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Scholarship Sources and Other Financial Assistance Sources
Be Aware: You may receive information from scholarship companies offering to locate unused scholarships for a fee. Be very cautious about sending money to organizations making
generous scholarship promises and advertising that large amounts of financial aid go unused. Many are scams, although there are legitimate companies that offer access to a list of scholarships for a fee. Others charge a fee to compare your profile with a database of scholarship opportunities. The difference: legitimate companies never guarantee or promise scholarships or grants. Be sure you’ve exhausted all the free resources first.
Private Scholarships
Along with applying for the major federal, state, and institution-based sources of financial aid, look into scholarships from community or professional groups, businesses, labor unions, churches, or national foundations. Some scholarships are based on financial need, but a number of others are based on academic achievement, leadership ability, special talents, or heritage.
Community organizations -- Many civic and community groups such as Rotary, Elks, American Legion, 4H, Chamber of Commerce, PTA, and others offer scholarships.
Employers -- Many businesses and corporations offer scholarships or loans to employees' children or to students who live in the community where the company is located. Others offer aid to students majoring in fields related to the company's products or interests. Company personnel offices have application information.
Professional, career, trade associations -- Libraries have directories of scholarships offered by associations in your future career or field of study. Also, ask your art or shop teacher, coach, or bandmaster about schools looking for students with your talents. Leads also may be listed in magazines related to your special interests or skills.
National Merit Scholarships
The independent, nonprofit Merit Scholarship Corporation awards about 5,000
scholarships each year. Students compete on the basis of test scores, academic
and extracurricular achievements, and school recommendations. Taking the
Preliminary Scholastic Aptitude Test/National Merit Scholarship Qualifying Test
(PSAT/NMSQT) in the fall of the junior year in high school will enter you in the
competition. See your high school counselor to find out more.
The Armed Forces
The U.S. Armed Forces also offer educational benefits. All branches provide tuition assistance for college courses taken while on active duty under the Montgomery GI bill.
In addition, the Army, Navy, and Marine Corps provide tuition assistance above what you may earn through the Montgomery GI bill. In some programs, you receive an education first in exchange for a service commitment. The Army and Navy also have programs that allow you to accumulate up to $50,000 for an education while completing an initial enlistment period; up to $30,000 if you're in the Marine Corps. The Army also offers loan repayment up to $65,000. For more information, contact your local Armed Forces recruiting office, or 1.800.USA.NAVY, 1-800-MARINES, and 1-800-522-0033, ex. 2091 for the Air Force.
In the Army Reserve, you can earn up to $29,000 for college and up to $20,000 in loan repayment assistance while you’re going to college in exchange for committing one weekend a month and two weeks a year to training. All branches also offer Reserve Officers' Training Corps scholarships that pay tuition, fees, and sometimes a living allowance, in exchange for a service commitment. To learn more, call 1.800.USA.ROTC - visit
www.armyrotc.com
If you, or your spouse, are a veteran or the
dependent of a veteran, veterans’ educational benefits may be available. Check
with your local Department of Veterans Affairs office. Information is also
available through the Internet at www.gibill.va.gov.
Where Do I Go For More Information?
You can search for information on scholarships, grants, and loans in the
directories at your , public and school libraries. You can also use the World
Wide Web to look for financial aid information.
The following reference list was compiled by librarians at California State
University, Sacramento:
Annual Register of Grant Support. Chicago: Marquis. Annual.
Detailed descriptions of grant programs offered by a wide variety of
organizations are given within broad subject categories. Many of the grants for
college and graduate study are included in the “Education Scholar Aid Programs”
and “Special Populations” categories.
A’s and B's of Academic Scholarships. Alexandria, VA: Octameron. Annual.
Good general information on financial assistance prefaces the main body of
tabular data on major awards available at colleges throughout the country.
Cash for College: The Ultimate Guide to College Scholarships. NY.- William Morrow. 1999.
Information on 6,000 scholarships alphabetically arranged with indexes by
category. Several chapters of useful advice on the application process, query
letters, cover letters, with examples.
College Blue Book. Scholarships, Fellowships, Grants and Loans. New York: MacMillan.
Annual. Four indexes provide easy access to loans and scholarships by
title, subject, level of education and sponsoring organization.
