When you’re looking to find different ways of getting financial assistance for college, you may have come across a “Pell Grant.”  While this grant can be confusing, I wanted to help clear things up on how it works and how you can apply for one.

What is a Pell Grant?

A Pell Grant is sponsored by the Department of Education and it’s designed to help college students that are in need of getting financial assistance for college.  The cool thing about this grant is that it requires no re-payment of the loan.

This grant was named after the late U.S. Senator Claiborne Pell of Rhode Island in the United States.  It’s name before it became the Pell Grant was the Basic Educational Opportunity Grant program.

Who can get one?

This type of grant is designed for those in a poorer family.  These grants go out to every type of student body.  The only requirement that you’re going to have to meet is the income requirements.

A study that was conducted found that many of these grant recipients made no more than $41,000 in the household.  The fair majority of these made less than $20,000 in one year.

How much can I get?

Based on 2010 numbers, the maximum amount award was $5,550.  This number has gradually gone up over the years.  Again, if you can get your hands on this type of grant money, you will not have to pay it back.

How can I apply for one?

You’re going to want to meet with a financial advisor at your current college.  He/she will be able to get you on the right path, if you’re interested in a grant such as this one.

If you want more information on these grants, you can get more information over on the US Department of Education page.

A 529 plan is a great way to prepare for your college education.  While a plan like this is designed for a parent looking to fund his/her child’s education, you’re going to find that anyone can contribute to them.

What makes a 529 plan so attractive?

The cool thing about a plan such as these is that you can get significant tax advantage as well as matching grants and more, making them very attractive.  They are protected from bankruptcy, as well as financial aid calculations.  The pros far outweigh the cons.

How can money be spent?

Once you’re ready to head off to college, the money that has been saved in your account can basically be used for anything.  From tuition to your books and supplies, if you’re going to use that money toward college, the money can be withdrawn with no fees.

What are the advantages?

• #1 High tax deductions – Every state is going to be different with it’s tax rate, but you can see a significant tax advantage regardless of where you live.
• #2 You gain control - Just like a bank account, you’re free to do whatever you want with the money.
• #3 Fantastic way to save – If you’re going to save for either yourself or your child, it’s a great way to invest.  You will not have to report any earnings on the account until you withdraw the money for your education.

What are the disadvantages?

• #1 Can’t invest in a lot – The investments in regards to a 529 are rather limited.  Make sure that you look into how your money is going to grow and if it’s worth it to you.
• #2 Penalties – If you do decide that you’re going to need that money and it’s not going to be related to college, you will receive penalties on that money.

This sounds great!  How can I sign up?

You’re going to want to check with your state.  The easiest way to do this is Google “[your state] + 529 plans”  This is a great way to show you what’s available in your state.  It will also give you directions on how you can sign up.

We all know that a scholarship is a great way to get money for your college education.  If you haven’t started looking for one yet, I would start now, because I’m a true believer that there is a scholarship out there for just about everyone.  As long as you treat it such as a part time job, you shouldn’t have a problem finding at least one.

Hopefully these 8 tips will get you on the right track to getting the money that you need to go toward your tuition!

#1 Start your search online – There are some great services online that do the dirty work for you.  What you will do is input the criteria and it’s going to come back with what they think is right for you.  Try services such as FastWeb to help you with your search.

#2 Meet with your counselor – Whether you meet with your counselor at High School or college, this is a great way to sit down and talk to them about what can work for you.  They may also be able to put you on the right path as well.

#3 Check with your college – Every college offers some sort of scholarship.  This is a great way to research what they have to offer for their students only.  Since it will be for the students at your college only, your chances of landing one is greater!

#4 Check out local places - Local places such as your grocery stores, restaurants, and more may hold scholarships.  They generally aren’t that big, but it’s something look into, as they will love to give back to the community.

#5 Talk with your church - If you attend church, speak with them and see if they have anything available.  You’ll be surprised at how many churches are more than willing to help out those that attend.

#6 Volunteer - Yes, volunteering with organizations may help you in the long run.  Since you’re giving back to the community, you may find that they are more than willing to give back to you.  You may want to discuss this before you sign up though.

