Getting Money for College

Written by Haley Chitty

THERE IS A LOT OF INFORMATION AVAILABLE
TO PLAN HOW TO PAY FOR YOUR EDUCATION.

The amount of financial aid available to vets and servicemembers is rivaled by the complexity of navigating the many different types of aid and the bureaucracies that administer this aid. The good news is that putting in some time and effort can yield a substantial lump of cash for college provided by the federal and state governments, and in some cases, by colleges. This is especially important for those considering graduate school, which can be much more expensive than undergraduate education.

Before your eyes glaze over as you are overwhelmed with options, remember that the financial aid office at the institution you will or want to attend can help you navigate this confusing process. Financial aid professionals are informed about all the possible aid you may be eligible for and can give you unbiased, informed advice about the financial aid package that suits you best.

After being accepted to a school approved by the Office of Veterans Affairs, current and former military personnel can search for financial aid for college from at least six sources:

1. Financial aid from specific military branches like the Army, Navy, Air Force, Marines, Coast Guard, Army Reserves etc.
2. The GI Bill from the Veterans Affairs Office
3. State financial aid for military personnel
4. Financial aid for military personnel provided by certain colleges
5. Scholarship programs for military personnel
6. Federal financial aid provided by the U.S. Department of Education This article details the different types of aid available and lists some key resources that provide more in-depth information about aid for servicemembers and vets.

AID FROM MILITARY BRANCHES

Tuition Assistance is provided to eligible members of the Army, Navy, Marines, Air Force and Coast Guard and each military branch has individual eligibility criteria and a separate application form. Because each branch has its own eligibility criteria, it is important to read the fine print to ensure that you are eligible and remain eligible for this financial assistance. The following is a brief overview of these programs.

The program covers 100 percent of tuition and fees as long as it does not exceed $250 per semester credit hour ($4,500 for a fiscal year) for tuition, lab fees, enrollment fees, special fees and computer fees. The assistance is available to active duty and reserves. The Air Force program is available to those on active duty and reserve. The Army program is available for active duty, ARNG on active duty and army reserves in AD status. The Navy program is available to active duty and naval reserves in AD status. The Marines program is only available to active duty. The Coast Guard program is available for active duty, selective reserve and civilian employees.

Money from the tuition assistance programs is usually paid directly to the colleges by the military branch. This money is not a loan and should be considered as money military personnel has earned. Military branches also provide Voluntary Education programs to help personnel begin or continue their pursuit of a college degree. These programs can provide valuable academic and financial aid guidance to help you get in, pay for and graduate college.

Army/Navy/Air Force/Marine Corps College Funds are given out to based on military personnel’s merits and increase tuition aid above the Montgomery G.I. Bill’s payout. The Army fund increases aid up to $70,000; the Navy, to $50,000; the Marine Corps, to $30,000. The recipient must agree to serve six years and score in the top half of the Armed Services Vocational Aptitude Battery.

Student Loan Repayment Programs offered by different branches repay varying amounts of certain student loans, including loans provided by the federal government, but not private education loans or defaulted loans. This program must be requested when a military member enlists To be eligible you must also score 50 or higher on the Armed Forces Qualifications Test.

THE MONTGOMERY GI BILL

The GI Bill provides up to three years of benefits to veterans for a variety of college and vocational training. However, this money is not free. To qualify, you must agree to a $100-a-month deduction from their service pay. The amounts awarded can range from $309 a month ($11,124 total) for part-time Reserve or National Guard service to as much as $1,075 a month ($38,700 total) for active duty during three years or more. The funds may also be used during active duty or after honorable discharge.

STATE FINANCIAL AID

More and more states offer recent veterans a break on tuition at state schools. Since Sept. 11 the number of states offering discounts to veterans as increased from six to 19. Many more states are also working to pass benefits for veterans. These benefits can range from free tuition to discounts and fixed tuition for veterans. Each state has varying eligibility requirements including a minimum time served and academic requirements. Financial aid offices can tell you what benefits are available in the state that they work.

AID FOR MILITARY PERSONNEL PROVIDED BY COLLEGES

In addition to states providing aid to military personnel, individual colleges and universities provide financial aid and benefits to those who serve in the military. Again the financial aid office at the school you will or want to attend can give you details about the benefits offered.

SCHOLARSHIP PROGRAMS

There are a variety of individual scholarships offered to current and retired military personnel. The eligibility requirements for this free money vary greatly. Fortunately, organizations offer online search engines that can help you find the scholarships that are right for you. Two of these search engines are available at http://www.moaa.org/scholarshipfinder/ and http://aid.military.com/scholarship/searchfor- scholarships.do.

