Paying for College

On the surface, figuring out how to pay for a college education may seem like an overwhelming task. Especially as the cost of four-year and two-year degrees continues to rise.

The good news is there are many state and federal assistance programs available. The key is understanding what’s available and how to access grants, loans, scholarships and financial aid. Students and parents who do their homework will find a wide variety of education funding products that can help accomplish this goal.

THE “PROMISE” OF NEW HAMPSHIRE COMMUNITY COLLEGES

The Granite State is blessed with strong community colleges that provide an affordable way to set out on the road to higher education. Associate’s degree credits are transferrable to state and private colleges and universities for students who want to pursue a bachelor’s degree. To make attending community college easier, the Community College System of New Hampshire is rolling out a Promise Program for the 2023-2024 academic year.

The needs-based Promise Program will help qualified New Hampshire students bridge the gap between grants, scholarships, and the cost of tuition and required comprehensive fees, at all seven of New Hampshire’s community colleges.

Students need to complete the federal Free Application for Federal Student Aid, be eligible for a Pell Grant, and enroll in at least six credits per semester. The Community College System of New Hampshire will apply any scholarships and grants first. The Promise Program will cover the remaining costs.

FEDERAL EDUCATION GRANTS

The federal government continues to provide higher education grants to eligible students who attend public or private colleges and universities. Unlike a student loan, grants do not have to be repaid unless a student withdraws from school and owes a refund or fails to complete their service obligation in the case of a federal Teacher Education Assistance for College and Higher Education grant. Students can apply for the following federal grants:

• Pell Grants

• Federal Supplemental Educational Opportunity Grants (FSEOG)

• Teacher Education Assistance for College and Higher Education (TEACH) Grants

• Iraq and Afghanistan Service Grants

SCHOLARSHIPS: GOOD GRADES ALWAYS A PLUS

Students who have earned top grades should seek out scholarships offered by the schools they wish to attend. They can also seek out scholarships from a myriad of nonprofit and private organizations.

The best place for students to begin their scholarship search is their school’s financial aid office or their high school guidance counselor. The amount of scholarship money a student is awarded will affect the amount of financial aid they can potentially receive from other sources.

FEDERAL STUDENT LOANS: THE HIGHER EDUCATION FUNDING SAFETY NET

For students who may not qualify for scholarships or financial aid, federal student loans offer them a direct pipeline to the funding they need for tuition, books, room and board. According to studentaid.gov, the U.S. Department of Education offers four loan options:

• Direct Subsidized Loans provide financial assistance to qualified undergraduate students who require help in funding their higher education in either colleges or vocational schools.

  • Direct Unsubsidized Loans offer financial support to qualifying undergraduate, postgraduate and professional students, without requiring the borrower to demonstrate financial hardship.

  • Direct PLUS Loans serve postgraduate students or the parents or guardians of undergraduate students. This can help with expenses not met by other financial aid. Financial need isn’t a consideration, but a credit assessment is mandatory. Those with negative credit records need to fulfill extra conditions.

  • Direct Consolidation Loans provide the advantage of merging all federal student loan debts into one consolidated loan under one loan provider.

Undergraduate students can borrow anywhere from $5,500 to $12,500 per year from Direct Subsidized Loans and Direct Unsubsidized Loans. The amount depends on what year you are in at school and your dependency status.

Parents of dependent undergraduate students can receive a Direct PLUS Loan for the remainder of their children’s college costs, which is determined by his or her school and not covered by other financial aid.

As is the case with any loan, students and parents should make sure they follow this advice:

• Know how much you’ve borrowed. Consider how you will repay the loans and how that repayment will affect your finances after school. Student loan payments should be a small percentage of one’s salary. It’s important not to borrow more than you need.

• Research starting salaries in your field. Ask your school for starting salaries of recent graduates in your field of study to get an idea of how much you are likely to earn after you graduate. You can also use the U.S. Department of Labor’s Occupational Outlook Handbook or career search tool to research careers and salaries.

• Understand the terms of your loan and keep copies of your loan documents. When you sign your promissory note, you are agreeing to repay the loan according to the terms of the note even if you don’t complete your education, can’t get a job after you complete the program or didn’t like the education you received.

• Make payments on time. You are required to make payments on time even if you don’t receive a bill, repayment notice or a reminder. You must pay the full amount required by your repayment plan, as partial payments do not fulfill your obligation to repay your student loan on time.

Sources: studentaid.gov and Community College System of New Hampshire