Help with Financial Aid

Determining how to pay for college can be a stressful and difficult process. Use this guide and its links to  to familiarize yourself with the federal resources available as you plan your college education.

• Start gathering information early.

• Keep copies of all forms and correspondence: you must reapply for aid each year.
  
• Parents of students: save money long before your child attends college.
  • FinAid: for Parents
  • College Savings Plan Network (state "Section 529" plans)
  • Tax incentives for higher education expenses
    
    
• Good overviews:
  • Cash for College
  • FinAid: The Smart Student Guide to Financial Aid
  • Financial Aid: You Can Afford It
  • Looking for Student Aid
  • Paying for College
    
• Beware of scholarship scams -- don't pay for free information!
  • Department of Education
  • Federal Trade Commission

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Student Aid and Where it Comes From

Basic assistance categories:

• Financial need-based
  Remember that students and their parents are responsible for paying what they can-- financial aid is a supplement, not a substitute, for family resources.
• Non need-based
  Factors include academic excellence, ethnic background, or organization membership. Corporations may also offer assistance to employees and children.

Federal Student Aid:

• Provides nearly 70% of student aid under Loans, Grants and Work/study programs.
• Available to all need-based applicants; some loans and competitive scholarships for non need-based.
• Free information from the U.S. Department of Education:
  • Student Aid on the Web
  • Financial Aid Resource Publications
• Loans are the most common federal aid and must be repaid when you graduate or leave college.
  • Stafford Loans (FFELs and Direct Loans) include:
  • Federal Family Education Loans: (FFEL) from private lenders, such as banks and credit unions, guaranteed by the federal government.
  • William D. Ford Direct Loans: (DL) directly from the federal government.
  • Federal PLUS Loans: parental loans, not need-based.
  • Perkins Loans: for the neediest undergraduates; through participating schools.
• Scholarships/grants are mostly need-based and require no repayment:
  • Pell Grants
  • Federal Supplemental Educational Opportunity Grants (FSEOG)
    
• Other grants, scholarships, and fellowships (mostly graduate level): search the Catalog of Federal Domestic Assistance (CFDA) by Beneficiary, such as "Student or Trainee" or "Graduate Student".
• Work study programs allow you to earn money while in school:
  • Federal Work Study Program: college campus jobs
  • Student Educational Employment: jobs with the federal government

Kentucky offers residents a variety of scholarships, loans, and tuition exemptions.

• Kentucky Resident Scholarship/Grant Information

Colleges and universities provide some 20% of aid, most need-based.   Check Kentucky’s universities and colleges websites for more information.

Private foundations, corporations, and organizations offer scholarships or grants:

• College Board Scholarship Search
• FastWeb

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Repaying Your Loans

After college, the federal government has ways to help you repay your loans.

• Eligibility depends upon the type of loan, when it was made, and whether it's in default. Check with your loan officer to find out if you qualify.
• Loan Consolidation: combine your federal loans into a single loan with one monthly payment.
• Sometimes loans may be canceled in exchange for public service.
  • Teachers: Cancellation/Deferment Options
  • Health professions: National Health Service Corps
  • Federal employees: Federal Student Loan Repayment Program

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