The decision to attend a vocational-technical college is an extremely important one. The specialized education and training will provide you with the necessary tools and knowledge to be successful in the career of your choice. But how will you pay for it?

Education is an investment in your future. Before you choose your career, it is necessary to consider how much time, money, and commitment you have to prepare yourself for a career. Choosing the right career and paying for college takes planning, forethought, dedication, and commitment.

Financial Aid can be the stepping-stone to your future success. The purpose of financial aid is to assist students with their educational expenses so that financial barriers do not prevent them from achieving their educational goals.

What Is Financial Aid?

Financial aid is the assistance available to help students pay for the costs of attending a vocational-technical institution. Financial aid is provided by federal, state, institutional, or private sources and may consist of grants, loans, work-study, or scholarships. Each year, billions of dollars are given or lent to students, and about half of all college students receive some sort of financial aid.

Most financial aid is awarded based on financial need, college costs, and the availability of funds. This aid is provided to students because neither they nor their families have all of the resources needed to pay for a college education. This kind of aid is referred to as need-based aid.

What are the eligibility requirements?

In general, to be considered eligible for federal financial aid, you must:

o Be a United States citizen or eligible non-citizen

o Be enrolled or accepted for enrollment in an accredited institution

o Be making satisfactory academic progress in your course of study

o Not be in default on any loan or owe a refund or repayment on any previous financial aid received at any institution attended

o Be registered with the Selective Service, if you are required to do so

Merit-based aid is awarded to students who may or may not have financial need. Students are given assistance because they have a special skill or ability, display a particular talent, have a certain grade point average, or are enrolled in a specific program.

Types and Sources of Financial Aid

There are several types of financial aid offered to help pay for educational expenses:

o Grants

o Loans

o Student employment (work)

o Scholarships.

Grants and scholarships are gifts and do not have to be repaid. Loans are borrowed money that must be paid back over a period of time, usually after the student leaves school. Student employment is normally part-time work arranged for a student during the school year. Wages received by the student are used for specific college expenses.

The primary source of aid for students attending a vocational institution of higher education is from the federal government. The federal government offers both grant and loan financial aid programs. State assistance may also be available. Other sources of aid that award money to students come from private foundations such as corporations, civic associations, unions, fraternal organizations, and religious groups. In addition, many companies offer tuition reimbursement to their employees and/or their employees dependents. The personnel department at either your or your parents place of employment can tell you whether or not the company offers this benefit and who may be eligible. Lastly, there are also some colleges that offer awards from their own funds or from money received from various organizations. This type of aid is often referred to as institutional aid. Although most vocational institutions have little or no institutional aid available, the student should still be sure to ask the college about this type of assistance.

Determining Financial Aid Eligibility and Financial Need

Eligibility for financial aid is determined by subtracting the amount you and your parents can contribute from the cost of attendance. An assessment of your familys ability to contribute toward educational expenses is made based on the information you provide when applying for financial aid. Income, assets, family size, and number of family members in college are some of the factors considered in this calculation. This assessment, referred to as need analysis, determines your financial need, which is defined as the difference between the total cost of attendance and what you are expected to pay. Financial need will vary between colleges because of each schools different costs of attendance.

Determining the Students Status: Independent or Dependent?

Remember that both students and parents are expected to help pay for college costs. This means that you, as the student, will be expected to contribute to your educational expenses.

If you are considered dependent by federal definition, then your parents income and assets, as well as yours, will be counted toward the family contribution. If you are considered independent of your parents, only your income (and that of your spouse, if you are married) will count in the need analysis formula.
To be considered independent for financial aid, you must meet one of the following criteria:

o Be at least 24 years old.

o Be a veteran of the U.S. armed forces.

o Be married.

o Be an orphan or ward of the court.

o Have legal dependents other than a spouse.

o Be a graduate professional student.

Applying for Financial Aid

To apply for financial aid, it is essential that you properly complete the necessary forms so that your individual financial need can be evaluated. It is important to read all application materials and instructions very carefully. The financial aid office of the school you are attending will be happy to provide you with guidance and assistance.

Most vocational schools use just one financial aid application called the Free Application for Federal Student Aid (FAFSA). This form is a four-page application available at your colleges financial aid office, local high school guidance offices, and state education department offices. Students can apply for federal student aid via the Internet by using FAFSA on the Web. FAFSA on the Web can be accessed at http://www.fafsa.ed.gov.

