How To Pay for an Education

by Billie Washington

The SallieMae booklet “Paying for College” helps locate funds for an education, explains the basic Financial Aid Package, and answers some of the most frequently asked questions about the cost of education. Copies are available through Local 18.

Financial aid can make education possible through grants, scholarships, loans and work-study. Grants are not paid back. Loans that are awarded to students or parents must be repaid.

Sources of financial aid include federal programs, state programs, college and university funds and private scholarships. Eligibility is determined by the formula “Direct Cost + Indirect Cost = Annual Cost.” Direct costs are tuition and fees; indirect costs are books, supplies, room and meals, transportation, and personal expenses. Parents’ income, size of family and how many children in college determine expected family contribution.

The key to the financial aid application process is to start now! Talk to the guidance counselor or college or university financial aid assistant. Deadlines vary from college to college.

Two helpful web sites can give you more information: www.cashe.com www.salliemae.com

The most important things to know are what forms are required and the college’s deadline date. Colleges award aid to on-time applicants first. If you send incomplete forms or submit your forms late, you may not receive the maximum aid for which you are eligible.