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Scholarships to Save Money on Student Loans for College

February 13, 2019

People have all kinds of amazing hopes and dreams for what to do with their lives. From those passionate about teaching and making a difference to talented analysts who want to help steer the ship. There are so many incredible careers to choose from, but once you pick the path it’s time to think about school. How do you make that dream of going to school a reality?

 

Financing an education can be challenging, but there are options and ways, even if you don’t have a nest egg for tuition. One option that is worth looking into is finding scholarships to save you money on student loans for college. Have you checked out what’s available? Here are some things to consider in your search.

 

Look for scholarships based on need.

All types of people from all different backgrounds go to college, but some are at a disadvantage when it comes time to pay for school. For instance, some students can’t get student loans for college if they don’t have co-signers but might qualify for federal loan programs that don’t have the same requirements. Some scholarships aim to help these people specifically—like people who are more likely to need aid because they’re non-traditional students with children or over a certain age, or they are the first generation in their family to attend a university. There are also options for students who have been on other government aid programs as children or teenagers in a low-income family.

 

What kind of scholarship fits your abilities?

Lots of people receive scholarships for any number of abilities—either because they are gifted academically or because they excel at a sport or activity. Talk to your school counselor or other college resources about your grades and test scores. It might be worth it to retake something like the SAT if you are pretty close to qualifying for academic scholarships. If you’re just starting to look at scholarships, now probably isn’t the time to become a master volleyball player or flutist, but scholarships for activities like those do exist! So if you are looking for ways to save money on student loans for college by getting a scholarship, don’t forget to search based on your extracurricular. Here are some common scholarship types provided based on extracurricular.

 

Community Service Scholarships

Have you been busy volunteering? If so, you’ll want to look into community service scholarships. Many institutions hope to have students who make a powerful impact in the community. This scholarship is a great option as there is no special talent required it just takes time and dedication to complete.

 

Now we’re not saying to volunteer only for a scholarship, we’re just saying to try it out. Who knows, you may even like volunteering and actually have fun and make new friends!  In addition to making new friends, having fun, and saving money on student loans for college volunteering can expose you to new environments and things that you may have otherwise been unaware of. If you’re volunteering with an organization, be sure to ask them if they offer a scholarship.

 

Segal Americorps Education Award

Do Something Scholarships

Youth Changing The World

Tylenol® Future Care Scholarship

 

Creative Scholarships

Creative scholarships are just what you would think they are. These are scholarships provided to users for unique and creative creations. These scholarships consist of anything from designing a logo to playing a musical instrument. When you’re applying to a creative scholarship be sure to include an impressive portfolio of your additional work.

 

Doodle for Google

Create-A-Greeting-Card Scholarship

Stuck at Prom Scholarship Contest

Shout It Out Scholarship

 

 

Academic Scholarships

Academic scholarships are the most common. These scholarships are often based on your GPA, leadership, and ACT or SAT scores. Typically academic scholarships are provided by the institution but private academic scholarships can be another great way to pay for college. On your application, you’ll want to be sure to include any additional activities you are involved in. Some private academic-based scholarships will require the student to pursue a specific type of degree.

 

Shell Incentive Fund Scholarship

USRA Scholarship Awards

Alpha Chi Omega Foundation Scholarships

SouthEast Bank Scholars Program

 

 

Look for fruitful memberships.

If you or your parents are members of a fraternal organization, church/denomination, or if you work in a particular industry you may qualify for a scholarship. Some companies even offer scholarships to employee families. If you were a member of an applicable student group in high school, then you may qualify for a scholarship based on this. There are even scholarships for people who have survived cancer. Talk to your parents and other family members about memberships you may not be aware of!

 

You might qualify for employer-sponsored scholarships

In an increasingly competitive market, employers are doing more to find and retain top talent. Do you work for a company that offers scholarships? Check out this list of companies that offer scholarships. Everywhere from fast food restaurants and service jobs to large corporations offer financial aid and scholarships to their employees. If you’re not sure, talk to your HR person and see if you qualify. It’s worth a try!

 

Get the scoop on where to search.

School counselors are the first place to check for scholarship opportunities. You might be able to apply for a local scholarship from a company in your region through your high school, or your college or university of choice might have scholarships for attendees. You can also take your search to the Internet and look for ideas, search based on your specific requirements or areas of interest, and get information on how to apply. Check out this scholarship search tool from the Department of Education.

 

If you’re looking to save money on student loans for college, make sure that you check for scholarship opportunities every semester. Student loans can be a great tool and easily manageable if you’re informed, so don’t be afraid to ask questions and check out all of your options. Do your best to decrease the amount you need to take out in student loans to pay for college.