The College Costs and Financial Aid Handbook 2000. New York: The College Entrance Examination Board. 1999.
A guide for prospective college students and their parents who are assessing the
true costs of college and planning to meet these costs. Topics include preparing
a budget, evaluating family financial resources, and applying for financial aid.
Directory of Financial Aid for Women. El Dorado Hills, CA: Reference Service Press. Biennial. Includes over
1,000 references to public and private sources of financial aid for women,
including scholarships, fellowships, loans, grants, awards, and
internships.
Don't Miss Out: The Ambitious Student's Guide to Financial Aid. Alexandria: Octarneron Press. Annual.
Traditional funding sources, as well as more creative financing possibilities.
Comprehensive but concise, it dispels a few myths in the process.
Financial Aid Book. Michigan: Perpetual Press. 1999. Presents
3,000 listings of scholarships, grants, loans, fellowships, internships, student
competitions. The first section explains the application process, with examples
of letters and essays. Easy to use with various indexes: field of study, state
of residence, personal characteristics.
Financial Aid for African Americans. El Dorado Hills, CA: Reference Service Press. Biennial.
Contains details of scholarships, fellowships, grants, loans, awards,
prizes, and internships for African Americans.
Financial Aid for Asian Americans. El Dorado Hills, CA: Reference Service Press. Biennial.
Contains details of scholarships, fellowships, grants, loans, awards, prizes,
and internships for Asian Americans.
Financial Aid for the Disabled and their Families. El Dorado Hills, CA: Reference Service Press. Biennial.
Describes over 400 financial aid programs open only to the disabled and their
dependents.
Financial Aid for Hispanic Americans. El Dorado Hills, CA: Reference Service Press. Biennial.
Contains details of scholarships, fellowships, grants, loans, awards, prizes,
and internships for Hispanic Americans.
Financial Aid for Native Americans. El Dorado Hills, CA: Reference Service Press.
Biennial. Contains details of scholarships, fellowships, grants, loans, awards,
prizes, and internships for Native Americans.
Free Money for College. New York: Facts on File. Biennial. A
digest that pulls together information from a variety of directories. More than
1,000 grants and scholarships for undergraduate studies are listed by state,
field of study, category of student, i.e. women, disabled. Emphasis is on
private institutions and organizations. Many of the grants are quite specialized
and specific. Other titles in this series: Free Money from Colleges and
Universities and Free Money for College from the Government.
High School Seniors Guide to Merit and Other No-Need Funding. El Dorado Hills, CA: Reference Service.
Press. Biennial. A guide to 1,100 merit scholarships and other no-need
college funding programs, open only to high school seniors, that never look at
income level.
How to Win A Sports Scholarship. Los Angeles: First Base Sports, Inc. 1999.
Encourages student athletes, including those who are not stars, to take the
initiative in the recruiting process. Includes chapters on how to assess
athletic and academic skills, how to build a Sports Resume Kit, and how to
negotiate scholarship offers successfully. Provides examples of sports resumes,
cover letters, and contact letters.
Need a Lift? To Educational Opportunities, Careers, Loans, Scholarships, Employment.
Annual. $2 from American Legion Education Program, P. 0. Box 1050,
Indianapolis, IN 46206.
Peterson's College Money Handbook. Princeton: Peterson’s Guides. Annual.
Basic tuition and financial aid information through college profiles. Latest
edition comes with student aid planning software.
Peterson’s Scholarships, Grants & Prizes. Princeton: Peterson’s Guides. Annual.
This guide to private sources of funding is arranged by career goals, as well as
nonacademic criteria (employment, military service, ethnic background). The
latest edition comes with a CD version.
Scholarship Advisor. NY. Random House. 2000. Lists thousands of
scholarships alphabetically with indexes by category; for example, field of
study. Contains chapters on how to compile an application, write the essay, and
prepare for an interview.
Scholarship Almanac. Princeton: Peterson’s Guides. Annual.
After a brief discussion of general strategies for covering college costs,
presents information about funding sources outside the colleges and
college-channeled federal aid, organized by academic major and by state.