When applying for a scholarship, always make sure that you’re reading the description.  If you’re not eligible for it, don’t waste your time.  You will almost want to picture it as a job offer.  If you can’t do the job, why apply for it?

You’re going to find that college isn’t cheap and since you’re going to need money to attend, it’s really hard for many out there to pay in full when they simply don’t have the cash.

To make it easier, I have created a simple guide showcasing all of the ways that you can use in order to get a loan.  Granted, some of these loans are designated for certain income levels / people only.

Private Loans

These are the loans that are going to be issued by private banks such as Citi, Discover, and more.  Make sure that you research these, as you’re going to find that each bank is going to offer different terms and rates.  A great resource to use for this research is SimpleTuition.

Federal Stafford Loans

These are awarded to those that are in financial need.   You’re going to have to meet certain requirements in order to be approved for one.  These are regulated by the United States government and can be obtained through a bank, or directly through the government.

Subsidized Federal Stafford Loan

This is a Stafford Loan that generally has a longer term with a lower interest rate compared to most loans on the market.  The reason it is called, “Subsidized” is based on the fact that the government will pay the interest on the loan while the student is attending school.

Unsubsidized Stafford Loan

This loan is fairly comparable with the Subsidized one.  The only difference that you’re going to want to note is that the government won’t assist you with the interest rate payment.

Federal Perkins Loans

These loans are for those that are in the most desperate needs.  These type of loans are fairly limited, so it’s going to take a lot to get approved for one.  Your interest on the loan won’t start up until 9 months after graduation, or if you become part time, rather than full.  The best way to figure out if you’re going to be approved for a loan such as this one is to directly speak with a financial advisor.

Parent PLUS Loan

If you’re a parent and you’re looking to pay for your child’s education, you may want to think about a loan such as this one.  These loans are available to help parents make college more affordable by spreading out all of the education costs that they accrue over 10 years.

GradPLUS Loans

These loans are designed for college students attending a graduate or professional program.    These are fairly comparable to a Stafford based loan, but designed for those in graduate programs.

If you’re attending college right, there’s a good chance that you have heard of the website, Chegg.  What makes this website unique is that they are more known for their “renting” services than their purchasing services.  They are also great for selling back your other textbooks.

What do other people think of Chegg?

They have grown tremendously over the years, it’s almost scary.  They have a great reputation, as well as very good marks online from various students across the globe.  While every merchant is going to have some bad marks, they really don’t have that many, but we can still touch up on both sides.

For starters, the major complaints that I tend to hear about online is the either the customer service, or the delivery on books.  While this can be an individual case, Chegg does have a “30 day” guarantee where you can return your book with no questions asked and you will be able to get all of your money back.

Overall, the positives far outweigh the negatives.  If you don’t want to worry about purchasing your books, as well as selling them at the end of the semester, you’re going to find that Chegg is amazing for this.  It is going to save you a lot of time.

The cool thing about renting is that even if you need the study guides or CDs, they will allow you to purchase them outright, so that you can be assured that you’re going to get them.

How is the selection of books?

I did a search for 10 ISBN’s and had found that they had every single one.  When you approach the book page, you can choose how long you want to rent the book.  It can be 60 days, a quarter, or if you need more time, you can specify how long you want to have it.  Once you’re done, just ship it back.

How are the prices?

Since they are more of a renting based service, you’re going to find that they are different than purchasing.  Honestly, if you have the time to purchase a book and be able to sell it back at the end, you may want to consider this.  Overall, it’s a mixed bag.  It is really going to depend on what book you need.  Sometimes you’re going to be better off renting, while other times, you will be better off purchasing the book and selling afterward.

How is the navigation?

I love the site.  It’s extremely user friendly and it’s very easy to check out as well as get the answers that you need.  It’s simple and they definitely don’t overdo it in regards to flashy graphics, etc.

Overall, Chegg has a fantastic reputation.  They have great reviews, they offer a great service and more and more students use them on a daily basis.  If you want to rent and save the hassle, I would highly recommend them, as they are by far the leader in textbook rentals.

With that being said, Chegg gets a solid A in my book just based on the rental service.  I would consider them more for the convenience factor, rather than saving money.