Lake Zurich High School Student Media

Bear Facts

Lake Zurich High School Student Media

Bear Facts

Lake Zurich High School Student Media

Bear Facts

Students prepare to pay for a college education

From application essays to housing requests, seniors have a lot to consider when preparing for college.  The deadline to enroll at a university is approximately sixth months away, but there is much to figure out before then, including the most important impact of a college decision: how to pay for college.

            Covering the costs of tuition can be the hardest part of pursuing higher education, according to US News.  Carl Krause, college and career counselor, encourages families to discuss affordability and ways of paying for college before students start applying for schools.

            Early conversations about how much parents can realistically contribute can help alleviate pressure in the long run, and Krause says families must be aware of the financial commitment.

            Kelly Wacker, senior, and her parents began preparing to pay for her tuition during her freshman year of high school.

            “Freshman year it really hit me where I knew I needed to start saving for college.  I got a job over the summer to help pay,” Wacker said.  “We planned on cutting back and getting money ready for everything.”

            Wacker says that talking to her parents about finances early helped her set realistic goals, and Krause agrees that cutting back early helps families.

            “Students have to realize that college is an investment, and with any investment you need to take some chances.  It all depends on how smart your investment is,” Krause said.  “Work when you can work, get a loan when you can get a loan, apply for scholarships.  You have to be willing to sacrifice.”     

            Over the years, Krause has seen families sacrifice various ways to send a student to college.  Some of the most common methods to cover tuition come through federal aid.

FAFSA:

Federal financial aid packages are based on the Free Application for Federal Student Aid (FAFSA), which calculates the family’s expected contribution as well as federal grants, loans, and work-study amounts.   

The 2013-2014 FAFSA form will be available beginning January 1, and Matt Liberatore, counselor, strongly encourages students to begin the application as early as possible.  Federal funds can run out, Liberatore says, so completing the FAFSA early helps students receive the best financial aid package.

“Start [the FAFSA] on January 1, because even if you don’t get your FAFSA done until the end of the month, when you go back and edit it, you’ll still hold your place,” Liberatore said.

To complete the FAFSA, students need to submit their Social Security numbers, driver’s license numbers, 2012 W-2 forms, 2012 federal income tax returns, bank statements, and a Federal Student Aid PIN, which is created during the application process.

Students must send their completed FAFSA forms to each college they apply to because each college will create its own financial aid package.

Work-Study:

Students who demonstrate need can participate in the Federal Work Study Program, which provides funds for part-time employment to help finance college costs.  If a student is approved for the program, he or she then applies for employment directly through the school.

The types of jobs available vary by university, but the program emphasizes civic education, according to http://studentaid.ed.gov.  Not all universities participate in the program, but Work-Study can offer students a way to fund their own education.

“Some people might think that you’re only making $10 an hour, but because the money comes through work study and it’s all untaxed amounts and it goes directly towards your tuition, you’re actually making a lot more than $10 an hour,” Liberatore said.

Usually the school or employer has to pay up to 50 percent of the student’s wages, and the federal government pays the rest, according to US News’ website.  Students are awarded work hours based on their Federal-Work Study award, which is calculated through FAFSA.    

Loans:

            Although LZHS does not keep records regarding how graduates pay for college, students commonly use loans to cover tuition fees.

Federal loans are available to students who demonstrate financial need, according to FAFSA’s website. Subsidized loans where interest does not accrue while the student is in school are available to some students.  The federal government also offers unsubsidized loans that do accumulate interest.

            According to Fast Web’s website, federal loans are cheaper, more available, and have better repayment terms than private student loans. Also, they all offer students a “grace period” after college graduation before repayment begins.

            Another benefit of federal loans is that interest rates are lower than private loans.  Government-subsidized loans based on need have interest rates of 3.4 percent, while an unsubsidized loan, not based on need, have a rate of 6.8 percent, according to an October Chicago Tribune article.

            “There are private loans you can get from your bank, but they usually have much higher interest rates and require a co-signer, [someone who agrees to share financial responsibility],” Krause said.  “A lot of times you have to pay those back right away.  What’s nice about federal loans for school is that you get sixth months before you have to pay them back.”

            Loans can help students finance their education, but students should not borrow money to pay for other expenses.  Krause also advises students to think about their future income before borrowing.       

“Really make sure, depending on your school and where you choose, that your outcome of your job is going to hopefully pay back your loans,” Krause said.

Scholarships:

            There are various outlets for scholarship money, but finding scholarships can require some research.  Some schools offer merit-based scholarships, and private universities can generally offer more scholarship money than public universities.

            The state of Illinois even offers certain scholarships, such as the Special Education Tuition Waiver.  Katrina Klausing, 2012 LZHS graduate, is attending Illinois State University on this grant that pays for all four years of tuition as long as she teaches Special Education in Illinois for two years.

“I found out about the scholarship from my mom,” Klausing said.  “One of her work friend’s daughters received the scholarship, so she told my mom about it when she found out I was majoring in Special Ed as well.”           

Klausing advises future college students to “look everywhere and talk to everyone about scholarships,” because having a simple conversation helped her find a solution to pay for college.  Some scholarships are harder to find than others, but both Klausing and Krause agree that the research pays off.

“There’s money out there to be had.  There are scholarships out there for all different things, like being red headed, left-handed, tall, short; there’s all sorts of things,” Krause said.

            Krause recommends searching for scholarships on websites like http://fastweb.com, http://scholarships.com, on colleges’ websites, Krause’s webpage, as well as neighboring high schools’ counseling pages.  He also encourages students to apply for scholarships regardless of the dollar amount.

            “If [the scholarship] is $500, that’s the cost of books for a semester; that’s $500 you don’t have to pay back later,” Krause said.

            With a little research, students can find a multitude of scholarships.  One might not receive every scholarship he or she applies for, but it does not hurt to try.

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