal and private student loans. 

Now, when it comes to saving plans initiated for funding college degrees, it is essential that you choose the right plan catering to your interests and financial state of affairs. Well, a number of saving plans like, 529 Plan, Roth IRA, and Traditional IRA stands at your disposal when funding for college takes priority. If you seem to get confused about choosing the right plan, here is a brief introductory note of each plan that will surely make your choice easier – 

1.     The 529 Plan 

The 529 plan is often referred to as a qualified tuition program (QTP) is a college funding program that is designed to help you prepay or make contribution to a specific account. All that needs to be taken into consideration is that you are building up the savings for pursuing a degree from a qualified educational institution for catering to the expenses of qualified education. The amount that you save with this particular plan is tax free, which implies that your earnings are free of any tax cuts while being withdrawn for college expenses. 

The 529 plan embraces the cost of tuition, other college fees, books, educational supplies, and other required costs bearing the enrollment at qualified educational institutes. However, you need to remember that computer and computer software no longer falls within the purview of the saving plan, as they do not eligible as qualified costs of education. Presently, two types of 529 plans are available for the students that include the college savings plan and prepaid tuition plan.

2.     Traditional IRA

Another prospective savings plan, this is often overlooked by most parents though it offers many advantages over the usual college savings program like deductible contributions. You can set up an IRA for your child at any age provided he or she has some kind of earned income. Usually, earned income is referred to a W-2 from a job, but often includes income gained from self-employment. Now, a W-2 doesn’t really feature under a child’s name until 14 or 15.

Deposit amount to this account can go up to $5,000, which is liable for tax deductions. However, you must remember to deposit the amount by April 15 of the next year. The amount when is withdrawn from the IRA to cover the expenses of college costs is susceptible to income tax. Since, children most often do not seem to have any income, the tax amount tends to be significantly less.

3.     Roth IRA 

Roth IRA is often considered to be another potential college savings plan that functions in a much similar way to that of the traditional IRAs. However, some difference tends to exist between the two IRAs. The contributions that you make to the Roth IRA account do not fall under the deductible category. Furthermore, the withdrawals are not taxable. You can use the earning for catering to the educational expenses without any penalty, provided one Roth IRA has been opened for minimum five years. 

Similar to traditional IRAs, you can open a Roth IRA at any age and must have an earned income under your name. The limit of deposit is same as the traditional IRA. Furthermore, you can transfer the Roth IRA under the name of other members present in the family. 

Therefore, if you wish to enroll your child into a prestigious college, grad school, or MBA program offered by an internationally recognized institute, you must consider relying upon any of these prospective savings plan that are available in the present age. Give your children the wings to fly high offering the right financial support towards his or her education. Invest in profitable savings plan and paying for traditional college or covering the expenses will no longer remain a burden.

About The Author: This education related article is written by author Melissa Spears. In this article, the author focuses on some of the prospective savings plans that can help a student pursue higher studies, preferably an MBA programs at ease without any financial burden.

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FInance Tips for College Students and Their Parents

The price tag on a college education is a key factor for many parents. It is also one of the main elements of a long-term planning process for one's financial security. A college education can be an extremely valuable resource, as well as a rewarding experience, but it can also be very expensive; if students and parents do not plan the financial aspect of college carefully, they may wind up jeopardizing their financial future.

Occasionally parents find it difficult to pay the college tuition for a single child. The whole situation gets worse when they have multiple children. Under such conditions, one has to be properly educated in certain topics of personal finance to overcome the obstacles and send one's children to college without any worries. Read ahead to understand some tips that may be useful in accomplishing this goal.

Applying for financial aid

About two-thirds of all college students are eligible for some forms of financial aid, and this enables a family to spend less on college education. The aid is usually provided based on the family's income level. There are even times when family with an annual income of more than $100,000 can be eligible. In order to receive financial aid, the student should fill up the FAFSA (Free Application for Federal Student Aid) forms to apply for financial aid.

Financial Education

As a parent, it is very important to educate one's kids on topics in personal finance. Being able to manage one's personal finance is going to be useful during a student's academic career. Parents should also make sure that they have enough resources for their children's continuing education. With some concepts in personal finance, a student is able to utilize the money in the right way. In addition, teaching one's children to balance their checkbooks will also be of great help. It is important to teach your kids to be responsible when they are using a debit or credit card for the first time. Understanding the advantages and disadvantages is going to be very helpful for the students. This tactic also helps the parents stay in the safe zone.

