Online College Financial Aid

federal grants can save you thousands of dollars

The Department of Education spends billions of dollars annually through grants for students. The primary benefit of grants is that the student does NOT need to repay the government. Students are eligible for grants by completing and submitting the FAFSA form. Although there are many grants, the main opportunities are the Federal Pell Grant, Federal Supplemental Education Opportunity Grant (FSEOG), Academic Competitiveness Grant (ACG), National Science and Mathematics Access to Retain Talent Grant (National SMART Grant), Teacher Education Assistance for College and Higher Education Grant (TEACH Grant), and other institutional grants.

Federal Pell Grant
Federal Pell Grants are mainly awarded to students who have not earned a bachelor’s or a professional degree. For the year ended June 30, 2010, the maximum award is $5,350. However, this amount changes each year and is dependent on the student’s financial need, full-time / part-time status, and the cost to attend the school.

Federal Supplemental Education Opportunity Grant (FSEOG)

FSEOG is a grant primarily for undergraduate students with exceptional financial need. They are given to students with the lowest expected family contribution. Funding through FSEOG varies between $100 and $4,000 per year. Similar to the Pell Grants, the amount funded will determine on the student’s need and the aid provided by the school.

Academic Competitiveness Grant (ACG)
ACG provides funding for students in their first and second year of their program of study. First year students can receive $750 and second year students can receive $1,300. The student must meet the following list of requirements:

• Be a U.S. citizen;
• Be a Federal Pell Grant recipient;
• Be enrolled full-time in a degree program;
• Be enrolled in the first or second academic year of his or her program of study at a two-year or four-year degree-granting institution;
• Have completed a rigorous secondary school program of study (read grant details for some completion dates restrictions);
• If a first-year student, not have been previously enrolled in an undergraduate program; and
• If a second-year student, have at least a cumulative 3.0 grade point average (GPA) on a 4.0 scale for the first academic year.

More eligibility requirements have will be in effect as of July 1, 2009. Please visit The Guide to Federal Student Aid for additional requirements.

The student’s secondary education (high school) curriculum must meet certain criteria. The government publishes a list of all secondary school programs that fulfill the criteria below:

1. Rigorous secondary school programs designated by state education agencies (SEAs) and state-authorized local education agencies (LEAs) and recognized by the Secretary of Education.
2. Advanced or honors secondary school programs established by states.
3. Secondary school programs identified by a state-level partnership recognized by the State Scholars Initiative of the Western Interstate Commission for Higher Education (WICHE) of Boulder, Colorado.
4. A program for a student who completes at least two courses in the International Baccalaureate (IB) Diploma Program with a score of four or higher on the course examinations or at least two Advanced Placement (AP) courses with a score of three or higher on the College Board's exams for those courses.
5. A secondary school program in which a student completes, at minimum:
   • Four years of English;
   • Three years of math, including algebra I and a higher level class such as algebra II, geometry, or data analysis and statistics;
   • Three years of science, including one year each of at least two of the following courses: biology, chemistry, and physics;
   • Three years of social studies; and
   • One year of a language other than English.

an online Education Tax Break

Under the American Recovery and Reinvestment Act, more parents and students will qualify over the next two years for a tax credit, the American Opportunity Credit, to pay for college expenses.

The American Opportunity Credit http://www.irs.gov/newsroom/article/0,,id=205674,00.html is not available on the 2008 returns taxpayers are filing during 2009. The new credit modifies the existing Hope Credit for tax years 2009 and 2010, making the Hope Credit available to a broader range of taxpayers, including many with higher incomes and those who owe no tax. It also adds required course materials to the list of qualifying expenses and allows the credit to be claimed for four post-secondary education years instead of two. Many of those eligible will qualify for the maximum annual credit of $2,500 per student.

The full credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. The credit is phased out for taxpayers with incomes above these levels. These income limits are higher than under the existing Hope and Lifetime Learning Credits.

Free Money Available for online degrees

Similar to grants, scholarships are sources of funding (or other promised aid) gifted to students to pursue their graduate or undergraduate education—no repayment necessary. While college scholarships are granted for a variety of reasons, the most common are student merit, financial need, athleticism, ethnicity and field of study.

Although scholarships do not need to be repaid, some are awarded with certain stipulations (such as enrolling in a particular field of study or working with a certain organization).

Like grants, scholarships are money that is given by governments, foundations and non-profit organizations. One of the main differences between scholarships and grants is that scholarships tend to have more rigid requirements for selection, and are typically targeted towards those going to college. Scholarships will require students to meet certain requirements, both before and after they've obtained it, while grants vary widely in their requirements, amounts and expectations. Plus they can be given under a variety of different circumstances.

To find scholarships, visit this US Department of Education website to search and browse for scholarships by category or discipline.