Whether a returning to school or a first time student, a college education can be a valuable – but initially expensive – career move. Using government financial aid can partially alleviate the costliness of a college degree. Attaining financial aid for married individuals has a unique set of qualifications and eligibility – read on to learn the basics.
The first step to applying for financial aid is to fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA awards financial aid based on need, which is factored based on filing status and Estimated Family Contribution (EFC).
As a dependent, you are obligated to disclose the income of your parents. This will factor heavily into how much financial aid you receive.
If you are an independent, however, you are not required to declare your parents’ income. There are a couple ways that you can qualify for filing as an independent, one of which is by getting married. Note though that you must be married on the day you fill out the FAFSA – even if you are engaged and will be married in the coming year, it is not valid to declare yourself married when filling out the FAFSA. Also, you will not be able to change your filing status mid-year.
As noted above, you do not have to factor in your parents’ income when filing as an independent. However, you do need to declare your spouse’s income.
On the other hand, if you have children or other dependents living with you, you may be eligible for more aid to compensate for the extra expenses.
Once you file your FAFSA, you will automatically be considered for several scholarships and grants.
A Pell Grant is a need-based financial aid for tuition, books and other school-related expenses. It does not need to be repaid. Pell Grants range from $400 to approximately $5,000 and can be applied for every year. Most of the awards go to students with family incomes less than $20,000, so if you and your spouse are both full-time students, it is highly likely that you will receive a Pell Grant. Pell Grants are typically only available to undergraduate students.
There are additional types of grants – such as the Academic Competitiveness Grant (ACG) and the National Science and Mathematics Access to Retain Talent Grant (National SMART Grant). ACG and SMART grants are eligible to those that are eligible for the Pell Grant and also meet certain academic requirements.
There are also two types of loans available from the FAFSA – the Stafford Loan and the Perkins Loan. Both of these loans are also need-based and use EFC to determine eligibility. Like the Pell Grant, these loans can be renewed every year. The amount you can borrow varies depending on grade level and lifetime limits.
The FAFSA is not the only source of financial aid. You may wish to ask your specific school about “institutional aid,” which is money awarded directly by the school. These programs vary greatly by institution. They are typically need-based, but may also factor in ethnicity, degree programs and other considerations.
You can also receive scholarships and grants from institutions other than schools and the government. Private scholarships are offered by employers, nonprofits, professional associations, foundations and other groups. For married couples, religious groups and churches are particularly good places to inquire. Because many churches want to encourage marriage, they often provide scholarships for those continuing education.
There are several reputable databases online for finding other types of scholarships (see the resources section below).
The last place you can turn for financial aid is a private loan from a bank, credit union or another lending institution. The terms for these loans are typically more flexible than government loans but come with more risk and a higher interest rate. Applying for a private student loan is done much in the same way you would apply for other private loans – by visiting a local branch of your bank or credit union.
Unlike federal aid, eligibility for private loans is determined by your credit rating. How much you can borrow and the terms of your loan are determined at the discretion of the lender.
Begin your search for private student aid early and utilize private student loans cautiously. Private student loans should only be used to bridge the gap between the amount of federal aid you receive and the remaining costs of education. While terms and rates for private student loans are typically more favorable than other types of debt (credit cards, personal loans), these loans are always more expensive than federal loans in the long run.
Scholarships from private institutions are highly competitive and are often distributed on a first come, first serve basis. If you wait until the last moment, it’s likely that all the available aid will be taken.
