$105 billion scholarship bonanza: 6 steps to success

Ebony, Sept, 2004

First, the bad news: The price of a higher education keeps getting higher.

Nationwide, recent trends indicate that some students are expected to pay over $1,000 more in tuition and fees than they did last year.

And now the good news: Despite the sticker shock, funding for college has also increased, bringing the total amount of financial aid available for students to a record $105 billion--a whopping 12 percent increase from last year.

According to Trends in College Pricing 2003, a recent report from the College Board, most colleges are more affordable than they appear after scholarships, grants and other financial aid are taken into consideration.

So whether you're a high school senior ready to take on the world, a mid-level professional ready to take on a new career path, or a retiree ready to take on a new educational endeavor, now is the time to pursue your higher education.

Financial aid experts, successful students and scholarship strategists offer the following Six Steps to Success:

STEP ONE:

Know the "Big Three."

According to the U.S. Department of Education, there are three main types of financial aid you could receive: loans, grants and scholarships and work-study.

Low-interest loans are subsidized by the federal government and must be repaid.

Grants and scholarships are available from private sources, businesses and state and federal governments and do not have to be repaid.

Work-study is a federal program that offers part-time work to help students with a variety of educational costs.

STEP TWO:

Beat the crowd.

Immediately after ringing in the New Year, you should obtain and complete the Free Application for Federal Student Aid (FAFSA), provided by the government.

Call the Federal Student Financial Aid Information Center (800-4FED-AID) to make certain that your college is eligible to participate in the federal student aid program prior to applying.

STEP THREE:

Strategize your search.

If you do the legwork, you're sure to find money in the most unusual places--for example, UPS, the official delivery company of NASCAR, has donated over $150,000 through the UPS Racing Technical Edge Scholarship, created for minority students seeking careers in racing and automotive technology.

Visit www.ups.com for details.

Scholarship strategists note there are at least seven key places that you should search for financial aid:

1. Your own backyard.

If you're looking for money for college, it's best to start at the local level. If you're a community volunteer, you'd be the first to know about scholarships offered by community leaders, civic groups and business organizations connected with your field of interest.

Barry Beckham, editor of the Black Student's Guide to Scholarships, advises you to go straight to the source when looking for money.

Other key places to look include:

2. The college financial aid administrator at your prospective college.

3. The public library to locate state and private sources of financial aid.

4. The AmeriCorps program provides full-time educational awards in return for community service. Call 1800-942-2677 for details.

5. Apply for the Robert C. Byrd Honors Scholarship Program (call 1800-4-FED-AID for information.)

6. Apply for the State Student Incentive Grant (SSIG) Program, which is jointly funded by individual states and the U.S. Department of Education.

7. Register online for a free scholarship search: www.wiredscholar.com; and www.fastweb.com.

STEP FOUR:

Apply with style and substance.

The first item that college and scholarship administrators will see is your application, and no matter how fantastic your credentials are, cheap paper stock, spelling errors, and an overall ill-prepared application can cost you in the competition for scholarships.

When it comes to your application, everything from the content of your resume to the grade of the paper it's printed on should be superior, advises Marianne Ragins, author of Winning Scholarships for College: An Insider's Guide.

On the opposite end of the spectrum, having a good-looking application can only get you so far. You should also read the fine print and be certain that you are applying only for scholarships that you are eligible for.

STEP FIVE:

Don't slack off

To put it bluntly, no good grades, no more federal financial aid.

Federal law states that to be eligible to receive federal student aid, you must meet and maintain your school's standards of satisfactory academic progress toward a degree or certificate offered by that institution.

STEP SIX:

Don't get scammed.

Unfortunately, there are many shady "financial aid agencies" that are only out to get money from you. Keep in mind that any scholarship offer that guarantees that you'll be awarded money for school after you pay a fee should be avoided.

If you've been a victim of a scholarship scam, contact the National Fraud Information Center at 1-800-876-7060. Researching and applying for scholarships is a full-time job, something that only you can do for yourself.