Scholarships 2000. NJ: Kaplan/Simon and Schuster. 2000. Identifies
only funding opportunities of at least $1,000 that don't have to be repaid. The
sources listed are for undergraduate study beyond high school at any number of
schools, including community colleges, technical institutes, and vocational
schools. Organized by discipline, with helpful indexes. Also offers application
advice and sample letters.
Scholarships, Fellowships, and Loans: A Guide to Education-Related Financial Aid Programs for Students and Professionals. Detroit: Gate.
Annual. This title matches vocational goals with available and
appropriate career or discipline specific funding sources. Descriptive listings
are provided for nearly 4,000 scholarships or fellowships. Comprehensive indexes
include categories such as “'Special Recipient” and “Place of Study.”
Preface on “Practical Tips on How to Find Financial Aid” provides a good
introduction to effective strategies.
The Scholarship Book, 1998-1999. NJ: Prentice Hall. 1998. Focuses
on private-sector awards for undergraduate study only. One interesting feature
is the index by grade-point average. Many entries include organizations' Web
addresses for direct inquiries.
Several books have been published that also present strategies for maximizing
eligibility for financial aid and completing the FAFSA. Try these for starters:
- Kalman A. Chany and Geoff Martz, The Princeton Review Student Access Guide to Paying for College
1995, 3rd edition, Villard Books, New York, 1994. ISBN 0-67974-497-0 ($16.00). 285 pages. Revised annually.
- Anna Leider and Robert Leider, Don't Miss Out: The Ambitious Student's Guide to Financial
Aid, 21st edition, Octameron Associates, Alexandria, Virginia, September 1996. ISBN 0-94598-009-0 ($7.50). 144 pages. Available for free on the World Wide Web.
- Pat Ordovensky, USA Today - Financial Aid for College: A Quick Guide to Everything You Need to Know, With the New 1996 Forms,
Peterson's Guides, Princeton, New Jersey, 1995. ISBN 1-56079-377-5 ($8.95). 154 pages.
The federal government’s students.gov
Web site provides access to a multitude of government resources to assist
students in planning and paying for their education. Students.gov is a federal initiative designed to make interacting with
the government easier for students. In addition to providing financial aid
information, students can use the Web site to file their taxes, search for a
job, and take advantage of a host of other government services.
What About Other Options?
Federal Tax Benefits
Hope and Lifetime Learning tax credits You or your parents may be eligible for a Hope or Lifetime Learning federal tax credit that lets you write-off your college costs dollar-for-dollar when you file your taxes. The Hope credit is worth up to $1,500 per student for the first and second years of college. Here's how it's calculated: 100% of the first $1,000 in out-of-pocket costs for tuition and fees, and 50% of the second $1,000 in college expenses.
The Lifetime Learning tax credit picks up where the Hope credit leaves off. It covers 20% of a family's tuition expenses, up to $5,000, for any postsecondary education and training, including graduate and professional study. Both tax credits have income limitations. The credits cannot be taken at the same time, for the same student. Also, the credits can't be taken in a year when Education IRA funds were used for education. To take advantage of these credits, taxpayers must file IRS form 8863 with their federal tax return.
Student loan interest deduction Eligible taxpayers can deduct up to $2,000 in student loan interest paid in 2000, and up to $2,500 next year. You may deduct interest paid on student loans you received for your own education, or for your spouse or dependents' education. This tax credit also has income limitations.
Education IRAs With Education IRAs, investments of up to $500 per year grow free of federal taxes if the money is used later for college expenses.
To learn more, visit www.irs.ustreas.gov, call 1-800-829-1040, or read IRS publication 970, available free by calling 1-800-829-3676.
In addition, EDFUND publishes a booklet, Tax Benefits for Higher Education. To request your free copy, call 1-877-2EDFUND, log on to www.edfund.org, or write to EDFUND Shipping Center, P.O. BOX 419045, Rancho Cordova, CA 95741-9045. (It's publication number
1-9i.)
College Savings Plan
Many states now offer innovative savings plans to encourage families to start saving early for their children’s higher education. Earnings on investments in these "529" plans are exempt from federal taxes (and state taxes, too, in some states). To find out more, contact The College Savings Plan Network, 2760 Research Park Drive, Lexington, KY 40511, telephone 606.244.8175, or visit wwwcollegesavings.org.
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