<<< STEP 1: PLAN FOR COLLEGE COSTSSTEP 2: Understand the Types of Aid Available
FINANCIAL AID TYPES
| Grants, Scholarships, and Awards | Federal and State Governments, Colleges, Corporations, Unions, Trust Funds, Religious and Fraternal Organizations, other Associations | Free Money — No Repayment Required |
| Loans | Federal Government | Must Meet Eligibility Requirements; Repayment Required; Low Interest |
| Work Study | Federal Government, administered through Colleges | Must Meet Eligibility Requirements |
| Tax Credits / Deductions | State and Federal Governments | Must Meet Eligibility Requirements |
| Loan Forgiveness | State and Federal Governments | Must Meet Eligibility Requirements |
| Alternative Loans | Banking Institutions | Repayment Required |
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529 College Savings Program — a flexible, convenient way to save
Upromise Rewards — turn everyday purchases into money for college | Family members, other interested people | State Administered; Funds must be used for Educational Expenses |
GRANTS, SCHOLARSHIPS, AND AWARDS
Start with These Basic Programs — No Repayment Required!
Grants, scholarships and awards come from several sources including the college, New York State and the federal government.Other sources include funding from corporations, unions, trust funds, religious and fraternal organizations, and other associations.NYMentor's Scholarship Search and NYS Higher Education Services Corp.'s Grants / Scholarships / Awards at hesc.org are good places to begin your research.
Grants, scholarships and awards are "free money," and do not have to be paid back.You should always explore all the free money opportunities available to you before taking out a student loan.
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| Tuition Assistance Program (TAP) | The Tuition Assistance Program (TAP), New York's largest grant program, helps eligible New York residents attending in-state postsecondary institutions pay for tuition. TAP grants are based on the applicant's and his or her family's New York State net taxable income. |
| Part-Time TAP | Available in 2007-08 for students meeting requirements in 2006-07, Part-Time TAP helps eligible New York residents attending in-state postsecondary institutions on a part-time basis pay for tuition. |
| Federal Pell Grant | Federal Pell Grants are given to undergraduate students who have not yet earned a bachelor's or a professional degree. Pell Grants are awarded based on financial need as demonstrated on the Free Application for Federal Student Aid (FAFSA). |
| Federal Supplemental Educational Opportunity Grant (FSEOG) | The FSEOG is for undergraduates with exceptional financial need; students who receive Federal Pell Grants have priority. FSEOGs are awarded by a college's financial aid office based on information in the FAFSA. |
Academic Competitiveness Grant Programs- National Academic Competitiveness Grant (ACG)
- National Science and Mathematics Access
| The federal Academic Competitiveness Grant Programs provide funding for qualified undergraduate students majoring in mathematics, science, technology, engineering or a critical foreign language. The ACG applies in the first and second years of college and the SMART applies in the third and fourth years. |
| NYS Math & Science Teaching Incentive Program | This program provides grants to eligible full-time undergraduate or graduate students in approved programs that lead to math or science teaching careers in secondary education. |
| NYS Aid for Part Time Study | The Aid for Part Time Study (APTS) program provides grant assistance for eligible part-time students enrolled in approved undergraduate studies. |
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| NYS Scholarships for Academic Excellence | Scholarships for Academic Excellence are awarded to outstanding graduates from registered New York State high schools. Awards are based on student grades in certain Regents exams. For up to five years of undergraduate study in New York State. |
| Robert C. Byrd Honors Scholarship | The Robert C. Byrd Honors Scholarship is a competitive federal honors program that provides scholarships to academically talented high school seniors who are New York State residents and plan to attend any approved institution of higher education in the United States. |
| AmeriCorps Education Award | The AmeriCorps Education Award is provided to New York State residents interested in high quality opportunities in community service. |
| Grants and Scholarships from Colleges | Colleges provide institutional grants to help make up the difference between college costs and what a family can be expected to contribute through income, savings, loans, and student earnings. Awards may be based on academic merit, artistic or athletic talent, financial need or other factors. You can learn more about the types of grants awarded by each college at their web sites. SEE STEP 5 |
You may be eligible for many other New York State scholarships and awards with specific eligibility criteria:
- Flight 587 Memorial Scholarship
- Military Service Recognition Scholarship (MSRS)
- New York Lottery - Leaders of Tomorrow Scholarship
- NYS Memorial Scholarships for Families of Deceased Firefighters, Volunteer Firefighters, Police Officers, Peace Officers, and Emergency Medical Service Worker
- NYS Regents Health Care Opportunity Scholarship
- NYS Regents Professional Opportunity Scholarship
- NYS Volunteer Recruitment Service Scholarship
- NYS World Trade Center Memorial Scholarship
- Senator Patricia K. McGee Nursing Faculty Scholarship
- NYS Aid to Native Americans
- NYS Regents Award for Children of Veterans
- Veterans Tuition Awards
Get details in Paying for College on hesc.org.
