Other Financing Options
The
GI Bill may not cover all of your expenses. Here are ways to cover the rest.
By
Marty Levine
The
Post-9/11 GI Bill will help pay for your college degree. In fact, for some it
will cover the entire cost. But the new GI Bill may not be the answer to all of
your college needs
Individual
institutions of higher education offer scholarships for veterans funded by
private donors. Check your college or university’s website to see what it
offers – you may be surprised at what you qualify to receive.
But
your first and best move to get most financial aid for school is to fill out
the Free Application for Federal Student Aid, or FAFSA, online (www.fafsa.ed.gov).
Many schools require this as an initial step toward any aid, and
government-sponsored loans tend to be your best deal, with lower interest rates
and easier ability to delay or stretch out payments, should that become
necessary.
FAFSA Facts
Here’s
what you need for FAFSA when you fill out the FAFSA form:
- Your Social Security and driver’s license numbers
- The tax records for you and your spouse (if relevant)
- Documentation of your VA benefits and any worker’s comp or child support
received
- Business records, including recent bank statements and investment
information
This
is what needs to be listed as income on the FAFSA:
- Your most recent pay (even if you are no longer active duty)
- VA disability pay and non-educational VA benefits (as untaxed income)
- Combat pay
(if it was taxable and part of your adjusted gross income on your last tax form
Scholarships
Scholarships
for veterans are available from a number of national organizations, as well as
schools. Some groups focus on veterans with injury-related disabilities, while
others are open to all veterans. They include:
Loans
There
are two main types of federal student loans: Perkins and Stafford. Both help
students who can demonstrate financial need. For either, you must be enrolled
more than halftime in a post-secondary degree or certificate program.
- A Perkins
Loan
is awarded by schools, which determine how much you may receive – up to $4,000
a year, or $20,000 total, for undergraduates, and up to $6,000 a year, or
$40,000 total (including undergraduate loans), for graduate students.
Currently,
the fixed interest rate is 5 percent, and you have up to 10 years to repay,
depending on the amount you owe. Repayments begin after a nine-month grace
period when you leave school, graduate or take less than half-time coursework,
with possibilities for active duty to have a longer grace period.
- Stafford
Loans
come either directly from the U.S. Department of Education or via private
lenders through the Federal Family Education Loan Program. Staffords are
awarded as either subsidized or unsubsidized loans. The subsidized variety is
offered based on need and does not charge interest while you are at least a
half-time student. Repayments begin six months later. The unsubsidized variety
is not awarded based on need but accumulates interest right away, unless you
choose to defer the interest and essentially add it on to your loan amount.
Staffords
provide up to $20,500 a year, with a variable interest currently not above 8.25
percent, and may be repaid over as many as 30 years. And don’t forget to fill
out your FAFSA. Even if you don’t qualify for other need-based school money,
getting an unsubsidized Stafford loan still requires that you complete this
federal form.