#94 You need a $10,000 education loan.  Different kinds of loans have different repayment plans and interest rates.  

Which of the following lists the types of loans from least to greatest total amount you'd have to pay back?

bank loan, private alternative student loan, federal student loan
federal student loan, private alternative student loan, bank loan
federal student loan, bank loan, private alternative student loan
private alternative student loan, bank loan, federal student loan

Paying for college

It is possible for everyone to afford college.  There are many ways to pay for school and to get help paying for it.

          How much does it cost?

2007-08 Average Yearly Cost of Higher Education in the U.S.   
  4-year private  4-year public* 2-year public
Tuition & Fees $23,712 $6,185 $2,361
% Increase from 2006-2007  6.3 6.6 4.2
* This is the cost for in-state residents... you can go to a public college in a state that you don't live in but it costs more.
(Source: College Board)

But college is more than just tuition and fees.  It also may include:
     * Food and housing (~$6,000 - $8,000 on-campus per year)
     * Health insurance
     * Lab fees for certain courses
     * Travel expenses to go home on weekends or holidays or to commute to campus
     * Books and other supplies such as notebooks, folders, computer, calculators, etc.
     * Other personal expenses such as pizza, movies, laundry, groceries, etc.

But there are lots of ways yo get help paying for it!

          What kinds of aid are available?

There are three main types of financial aid students can get:

1. Grants and scholarships: Grants usually are given to students who have financial need to pay for college. (Did you know that MOST people going to college get some kind of financial aid?) Scholarships are usually given to recognize academic success, athletic skill or other talent.  Scholarships may come with conditions, such as maintaining a certain major or GPA.  Grants and scholarships do not need to be repaid.
2. Student loans must be repaid, usually with interest, after you graduate or stop going to school. Parents also may take out loans for their children’s education.  

3. Work-study is a government aid program run by colleges that allows students to work to earn money to help pay for school. 

To qualify for most kinds of financial aid, you will have to fill out a FAFSA.

          Who gives financial aid?

There are several sources of aid:

Federal (government) aid — Pell Grant, work-study, Stafford Loan, Perkins Loan and other loans as well as some grants and scholarships

State aid
— Guaranteed access grants and educational assistance awards (loans and grants).  See the Links section to get to Maryland-specific information

Colleges and universities
— Many use FAFSA data to determine if a student qualifies for need-based and other aid (loans, scholarships and/or grants)

Private organizations
(companies, foundations, clubs) — May use the FAFSA data along with other requirements such as essays and applications for scholarships

Check out the links to the left, or visit
the Maryland Higher Education Commission (MHEC) to learn details about finding money for higher education.

#20 Choosing to go to college is a big decision.  

Write 2-3 reasons why going to a four-year college or university would be a good choice for you.  

Then write 2-3 reasons why you (or someone else) might consider doing something else first (community college, career school, get a job, etc...).


Click here to enter.