So, your child is ready for college – and you're ready to support their education goals. Now you just need to figure out how to pay for it. Luckily, you'll find lots of resources ( militaryonesource.mil/-/higher-education-for-your-children-the-essentials) to help military families like yours to finance your child's college, from saving plans to scholarships.
TAKE ADVANTAGE OF MILITARY FAMILY SCHOLARSHIPS
There are numerous scholarships available to children of service members. Each varies depending on eligibility, so check carefully to find the scholarships right for your child's educational goals, then apply, apply, apply.
• The Defense Commissary Agency ( commissaries.com/customer- service/faqs-listing?field_faq_categories_target_id%5B0%5D=69) created the Scholarships for Military Children Program in recognition of the contributions of military families to the readiness of the fighting force, and to celebrate the role of the commissary in the military family community. • Military service relief organizations offer scholarships and no-interest loans for family members.
TRANSFERABILITY OF GI BENEFITS
The Post-9/11 GI Bill ( dmdc.osd.mil/milconnect/public/faq/Education_Benefits- About_Your_Education_Benefits) allows service members to transfer their education benefits to immediate family members, including a spouse and/or child.
• The recipient must be enrolled in the Defense Eligibility Enrollment Reporting System, or DEERS, at the time of the transfer. • The transfer must occur while the service member is on active duty. • The service member can transfer up to 36 months of their benefits.
APPLY FOR GRANTS
In addition to scholarships, there are plenty of education grants which families don't have to repay. To begin the grant process, start with FAFSA, the Free Application for Federal Student Aid. Most colleges and universities use this form to determine students' eligibilities for aid, grants and scholarships. Here are some of the grants available:
• The Iraq and Afghanistan Service Grant ( studentaid.ed.gov/sa/types/grants-scholarships/iraq-afghanistan-service) is for students whose parent died as a result of military service in either Iraq or Afghanistan after September 11, 2001. • The FSEOG ( studentaid.ed.gov/sa/types/grants-scholarships/fseog), the Federal Supplemental Educational Opportunity Grant Program, provides need-based grants for low-income undergraduate students. • Federal Pell Grants ( studentaid.ed.gov/sa/types/grants-scholarships/pell) are for undergraduate students without an existing degree.
COMPARE YOUR FINANCIAL AID AND LOAN OPTIONS
If you're taking out a loan, be sure to read the fine print. Each college or university will offer a host of financial aid packages, so research each carefully to make sure you're signing onto the right one. These options also allow you to borrow directly from the government.
ernment. • Use the Consumer Financial Protection Bureau's "Know Before You Go" ( consumerfinance.gov/students/knowbeforeyouowe) tool to create a personal financial aid spreadsheet to compare which loans and aid your student qualifies for. • Direct Stafford Loans ( studentaid.ed.gov/sa/types/loans/subsidized- unsubsidized#eligibility) are low-interest and available to both undergraduate and graduate students. • PLUS Loans ( studentaid.ed.gov/sa/types/loans/plus#eligibility) are also available for both undergraduate and graduate students.
HOW TO START SAVING NOW
You're already well equipped to start saving for your child's college education and have the discipline to commit to it. It may seem daunting, but there are plenty of ways to put some money away now that will pay dividends to your child's college education down the line.
• Coverdell Education Savings Accounts • State-run (irs.gov/publications/p970/ch07.html) let families save up to $2,000 for college, and other members of the family, such as grandparents, aunts and uncles, can also contribute here. Qualified Tuition Programs ( irs.gov/publications/p970/ch08.html) , or 529 Plans, allow families to lock in today's tuition rates for state schools. These accounts also grow generally tax-free and offer a variety of tax benefits.• Service members and military families can contact our education ( militaryonesource.mil/education) and financial ( militaryone- source.mil/financial-counseling) counselors for one-on-one guidance on college savings programs and advice about choosing and affording college. Call 800-342-9647 or connect online to schedule your consultation. Click here for calling options ( militaryonesource.mil/international-calling-options). We're here to help. Your kids' goals are as important as your own, and Military OneSource has your back at this exciting next step for your family.
