There are many potential tax benefits that are available to most tax payers. These include Section 529 college tuition savings plans. Additionally the interest on student loans is sometimes tax deductible. While we are not attorneys or CPAs, and hence do not wish to dispense tax advice, we have included some general information on the tax ramifications of financing a college education. This should certainly help you get on your way to optimizing your tax situation.
Students that never attend, stop attending, or withdraw from all classes will be required to repay some or all of the Pell Grant and/or SEOG and subsidized or Unsubsidized loan funds originally awarded. A federal formula will be applied based on student's last date of attendance, percentage of the payment and period attended. If the formula indicates an amount “unearned” a repayment of aid will be necessary. There is no appeal available for Repayment of Federal Funds.
Filing your FAFSA gets the ball rolling on lots of financial aid opportunities, but additional grants are available that might require separate applications. Your state and other grant foundations put forth narrowly defined student gift aid every year. Your location, ethnic background, and even your parents’ employer could lead you to the college grant funding you need.
Low-income and disadvantaged students qualify for general need-based aid in most states that offer it, but specific funding is also set aside for students whose access to education is severely limited by social and financial conditions. Exceptional hardship is calculated differently in each state, but the students whose circumstances present the greatest educational obstacles are the first to be considered for state grants.
Federal Grants – Pell grants can offer up to $5,775 yearly (updated for 2016) for undergraduate studies that aim on earning Bachelor’s degrees and Professional degrees. SEOG funds (Federal Supplemental Education Opportunity Grant) can offer up to $4,000 each year per person. CWS funds can offer money to part-time students as well. The Academic Competitiveness Grant awards money to freshman and sophomores, while the National Science and Math Access to Retail Talent (SMART) Grant awards money to juniors and seniors.
Grants for non-traditional students are sponsored by variety of different sources, including state and local governments, corporations, advocacy groups and professional associations. These programs provide vital financial assistance to those non-traditional students who are looking to improve their lives, and the lives of their families, through higher education.
The Nieman Foundation for Journalism at Harvard University offers fellowships grants for working journalists who are returning to college to expand their education in various journalistic fields. Programs include the Reynolds Fellowship in Community Journalism and the Arts & Culture Reporting Fellowship. Award amounts vary depending of course of study.
States issue need-based grants to students who need help paying for school. If your EFC is low, and your federal financial aid doesn’t cover your tuition, state grants boost your college fund when you need it most. For instance, Minnesota Office of Higher Education provides state grants to low and moderate income students, with nearly 80% of funds distributed to students with family incomes below 50K/year.
Still, the potential payoff of applying for financial aid makes it worth it. It can make a world of difference if you put in the time and effort to understand the process and how to get the full financial aid you’re entitled. For some students, it’s the only reason they can complete a degree rather than dropping out of college. For others, financial aid helps them leave school with some student loans — but limits the debt to a manageable amount.
State-funded grants for minorities promote educational diversity and increase access to college for traditionally under-represented groups. Grants for ethnic minorities—African American, Hispanic, Asian, and Native American students—target specific groups needing college cash. For example, Wisconsin’s Minority Undergraduate Retention Grant disburses funds to second, third and fourth-year minority students pursuing college degrees or vocational training.
You must complete the Free Application for Federal Student Aid (FAFSA). This form allows you to apply for all types of aid. There are not separate applications for each type of aid. This form is all you will need to apply. The financial aid process is a lengthy one. The best advice is to get this form in as early as possible, as any delays may affect the timeliness of your award.