Money for higher education comes in many packages
College students, being a clever and industrious bunch, probably don't have to beg, borrow or steal to fund their educations.
But they may want to start.
On average, college tuition rates increase at about twice the general rate of inflation, effectively doubling the cost of a university education every nine years, meaning that a little bundle of joy born last week will pay roughly four times for college what a student today pays.
The phenomenon is tracked by the Higher Education Price Index (HEPI), calculated each academic year by the Commonfund Institute to measure inflation based on goods and services used by universities and colleges.
Julie Louttit, director of financial aid at Butler County Community College, said the first thing she tells students is to complete a Free Application for Federal Student Aid.
"That is the start of it. When I go out and present, we start with the FAFSA," she said.
"But, we advise parents and prospective students to visit fafsa.ed.gov, not fafsa.com, because the latter is a pay site," she noted.
"The key is, FAFSA stands for
free student aid."Patty Hladio, director of financial aid for Slippery Rock University, also stressed the importance of a school's financial aid process, particularly the FAFSA process."Even if students can't get a grant, FAFSA also is the application for federal student loans, such as the Stafford Loan," Hladio said."The maximum amount might not be enough, and generally is never enough, to pay for all of their tuition and costs, but it's a big help. The FAFSA also serves as the application for federal need-based work study."The credit-based Stafford Loan has need and non-need components, the Perkins Loan is need-based and the Plus Loan is a non-need-based parent loan based on credit. All three are covered in the FAFSA application.Louttit said that, if students don't qualify for the FAFSA or other grants, they are informed of the college's student loan program."We issue a lot of loans, but we don't plug it much because of our lower cost here," she said."The point is, we don't recommend loan debt for tuition since many students likely will need a loan to cover cost of living expenses."Another option students may seek is scholarships, either through the institution of their choice or a third party.BC3 offers scholarships based on academics, for which the application becomes available in January for the following school year."Any outside scholarships, we inform students of possibilities and of legitimate websites listing them," Louttit said.Third-party services, such as the state Office of Vocational Rehabilitation and Job Corps, also can help prospective students secure financial aid, Louttit said.SRU's financial aid office is the student link to scholarship information, Hladio said.Securing loans, vying for scholarships and applying for grants is only part of students' financial mission. They are competing for work study opportunities, working part-time jobs, volunteering for various research studies or donating vital fluids to keep their fiscal ships afloat.At BC3 and SRU, the financial aid office administers a federal work study program."Students can work anywhere on campus from financial aid to the computer labs," Louttit said.This work — usually from 10 to 15 hours per week — helps students pay the bills while building their resumes.The 10- to 15-hour-per-week jobs work within a student's schedule, she said, building their resumes while paying the bills."A lot of BC3 employees started as work studies," Louttit said.Furthermore, most colleges, including BC3 and SRU, have career counseling departments working with outside employers, finding work for current students and those who have graduated.The federal government will pay the bills for former, current and future soldiers.For students who wish to attend college first, then enter the military later, the Reserve Officers Training Corps (ROTC) offers merit-based scholarships, usually requiring three or four years of military commitment upon graduation.Military College Loan Repayment sends payment directly to a student's lender if they enroll in the service after graduation. However, different services have different criteria.Finally, the Montgomery G.I. Bill may offer up to $50,000 for full-time service members and $24,000 for reservists.Louttit said BC3 has a large population of military veterans and offers benefits accordingly through the G.I. Bill to current and former service members and their families."With the variety of vets benefits, the VA has most information available on how to get those benefits," Hladio said.She said many schools have a veteran coordinator to handle veterans' educational benefits, and she encouraged students to use the website www.gibill.va.gov to research options.Most schools also have payment plans, Hladio said, so students who do not wish or need to go into debt may avoid it."Students and families should also check with the student bursar's (accountant's) office about a student payment program," she said."Generally there is a very small fee, and the payment plan can be administered in-house or contracted out."