SAVINGS PLANS, STUDENT LOANS AND SCHOLARSHIPS
With the many available scholarships, grants and other options for financial aid, paying for college doesn't have to be intimidating. There are plenty of resources to help you as you begin planning for your future. As you think about how to pay for school, be sure to maximize financial aid, grants and scholarships first, then look into educational loans to cover the rest. You can also get a head start on saving with a 529 savings plan.
WHAT'S A 529 PLAN?
WHAT'S A 529 PLAN? A 529 plan is a tax-advantaged savings plan that can make it easier to save money for college. You can check out the Securities and Exchange Commission ( sec.gov/investor/pubs/intro529.htm) for more details, but here are the basic facts:
• There are two kinds of plans. 529s are either college savings plans, which can be used for college expenses at any college, or prepaid tuition plans, which lock in future tuition at instate public colleges at the present price. Talk to a financial professional to find out which is best for you. • Your parents will call the shots. You'll be the beneficiary of the plan, but your parents or guardians will be the ones to decide when withdrawals can be made. • The earnings won't be taxed. A 529 plan isn't taxed as long as any withdrawals are made for college expenses. If the money is used for something other than college, like on a new car, tax penalties could apply. Make sure you read the fine print and know the details of your plan. • You can get a plan in any state. 529 plans vary by state, but you aren't stuck with the plan from the state where you currently live. If you like another state's plan, you can get that one instead. • Anyone can contribute. Make sure you tell other important adults in your life – grandparents, aunts, uncles and the like – about your 529. Next time they're wondering what to get you for your birthday or graduation, they can make a contribution.
HOW CAN I APPLY FOR SCHOLARSHIPS AND FINANCIAL AID?
• Fill out a FAFSA ( fafsa.ed.gov). The Department of Education's Free Application for Federal Student Aid, also known as FAFSA, should be the first step in your financial aid journey. You can either get an application from your guidance counselor or download it online – just don't wait until the last minute. The earlier you can fill out the application, the sooner you'll know what type and amount of aid you can expect.
• Consider your qualifications. There are thousands of scholarships out there – it's just a matter of finding the right ones for you. First, see what local scholarships are available in your area, and from your potential college choices. Second, check for scholarships based on your individual strengths, credentials, talents and accomplishments.
• Military scholarships. Having a parent or guardian who is a service member may qualify you for certain scholarships ( militaryonesource.mil/-/Two-College-Scholarships-for-Military-Children-and-How- to-Apply). Talk to them, or contact your installation education center ( myseco.militaryonesource.mil/Portal/Content/View/1467) for more information.
WHAT DO I NEED TO KNOW ABOUT STUDENT LOANS?
After you've exhausted all financial aid or scholarship options and saved as much money as you can, it may be time to look into student loans. Consider these factors before accepting student loans:
• Remember, you have to pay them back. Loans are not "free money" and you can end up paying back much more than you originally take out, depending on the interest rate. • Pay attention to the terms. Make sure you understand the terms of any loans you accept. In addition to the interest rate, you should also pay attention to the repayment schedule and find out about the "grace period," or how soon you have to pay it back after graduation. • Go for federal loans first. You can apply for loans through the government or private institutions, but federal loans tend to have lower interest rates and a more generous grace period. • Check for military-offered loans. Talk to your parents and research whether you're eligible for any interest-free loans through the military. You can also read about the various scholarships, grants and loans ( militaryonesource.mil/-/financing- your-child-s-college-education) for military students.
WHERE SHOULD I START?
• Talk to your guidance counselor. Take advantage of your counselor's wealth of experience and make an appointment to discuss your individual options.
• Sit down with your parents or guardians. If you haven't already, find time to sit down and talk candidly about your plans and your family's financial situation. You'll need to know all of your options before you begin formulating a college savings plan. Getting everything down on paper can help keep everyone on the same page.
• Connect with a no-cost personal financial counselor ( militaryonesource.mil/financial-counseling). A financial counselor can give your family more information on your options. Learn more about how to arrange for no-cost financial counseling through Military OneSource.
• Contact the education consultants ( militaryonesource.mil/education) at Military OneSource for help with college admissions and financial aid applications.
• Do your research. Lots of schools and organizations put their scholarship opportunities online, so a preliminary internet search is a great way to get your feet wet and see what's out there. There are many ways to finance your college education. Military OneSource has your back to connect you with the best support for the next step in your education – and before you know it, you'll be walking across the graduation stage with a diploma in your hand. •