Financial Aid and Financial Literacy

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Choosing how to pay for college is often one of the first major financial decisions that young adults make. Financial literacy education can provide an understanding of how to manage personal finances, establish financial goals, and form a plan to reach them.

What is Financial Aid

Types of Financial Aid

Examples of Grants

Pell Grant, FSEOG, WCG, College Bound, LWTech Grant

  • Money that does not have to be paid back
  • Usually awarded on the basis of financial need

Washington College Grant (WCG)

The WCG (formerly the Washington State Need Grant) program helps the state's lowest-income undergraduate students pursue degrees, hone skills, or retrain for new careers.

Eligibility Criteria
  • Be a Washington State resident
  • Demonstrate financial need through your family income reported on the FAFSA/WASFA
  • Attend classes at one of the eligible institutions in Washington
  • Enroll in an eligible program with a minimum of three credits as an undergraduate student
  • Pursue a first bachelor's degree, a certificate, or a first associate degree in any field of study excluding theology
  • Make Satisfactory Academic Progress (SAP). 
  • Not exceed five years of WSNG term usage or 125% of enrolled program length
  • Not owe a repayment to another student aid program

Scholarships

Examples of Scholarships

LWTech Foundation, Outside Organizations

  • Money that does not have to be paid back
  • Awarded on the basis of merit, skill or unique characteristic

Learn about Scholarships at LWTech

  • Money students and parents borrow to help pay college expenses
  • Only borrow what is really needed
  • The interest rate on federal student loans is almost always lower than that on private loans — and much lower than that on a credit card
  • You don't repay your federal student loans until after you leave college or drop below half-time status
  • Look at loans as an investment in the future

Work Study provides part-time jobs to students with financial need.

  • Allows student to earn money to help pay educational costs
  • Number of hours and place of employment are college-based
  • Job duties vary and hours can be more flexible to accommodate your class schedule each quarter.

 

Repaying Your Loans

Understanding how to repay your federal student loans can save you a lot of time and money.

Sample Monthly Repayment Amounts

1. Average Loan Balance (2-year public school, upon graduation)

Average Loan Balance: $9,962

Interest Rate: 3.9%

Standard Repayment: $100/month

Total Loan Payment: $12,047

2. Average Loan Balance (4-year public, upon graduation)

Average Loan Balance: $26,946

Interest Rate: 3.9%

Standard Repayment: $272/month

Total Loan Payment: $32,585

 

Consequences of Default

 The consequences, which can be severe, include the following:

  • The entire unpaid balance of your loan and any interest you owe become immediately due.
  • You can no longer receive deferment or forbearance, and you lose your eligibility for other benefits, such as the ability to choose a repayment plan.
  • You will lose eligibility for any additional federal student aid.
  • The default will be reported to credit bureaus, damaging your credit rating and affecting your ability to buy a car or house or to get a credit card.
  • Your tax refunds and federal benefit payments may be withheld and applied toward repayment of your defaulted loan.
  • Your wages will be garnished. This means your employer may be required to withhold a portion of your pay and send it to your loan holder to repay your defaulted loan.
  • and more…

Where to Start

FAFSA

Qualifying for FAFSA

  • You are U.S. Citizen or eligible noncitizen
  • Have a high school diploma or GED
  • Enrolled in an eligible program
  • Register for Selective Service (males)
  • Make satisfactory academic progress
  • Are not in default on a student loan
  • Have not been convicted of drug offense
  • Do not owe a repayment of federal financial aid

WASFA

Qualifying for WASFA

The Washington Application for State Financial Aid (WASFA) is a free application for undocumented students/DREAMers to apply for student financial aid.  Upon successful completion of a WASFA, the college(s) you choose will use the information you provide to determine your eligibility to receive Washington State financial aid, including the Washington College Grant (formerly the Washington State Need Grant), the College Bound Scholarship, or State Work Study.

Undocumented students need to meet one of the following standards:

  • DACA Standard - Washington will continue to offer state financial aid and in-state tuition to students with DACA and who meet requirements
  • 1079 Standard - You must graduate from a Washington high school (or earn a GED or equivalent) after living in Washington for at least three years

If you meet this standard, you could qualify for two benefits:

  • In-state tuition rates
  • Washington College Grant (if applicable)

Personal Finances and Budgeting

While you're in college or career school, you'll need to learn how to manage your finances, plan for changes, and prepare for the unexpected. Budgeting will help you build decision-making skills and reach your financial and academic goals.

Credit and Debt

 The difference between credit and debt is essentially a story of "before" and "after."

  • Credit is the ability to borrow money, while debt is the result of borrowing money.
  • When you use credit, you create debt.
  • The more responsible you are at managing your debt, the more access you may have to credit in the future.