College should be a phase in life that encourages learning, social interaction and nurturing aspirations for the future. Identifying various college funding resources early on can make the road to college (and its many pit stops) easier to travel. There are many resources that may be tapped for paying tuition that prospective students may be unaware---they often think there are only scholarships, their part-time jobs, or their parents.

The Basic College Funding Sources

There is a multitude of college funding opportunities, including loans, grants, and work-study programs. For instance, grants, a form of need-based funding that does not need to be repaid, are available:
• Federal Pell Grants: Federal Pell Grants are only awarded to undergraduate students. Pell grant awards can be awarded in amounts in the thousands each school year.
• Federal Supplemental Educational Opportunity Grants: These grants are available for undergraduates with exceptional financial need.
Although student loans may be the only option for some students, there are lower interest rates loans with easy repayment terms that can won't break students or families after graduation. Some loans include:
• Federal PLUS Loans: PLUS loans are available for funding a college education based on parents' creditworthiness. They are also unsubsidized---meaning the loan accumulates interest from the time the loan is awarded, unlike other student loans. Additionally, the interest rate is variable.
• Federal Stafford Loans: Loan amounts are awarded based on the student's financial need. The maximum allowable amount also varies for every year of study. Federal Stafford loans have to be repaid. This is available to both undergraduate and graduate students. Additional Stafford loans are available to independent students or whose parents do not qualify for PLUS loans.
• Perkins Loans: These are low-interest loans that must be repaid to the school; the maximum annual loan amount is greater for graduate students than for undergraduate students.
Federal Work Study provides part-time jobs to undergraduate and graduate students, allowing them to earn money to pay education expenses. The jobs provided are usually related to the student's course or for community service.
In addition to these federally-based grant and loan programs, states allocate segments of their budget for college funding opportunities, and individual college campuses also offer their own college funding programs. State and campus programs are managed by the financial aid office at each participating school. Often, universities have allocated segments of their endowment and donations for assisting prospective students in need. Much like grants and scholarships, campus-based programs need to be paid back, but have limited availability.

Other Funding Resources

Even more unknown are funding resources from all the private organizations, which can include:
• Employers: Some companies that employ parents of prospective college students provide school funding for children of employees.
• Social Organizations: Some clubs, unions, and other associations to which parents are members may give grants to deserving students.
• Foundations in the same field as course of study
• Religious Groups
• Chambers of Commerce

By taking the Preliminary SAT (PSAT)/National Merit Scholarship Qualifying Test assists students in more than practicing for the SAT; qualified test takers are put on a roster for scholarships.

AmeriCorps awards students for improving the world around them. In exchange for community service, members earn education awards that may pay for college, graduate school, or to pay back qualified student loans. Part-time members receive partial awards.

Finally, the web is full of information about college funding opportunities that can be found with a few searches and clicks of the mouse. However, families should ensure they are dealing with legitimate entities that will are not running a scam that appears to help needy families with college funding. Please see "Guarding Against Scholarship Fraud" for more information.



Sources:

Americorps. What is AmeriCorps?

Disabilities, Opportunities, Internetworking & Technology. College Funding Strategies for Students with Disabilities.

Student Aid. Campus-based Aid Programs.