Paying for College
Saving for college
Financial aid
Eligibility for federal financial aid
Applying for financial aid
Grants
Scholarships
Tax benefits for education expenses
Arkansas financial aid programs
Student loans
Helpful
links
College savings
Paying for college is easier when you have a savings plan in place. Start saving for college as early as possible through Coverdell Education Savings or 529 college savings plans, in which funds deposited accumulate tax free.
Use the savings calculator to see how beneficial saving can be.
Financial aid
Don't be overwhelmed if you haven’t saved enough for college – financial aid can help!
Sources of financial aid include the federal government, state governments, schools, and private sources. Aid usually is in the form of a gift (for example, scholarships, which you don’t have to repay) or a loan (which you must repay, most likely with interest).
Eligibility for federal financial aid
In order to receive federal financial aid, you must meet eligibility requirements:
- Have financial need (except for Direct Unsubsidized Loans)
- Have a high school diploma or a GED (or meet ability-to-benefits standards the U.S. Department of Education approves)
- Be enrolled as a regular student working toward a degree or certificate in an eligible program
- Be a U.S. citizen or eligible non-citizen
- Have a valid Social Security number
- Make satisfactory academic progress, as determined by the college
Applying for financial aid
To apply for federal financial aid, plus some state and private aid programs, you must complete the FAFSA (Free Application for Federal Student Aid (FAFSA). If you need assistance completing and submitting the FAFSA, e-mail us, call 800-622-3446, contact the school’s financial aid office, or view these resources:
Grants
There are five commonly awarded federal grant programs, all of which require you to complete the FAFSA:
- Federal Pell Grant
- Based on financial need
- Awarded to undergraduates who have not yet earned a bachelor’s or professional degree
- Award amount depends on enrollment status
- Federal Supplemental Educational Opportunity Grant (SEOG)
- Awarded based on financial need
- Priority given to Federal Pell Grant recipients and students with lowest Expected Family Contribution (EFC)
- Awards between $100 and $4,000 per academic year, based on date of application, financial need, and the school’s funding level
- Teacher Education Assistance for College and Higher Education (TEACH) Grant
- Provides grants of up to $4,000 per year to students who intend to teach in a public or private elementary or secondary school that serves students from low-income families
- Must teach full-time in a high-need field in a public or private elementary or secondary school that serves students from low-income families for at least four academic years within eight calendar years of completing the program of study for which you receive the TEACH Grant
- If you fail to complete your service obligation, all amounts of TEACH Grants will be converted to a Direct Unsubsidized Loan.
- You must repay the loan with interest, which will be charged from the date the grant(s) was disbursed.
Scholarships
Scholarships are often awarded based on the following:
- Academics
- Athletics
- A particular field of study
- Ethnic background
- Religious affiliation
- Special interest
Most scholarships are gift aid, which you do not have to be repay. However, some scholarships come with requirements that, if not met, convert the award to a loan. Make sure you understand all terms and conditions before accepting any award.
Many scholarship organizations require applicants to complete the FAFSA.
As always, the Internet is a great tool to help research what's available, and SLGFA's helpful links can give you a great head start. Avoid any service that charges, because there's plenty of free help.
Sometimes, even scholarships and grant opportunities are not enough to fully cover the cost of college admissions. Learn more about how loans can be a useful tool to cover the gap between the cost of higher education and the gift aid.
Tax benefits for education expenses
There are several tax credits and deductions available for education expenses. Visit the Internal Revenue Service (IRS) website or contact a tax advisor for more details about these programs:
- Credits
- American Opportunity Credit: For expenses incurred during the first four years of postsecondary education
- Hope Scholarship Tax Credit: For expenses paid for the student’s first two years of college
- Lifetime Learning Tax Credits: For education expenses incurred during all years of postsecondary education
- Tax deductions
- College Tuition and Fees Deduction
- Student Loan Interest Deduction
Other ways of receiving tax credits or tax deductions on the cost of higher education include Education IRA withdrawals and educational assistance provided by an employer (tuition reimbursement programs). Taxpayers cannot claim the Hope or Lifetime Learning credit when taking a tax-free distribution from an Education IRA, so weigh your choices carefully. For more information, contact a tax advisor or visit the Internal Revenue Service (IRS) website. Also available online is IRS Publication 970, which outlines all of the current education tax benefits.
Arkansas financial aid programs