Tuition hikes, poor economy make financial aid necessary

By Hannah Field and Anna Curtis

With a rise in college tuition at public universities of 4.8 percent during the 2012-2013 academic year, many families find it impossible to bear the heavy financial burden alone, so they turn to outside organizations, colleges of interest, and the government for help. Brevard High School guidance counselor Stacey Seefeldt has been helping students and their families navigate the dizzying options and financial jargon for years.

There are four main options for financial aid. They can be broken down into scholarships, grants, loans, and work-study. Scholarships are a popular and well-known option. They are generally based on merit or financial need. Merit-based scholarships are often based on grades, standardized test scores, and extracurricular activities. Need-based scholarships, however, are based on financial need and are usually decided based on students’ household income. They can range from small amounts to full tuition, and can be offered by an individual, organization, or college. Often need-based and merit-based scholarships are combined.

“Online you can find our scholarship database which include scholarships, including local scholarships, that are sent to us throughout the year. Also look in the senior year guidebook, which is online, that offers some safe websites that provide large databases of scholarships.” Seefeldt also reminded students that they should never have to pay to find scholarships online or fill out the FAFSA.

The Free Application for Federal Student Aid (FAFSA) is the way in which students apply for money from the government and their school of choice in the form of grants, loans, and work-study. Much like need-based scholarships, the amount of money students are awarded through FAFSA is primarily based on their household income. Although students in lower-income households get more money than those who aren’t, they are not the only ones who should apply. “Any student who is college bound should fill out a FAFSA. This will allow colleges to offer a financial aid package which can really help with making college decisions,” said Seefeldt. A frank conversation with parents or guardians is the best place to start when beginning the financial aid process. According to Seefeldt, it is recommended that parents of high school seniors complete their taxes early, because it is necessary before the FAFSA can be submitted. Once taxes have been completed, students and their parents can log onto www.fafsa.ed.gov to begin the application.

Student loans have become the subject of many a dramatic newspaper headline or magazine article since the start of the great recession. While they should be a last resort for students, they should not be the cause of nightmares and panic attacks. Seefeldt said, “Most students will have to take out some kind of a loan to pay for college at some point.” The first type of loan comes from the government, and they typically have low, fixed interest rates. Bank loans for students are like other types of loans; they can have varying interest rates.

Seefeldt reminded students to “think of [college] as an investment. Often the benefits outweigh the risks and you are getting a return investment.” Despite the high stress of the financial aid game and the high cost of tuition, college is incredibly important. Students must remember that while paying for college may seem impossible, it is not nearly as difficult as life without a college degree.

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