Attending college is a major life event. Tuition, fees, and room and board at a public four-year college or university in the 2012-2013 academic year averages about $17,860 per year for an in-state student, according to the College Board.
Several investment vehicles with tax advantages exist to help save for college. However, most college-bound students and their parents rely, in part, on financial aid to help pay for college. Federally funded financial aid comes in several forms, including grants, loans, and work-study programs. It can also include part-time military service during and after college. This educator aims to familiarize you with the major types of federal financial aid and scholarships to help pay for college.
Let's first take a look at grants. A grant is a gift. It does not require repayment. The two main types of federally funded grants are Pell grants and Federal Supplemental Educational Opportunity Grants (FSEOGs):