The last few years have been a true test for those who have unshakable faith in the higher education system. With the state of the economy hitting new lows and leaving millions of Americans unemployed, serious questions have been raised about the wisdom of investing money in a fancy college degree.
However, there are statistics that support those who believe that a college education opens the door to well-paying careers. According to the US Census Bureau’s 2005-2007 American Community Survey, the median annual income for a high school graduate was $26,712, while those with an associate’s or college degree earned $32,793 per year. Earnings for those with a bachelor’s degree and a graduate or professional degree were $46,277 and $61,014 per year, respectively.
Clearly, the numbers speak for themselves and the argument is won in favor of a college education. But not everyone has the financial resources to finance higher education. For those people, financial aid for college is a beacon of hope. Many colleges offer students financial counseling and educate them about the various federal aid available to finance their education.
Federal student financial aid includes scholarships, grants, and subsidized loans that are awarded based on financial need rather than academic achievement. In addition, some state agencies also offer in-service student grants. Some of the prominent federal financial aid programs are:
Pell Grant: It is a need-based grant that is generally awarded to undergraduate students. Unlike a loan, a student does not have to pay back a Pell Grant. The amount of the grant may vary from year to year and will depend on factors such as financial need, the cost of attending college, whether you are a full or part-time student, and whether you plan to attend college for a full academic year. or less. .
Supplemental Educational Opportunity Grant (SEOG): This is also a need-based grant and can be part of a student’s overall aid package subject to the availability of funds. Priority is given to students who have already received a Pell Grant. A student can get up to $4,000 as part of this grant.
Federal Stafford Loan: This is one more source of financial aid for college offered by the federal government. These are fixed-rate student loans offered to undergraduate and graduate students as long as they are enrolled in at least one part-time program. Students can apply for both subsidized and unsubsidized Stafford loans. Subsidized Stafford loans are only awarded to students who demonstrate financial need. Students taking this loan must begin making payments six months after graduation.
Parent Loan for Undergraduate Students: This is another federal financial aid for college students. It is a low-interest loan that the parents of a dependent college student can take out to finance the cost of their entire education. This loan is not available to parents of independent students.
The United States Congress passed a bill in 2008 that proposed sweeping changes to the country’s higher education law. The bill sought to improve college financial aid programs, and its highlights included simplifying the federal financial aid form and making the Pell grant available year-round. Rebuilding the education system is clearly one of the government’s top priorities and if they are successful in their endeavour, it will be a great asset for the future of post-secondary education.
