The Post-9/11 GI Bill will help pay for your college degree. In fact, for some it will cover the entire cost. But the new GI Bill may not be the answer to all of your college needs.
Individual institutions of higher education offer scholarships for veterans funded by private donors. Check your college or university’s website to see what it offers – you may be surprised at what you qualify to receive.
But your first and best move to get most financial aid for school is to fill out the Free Application for Federal Student Aid, or FAFSA, online (www.fafsa.ed.gov). Many schools require this as an initial step toward any aid, and government-sponsored loans tend to be your best deal, with lower interest rates and easier ability to delay or stretch out payments, should that become necessary.
FAFSA FACTS
Here’s what you need for FAFSA when you fill out the FAFSA form:
- Your Social Security and driver’s license numbers
- The tax records for you and your spouse (if relevant)
- Documentation of your VA benefits and any worker’s comp or child support received
- Business records, including recent bank statements and investment information
This is what needs to be listed as income on the FAFSA:
- Your most recent pay (even if you are no longer active duty)
- VA disability pay and non-educational VA benefits (as untaxed income)
- Combat pay (if it was taxable and part of your adjusted gross income on your last tax form
SCHOLARSHIPS
Scholarships for veterans are available from a number of national organizations, as well as schools. Some groups focus on veterans with injury-related disabilities, while others are open to all veterans. They include:
LOANS
There are two main types of federal student loans: Perkins and Stafford. Both help students who can demonstrate financial need. For either, you must be enrolled more than halftime in a post-secondary degree or certificate program.
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A Perkins Loan is awarded by schools, which determine how much you may receive – up to $4,000 a year, or $20,000 total, for undergraduates, and up to $6,000 a year, or $40,000 total (including undergraduate loans), for graduate students.
Currently, the fixed interest rate is 5 percent, and you have up to 10 years to repay, depending on the amount you owe. Repayments begin after a nine-month grace period when you leave school, graduate or take less than half-time coursework, with possibilities for active duty to have a longer grace period.
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Stafford Loans come either directly from the U.S. Department of Education or via private lenders through the Federal Family Education Loan Program. Staffords are awarded as either subsidized or unsubsidized loans. The subsidized variety is offered based on need and does not charge interest while you are at least a half-time student. Repayments begin six months later. The unsubsidized variety is not awarded based on need but accumulates interest right away, unless you choose to defer the interest and essentially add it on to your loan amount.
Staffords provide up to $20,500 a year, with a variable interest currently not above 8.25 percent, and may be repaid over as many as 30 years. And don’t forget to fill out your FAFSA. Even if you don’t qualify for other need-based school money, getting an unsubsidized Stafford loan still requires that you complete this federal form.