The ABCs of Financial Aid for Your Education

Federal student aid

Start your search for financial aid at the U.S. Department of Education's office of Federal Student Aid. Billions (yep … billions) of dollars in loans and grants are awarded to eligible students each year. To apply for loans and grants, complete the Free Application for Federal Student Aid online.

Federal grants are based on financial need and include:

• Pell Grants. You don't have to pay back a grant, so apply if you're an undergraduate student without a degree or have one if you're getting a teacher certification.
• Federal Supplemental Education Opportunity Grants. These need-based grants are for low-income undergraduate students.
• Teacher Education Assistance for College and Higher Education Grants. Would-be teachers willing to teach in a high-need field in a low-income area can get this grant.
• Iraq and Afghanistan Service Grants. You're eligible if your parent or guardian served in the U.S. Armed Forces and died while serving in Iraq or Afghanistan after the events of 9/11.

If you don't qualify for a grant, hang in there — you still have options. Check out these loan programs:

• The William D. Ford Federal Direct Loan Program. This program offers direct subsidized loans (you pay no interest when you meet specific criteria), direct unsubsidized loans (you pay interest, and financial need isn't a requirement) and direct PLUS loans (graduate and professional students, and parents of eligible family members who are undergraduate students can apply for help covering costs not paid by other aid sources).
• The Federal Perkins Loan Program. Schools give you this loan (about 1,700 schools) if you're an undergraduate or graduate student with exceptional financial need.

State aid

Many states are ready to help with merit and need-based grants, loans and scholarships. Some financial aid programs are occupation-based, which often requires you to commit to work in the state for a specified period of time (hello, Hawaii). Check with your state's website for more information.

Post-9/11 GI Bill®

If your service member is eligible for Post-9/11 GI Bill® benefits, it's possible to transfer those benefits to you if one of the following criteria were met on or after August 1, 2009:

• Served at least six years on the date of benefit approval. Your service member must agree to serve another four years from the date of benefit election.
• Served at least 10 years on the date of benefit approval, but is restricted from serving four more years. Standard policy or statute can restrict serving an additional four years, but your service member could agree to serve for the maximum time allowed by the policy or statute.
• Is or becomes retirement eligible from August 1, 2009 to July 31, 2012. Your service member must agree to serve for another period, but for how long depends on the retirement eligibility date.

Post-9/11 GI Bill® benefits are flexible about the type of school you can attend and can also pay for some of your school-related expenses:

• Undergraduate and graduate degrees
• Technical training
• On-the-job training, flight training
• Correspondence training
• Licensing
• Entrepreneurship training
• National testing programs
• Tutoring
• Housing (a monthly allowance)
• Books and supplies (yearly stipend for those who qualify)

Visit the U. S. Department of Veterans Affairs for more details on the Post-9/11 GI Bill® and the Montgomery GI Bill®.

My Career Advancement Account Scholarship

Military moves can make it hard to have a steady career in some fields. The My Career Advancement Account Scholarship helps military spouses get into portable career fields and occupations. Here's the rundown:

• It's for military spouses. Your service member must be on active duty in pay grades E-1 to E-5, O-1 to O-2, and W-1 to W-2. Spouses of National Guard and Reserve with Title 10 military orders are eligible, too.
• Get up to $4,000. This is serious cash you can use at a participating school for an associate degree, certificate or license in an approved career field or occupation. Liberal arts or general studies degrees are not eligible to receive these funds.
• Pays your tuition. The scholarship covers only tuition costs.

School-specific aid

Don't forget to check with the schools, too, because lots of them offer need- and merit-based financial aid packages (scholarships, work-study programs, assistantships and loans). Contact the schools' financial aid office for information.

Private scholarships

It takes a little more digging around, but you can find funds for school from private and non-profit organizations — typically need- or merit-based with a specific qualifier. It can be really specific, like you must be the child or grandchild of a helicopter pilot. But you never know, so look around — you just might find something that has “you” written all over it. These types of scholarships are often first come, first served, so start looking early and often. Check out the Scholarship Finder on the MySECO website to learn more.

The absolute first thing you should do is to think about the costs and come up with a solid financial plan. You can find money for school, but be sure you understand all of the program's requirements, terms and conditions. It's a lot to think about. You can get help figuring it all out, like personalized guidance from the Spouse Education and Career Opportunities program. And learn about loans and repayment from the Consumer Financial Protection Bureau's Know Before Your Owe student loans project.