Your Rights and Responsibilities as a Financial Aid Recipient

As a student consumer, you have a right to:
o Be informed of the correct procedures for applying for aid, cost of attendance, types of aid available, how financial need is determined, criteria for awarding aid, how satisfactory academic progress is determined, and what you need to do to continue receiving aid

o Be informed of the type and amount of assistance you will receive, how much of your need has been met, and how and when you will be paid

o Appeal any decision of the financial aid office if you feel you have been treated unfairly with regard to your application

o View the contents in your financial aid file, in accordance with the Family Educational Rights and Privacy Act;

o Know the conditions of any loan you accept.
It is your responsibility to:

o Complete all application materials truthfully and accurately and comply with deadline dates

o Review all materials sent to you and read and understand all documents. Be sure to keep copies of all forms you sign

o Know and comply with the rules governing the aid you receive

o Provide additional documentation and/or new information requested by the financial aid office

o Maintain satisfactory academic progress

o Keep your local and permanent addresses current with all pertinent school offices

o Use financial aid only for expenses related to the college

Remember that your dreams come true when you act to turn them into realities. Financial aid is the means by which you can achieve your dream of obtaining an education and pursuing your career. Use it wisely and you will succeed.

Author: Cecily Kellogg
Article Source: EzineArticles.com

Numerous scholarships, grants, and loans are also available exclusively for members of the military and their family members.  Applicants for all of our programs must plan to attend an accredited college or university during the school year as a full-time student. All loans, grants, and scholarships are designated for students seeking their first undergraduate degree. No loans, grants, or scholarships are applicable toward graduate study.  There is one online application for all scholarships, grants, and interest-free loan programs.  A few of these are described below; for information on these and other programs, visit the MOAA website.

American Patriot Scholarship

As a result of the terrorists’ attacks on Sept. 11, 2001, the MOAA Scholarship Fund established the American Patriot Scholarship to help children of uniformed services personnel-officers and enlisted- who died while in Active service as a member of the Regular, Guard or Reserve Forces.

The amount and number of grants awarded to students is based on the amount of money raised each year from public and private donations made to MOAA. For the 2009-2010 school year, over 50 students whose parent died while in Active service are receiving a $5,000 grant. Each student is eligible to receive the American Patriot Scholarship for up to five years of undergraduate study at an accredited 2- or 4-year college or university of their choice, but will be at least $2,500.

To qualify, a student must be a child of a member of the Uniformed Services who died while in Active service. They must be under the age of 24 at the time of application. The maximum age for students who are serving or have served in the Armed Forces before completing college will be increased by the number of years served, for up to five years of service or 29 years of age. Military academy cadets are not eligible for this program

General John Paul Ratay Educational Fund Grants

These $4,000 grants are limited to children of the surviving spouse of retired officers.  A student cannon receive both a MOAA loan and a Ratay grant.  Students applying for a loan who also meet the criteria of the Ratay grant automatically will be considered.  No separate application is required.

Interest-Free Loan and Grant Program

Interest-free loans, MOAA’s main program, are renewable annually for up to five years of full-time undergraduate study. Assistance is available only to students who have not yet earned an undergraduate degree. The interest-free loan and grant program provides $5,500 loans, which are renewable for up to five years of undergraduate study. Students selected as loan recipients and their their military parent must sign a promissory note before funds can be disbursed. Loans are disbursed in two increments: one-half by early August and one-half by mid-December.

Designated Scholar Program

Loan recipients are automatically considered for this program.  It replaces the $5,500 interest free loan with a $5,000 interest free loan and a $500 grant.  No special application is necessary.

In addition to the programs mentioned above, there are also numerous scholarships and grants available for each branch of the military.  Some examples include the Army Scholarship Foundation (www.armyscholarshipfoundation.org), and Navy-Marine Corp Relief Society Education Programs (www.nmcrs.org/education).   More information can be found on these and other scholarships through MOAA’s Scholarship Finder at www.moaa.org/scholarshipfinder.

Generally speaking, for 2009 individuals are allowed to gift $13,000 ($26,000 for married couples) per year with out incurring Gift Taxes.  A special provisions does allow a donor to contribute 5 years worth of annual gifts ($65,000) at one time to a 529 plan (Contact MTR Financial Services, LLC for more details)

The definition of qualified expenses for 529 Saving Plan account distributions may vary from state to state, but usually include tuition, fees, books, room, and board.

The definition of qualified expenses for Prepaid Tuition Plan account distributions will vary from state to state, but normally is limited to include tuition and fees only.  Room and board may be included as well; check with plan administrator for verification.

