Paying for Business School

No doubt about it, business schools can be expensive. Not only must you pay for your tuition, fees, textbooks, and other schooling expenses, but you will probably also need to reduce your outside workload. This means you'll lose some or all of your salary while you are attending school. You know that the return on your business education will be worth the cost, but it would be best to make that cost as small as possible.

Besides federal student loans, several options are available to you that may help you finance your time at school. First, of course, you can save money ahead of time. You can use a tax-free plan called the 529 plan to open a college savings plan for yourself.

Another way to save is to attend a state university with a business program. Most states offer their residents great deductions on tuition, and you may save up to $10,000 a year. If you want to attend a state-run business program in another state, you should move there and establish residency as soon as you can. You can do this by registering to vote, opening a local bank account, registering your car, and getting a state drivers license.

Another great way to drastically reduce the cost of getting a business degree is to live at home with your parents while attending school. Of course, this won't work for everyone, as some students are going back to school after being the work force for years, and they've already established their own household. Others may not have a great relationship with their parents, or they may not want to impose on them. For others, it's impractical because there aren't any colleges or universities near where their parents live. However, if this is a workable option for you, you should strongly consider it, as the cost savings can be dramatic. Once you've graduated and have gotten a good job, you can then repay your parents for their generosity. If this isn't a feasible option for you, you should look into finding a senior citizen or disabled person who doesn't enjoy living alone. Often people in these situations will offer very low rent, or even waive it, just for having someone there in case of emergency, to help out with minor chores and errands, etc. If this interests you, check with local social service agencies; they might be able to match you up with someone.

One great option for saving money on your college education is to attend a local community college for the first couple of years. You can knock out your required general courses such as speech, math, English, social studies, etc., and probably a few of your core business courses to boot. In most cases you'll be paying much lower tuition than you would be paying at a typical four year institution, including public colleges and universities. As long as your diligent and make good grades you should have no trouble transferring to a four year school in a couple of years. Along these same lines, any class you can test out of can not only save you hundreds of dollars, but can also greatly reduce the amount of time it takes to earn your degree. CLEP tests are a great way of doing this, and they are available for a wide variety of courses, and most colleges honor CLEP credits. There are also some excellent study guides available to help you brush up on subjects. It's not uncommon for people to earn a year's worth of college credits this way, and the savings are substantial.

Scholarships

So you've done well in high school or can demonstrate other types of merit, and you're hoping to find some help paying for school. You've already applied for federal and state aid. Now it's time to look for school scholarships.

Like a grant, a scholarship is also a monetary gift. Scholarships are awarded for various reasons, which may include academic performance, talent, ethnicity, or other factors.
Scholarships are offered by schools, private individuals or organizations, corporations, and other entities. Usually you must apply for each scholarship you want individually. The amount of a scholarship can range from a few hundred dollars to complete coverage of your tuition and living costs.

Getting a Scholarship

Thousands of scholarship opportunities are available to help you through school. Some may be available only in your local area. Check with the local high schools, colleges, and universities. Also, check with professional organizations, charitable foundations, local businesses, and civic groups. Many of these organizations do not advertise their scholarships online, so you'll have to make a few phone calls.

Make sure that you start searching early. It's best to look at least a year in advance. Then, if you are close on a few requirements but not quite there, you will have the opportunity to increase your qualifications. Don't turn in your application at the last minute, because thats when the deciding committees will be overwhelmed with applications.

With a little work, you'll find plenty of scholarships that you may qualify for in the field of business. It's your job to stand out from the crowd and show the decision makers that you're worth their investment. Learning how to do this is a skill that will help you throughout your business career.

You can learn about the scholarships available at your school by visiting the schools counseling office or website, or you can use an online scholarship database like www.scholarships.com. You may find that in addition to business-specific scholarships, you are eligible for a variety of other scholarships.

Here are some of the scholarships that are available to students specifically studying business.

National Business Association Scholarship Program

The National Business Association (NBA) Scholarship Program provides five $1,500 scholarships each year to business students who have average to above-average standardized test scores and grades. To be eligible, you must be the dependent son or daughter of a dues-paying member of the NBA.

If you fit into this category, your test scores must be in the top two-thirds of your graduating class. Also, you need to have an ACT score between 18 and 26 or an SAT combined score that falls between 850 and 1190. If you're already enrolled in college, you need to be maintaining a 2.5 – 3.5 GPA on a 4.0 scale.

Lagrant Foundation Scholarship Program

Undergraduate and graduate school students may be eligible for one of 15 scholarships that are provided annually by The Lagrant Foundation (TLF). The maximum award you can receive is $5,000.

If you are pursuing an undergraduate business degree and want to apply for a TLF scholarship, you must meet the following criteria:

Be a U.S. citizen and African-American, Asian-Pacific American, Hispanic, or Native American
Be a full-time student at a four-year accredited college, university, or B school (carry a minimum of 12 units per semester or quarter)
Maintain at least a 2.75 GPA on a 4.0 scale
Major in a business field that emphasizes public relations, advertising, or marketing OR minor in communications with the plan to seek a career in one of these three fields

Financial Aid

Attending school is not cheap. You must pay for tuition, books, fees, and perhaps room and board. Also, you will probably need to forgo having a full-time job while in school, so you'll be losing that income. Fortunately, many types of financial aid for college are available to help you cover your expenses. Financial aid is money offered to students like you through government agencies, private parties, individual schools, and other sources. Let's take a look at the main types of financial aid.