LOANS
Before you apply for a loan, be sure you get all the free state and federal money that may be available to you.You should also take advantage of all the available New York State and federal government tax credits and deductions.
If your total need isn't met by scholarships, grants or work-study, there are several kinds of education loans to consider.All these loans are different and may have different repayment options.Education loans include Federal Stafford Subsidized and Unsubsidized Loans, Federal PLUS Loans, Federal Perkins Loans, and private or alternative loans.
A loan must be paid back — with interest.Use loans as a last resort.If you do need to take out a student loan, go about it in a smart way.Borrow only what you need and can afford, and take the time to compare loans for interest rates terms, and a repayment plan that meets your needs.And remember, you'll have to repay your loan even if you don't finish college.
Work-study opportunities, federally funded and administered by colleges, help students earn money to pay for college expenses.
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| Federal Stafford Loan Program (Subsidized and Unsubsidized) | The Federal Stafford Loan Program helps to cover the cost of your education by allowing a student to take out subsidized and unsubsidized loans that are guaranteed by HESC. |
| Federal Perkins Loan Program | A Federal Perkins Loan is a low-interest loan. The school is the lender. The amount of the loan is based on financial need, other aid, and the availability of funds at the school. The borrower must repay the loan to the school. |
| Federal Parent PLUS Loan Program | The Federal Parent PLUS Loan program helps parents pay the education expenses of a dependent undergraduate student enrolled at least half time. |
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| Federal Work-Study (FWS) | The Federal Work-Study Program provides jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay their education expenses. The program encourages community service work and work related to each student's course of study. FWS is administered by the college financial aid office. |
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| Graduate and Professional Students | There are a variety of student financial aid programs available for graduate study in New York State. View the details here and check with the aid administrator at your graduate school for more information. |
LOAN FORGIVENESS
Under certain conditions, you may have all or part of your Stafford and Perkins loans forgiven or cancelled.You do not have to repay the amounts that are forgiven.Loan forgiveness programs are available to certain attorneys, social workers, child care providers, nurses, and teachers.
The IRS considers debts that are forgiven as income.You may have to pay income taxes on the amounts, depending on your total income in the year the debts are forgiven.Loan amounts can be cancelled gradually, which minimizes the impact of taxes.
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| Loan Forgiveness for Child Care Providers | Those who care for young children as their careers may apply to have a portion of their Stafford Loans forgiven. |
| Loan Forgiveness for District Attorneys | District Attorney Loan Forgiveness awards are offered to retain experienced attorneys employed in district attorney offices throughout New York State. |
| Loan Forgiveness for Licensed Social Workers | Awards are made annually to social workers licensed to practice in New York State who have at least one year of prior employment working in a critical human service area. |
| Loan Forgiveness for Nursing Faculty | Licensed Registered Nurses teaching as nursing faculty or adjunct clinical faculty may have portions of their student loan balances paid. |
| Loan Forgiveness for Teachers | Certain teachers can have a portion of their Federal Stafford loans forgiven. |
TAX CREDITS/DEDUCTIONS
The Federal government and New York State offer tax credits for qualified postsecondary study, as well as a tax deduction for the initial interest paid on qualified loans.
- New York provides a tax credit or deduction to help New York resident taxpayers with college tuition.
- The Federal government offers tax credits and deductions in the form of the Hope Scholarship Credit, the Lifetime Learning Credit and the Education Loan Interest Deduction.
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| New York State Tuition Tax Credit/Deduction | Through the New York State Tuition Tax Credit/Deduction resident taxpayers may claim a deduction or a refundable credit for allowable undergraduate tuition paid for themselves, their spouse, or their dependents enrolled in qualified institutions. |
| Federal Hope Scholarship Credit | The Hope Scholarship Credit provides a tax credit of up to $1,500 for the net cost (less certain financial aid) of the tuition/fees in each of the first two years of postsecondary education for each member of the family. |
| Federal Lifetime Learning Tax Credit | The Lifetime Learning Tax Credit provides a maximum tax credit of up to $2,000 after the first two years of undergraduate, graduate/professional, or part-time postsecondary study. |
| Federal Education Loan Interest Deduction | The Federal Education Loan Interest Deduction provides a $2,500 tax deduction for the interest paid in the first 60 months of repayment on a qualified student education loan. |
ADDITIONAL INFORMATION
- www.hesc.org — New York State Higher Education Service Corporation — Paying for College: Detailed information about grants, scholarships, loans and other student financial aid
STEP 3: FILE A "FREE APPLICATION FOR FEDERAL STUDENT AID" (FAFSA) FORM >>>
Step 2 