 

FDIC Backed and Why You Should Care

 

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Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – The bank is not responsible for the content. Please contact us with any concerns or comments.

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Former UT athletes obtain graduate degrees through the SouthEast Bank RAC Program.
2020-05-08
ELFI Parent Company Helps Former Student-Athletes Obtain Degrees

Empowering others to reach their full academic potential is an integral part of Education Loan Finance's mission, and this extends to its parent company, SouthEast Bank.   This was shown in a recent UTSports.com article highlighting how several former standout University of Tennessee athletes are set to complete their undergraduate degrees after putting their education on hold to pursue professional sports careers – these athletes, including former NFL wide receiver Peerless Price, were able to obtain their degrees with the help of the SouthEast Bank Renewing Academic Commitment (RAC) program, which helps former University of Tennessee student-athletes return to the university to complete their undergraduate studies.    As a company, we are proud to empower these individuals in achieving their academic goals and we congratulate them for their achievements both on the playing field and in the classroom.   Read the SouthEast Bank blog for more details on how this program has helped former University of Tennessee student-athletes achieve their academic goals.  
  Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.
photo representing financial aid options for middle income families
2020-02-10
Financial Aid Options for Middle-Income Families

It’s no secret that college comes with a hefty price tag. Every year, students and their families have to figure out how they’re going to pay thousands of dollars in school bills. While high-income families may have the resources to pay tuition, footing the entire bill just isn’t realistic for some families, especially if they have more than one child attending college. This is why many students rely on financial aid to fund their education.

 

It’s generally known that students from lower-income families can qualify for special scholarships and grants that help fill the gap to fund their education, but for families around the middle-income tier, financial aid options may be harder to come by and make them feel that their options are limited. Rest assured that there are options for middle-class families to receive the financial assistance they need – it just may take a bit more effort.

 

FAFSA

When it comes to looking for financial aid for college, the FAFSA is a great place to start. The Free Application for Federal Student Aid has no income cutoff for eligibility, so your child could still receive some need-based aid from the FAFSA, especially if he or she plans on enrolling at a higher-cost school. The FAFSA opens October 1 every year, and you can apply as early as the year prior to your child’s first day of college. The earlier you apply, the more likely your child is to receive financial aid. 

 

Scholarships

Researching and applying for scholarships has continually proven itself worthy of the effort. Many scholarships are merit-based instead of need-based, so your child may be eligible for many different scholarships depending on the qualifications. Start by looking for local scholarships – many locally-owned businesses and organizations offer scholarships for graduating high school students. If your child visits the school guidance office, they may have some applications on file. You or your spouse could also ask your employer if they offer any type of scholarships or financial aid for employees’ children. After exhausting local options, your child may want to research national opportunities. A quick web search could reveal countless free scholarships – Niche, Fastweb, and eCampusTours are a good place to start. Finally, many colleges offer merit-based scholarships and endowment scholarships. Make sure your child looks for institutional scholarships at the school he or she plans to attend. You may discover that if your child joins a club or raises a standardized test score by a couple of points, he or she could receive thousands more dollars of financial aid.

 

Tuition Discounts

If a family member, such as a parent or grandparent attended the same college or university you're enrolled in, you may receive a tuition discount. There may be additional requirements to qualifying for this discount, such as, your family member being active in the school's alumni association or maintaining a certain GPA.

 

Tax Rewards

Middle-income families are perfectly positioned to receive tax credits for college expenditures. For example, the Lifetime Learning credit has income requirements that exclude those who earn over and under certain amounts. Programs like this, as well as tuition savings plans, offer a few different ways for middle-income families to receive tax benefits.

 

Federal Loans

If you’ve taken advantage of all your financial aid options and find you still have more to pay, it may be time to consider loans. Non-need based federal loans such as the Unsubsidized Federal Stafford Loan for students and the Federal PLUS Loan for parents can bridge whatever gap you find in your aid and your expenses. Federal education loans generally have low interest rates or may be tax-deductible, so they’re a smart alternative to using a credit card, for example.

 

Private Loans

You may find that you still need financial assistance after exhausting all the options above. If that’s the case, private student loans may be for you. We always recommend you take advantage of grants, scholarships, and federal aid before taking out a private student loan. To learn more about ELFI’s private student loan options,* click here.

 

The cost of college can present a challenge for families at all income levels, but middle-income families often struggle the most to find good financial aid options because their finances fall between affording college and needing assistance. If your family is in this situation, don’t let it get you down. The options in this article are a good place to start searching for financial assistance. Don’t lose sight of the end goal – getting the degree you want and establishing a successful career. If you’re already looking for financial aid options, you’re well on your way.

 
  *Subject to credit approval. Terms and conditions apply.  