The federal government offers low-interest student loans to help you get through both undergraduate and graduate-level programs. If you are unable to find a job immediately after graduation, you can apply to have your loan payments deferred until you land one.

Besides loans, the government also offers grants to qualifying students. Unlike a loan, a grant does not have to be repaid. Grants and loans are often made available to students who demonstrate financial need because neither they nor their family has enough resources to pay for their education. This is known as need-based aid. You can also be appointed to part-time work on campus to help pay for your schooling.

You can also apply for the scholarships or fellowships that are available for your school. Most of these come from private sources and are usually awarded based on your grade point average or other special skill or ability. These types of assistance are called merit-based aid, and you don't necessarily need to demonstrate financial need to qualify.

School expenses may be challenging, but a little legwork can help you find out if you qualify for one of the many financial aid sources available.

Grants

A grant is literally a gift. You don't need to pay it back. The federal government offers monetary grants to students who demonstrate financial need. In other words, you must fall into the lower brackets of income level to qualify. In addition to this, in most cases you must maintain a minimum grade point average, usually between 2.0 and 3.0, to keep receiving your grant. The minimum that applies to you will be based on how much money and assets you (or your family) have.

The federal government provides funds for two of the main grants: the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant. Many students can qualify for the Pell Grant. If you can show great financial need, you may also get a Federal Supplemental Educational Opportunity Grant.

You may also be eligible for a grant from your state. If you'd like to apply for a grant, you can do so by filling out an Application for Federal Student Aid (FAFSA).

Federal Pell Grant

Pell Grants are available to students trying to get an undergraduate degree or diploma. However, you may be eligible for a Pell Grant as a graduate student if you are pursuing a degree that focuses on teaching. The maximum you can currently receive per year is $5,550. The government decides whether you are eligible for a Pell Grant and, if so, how much money you are eligible to receive.

To find out if you may receive a Pell Grant (or other federal financial aid), you must fill out a Free Application for Federal Student Aid (FAFSA). Your need is determined by a formula that includes your income and any assets you have (if you are independent) or your parents' income and any assets they have (if you are not independent). It also looks at the family's household size as well as the number of family members (other than your parents) who are attending a college, university, or other post-grade school. All of these factors are plugged into the formula and your eligibility is determined.

After you file the FAFSA, you will receive a Student Aid Report (SAR), or the school you want to attend will receive an Institutional Student Information Record (ISIR). This will notify you if you are eligible for a Pell Grant.

Students who are awarded Pell Grants may use them at any one of about 5,400 colleges, universities, or other programs. You may only receive your funds through one school at a time. Schools that participate in the Pell Grant program credit the money to the student's account, pay the student directly, or use a combination of the two methods. You must be paid at least once a term (semester, trimester, etc.). If the school doesn't use terms, you must be paid at least twice a year.

Federal Supplemental Educational Opportunity Grant

If you have exceptional financial need, you may be eligible for an additional grant called the Federal Supplemental Educational Opportunity Grant (FSEOG). Students who receive Pell Grants and show the lowest expected family contributions (EFCs) receive first consideration for a FSEOG.

You can receive anywhere between $100 and $4,000 annually for this grant. The amount you get depends on when you apply, the severity of your need, the funding at the school you want to attend, and that school's financial aid policies. The money is credited to your account in the same way as a Pell Grant would be.

To apply for a federal grant, you can visit http://www.grants.gov/ or http://www.fafsa.ed.gov/.

State Grants

In addition to federal grants, you may be eligible for grants from your state. You can apply for a state grant in the same way as you do for a federal grant—by filling out a FAFSA. You should note, however, that the deadline for applying for state aid may be different from the deadline for federal aid. Also, you may be required to fill out additional forms. Be sure to check the FAFSA website to find the application deadlines.

Loans

Loans are one option for covering the high cost of business programs. However, unlike grants and scholarships, loans must be repaid. The federal government offers students and their parents loans for education. These loans are available at low interest rates, and you can defer making any payments until after you finish school. Also, if you are unable to land a job immediately after you graduate, you can defer payment until you find employment.

If you can show financial need, you may qualify for a subsidized loan, which means the government will pay the interest on your loan while you are at school. Even if you cant show need, you are still eligible for an unsubsidized loan. You can defer making payments on the loan while you are at school by capitalizing the interest. This means that you add interest to the loan payments. It will increase the size and cost of your loan, but you may still find it helpful during your years at school. The cap for federal student loans varies, but it may be enough to cover your tuition, housing, and other expenses.

