(ARA) –  In a competitive job market, earning a degree can be the biggest single step one can take to enhance career value and earning potential. As many bask in the glow of making plans to increase their career potential, the prospect of paying for college is a sobering reality.

Few of us have funds set aside for this endeavor. In addition, the College Board's annual "Trends in College Pricing" reports a rise in tuition costs at public and private institutions for the 2009-2010 school year. According to the report, annual tuition and fees at private four-year colleges rose 4.4 percent to $26,273, and public university costs rose 6.5 percent to $7,020.

Prospective students often don't know where to start. But take heart; Darlene Violet, director of Financial Aid at Brown Mackie College – Akron, Ohio,  offers advice on funding your education. "The U.S. Department of Education distributes $96 billion a year in grants, work-study assistance, and low-interest loans," Violet says. "Every student begins the process of seeking financial aid by completing the Free Application for Federal Student Aid form, known as the 'FAFSA.'" Information submitted on the FAFSA form determines the amount a student may receive through a federal Pell Grant, which is based on financial need. The recent economic stimulus program increased Pell Grant funds by $500 per student. Financial aid is available for those who qualify.

Beyond completing the FAFSA, many turn next to student loans. "An education is always a good investment," says Violet, "but many people don't realize the loans must be paid back starting six months after leaving school. I advise students to seek out and apply for scholarships." Wide varieties of organizations offer scholarships, from fraternities and sororities to community groups, foundations, and corporations. Winning candidates receive funds based on a vast spectrum of criteria, including ethnicity and cultural heritage. "Students just don't take the time to find them," Violet continued. "It can be a lot of work." Read this article »

Thinking about pursuing your degree through distance learning?  Worried about how you will pay the tuition and any other costs involved? You may qualify for a scholarship, grant or other type of financial aid.  Distance education degrees are no different, in terms of funding, than on-campus degree programs.  Of course the online degree program must be accredited, but the same holds true for traditional degrees.

All of the traditional types of financial aid are available: Scholarships, grants, and student loans.  What are they and how do they work?

Scholarships:

Scholarships do not have to be repaid.  They are personalized forms of financial aid available for students with particular strengths in academic, artistic, or athletic fields. In addition, students from underrepresented minority groups or students in financial need may also be eligible to receive scholarships. 

Consult with the various schools with programs in which you have interest to determine if they offer scholarships for students in your situation.

Grants:

Grants do not have to be repaid.  Pell Grants are a type of educational grant that is often awarded to students by the Federal government. To receive a Pell Grant, students must meet certain qualifications that have been determined by the government.

Student Loans:

Student loans must be repaid.  There are several types of educational loans available from the Federal government. Two major categories of federal education loans are:

• Student loans (Stafford loans and Perkins loans)

Stafford loans are either subsidized or unsubsidized. Subsidized Stafford loans are awarded to students based on their financial need. Unsubsidized Stafford Loans are not based on financial need.
Perkins Loans are low-interest loans borrowed directly from your school with federal assistance.

• Parent loans (PLUS loans)

  PLUS loans are awarded to parents of students who qualify as dependents

To apply for any form of federal financial aid, you must complete the FAFSA (Free Application for Federal Student Aid.)  Do this as early as possible.

Students should complete the FAFSA on the Web worksheet prior to filling out the FAFSA; it will make the process go much more smoothly.