While economist Milton Freidman believes that "there's no such thing as a free lunch," there are ways to ensure a virtually free college education. Yet most students don't utilize the full potential of the intricate, chaotic world of the Office of Student Financial Aid. Whether dubbed lazy, ignorant or apathetic, students need to start overcoming their personal financial-aid roadblocks in order to close the gap between the amount of money available and the amount actually dispensed.
Why the disparity?
In this particular area, the UA tends to fall short when it comes to supplying enough information to incoming and continuing students. But this is where the indifferent attitude of college students needs to change. Students must be willing to put in the time and effort needed to get the most out of the financial aid office. Without taking time to explore financial-aid avenues, students are only hurting themselves when it comes to financial security.
FAFSA:
If the Free Application for Financial Student Aid is not currently in your financial aid arsenal, put it there. This form serves as the ticket to ride in the world of financial aid. Even if you don't think that you qualify for financial assistance, you should still demonstrate your commitment to the process by taking the first step. It can be tedious, but inaction here is not an option. With continuous tuition increases, more students have greater access to financial aid than in previous years. The Department of Education offers the electronic FAFSA online, and it's much easier to handle than the paper version available on campus. After filing the FAFSA, do not necessarily take its answers as gospel. From personal experience, make sure you investigate what's crucial to report and what's not. Students should call the Department of Education with their questions at 1-800-433-3243. They usually have an edge over those employed at the financial aid office.
Grants:
While it has flubbed in (many) other areas, our government still contributes positively to higher education through Pell grants. Pell grants provide financial aid without the responsibility of paying back the monetary relief. Even with President Bush and Congress tightening eligibility requirements, which has cut off 90,000 students, there is still up to $4050 available per year to those who qualify. However, grants are only dispenseda to those meeting the federal guidelines. These grants are solely determined by a family's annual income. According to Terry Hartle, senior vice president of the American Council on Education, 19 of 20 of the Pell Grant recipients have an annual family income of less than $35,000. If your family income is lower than average, this is the perfect opportunity for you to capitalize on the government's gift. Those receiving allowances from Mommy and Daddy need not apply. But students must have filled out the FAFSA in order to be considered for Pell Grants. So it takes some effort, but in what other period of your life can you receive free money from the government?
Loans:
Stricken by bad reputations, loans tend to be viewed as last resorts. However, if delving into debt has caused you pause, it's time to take on a driving stance. On July 1st, rates on the federal Stafford loan will jump a significant 1.93 points to 4.7 percent. If you have student debt now, it's essential to lock in the low rate before the end of the month. But even with the new rates, student loans can be a great deal. College loans equate to technically free money. When it comes to educational loans, students pay a below market interest rate on the amount borrowed. When credit cards can charge 20 percent, 4.7 percent is a gift. In fact, inflation alone is three percent, which means students really only pay 1.7 percent after the increase. Still, loans remain one of the trickiest issues regarding college life. On one hand, students should not feel threatened by the notion of debt. Employees with bachelor degrees statistically earn a much greater income than those with only high school diplomas. Furthermore, compared to other major universities, the UA's price tag still remains low. Even though most students gripe when tuition hikes occur, we must remember we will not spend the next 30 years paying off student loans like those Ivy Leaguers. On the other hand, students should not view loans as the only form of financial aid. Seek out all options before financing your education through borrowed money. In these cases, one should attempt to find a balance of financial aid options in order to reduce the amount of debt incurred.
Scholarships:
These remain one of the most recognized but underappreciated forms of financial aid. Although the university does offer scholarships to high school juniors and seniors based on academic performance and athletic ability, these simply mark the tip of the free-money iceberg. Scholarship search engines such as http://www.fastweb.com locate hundreds of scholarships based on inputting personal tidbits including ethnic heritages, intended majors and even memberships in national organizations. Although not as vocal in other areas, the UA's financial aid office web page offers an array of information including applications for school-based scholarships, links to outside scholarships and even access to alternative scholarship searches. It's a plethora of opportunities for free money. Some scholarships even require little more than filling out the application. While students sometimes need to peruse the vast lists to find applicable ones, those minutes spent searching could end up yielding a $5,000 check for the next four years.
How big is the UA's role in all of this? Currently, it's quite minimal. The financial aid office is known more for its long lines in July than anything else. Ideally, it should provide workshops not only to new students but to existing ones as well, presenting a more in-depth analysis of the different aid options. While the individual colleges often raise awareness to students on different scholarships available through mailing lists, they also should work with the university's main office in order to create programs where students can interact with knowledgeable financial aid officers. One-on-one settings are helpful in order to discuss single cases. But with over 35,000 people seeking assistance, the university and students would benefit from smaller group settings covering a breadth of financial aid topics.
Even with the added help from the university, students must take charge of their financial futures. This is the moment to accept your transition into adulthood. Instead of folding clothes at Old Navy for less than $10 an hour, students can spend a few hours researching grants, loans and scholarships, which can equal hundreds of dollars per hour. Chalk it up to research, persistence and patience.
Or, you can always try the Powerball.
- Katie Paulson is a junior majoring in English and Political Science. You can send her your lucky numbers at letters@wildcat.arizona.edu..