The following websites are excellent sources of additional information for college planning and savings:

General College Information

529 Plan Web Sites

www.savingforcollege.com	Overview of All States 529 Plans
www.independent529plan.org	Select Private Colleges 529 Plan
www.vanguard.com	Details on 529 Plans Serviced by Vanguard
www.tiaa-cref.org/college/	Details on 529 Plans Serviced by TIAA-CREF
www.fidelity.com	Details on 529 Plans Serviced by Fidelity
www.troweprice.com	Details on 529 Plans Serviced by T. Rowe Price
Upromise	Savings Rebate / Reward Program

Student Aid / Loans Web Sites

With all the research and paperwork that goes into college planning, it is very easy to become confused, even disoriented, with making sure the right forms are submitted at the right time to the right people.  The following timeline was provided by Tamara E. Holmes from Bankrate.com and is an excellent resource for parents of high school seniors preparing for college.

September

• Look for scholarship opportunities. Some employers offer scholarship money to children of employees. Sometimes local organizations have scholarship programs for high school seniors. Meet with your high school counselor to get information on scholarships. Check the local library and search the Internet to see if you can find other scholarship opportunities and tell everyone you know to send scholarship information your way.
• Request applications and financial-aid information from colleges you’re interested in.
• Register to take the SAT or ACT and enroll in an SAT or ACT preparation course since test scores are often among the criteria used to determine scholarship winners.
• Although it’s too early to complete a FAFSA (Free Application for Federal Student Aid) use an EFC calculator to get an early read on your eligibility for financial assistance.

October

• Attend college fairs and financial aid workshops. These might be sources of additional information about scholarships, grants and other types of financial aid.
• “Early action” or “early decision” applicants applying for financial aid usually are required by this time to complete aid applications using estimated income figures.
• Visit college campuses. Compare costs of colleges so you get an idea of how much money will be needed.
• Buy a college-planning calendar and each time you find out a scholarship or financial aid deadline, schedule it.
• Continue to contact prospective colleges and find out their deadlines for scholarship and financial aid applications, as well as any paperwork you’ll need to submit. Also, request application forms from them and schedule deadlines on your calendar.

November

• Request a PIN (personal identification number) from the Department of Education. Your PIN will significantly reduce processing time on your FAFSA.
• Work on applications for admissions, scholarships and grants.
• Complete applications for early decision programs first.
• Request transcripts and letters of recommendation, which are often needed to complete applications.
• Continue looking for additional sources of money.

December

• Start getting family financial information in order if you plan to apply for financial aid. Among the items you’ll want to gather are bank statements and records of benefits from government agencies such as the Social Security Administration.
• Make sure you get a FAFSA application from your high school counselor’s office before school closes for winter vacation. The FAFSA of course, can also be filed online. If you are planning to file online, visit the site and begin to familiarize yourself with the site and the application.

January

• Complete family taxes as early as possible because you’ll need to submit the tax return for the previous year with your FAFSA.
• As soon as tax returns have been filed, submit the FAFSA on-line.

February

• Continue filling out financial aid forms for prospective schools, as well as scholarship applications according to your deadline calendar. Though you have already filled out your FAFSA, some colleges have additional paperwork you must submit to request financial aid.
• As you submit these forms to various colleges, follow up to make sure all paperwork has been received.
• Keep looking for more scholarships. Churches, civic organizations and philanthropists could be possible sources of funding.
• Check in with a high school guidance counselor to see if more scholarship opportunities have come in.

March

• Follow up on any scholarship applications submitted in the fall if you have not yet received an award notification.
• By now you should have received your Student Aid Report (SAR), which summarizes the data you reported on your FAFSA. Check it to make sure it is accurate.
• If there are mistakes or if you have not received your SAR, contact the Federal Student Aid Information Center.

April

• Continue to follow up on scholarship and financial aid applications you’ve submitted. Look out for responses to applications in the mail.
• Look for acceptance deadlines on any scholarship or financial aid awards. The student might have to formally accept the scholarship or financial aid by a certain date.
• Compare the amount of financial aid awarded to the cost of tuition.

May

• Fill out student loan applications if loans are part of the student’s financial aid package.
• Continue following up on scholarship applications if you have not yet received notification.
• If you do receive additional scholarships, let the student’s chosen college’s financial aid office know about them. They might adjust the financial aid package that they offer accordingly.

June

• Keep looking for scholarship opportunities being awarded by local businesses and groups.
• Get a summer job to generate more money for college.

July

• Continue looking for last-minute scholarship money or look for scholarships that can be applied for in the fall to help pay for the student’s second year of college.

August

• Look for back-to-school sales to help pay for school supplies.
• Start packing.