Note: Links to other websites are provided as a convenience only. A link does not imply SouthEast Bank’s sponsorship or approval of any other site. SouthEast Bank does not control the content of these sites.

parent and child looking at status of student loans
2020-02-05
7 Tips for Parents Paying A Child’s Student Loans

By Tracey Suhr   $233,610. This is the amount of money today’s average American family can expect to spend raising one child. If this seems like a lot, get ready for more sticker shock since this doesn’t include the cost of college. The average tuition at a public in-state school for the 2019-2020 school year is $10,116. Multiply that by four years (plus student loan interest), and you’re adding another $50,000+ to the total cost of raising a child.    If you’re reading this blog, you’re likely well aware of the cost of college, and you might now be looking for ways to help your son or daughter pay their college debt. Your recent graduate likely has a student loan (and if they’re lucky, parents who offered to make payments toward that loan). Or you might have taken out a parent loan* to fully cover the cost of college for your child. Either way, those loans are staring you in the face, begging to be paid.   Luckily, there are no rules against helping your son or daughter pay off student loan debt. Here are some tips for parents who are paying a child's student loans.  

Set Up Automatic Payments

The easiest way to help manage your child’s student loan debt is by setting up automatic payments from your checking or savings account. We all get busy and forget items on our to-do list. And while one or two missed payments might not make a difference, several can result in late fee charges and dings on your credit, especially if the loan is in your name or if you were a co-signer for the loan.   

Play By the Rules (Tax Rules)

If you help pay your child’s student loan debt, you might need to pay gift tax and file a gift tax return during tax season. A gift tax applies to the giver (that’s you) and to any contributions more than $15,000, as of 2020. Tuition is excluded from gift tax but, unfortunately,  loan payments are not. Double-check current IRS regulations around loan payments before making the decision to help pay your child’s student loan debt. Here is a current FAQ list around gift tax.  

Focus on Loans with High-Interest Rates

Look at all your loans—car loans, mortgage loans, credit card debt—and focus on those with the highest interest rate. If you have a credit card with an 18% interest rate, and the interest on your child’s student loan is just 8%, it would be wiser to focus on paying your card first. Even adding an extra $50 or $100 per paycheck to those higher rate loans can help in the long run.  

Prepay the Loan

If you receive a bonus or a cushy tax return, allocate those extra funds toward the student loan debt. By paying down your child’s student loan faster, you can reduce the total amount of interest paid over the life of the loan by paying less monthly interest.    You can also allocate extra funds toward paying your child’s student loans by rearranging other existing finances. For example, if you have multiple credit cards, consolidate the balances into one loan. A single loan with a fixed interest rate that’s lower than the APR on your credit card will help you simplify and save.   

Refinance Student Loans

Refinancing student loans is another way to simplify payments and readjust finances. Whether the loan is a parent loan or student loan, reducing the interest rate lowers monthly and total loan payments. You can also change the term of the loan to 5, 7, or 10 years to help lower monthly payments, allowing you to reallocate funds to other expenses or debts (refer back to our tip about paying off debts with high-interest rates first).   Related >> Should You Refinance Parent PLUS Loans?   ELFI offers student loan refinancing options for both parents and students, with some of the lowest student loan refinancing rates available and flexible terms. We also have no application fees, no loan origination fees, and no penalty of paying off your student loan early. See how much you could save with ELFI Student Loan Refinancing*.  

Set Up Biweekly vs. Monthly Payments

You might have noticed that some months, you get an extra paycheck. This is because the 52 weeks in a year don’t evenly divide into four weeks for every 12 months. You can take advantage of these extra four weeks by setting up biweekly loan payments. If your monthly payment is $300, and you readjust to paying $150 every other week, you pay the same amount each paycheck, but end up with an extra loan payment paid over the course of a year. This pays your student loan debt faster. Another bonus? This tip works for paying off any loans, not just student loans.   

Fully Understand Your Offer

Paying your child’s student loans, whether partially or in full, is a generous offer. It can help your new graduate get on his or her feet in the working world. It can also help free up money for dealing with other debts or life’s unexpected surprises. Since your offer also impacts your financial situation, be sure you fully understand the pros and cons. Consider how close you are to retirement, and if your 401k or other funds will suffer. Be aware of the balances and interest rates in your other debts.    Whether or not you chose to help your child pay their loan, student loan refinancing (or even refinancing your parent loan) can help avoid the hassle of multiple payments and get a more affordable rate and flexible terms. See if you qualify for student loan refinancing*.   
  *Subject to credit approval. Terms and conditions apply.   Notice About Third Party Websites: Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – the bank is not responsible for the content. Please contact us with any concerns or comments.