We’ve Moved!

 

Hello debt-free degree seekers!

I’ve made some hosting changes with the blog, so check out my new location, Loan-Free Degree, if you are looking for more great information about going to college without debt.  You’ll find the same encouragement and helpful advice you need. See you there!

Welcome!

Welcome fellow Make a Living Writing readers!  I am so glad you’ve stopped by!  This is an exciting new blog for those young people (and their parents) who still have the opportunity to avoid the debt trap altogether by paying for college as they go.  I hope you enjoy this post, a repeat of my first blog post, as a welcome and introduction to my blog.

Recently I had the opportunity to try shaking some sense into a high school student I know. I told him how much it stinks to be paying off my loans right now (six years postgraduate, and no end in sight), and encouraged him not to do the same thing. He responded with a common belief among teens looking ahead to college; “I’m sure I have to go into some debt to go to college.”

But does he? Do you? According to the National Association of Student Financial Aid Administrators (NASFAA), federal financial aid has grown from $62.1 billion in 1999-00 to an estimated $146.5 billion in 2009-10, an increase of 136 percent. I can’t help but wonder how many of these students really know what they’re getting themselves into financially. Will the job prospects they will get from their majors realistically be able to handle the monthly payments after they graduate? Do they plan to get married after college? Based on current trends, they should assume their spouse will bring debt into the picture as well.

Hence my passion for helping you, who have the incredible opportunity to not make the same mistakes, or at the very least to understand what you are getting yourself into if you do decide to take out loans.

In this blog, you will find regular updates on scholarships, grants, and essay contests; helpful articles on essay writing tips, saving money on textbooks, interviews with admissions counselors and financial aid experts, and much more.

Thanks for stopping by. I hope you find this helpful, and let me know if you have any ideas for articles, tips or inspiration.

The Basics: FAFSA

 

What is it? FAFSA stands for Free Application for Federal Student Aid. After you fill it out, a Student Aid Report (SAR) is sent to applicable schools or aid organizations stating what you should be expected to contribute to your own college education.

Why fill it out? It will let you know if you qualify for some grants, scholarships, federal student aid (a.k.a loans – boo!), or work-study programs.

How do you apply? Submit it as early as January 1st of the year you need aid. Go here to find the various options for filing your FAFSA. But be careful; these papers don’t truly take every bit of your financial capability into consideration, so sometimes they can be a little skewed one way or another.

More to come on FAFSA.

The Basics: Loans

Here’s the deal: since the entire purpose of this blog is to stay away from debt, I’m not going to beat around the bush when it comes to talking about loans. If you decide to go for them, I wish you the best in paying them off as quickly as possible.

Why NOT go for them? You pay them back – every penny. Actually, you pay them back plus interest. So really when you think about paying for college with loans, make sure you realize that you are paying the college AND the bank or government.  Also, your loans don’t go away – even if you were ever to go into bankruptcy, you’d still be chased down to pay off your loans.

What are they? There are subsidized, unsubsidized, Stafford, and direct loans. Here’s a short summary of each:

Subsidized: You begin making payments on this loan six months after you graduate, and the interest begins accruing then.

Unsubsidized: The interest begins accruing from the first month you have taken out the loan, even if you aren’t repaying it for years.

Stafford and Direct loans are basically the same thing: Same interest rate, same annual loan limits, and same FAFSA application process. The main difference is that with the direct loan you are borrowing from the government. Stafford loans come from banks or credit unions.

Stay tuned for more ways to avoid loans.

The Basics: Work-Study Programs

Why go for it? You don’t have to pay anything back later– though you do work for it now.

What is it? Federal work-study programs benefit both you and your employer. This win-win situation means that the government pays part of your wages. This may improve your odds of getting a part-time job. As for taxes, you will have to record your work and earnings for the government, but not so with your financial aid office; the following year, they will not take those earnings into consideration, which means it won’t count against you for future aid.

How do you qualify? According to  the University of Minnesota One Stop Web page, you have to qualify for need-based aid (determined by FAFSA) and be enrolled at least part time in school.

How do you apply? Fill out the FAFSA, making sure you indicate that you are interested in federal work-study programs.

The Basics: Essay Contests

Essay contests are an incredibly broad topic, but I’ve found some general characteristics to look for as you consider this option to help pay for college.

Why go for them? You don’t repay anyone, though there may be entry fees (see note below).

What are they? Schools, foundations, organizations, and more put on these contests to give teenagers the opportunity to earn money for their futures.

How do you find them? A quick Google search will unearth far too many contests to even consider. It’s best to narrow it down to your areas of interest. Aspiring journalists can type “journalism essay contests,” future science majors can type “science essay contests,” and so on.

How do you apply? Each contest will have its own set of directions. Be careful about paying much for entry fees, as the point is to make money from this.  Do your research. A few minutes to check the background info on a contest to see where the money comes from and what kind of company/organization it is can go a long way in avoiding a scam.

More to come on avoiding contest scams.

Basics: Scholarships

 

Grants and scholarships are closely related; sometimes their names are used interchangeably. Therefore, some facts about the grants will show up in this Basics segment as well. This can get confusing, but the bottom line is, they are both used to help pay for college, and that’s all that matters in the end.

Why go for them? Like grants, you do not repay scholarships.

What are they? Scholarships are free money awarded to a student, often coming from donations, not necessarily the government.

How do you qualify? Scholarships are often based on merit – academic achievement, sports, or some other talent. Others are based on minority or marital status, or intended field of study. But there are others that are only based on financial need.

How do you apply? Generally, filling out the FAFSA is still a good idea. Since scholarships can come from so many sources, you will need to do a little digging. Look into any group, club, or association you are connected with in any way. Churches, youth programs, your parents’ companies, may all have scholarship opportunities.

For scholarships your college offers, start with the financial aid office, your academic department, admissions office (of you are a new student), and specific programs at school if they apply to you, like athletics department, Honors, etc.

Other sources, like Scholarships.com, give instructions on who to contact and what is required, i.e. essays to write, application details, and eligibility.