PAYING FOR COLLEGEUNIT 14_LESSON 5

Explain various methods to pay for college, including through savings, grants, scholarships, student loans, and work-study

Lesson Objectives

◦Savings is defined as keeping money for future use, or to redirect money from current spending to a savings account or another form of investment.

◦ Saving money sounds like a great idea, but sometimes it can be challenging to do. Saving is more than just spending less; it also involves deciding what to do with the extra money.

◦ Finding ways for money to earn additional money allows your savings to grow,

SAVINGS

◦ Strategies for saving Pay yourself first- Before

spending money on anything else, put money in your savings account or your piggy bank

Put money in a bank – it can earn interest

Government savings bonds Money market account Certificates of deposit (CDs)

◦ Things to consider when choosing a saving option: Liquidity - how easy it is to turn

an item into cash without losing any money.

◦ Often called “gift aid” because they are free money—financial aid that doesn’t have to be repaid.

◦ Grants are often need-based, while scholarships are usually merit-based.   Need-based: Eligibility is

based solely on the assets and income of the prospective student and his or her family

Merit-based: Merit includes a variety of categories: academic, artistic, athletic, and the list goes on and is based on achievement

GRANTS AND SCHOLARSHIPS

Grants and scholarships can come from the federal government, your state government, your college or career school, or a private or nonprofit organization.

Types of Grants Federal Pell Grants Federal Supplemental

Educational Opportunity Grants (FSEOG)

Teacher Education Assistance for College and Higher Education (TEACH) Grants

Iraq and Afghanistan Service Grants

How do I get one? Fill out and submit a Free

Application for Federal Student Aid, FAFSA

GRANTS

Types There are thousands of

scholarships offered by schools, employers, individuals, private companies, nonprofits, communities, religious groups, and professional and social organizations.

How do I get one? contacting the financial aid office

at the school you plan to attend and checking information in a public library or online

Each scholarship has its own deadline and requirements

Be sure to avoid scams

SCHOLARSHIPS

FEDERAL STUDENT LOANS

WORK STUDY