A College Education Can Be
More Affordable Than You Think

As the cost of college education continues to increase each year, many families are finding that receiving some form of financial assistance to pay for an education is often not only a welcome supplement, it is a necessary supplement. Luckily, there are more ways than one to take the edge off college expenses.

Many students are hesitant to apply to certain schools, because of the high initial "sticker price." However, a more expensive school is often a more viable choice, because of the wealth of financial assistance that is available.

All it takes is careful research to uncover a wide array of ways to make a college education more affordable. All families are eligible for some level of federal assistance, and many states offer grants, scholarships and loans. Many colleges are responding to the competition to attract good students, so there is also more merit-based aid now available than ever before.

Most students utilize at least one of the following forms of financial assistance:

Scholarships are a form of assistance to help pay for your tuition, and they don't have to be repaid. Scholarships can include merit-based assistance, awarded by colleges in recognition of academic achievement, standardized test scores, or other talents. There are also many scholarships offered through different community-based organizations, retailers, employers, etc.

Federal Pell Grants do not have to be repaid, and are awarded only to undergraduate students who haven't earned a degree. The Pell Grants provide a financial assistance foundation for many students to which other assistance may be added. How much you get will depend on your expected family contribution (EFC), the cost of attendance, if you are a full-time or part-time student, and whether you attend school for a full academic year.

Federal Work-Study provides jobs for students with financial need, allowing them to earn extra money to help pay education expenses. The total award depends on when you apply, your level of need, and the funding level of your school.

Loans are a form of financial assistance that must be repaid, with interest. Loans fall into one of three categories:

Student
Stafford Loan--subsidized or unsubsidized. Subsidized loans are awarded based on need, and the interest is paid by the government while you're in school and during the six month grace period after school. After the six months, you begin repayment. All students, regardless of need, are eligible for the unsubsidized loan. Interest is charged on unsubsidized loans from the time it is disbursed, though you can have the payments deferred until after graduation.

Perkins Loan--a low interest loan for students with exceptional financial need. Your school is the lender, and the loan is made with government funds with a share contributed by the school. You must repay this loan to your school.

Parent
Parent Loan for Undergraduate Students (PLUS Loan)--allows parents to borrow money to cover any costs not already covered by the student's financial aid package, up to the full cost of attendance. PLUS loans are either provided by private lenders (such as banks) or Direct (funds provided by the government). Repayment begins 60 days after the funds are fully disbursed, and the repayment term is up to 10 years.

Private
Private Loans--help bridge the gap between the actual cost of education and the limited amount the government allows you to borrow in its programs. Private loans are offered through private lenders, and there are no federal forms to complete.

A high school guidance office is a great place to start your financial aid investigation, because counselors can offer advice about ways to organize your search, and give Web addresses of key financial aid sites. Most federal aid forms are available in high school guidance offices.

It is also important to talk to the representatives in the financial assistance office at each college where you apply--they are rich sources of information about what is available and what the school's specific policies are. Families should find out how each school allocates aid, its criteria, and get the appropriate forms from each institution. Families should also pay close attention to the financial assistance application deadlines for each school.

Mercer University offers generous merit-based scholarships for freshman and transfer students, as well as supplemental university need-based assistance. Please contact the Office of University Admissions at (800) 840-8577 for further information.