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Scrounging for college cash? Let Uncle Sam foot
the bill. The largest provider of higher education aid, the federal
government will shell out a cool $82 billion in scholarships, grants,
loans and other aid in 2006 for students motivated enough to apply.
| If your college savings aren't
as flush as you'd like, check out these tips to get your
slice of the free money. |
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| 20 ways to get
federal money |
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1. Assess your assets
Knowing is half the battle. Finaid.org
offers free online financial-aid calculators that can help you determine
what sort of award your family might qualify for, how much you'll
need, and, most importantly, what fiscal assets could potentially
reduce your aid package. Having a clearer picture of your financial
prospects will help you maximize your child's aid eligibility.
2. Apply, no
matter what
According to the American Council on Education, every year, more
than 1.5 million students who qualify for Pell grants miss out on
the free government cash simply because they don't fill out the
Free Application for Federal Student Aid, or FAFSA,
paperwork. In fact, regardless of assets or household income, all
dependent students qualify for $23,000 in Stafford loans. But you
can only get them if you file your FAFSA.
3. Meet the deadlines
Turning in your FAFSA late can significantly decrease your chance
of banking big. Keep in mind your state's
deadline, too. "We encourage students to complete the FAFSA
as early as possible and in advance of state deadlines, so that
they can get all of the free money that they are entitled to,"
says Martha Holler, senior director of corporate communications
at Sallie Mae. Cathy Thomas, director of financial aid for the University
of Southern California, reports that missed deadlines are the No.
1 mistake students make when applying for federal aid. "If
they don't miss them the first year, they miss them the second or
the third or the fourth," she says. To make sure your student
qualifies for all first-come, first-serve aid, estimate your annual
income and turn in your FAFSA
as early in the year as possible.
4. Save in parents'
names
No mortgage payment, no electric bill, no insurance premium -- the
life of a student is fiscally sweet. But the government does expect
students to contribute financially to their own education. Dependent
students are expected to put 35 percent of all income, savings and
trust fund cash toward college, while parents are expected to use
only 5.6 percent of their assets for this purpose. Instead of stockpiling
money in your child's account, keep it in your own or stick it in
a 529 plan.
5. Ditch your debt
While aid officers will consider what you've got, they won't consider
what you owe. Consider liquidating funds that could count against
you by paying off loans or credit card debt. Beyond simply increasing
your child's eligibility for federal grants and scholarships, eliminating
debt will also help your family qualify for larger, lower-interest
loans.
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