Category: Education

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Career & Education Children Education Family Government Grants

Education Grants for Single Mothers and Fathers

Education grants for single parents

We’ve all seen the ads talking about “grants for single mothers” or “go back to school now, forgivable loans”. But they always seem to feel like scams, and I’m left wondering many times if there is any authenticity to them. In most cases, they are exactly what they sound like: too good to be true.

Many end up leading to lists of financial aid links and programs that you can buy, while some others aren’t even legit websites and are just scams trying to take money and information from those looking for help.

With that in mind, there are some real educational funding programs that provide grants for single parents. There are also scholarship programs and educational grants for single parents that are based on skill and merit. Lastly, there are programs to help students pay off educational loans.

Federal Pell Grants

The Federal Pell Grant Program is one of the more well-known grant programs. It is not limited to only single mothers, despite being known as the “single mother grant”. Pell grants have helped many parents continue their education and boost their earning ability.

Federal Pell Grants are based strictly on financial need and are generally offered only to undergraduate students. To qualify for a Federal Pell Grant the applicant must first have filled out and filed a Free Application for Federal Student Aid or FAFSA. Applications can be filled out online through the official website. The 2020-2021 school year holds a maximum possible Federal Pell Grant amount of $6,345.

Federal Supplemental Education Opportunity Grants

The Federal Supplemental Education Opportunity Grant programs operate on a state-by-state basis. They are most frequently given to students who show the most need based on the information submitted in their FAFSA. Depending on the degree of financial need, awards up to $4,000 per year can be seen.

Academic Competitiveness Grant

This is another merit-based grant. The Academic Competitiveness Grant is specifically designed for first year college students and second year students who graduated in 2006 or after. It is awarded as a supplement to students receiving the Federal Pell Grant. Students can expect up to $750 for their first year and up to $1,300 for their second year.

Individual State Grants For Single Parents

In addition, a large number of states offer their own various grants and financial assistance options for single parents. These are less popular and often underutilized because fewer people know about them. Qualifications for each of these will vary by state. California’s version, called the Cal Grant is prioritized for low-income and otherwise disadvantaged families. These programs should have websites in coordination with the state, and more information will be available there.

SMART Grants

The National Science and Mathematics Access to Retain Talent Grant or SMART Grant is an award given to students in programs related to the sciences, such as mathematics, technology, engineering, and more. The recipients are determined by merit from third and fourth year Pell Grant students.

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Career & Education Education Government Grants

How to Finance Your Child’s College Education

pay for your child's college tuition

Finding out that your child has been accepted into college is most likely going to be one of your proudest experiences. But then the reality sets in of how much it’s going to cost to pay for tuition, fees, and even room and board for four years at a private college. With averages that top $30,000, paying for a college education isn’t as cheap as it used to be.

Thankfully, there are a handful of ways to make sure there is some financial wiggle room for when your little genius starts their higher education. Let’s take a look at the top ways.

1.   Federal Loans

This should be the student’s first stop If the funds haven’t already been saved. Filling out the Free Application for Federal Student Aid or FAFSA will help determine the amount of aid your student may be eligible for through federal and state programs. Some of these programs will be grants, but a major portion of the cost will likely be paid for by Federal Student Loans.

If your child is a dependent, they may also be eligible to get a Parent PLUS Loan, if you provide your information. It will depend on your credit, but it’s a fixed-rate and will cover up to the entire cost. The other option for federal loans is Stafford Loans.

2.   Private Loans

Even after grants, scholarships, and federal loans, depending on where your child is going to be enrolled, there still may be some costs due. This is where private student loans may be of benefit. They will often be at varying levels of interest, depending on credit, and each lender will have their own terms, just like with any other type of loan. Loans can be obtained either in the parent’s name or in the student’s with the parent as a co-signer.

3.   Leverage A 529 Plan

The 529 College Savings Plan is becoming increasingly popular these days. These savings plans allow a higher contribution than other savings plans, and the funds can be used for any college-related costs tax-free. The plan can be diversified significantly and offers a much better return than traditional savings accounts.

4.   Use Home Equity

This is one of the two “last resort” options. If you are the owner of your home you may be able to fund some or all of your child’s tuition with the equity in your home. This is not the highest-risk method, but it’s second in line. You can use either a home equity line of credit, take out a home equity loan, or even do a cash-out refinance. All carry some risk.

5.   Use Retirement Funds

This is an absolute last resort option. The type of funding available would depend heavily on the type of retirement account that was being drawn from. If this is an option you would like to pursue, you should reach out to your financial institution, as well as your tax professional, to discuss how to impact your retirement minimally.