Tips for parents

It is a bad idea to allocate savings for one's retirement for the college tuition of one's children. If one is in a situation where it is becoming increasingly difficult to cover the expenses with one's regular income, it is a good idea to take a look at Stafford Loans, Parent PLUS Loans and other student loans. This helps protect a family's financial security for the long term. Also, it is advisable to look at other assets that are available to meet the expenses associated with a college education.

It is also important to check for expenses that emerge during the first semester. By recording the amount of money the students spend, parents can make sure that their children won't run out of money after the first month of college. As the students should have some prior knowledge in personal finance, the whole process should not be tedious for the parents. Families who have multiple children can consider sending them to college all at once. This removes the need to pay for multiple tuition bills, and it lowers the contribution as a whole. Parent EFC takes into account when one's children are attending college. For one dependent, if the EFC is $40,000, the same amount will be split when there are two children who are attending college. As a result, the total number goes down as a parent no longer has to apply for another EFC.

In most colleges, students have the chance to work while completing their educations. As they work through their schooling, they get to understand the importance of good money management and are more likely to spend their money more carefully. Finally, it is also advantageous to take out student loans early in a student's academic career. A student who faces the prospect of debts takes his or her courses and responsibilities more seriously. As it creates a sense of urgency, this procedure reduces the overall cost of college expenses.

This article was written by Karl Stockton for the team at Kanetix. If students need help with other financial issues, such as new mortgage rules, Kanetix can be of great value.

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Students Told to Empty Their Pockets

--> Generation of Students Told to Put Hands in their Pockets  

So school fees have become an election issue. Obama was even ‘slow jamming’ on the topic last week on the Jimmy Fallon show. It is an issue for Republicans too. The threat of interest doubling on federal student loans in July has seen rejection from both parties, though they differ on the detail.

The issue is hot but not just because there are voters to win over. Debt has always been problem for graduates and Obama for one says he remembers leaving college with a ‘mountain’ of it. The existing problem has been made worse because the two traditional sources of funding (state/federal contributions and tuition fees) are both facing downward pressures in this economic climate. Add to that the general negative economic backdrop and you have a situation where student loan debt has exceeded a trillion dollars!

If your grades and teachers are indicating that you are a potential college student, how on earth are you going to get through a three, four or possibly more-year course? Most parents have not been in a position to be stashing away funds for as long as would have been necessary to fund the current cost of a college education.

Given the fact that, on average graduates with a bachelor’s degree earn 45% more than non-graduates, studying still might be the right financial decision. The fact is that you need to do your homework, both while you’re still at high school to keep up your grades and while you’re looking for funding to make sure you know about what is on offer. So what are the options?

Grants

Grants don’t have to be paid back. College offer their own grants with various criteria but also various federal grants are available, such as the Pell Grant and Teacher Assistance Grant. Whether you qualify to apply and the amount of the grant varies according to individual circumstances.

Scholarships

Scholarships are the only ticket for some people to study at the college of their choice and, like grants, do not have to be repaid. Those provided by colleges usually have to be competed for and are won on the grounds of factors such as academic achievement, musical or sporting talent, personal background and so on.

You might also be associated with an organization that awards scholarships. Awarding bodies range from church bodies to the company that one of your parents might work for. If you qualifying to make an application for one of the many scholarships available, the key to winning one is to make sure your form is filled in well and gets in on time.

Loans

Sadly, this is the way most students have to cover a lot of their fees. Federal and private loans are available to students. Federal loans include the Perkins and Stafford loans and are likely to be relatively friendly with low interest rates and high flexibility. In some cases the interest is subsidized, which might mean it is paid for you while you are still a student. Private loans, being more expensive and less flexible, are available to those for whom other avenues may have failed and options should be researched thoroughly.

Part-time work    
                
To help pay your way or to chip away at any loans during college, you can find a job. If you are lucky it might be relevant to your study programme. Alternatively, you might be able to sign up for a programme like the Federal-Work Study programme, which aims to provide undergraduates with work that serves the community or is along the lines of their studies. It pays at least at the minimum wage, possibly on campus or is otherwise based off campus with a public organization or non-profit organization that works in the public interest.

Subject

Not all degrees are likely to bring high wages. Many graduates will still share part of that trillion-plus debt for years and be buying cars by the month rather than in one payment and find it difficult to secure a mortgage deal as a consequence of their high debt load. Remember though that the subject you chose and how hard you study will have a great bearing on your earnings on the other side and how quickly you free yourself of any debt. While you are deciding on a programme of study, you might want to take a look at the job market, speak to professionals and read around to see what’s out there for people who take your path. Graduation will come round sooner than you think! 

Janine Hardy is a freelance writer from England who specializes in life coaching and self improvement writing for a number of local publications. She works with many good causes including helping and advising students at local colleges and writing on behalf of an alcohol addiction center.

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