Community College Students Are Missing Out on Federal Financial Aid
Here's a bright spot in the midst of dark news about the economy: there's money from the federal government for community college students. That's the good news.
The bad news: U.S. Department of Education researchers were surprised to learn that nearly 40% of community college students who may be eligible for federal financial aid don't apply for it.
Here's what you need to know about community college students and federal financial aid eligibility.
Federal financial aid is not just for traditional 4-year on-campus college students
Many community college students who are older than the traditional college freshman see themselves as workers rather than students. In fact, 66% of community college students only go to school part-time because they also hold fulltime or part-time jobs.
But being a working professional who's trying to earn a degree in your "free" time doesn't mean you're not a real student! As a result of the Higher Education Act of 1965 (just updated and renewed in 2007), federal student aid is available to all qualifying students who attend an accredited college, university, or career education school included in the U.S. Department of Education's Title IV classification.
Title IV is the part of the HEA that acknowledges that schools have been accredited in such a way that their students may use federal financial aid to pay for those higher education expenses.
Federal student aid is based on financial need, not type of student
Federal financial aid eligibility is allocated according to financial need. Qualification requirements are basic and include:
- U.S. citizenship,
- a high school diploma or GED,
- the number of hours you're enrolled in your postsecondary program,
- choosing a legitimately accredited school that participates in the Title IV federal financial aid program,
- choosing an education program that qualifies for federal financial aid, and
- proof of financial need, which you document by filing a FAFSA.
Federal financial aid updates that apply to community college students
Federal financial aid policies applicable to community college students have been updated over the last couple of years.
- The limit on student or family income — the income cap — has been been raised from $20,000 to $30,000. If your family's income (or yours) is under $30,000, you're not expected to contribute anything to your college costs. Also, the income cap will automatically be increased every year from now on because it's tied to the consumer price index.
- The income protection allowance has been increased. This means that if you work in addition to going to school, the amount of federal student aid you may qualify for won't be reduced just because you're making money.
- The amount of the Pell Grant was increased. For the 2009-2010 school year (July 1, 2009 through June 30, 2010), the maximum Pell Grant is $5,350. For the 2010-2011 school year (July 1, 2010 through June 30, 2011), the maximum Pell Grant increases to $5,550. Pell Grants are awarded on a sliding scale. The amount you may get will depend on your FAFSA.
- If you lost your job within a certain period of 2008-2009, you can keep your unemployment benefits even if you're awarded a Pell Grant. Ask your community college financial aid administrator if your financial circumstances qualify you for this benefit.
If you're a community college student who doesn't have quite enough money to cover all your education expenses, it's worth your while to apply for federal student aid. You may be surprised to learn that you qualify for a federal grant. If not, then low-cost federal loans are still a much better deal than private loans.
Get matched to education program that works for you
Sources: 1) "Many Community-College Students Miss Out on Aid—Because They Don’t Apply," Beckie Supiano, The Chronicle of Higher Education, October 7, 2008
2) "Apply to Succeed: Ensuring Community College Students Benefit from Need-Based Financial Aid," Advisory Committee on Student Financial Assistance, U.S. Department of Education