FEDERAL STUDENT AID

All current or former servicemembers (active duty, reserve, veteran, retiree, those using the GI Bill and those not using the GI Bill) should take advantage of the Federal Student Aid programs. Many members of the military receive grants and low-cost loans through these programs. Even servicemembers and vets who receive financial aid from the military may find Federal Student Aid useful to help defer out-of-pocket expenses until they begin receiving GI Bill payments and/or to pay for costs above and beyond what is covered by military aid.

The federal government provides Pell Grants to students for undergraduate study depending on a student’s financial need and tuition costs a student can receive up to $4,310 a school year. The government also offers FSEOG Grants for the neediest students. This is paid in addition to Pell Grants, up to $4,000 per school year.

The government also provides low-cost loans. These include subsidized and unsubsidized Stafford Loans. Subsidized Stafford Loans are awarded based on a student’s financial need and do not charge interest to the borrower while they are in school and for six months after graduation. Anyone can borrow unsubsidized Stafford loans, but interest begins compounding as soon as the loan is awarded.

Some institutions also offer Perkins Loans, which are funded by the schools and have a lower interest rate. These loans are also distributed based on a student’s need. Perkins and Stafford loans are eligible for the various student loan repayment programs. Borrowers are advised to use these loans before considering more-costly private or alternative education loans.

GRANTS AND SCHOLARSHIPS VS. LOANS

As you wade through information about the many different types of financial aid offered to current and former military personnel you should always remember to use all the grant and scholarship aid that you are eligible for before taking out student loans. Grants and scholarships are free money that does not have to be repaid, while loans have to be repaid with interest. This means that the actual amount you repay could be much greater than the amount you borrowed depending on the interest rate and the amount of time it takes to repay the loan.

As college costs increase at a faster rate than grants and scholarships many students find they still need to borrow student loans even after receiving all the grant and scholarship money they can secure, the same is true for military personnel. This is especially true for those who plan to attend graduate school, which is usually more expensive, and there is less grant and scholarship aid available for graduate students.

For those who still need money after getting all the free money they can, student loans are a great option. Students should not be afraid to borrow money because higher education is one of the best investments any one can make. Statistics show that those with a college degree make $1 million more over their lifetime than those with only a high school degree, those with a graduate degree have an annual income three times higher than those with only a high school degree.

TIPS ON BORROWING

After you have exhausted all your grant and scholarship options there are a few things you should know before taking out a student loan.

1. Only use private or alternative loans as a last resort. These loans can be much more expensive and do not offer the same borrower benefits as federal loans such as Stafford and Perkins loans.
2. All loans are not created equal. Loan companies offer a variety of borrower benefits to entice students to use their product. Carefully review and compare the benefits offered so you can choose the loan that works best for you.
3. Borrow as little as possible. Interest rates on loans mean you will have to repay more than what you borrow. The less you borrow the less interest will accrue on the loans.
4. Consider your future ability to repay the loan. Thanks to recent bankruptcy laws student loans can’t be discharged through bankruptcy, so they will be with you until they are repaid or you are deceased. Think about your future earning potential so you have a good idea how much you will reasonably be able to repay, i.e. social workers should borrow less than lawyers.

ONLINE RESOURCES

Tuition Assistance Programs

• Air Force: http://education.military.com/money-for-school/ tuition-assistance/air-force-tuition-assistance

• Army: http://education.military.com/money-for-school/ tuition-assistance/army-tuition-assistance

• Navy: http://education.military.com/money-for-school/ navy-education-programs

• Marines: http://education.military.com/money-for-school/ marine-corps-education-programs

• The Department of Defense Voluntary Education Pragram: http://www.voled.doded.mil/voled_web/voledhome. asp?Flag=True

• The GI Bill Website: www.gibill.va.gov

• State Tuition Benefits: www.usatoday.com/news/ education/2007-07-10-gi-bill-states_N.htm

• Military Scholarship Finders: http://www.moaa.org/scholarshipfinder/ http://aid.military.com/scholarship/search-for-scholarships.do

• Federal Student Aid Information: http://studentaid.ed.gov/PORTALSWebApp/students/ english/index.jsp

• Military Friendly Graduate Schools: http://education.military.com/finding-a-school/ graduate-school#gradschoolfinder ___________________________________________

Halley Chitty is assistant director for Communications at the National Association of Student Financial Aid Administrators (NASFAA). ♦

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