A college education is expensive. The good news is, financial aid—and plenty of it— is available for prospective students.

Cost and Financial Aid

While you shouldn’t select a school solely on the basis of cost, it is often a primary factor. If cost is a major concern, keep in mind that many public institutions offer excellent engineering programs and are generally less expensive than private institutions. Scholarships, grants, and loans as well as part-time employment and co-op and work-study programs are all ways to lessen costs.

Applying for Aid

Some aid is awarded to students who are outstanding academically or who have a special talent—in music, science, or a sport, for example. These students may or may not have to demonstrate financial need. Most federal, state, and college aid, however, is based solely on need. Need is defined as the difference between what it costs to attend your college and what you and your parents can afford to pay based on your income and other assets and expenses. The amount is often called your Expected Family Contribution (EFC).

To be considered for federal and many other types of aid, you must complete the Free Application for Federal Student Aid (FAFSA). If you need a form, call 800-4-FED-AID, or you can download the form from the Department of Education’s financial aid page. About four weeks after you file your FAFSA, you should receive a Student Aid Report (SAR), which indicates your EFC.

Federal Aid

The federal government provides 75 percent of all available student aid through a number of need-based grant and loan programs.

• Grants are outright financial gifts that you do not have to repay.
  Loans are borrowed funds that must be repaid with interest. (For more information on loans, see the Department of Education’s William D. Ford Federal Direct Loan Program page.)

• There are two types of federal programs—
  
  • Student-based:
    If, based on your FAFSA, you are eligible, the federal government gives you the money. These programs are Pell Grants and subsidized Stafford Loans.

• • Campus-based:
    Schools get money from the federal government to give to students. These programs are Federal Supplemental Education Opportunity Grants, Work-Study, and Perkins Loans. You can find a complete description of the programs, eligibility requirements, deadlines, and application materials at the U.S. Department of Education Guide to Student Financial Aid.

State Aid

States award more than $3 million in student aid each year. In most cases, the FAFSA links you up with your home state’s programs. You usually have to live and attend school in that state to qualify for state aid, but some states have reciprocal agreements. To find out about state financial aid contact your guidance counselor, local school board, or state department of education.

Other Aid

College-based Scholarships

Colleges have their own pool of money for student loans and scholarships. Check with the financial aid office at the college you are planning to attend.

Private Scholarships

There are many types of private scholarships. Some are administered by national organizations. Others are awarded by the U.S. military, clubs, fraternal organizations, and corporations. These scholarships can be based upon merit or financial need, and their amounts can vary greatly.

If you bring in private scholarships, your FAFSA may not use that money to reduce your EFC but may include the scholarship as part of your financial aid package. Private scholarships don’t necessarily reduce your out-of-pocket costs, but they can be used to replace loan elements of your package, thus reducing the amount you must repay.

Loans

There are also loans available for students and their parents regardless of their income or assets. These loans are:

• Unsubsidized Stafford Loans and Federal Direct Student Loan Program for Parents
• Please select the link to the individual programs or go directly to the U.S. Department of Education Guide to Student Financial Aid for a complete description of the programs, eligibility requirements, deadlines, and application material.
  

Financial Aid Links

• A glossary of financial aid terms.

• CollegeNET
  Provides online applications for colleges in the U.S. and abroad. Also offers a scholarship database.

• CSS/Financial Aid PROFILE
  The financial aid application service of the College Board. Many of the member colleges, universities, graduate and professional schools, and scholarship programs use the information collected on PROFILE to help them award nonfederal student aid funds.

• Collegeboard.com — Paying For College

• U.S. Dept. of Education Programs

• FAFSA
  Interactive Web version of the Free Application for Federal Student Aid.

• FASTWEB
  A free and searchable scholarship database that locates possible sources of financial aid.

• FinAid
  Free scholarship search, financial aid calculators, glossary, and bibliography.

• Get Recruited by Colleges and Universities
  All students can get recruited by colleges, universities, and graduate schools.

• Guaranteed Scholarships
  Scholarships guaranteed by individual colleges to ALL admitted students meeting the criteria listed.

• Minority Scholarships and Fellowships
  A searchable index from the Federal Information Exchange.

• National Action Council for Minorities in Engineering
  Information on financial aid programs.

• Students.gov
  A cooperative effort between federal agencies, students, and other parts of the higher education community, under the leadership of the U.S. Department of Education.

• The Student Guide
  Financial aid primer from the U.S. Department of Education, plus FAFSA links.

Filed under: Explore Engineering