Financial aid programs in detail
Lots of details about how to pay for college
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Four major sources provide the bulk of student financial aid: The federal government, state government, college and university foundations, and private sources. The federal government is the largest single provider, underwriting 69 percent of all financial aid available. Washington has generous state need grants for those who qualify. Private sources of aid include scholarships from the CCS Foundation, companies and nongovernmental organizations.
Most student aid is need-based, awarded to students based on their or their families' ability to pay. Other aid is merit-based -- students receive it on the basis of their individual achievement, usually via scholarships.
Major student financial aid programs
Federal grant programs
Federal grant programs are aimed at the neediest students, providing aid that does not have to be repaid.
Pell Grant Program
The Pell Grant program provides grants to low-income undergraduates to help them pay for college. In 2008-09, Pell Grants provided up to $4,731 a year.
Supplemental Educational Opportunity Grant (SEOG) Program
The federal Supplemental Educational Opportunity Grant (FSEOG) program is for undergraduates with exceptional financial need. In 2008-09, SEOGs provided up to $4,000 a year.
Other federal grants
You may be eligible for additional federal grants, based on your financial circumstances. Be sure to check with the Financial Aid Office if you have any questions.
Federal loan programs
Federal loans are guaranteed by the federal government, designed to give students flexible repayment options and low interest rates.
Subsidized Stafford Loans
These are subsidized, low-interest (no more than 8.25 percent) loans based on financial need. If you're eligible for a subsidized loan, the government will pay (subsidize) the interest on your loan while you're in school, for the first six months after you leave school, and if you qualify to have your payments deferred. The maximum loan amount varies.
Unsubsidized Stafford Loans
These loans are offered at the same low rates as subsidized Stafford Loans, but the federal government does not pay interest for the student during in-school, grace and deferment periods. The maximum loan amount varies.
Parent PLUS Loans
These loans are available to parents of dependent undergraduate students, and have an interest rate of no more than 9 percent. The federal government does not pay interest during deferment periods. The maximum loan amount is limited to your cost of attendance minus any other financial aid you receive.
Work-study and other federal programs
Federal work-study (FWS) program
This program provides part-time jobs to undergraduates and graduate/professional students who use the earnings to finance their educational programs. Federal funds cover up to 75 percent of wages, with the remaining 25 percent or more being paid by colleges and universities or businesses. In 1997-98, this program provided $1.2 billion in federal work-study funds to approximately 990,000 students attending 3,900 postsecondary institutions. In 2001-02, average student earnings from the program were $1,230. Half of the recipients came from families with income less than $30,000.
Specialized federal programs
Federal aid is also available from a variety of agencies outside the U.S. Department of Education. This aid, including fellowships, internships, grants and loans, can be need- or merit-based, depending on the program. These programs include Graduate Assistance in Areas of National Need, National Science Foundation predoctoral fellowships (minority and general graduates), the Robert C. Byrd Honors Scholarship program, and college grants provided to volunteers in Americorps national service programs. These programs provided more than $2.7 billion to students in 2001-02.
Tax benefits for college programs
In addition to financial aid, students and their families have access to several federal tax benefits that help lower their college expenses. These benefits will provide $40 billion in student assistance over the next five years. Of that, $35 billion will be provided through the Hope Scholarship and Lifetime Learning tax credits.
Hope Scholarship tax credit
The Hope Scholarship tax credit allows students, or their parents or guardians, to claim up to $1,500 per student per year for out-of-pocket tuition and fee expenditures. This $1,500 tax credit may be claimed for the first two years of undergraduate study. The Hope credit is available to taxpayers with a gross income of up to $50,000 (up to $100,000 for joint filers). The credit is phased out on a sliding scale for taxpayers earning $40,000 and above (and $80,000 and above for joint filers).
Lifetime Learning tax credit
The Lifetime Learning tax credit allows college students or their families to claim up to 20 percent of qualified out-of-pocket tuition expenditures per year. The Lifetime Learning credit, which may be claimed for an unlimited number of years for both undergraduate and graduate study, allows qualified taxpayers to claim a tax credit equal to 20 percent of the first $10,000 spent on tuition and fees. The Lifetime Learning credit is available to taxpayers with a gross income of up to $50,000 (and up to $100,000 for joint filers). The credit is phased out on a sliding scale for taxpayers earning $40,000 and above (and $80,000 and above for joint filers).
Coverdell Education Savings Account
Coverdell ESAs are savings accounts to finance the education expenses of a child or other designated beneficiary. Contributions are limited to $2,000 per year and are not tax deductible. However, funds deposited into the account grow tax free until withdrawn to pay college tuition. Eligibility to make contributions to Coverdell Education Savings Accounts is phased out for contributors with modified adjusted gross income between $95,000 and $110,000 for single taxpayers ($200,000 and $220,000 for joint filers).
Deduction for student loan interest
The deduction for student loan interest allows borrowers to deduct interest paid on any loan used for college expenses. This deduction is available to all taxpayers, regardless of whether they take the standard deduction or itemize their deductions. The maximum deduction is $2,500 in 1998; $1,500 in 1999; $2,000 in 2000; and $2,500 in 2001 and thereafter. The deduction is phased out for single taxpayers with modified adjusted gross income of between $50,000 and $65,000 ($100,000 and $130,000 for joint returns).
Deduction for tuition and fees expenses
Beginning in 2002, up to $30,000 of qualified tuition expenses may be deducted from your taxable income. This deduction is available to all taxpayers, regardless of whether they take the standard deduction or itemize. There are no income phase outs, therefore this deduction may be beneficial to taxpayers who cannot take either of the education credits because their income is too high.
Exclusion for employee education benefits (Section 127)
This provision allows workers to exclude from taxable income up to $5,250 a year in undergraduate tuition assistance provided by their employers.
Washington State Need Grant
The State Need Grant (SNG) program helps the state’s lowest-income undergraduate students pursue degrees, hone skills or retrain for new careers. Students can use the grants at eligible institutions (public two- and four-year colleges and universities, and many accredited independent colleges, universities and career schools) in Washington.
Eligibility
To be eligible, you must:
- Submit an approved FAFSA - Free Application for Federal Student Aid
- Have a family income equal to or less than 70 percent of the state median (see chart below).
- Be a Washington state resident.
- Enroll at an eligible institution.
- Enroll as an undergraduate student in an eligible program at a minimum of three (3) credits.
- Be pursuing a bachelor’s degree, certificate or first associate degree.
- Not be pursuing a degree in theology.
- Not have exceeded five years of SNG term usage or exceeded 125 percent of program length.
- Not owe a repayment to another student aid program.*
Grant amounts vary by the type of school you attend. At Washington community colleges (including CCS), you are eligible for a maximum of $2,554 in 2008-09, plus an additional $803 for dependent care.
How to apply for SNG
You will be automatically be considered for a State Need Grant when you file a FAFSA and complete your application at Community Colleges of Spokane.
CCS Foundation scholarships
CCS offers hundreds of scholarships each year. Over the past year, we've given away almost $3 million in scholarship funds. Scholarship applications are due March 15 each year. Learn more about scholarships.
This summary was developed with the help of www.collegeispossible.org and the Higher Education Coordinating Board.