College Majors That Work

Summary: The federal government supplies billions of dollars annually in student aid. Pell Grants are an important form of aid for the nation’s neediest students. The Work-Study Program lets students work to help pay for college. Federal loans are available to both students and parents. Many states and colleges offer financial assistance directly to students.

The federal government supplies billions of dollars annually in student aid.

College Grants

Pell Grants are the most important form of student financial aid for the nation’s neediest students. In 2008–2009, more than six million students received Pell Grants. The size of the grant depended on the student’s need. In 2008–2009, the maximum grant was $4,731.

Work Study

The Work-Study Program lets students work during the summer or part-time during the school year to help pay for college. Colleges help find jobs for students, and the federal government helps pay the salary. Work-study jobs give students valuable work experience and are often related to the student’s classes or future career.

Federal Student Loans

Federal loans are available to both students and parents. Stafford Loans for students are either subsidized, for needy students, where some of the accumulated interest is paid by the government, or unsubsidized, where the student pays all of the accumulated interest. PLUS Loans are loans to parents for any costs that are not paid for by other aid.

A Quick Word about Student Loans Students usually do not have to start repaying their loans while they are going to school full-time, and the interest rate is usually lower than for other kinds of loans. Many students are hesitant to take out loans, but remember: College graduates usually make a good deal more money than people who do not have a college education, so paying a loan after graduation will be easier than it might seem. Nevertheless, before agreeing to a loan, both students and parents need to understand the terms of the loan and know when repayment will begin and how much the payments will be. There are many kinds of education loans, so before taking out any loan, be sure to find out the exact conditions of the loan.

 With federal aid administered by colleges—including Perkins Loans and Supplemental Educational Opportunity Grants (SEOGs)—the U.S. Department of Education gives aid to the colleges and the college decides which of their students need it most.

Tax Credits and other Tax Benifits

The American Recovery and Reinvestment Act (ARRA) tax credit provides a maximum of $2,500 in tax credit. The Lifetime Learning tax credit provides a maximum $2,000 tax credit. For detailed information on who is eligible for these and other tax benefits, it’s best to refer to Internal Revenue Service (IRS) forms and publications available at www.irs.gov.

Many states and colleges offer financial assistance directly to individual students based on need or merit. Merit-based aid, usually scholarships or grants, is given to students who meet requirements not related to financial needs—such as doing well in high school or displaying artistic or athletic talent. A notable example of state aid is the Georgia HOPE Scholarship, which guarantees students free college as long as they earn a B average and stay off of drugs. Call or write your state’s higher education agency or college financial aid offices to request information about these opportunities.

Other Assistance

Organizations, foundations, and other groups offer scholarships to academically promising students, minorities, women, and disabled students. To learn more about these scholarships, speak with your school guidance counselor or go to the reference section of the public library.

Serve Your Country

Many opportunities exist for students to pay for all or part of a college education by serving their country during or after their college years. Service in Americorps, the Merchant Marine Academy, or the Reserve Officer Training Corps (ROTC) entitles students to scholarships of varying amounts to cover educational expenses. The U.S. Army, Navy, and Air Force have military academies (four-year colleges and a commission in the military after graduation); tuition is free, but only the most highly qualified students are admitted. Local armed forces recruiting offices can provide more information. Call 1-800-94-ACORPS for more information about Americorps—a way to serve your community and pay for college.