Paying for College
What is financial aid?
Financial aid is money to help you continue your education after high school. Many postsecondary students use financial aid to assist them in meeting the costs of tuition and their living expenses while they are in school. The main sources of financial aid are federal government programs; alternative programs, such as the Alaska state programs; school-based programs,; and programs offered by membership organizations such as clubs, the faith communities, and employers. Read on for information about the three major types of financial aid: gift aid, loan aid, and benefit-based aid. What are the types of financial aid available? There are typically three major types of financial aid available:
Gift Aid Gift aid is money that you do not have to pay back. This money may come in the form of grants based on financial need, scholarships based on merit such as good grades, or employment programs that provide you with work opportunities while you are in school. Listed below are the major sources of gift aid, and information about how to apply for each: Federal Pell Grant Federal Pell Grants are gift aid awarded based on financial need. You may qualify if enrolled full-time or part-time at an eligible institution and meet the need requirement. Qualifying Criteria for Pell Grant
The number of annual awards depends on the level of funding Congress allots to the program. The amount an individual student receives depends on School Costs, Expected Family Contribution (EFC), and whether you attend full time or part time. Federal Supplemental Education Opportunity Grant (FSEOG) The FSEOG is federal gift aid administered by your school. Federal Pell Grant recipients with the lowest EFC are eligible for this federal program. You will need to contact your school's financial aid office for the application procedures and deadlines for FSEOG. If you receive a FSEOG, your school will credit your college account, pay you directly, or combine the two methods. Robert C. Byrd Honors Scholarship Program The Robert C. Byrd Honors Scholarship Program is a federal merit-based award program administered by the Alaska Department of Education and Early Development for academic achievement. If you have any questions, you may contact the program coordinator at (907) 465-8707. GEAR UP ALASKA Scholarship Program The federally funded GEAR UP Alaska scholarship provides up to $7,000 each year for up to four years of undergraduate study (up to $3,500 each year for half-time study). In Alaska, these scholarships are available to students who have participated in GEAR UP Programs in 6th, 7th, and 8th grades. AlaskAdvantage Education Grant The AlaskAdvantage Education Grant awards range from $500 to $2,000 per academic year for qualifying undergraduate students who have unmet financial need and are pursuing undergraduate study at participating postsecondary institutions in Alaska. Priority awards will be given to those students enrolled in qualifying workforce shortage programs of study or who have top quartile SAT or ACT score. For more information visit our AlaskAdvantage Education Grant page, contact our Customer Service call center toll-free at 800-441-2962 (465-2962 in Juneau), or contact your school’s financial aid office. University of Alaska Scholars Program The University of Alaska (UA) Scholars Program offers an $11,000 scholarship to the top 10 percent of the graduates from qualified Alaska high schools each year. Students are designated by their high school based on their academic standing at the end of their junior year. Each high school provides the UA Scholars Program with the names and addresses of the students designated for the award, and UA sends an award letter and a UA Scholars reservation form to each eligible student. For more information, please refer to the UA Scholars Information Booklet. You may also inquire by phone Toll-Free at 1-877-257-2465, Fairbanks at 907-474-5105 or email. School and Membership Organization Scholarship Programs To find out about other scholarships that may be available to you, your first step should be to contact your school’s financial aid office. They have information about scholarships specific to your school, as well as scholarships available in your general area. You should also check with officials at your place of employment, if you are currently working. Other sources of scholarships include religious and spiritual organizations, public service organizations, and clubs or similar groups to which you may belong. One word of warning here: some organizations offer to find scholarships for you in exchange for a fee. These services are available at no changes from many different sources, and you should not have to pay any fees for information. A great source of completely free scholarship information is FastWeb and ScholarshipHelp.org. Loan Aid Loan aid is money that you will have to repay when you stop attending school at least half time, even if you do not complete your degree or program of study. Always look for gift aid before you look for loan aid! If you do need loan aid, shop around for the loan program that will cost the least amount of money. Look for features such as low interest rates, low origination fees, and borrower benefits. Federally-guaranteed loans usually offer you the lowest costs and the best benefits. These loans include programs for students and for parents who need to borrow. You do not have to have financial need to borrow a federally-guaranteed loan, but federally-guaranteed loans do offer interest subsidies if you have qualifying financial need. There are lots of really good reasons to make these loans your next choice after gift aid. You can find out more about federally-guaranteed loans from your school’s financial aid office. If you do not qualify for federally-guaranteed loans, or if you need additional aid beyond what you receive through federally-guaranteed programs, you may wish to consider alternative education loans. Alternative education loans are offered by a variety of lenders. Shop around very carefully, since some of these loans may have very high interest rates and limited benefits. AlaskAdvantage Programs include a number of very low cost federally-guaranteed, alternative and supplemental loans designed especially for Alaska’s students. Click here for more information about AlaskAdvantage federally-guaranteed and alternative loans. Employment or Benefit Aid Other sources of financial aid include employment programs such as the federal Work/Study program, military and veteran’s benefits, tax credits, and workforce training assistance programs for qualifying students. Talk to your school’s financial aid office for more information about these potential sources of financial aid. How do I apply for financial aid? The first step should always be to complete the FAFSA, the Free Application for Federal Student Aid. This form is used to determine your eligibility for federally-guaranteed financial aid, and may also be used to determine your eligibility for many other grant, scholarship, and alternative loan programs. Remember, you do not have to have financial need to be eligible for federally-guaranteed financial aid. You can complete the FAFSA online at http://www.fafsa.ed.gov/. You can also obtain paper FAFSAs from your school, local library, or email us to request a copy. Savings Alaska offers an excellent college savings plan that provides opportunity for tax-advantaged savings. For more information, visit UA college savings. Where can I get more information or personal assistance? For personal assistance in applying for financial aid, check out any of the following resources:
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