You can apply for a loan online at www.fafsa.ed.gov, or you can do so in person at your counseling office or at your bank. Bank-supplied student loans have different interest rates and conditions than federal loans. Also, when the bank loans you the money, the federal government guarantees to the bank that the loan will be paid back. If you can qualify for a federal loan, it's a better option than a bank loan, because the terms are better.

There are a few types of education loans, and they offer a variety of pros and cons.

Stafford Loan

The federal government provides low-interest loans to students, and you do not need to provide collateral or have your credit checked in order to obtain one. The main federal student loan is the Stafford Loan. There are two types of Stafford Loans. The first is the Federal Family Education Loan Program (FFELP), which is offered by private lenders such as banks or credit unions.

The second type is the Federal Direct Student Loan Program (FDSLP) loan. This loan is provided by the school you attend after the federal government provides the money to the school.

If you are able to demonstrate financial need, you may qualify for a subsidized Stafford Loan. This means that the government pays all the interest while you're attending college.

If you can't demonstrate financial need, you can receive an unsubsidized Stafford Loan. Any student can qualify for this type of loan. With an unsubsidized loan, you are required to make payments while you're in school. However, you can defer the payments until after you graduate. You do this by capitalizing the interest, or adding interest payments to the loan balance.

You are required to start repaying your Stafford Loan six months after you graduate or drop below half-time enrollment. Usually, you have ten years to pay off the loan, but you can get extensions and alternate repayment terms.

There are many factors that determine how much money you can borrow with a Stafford Loan. To find out more about Stafford Loans, including loan limits, or to apply for one, visit http://studentaid.ed.gov.

Perkins Loan

If you can demonstrate great financial need, you may qualify for a Perkins Loan. This loan is subsidized, and you have a nine-month grace period before repayment starts. There are no loan fees, and the interest rate is only 5 percent.

The school you attend decides how much money you may receive. You can get a maximum of $5,500 per year as an undergraduate, or $8,000 annually as a graduate student. To find out more, visit http://studentaid.ed.gov.

Other Types of Loans

If you cannot meet your need entirely with either a Perkins or Stafford Loan, other options are available. Your parents can take out a federal loan to help cover your expenses. This loan is called the Parent Loan for Undergraduate Students (PLUS). Your parents, and not you, are responsible for paying off a PLUS.

You can also apply for a Private Education Loan, or Alternative Education Loan. Private lenders like banks and credit unions offer these loans. How much you can receive is based on your credit score. Usually, you need at least a credit score of 650 to qualify. The interest rates on these loans are generally higher than federal loan rates, and they are usually variable.

Since the interest rates and forgiveness options are better with federal loans than with private loans, it's always better to apply for a federal loan first and save the private loans as a last resort. You can apply by filling out a FAFSA (Free Application for Federal Student Aid) through http://www.fafsa.ed.gov/.

Student Finances

You know that attending college can be beneficial to your career, but at the same time, schools can be very expensive. Even with the benefits of financial aid for school, making ends meet may be difficult. Because of this, it's important to make a budget and come up with a plan for managing your money.

First, you'll need to be aware of how much money you have and how to best spend it. To do this, you need to develop money management skills.

Making a Budget

Set aside some time to establish a budget for yourself. This will help you prioritize how you spend your money. List expenses in order of importance, and then stick to your limits for each category. Some weeks you may have to forgo pizza, or you may have to go without cable TV. Budgeting is tough, but it can save you some major headaches in the long run. If you can handle a part-time job while at school, by all means do so. The extra cash can make all the difference.

Student Banking

Many banks offer student checking or savings accounts, and you'll get a lot of attention from such banks when you are a full-time student. They all want your business. So which bank should you choose?

First, you want a bank that has locations close to campus. You'll need to make deposits and withdrawals on a regular basis, so you need convenient access to save you time. ATMs can be a valuable tool, so make sure that the bank has a liberal supply of those near places you frequent. However, it's important to watch out for fees. Many ATMS charge $1.50 or more just to withdraw cash. Choose a bank that offers access to the largest number of free ATMs.
Also, find out whether the bank will offer you everything you need. You may want a checking account, savings account, credit card with low interest, or a student loan. Also, you probably want a bank with instant online account access. Finding a single bank that meets all your needs will save you time and may even save you money.
Check out any account fees the bank may charge, and compare interest rates to the other banks you are considering. Fees and interest add up quickly. If you have an investment account, you want to earn the most you can. On the other hand, if you are borrowing, you want a bank with low lending rates.

Credit Cards

It's easy to get into trouble with credit cards. However, if you exercise self-discipline with a credit card and pay it off every month, you can reap many benefits by using one. For one thing, they help establish good credit for you. This will serve you well if you try to buy a car or even a house in the future.

When you apply for a credit card, shop and compare to find the lowest interest rate. A fixed rate is better than a variable one. Also, look carefully at the small print. What is the charge for cash advances or balance transfers, and what is the interest rate for them? How much is the fee for exceeding the credit limit, paying late, or underpaying?

Remember, making late payments can damage your credit score, so don't take on a credit card expense that you cant handle.

Really, handling money is a lot about paying attention and using common sense. The money skills you learn and practice now will serve you well for the rest of your life.