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Chapter VII

  Alternative Funding

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Some colleges have their own co-op programs providing a nearly free college education for those willing to work on campus.  For more on this, check out Alice Lloyd College, Berea College, College of the Ozarks, Blackburn College,  Sterling College, and Warren Wilson College at Work Colleges.  Imagine graduating from college with little or no debt to hold you back from fulfilling all your dreams.  Only a few students are accepted each year at Deep Springs College in California, but those who make the grade never look back, and often go on to some of the nation’s elite universities.

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The federal government hires bright college students to keep the agencies running smoothly and offers the widest choice of work sites, academic opportunities and career fields through Student Educational Employment Program (SEEP).  The SEEP program is open to all undergraduates as well as graduate and Ph.D. candidates. Students should contact the office for co-op education at their college, or call the Federal Employment Information Center listed in the phone directory.

Members serve in teams of 10 to 15 and live on one of 5 Americorps campuses in the United States. Ventures may include setting up a new 911 system, leading a childhood literacy program, providing living assistance to the elderly, fighting forest fires, providing disaster relief and many other interesting projects. Skills for specific projects are taught before members begin their community efforts. Training in leadership, team building, citizenship and physical conditioning is provided. Americorps is open to all young adults ages 18 to 24. For more information, contact Americorps at 800-942-2677 or on the Internet at Americorps.

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Advanced Placement (AP®) classes are college-level courses available to high school students. According to the College Board, there are now 37 different AP classes covering 22 key subject areas, although not every subject is available in every school.  

(NOT IN THE BOOK) 

"One of the best strategies for reducing higher education costs is to apply to colleges where you apply within the top 20% to 25% of the applicant pool,” said Deborah Fox at Fox College Funding in San Diego.  See FoxFunding.

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7 alternative ways to pay for college (by Lucy Lazarony)

•  Source: Bankrate.com, N. Palm Beach, FL 2006.

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"You get some of your core curriculum out of the way for a cheaper price," says David Cooper,

the college-bound web site called College Answer.

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Overwhelmed by tuition prices and the prospect of paying massive student loans after you graduate? Why not attend a tuition-free school? You get the college education you want without the hefty price tag. The catch? You may have to work. Some schools require students to work 10 to 15 hours a week on campus and in jobs related to their majors.  Tuition-free colleges include The Cooper Union in New York, New York; Webb Institute in Glen Cove, New York; Berea College in Berea, Kentucky.; College of the Ozarks in Point Lookout, Missouri.; and Alice Lloyd College in Pippa Passes, Kentucky. (See Work Colleges)

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The Web is a great way to get started. Check out individual college Web sites, and search for scholarship sources on FastWeb,   ScholarshipCoach.com,  and  College Board.  Avoid web sites  that charge you to search for scholarships.

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The National Health Service Corps offers loan-forgiveness programs to physicians, nurse practitioners, physician assistants, midwives, dentists, dental hygienists, psychologists and therapists who work for 2 years in communities in great need of health professionals.

Several volunteer organizations also provide assistance with student loan debt. Peace Corps volunteers who complete a 2-year term can wipe out 30 percent of their Perkins loan balance. Student loan payments may also be deferred while serving in the Peace Corps. 

Members of VISTA receive educational awards of $4,725 for each year of service. These awards can be applied to student loans or future education expenses.

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                     ALTERNATIVE FUNDING IDEAS

SIGNING BONUS (NOT IN THE BOOK)

Signing bonus plus up to $20,000 via the Montgomery GI Bill when you join the Air National Guard.  See details at GOANG.

CLEP TESTS CAN SAVE STUDENTS THOUSANDS
The College-Level Examination Program ® or CLEP®, allows students to earn college credit for what they already know. The College Board has a special web site just for CLEP.

CREDIT BY EXAM
For those returning to college after a hiatus, one web site has an extended number of links to testing programs including CLEP, DANTES, and Advanced Placement, making it possible to accelerate your degree.  For more on this, check out Back to College.

START COLLEGE AS A SOPHOMORE

The surge in the number of students taking AP tests is changing America's schools. Nearly 2 million students recently took AP exams, a whopping increase over the number of the college-level tests taken a decade ago. "The Advanced Placement Program, which began as a tiny experiment for top seniors seeking college courses and credit, has swelled to the point of altering the high school experience," notes Ben Feller at the Associated Press.  "A few hundred public high schools used to offer AP; now two-thirds of them do."  High scores on Advanced Placement exams can save thousands of dollars by enabling students to enter college with sophomore status. For more information, click on AP Classes.

INCREDIBLE LOAN PAYBACK PROGRAM
The Office of Personnel Management (OPM) in Washington reports an increase in the number of students taking advantage of their student loan payback).  Basically the program is used to recruit or retain highly qualified personnel   for government agencies.  Each agency is authorized under 5 U.S.C. 5379 to offer the program to qualified employees, whether graduated or not.  The agencies are allowed to pay back $10,000 in student loans per year up to a maximum of $60,000.

What's the catch?  First of all there is no guarantee that you will automatically qualify for the program.  The loan payback program is part of the up front employment recruiting process that you negotiate.  Secondly, you must remain with the government for a minimum of 3 years.  If you leave ahead of that, you're required to reimburse OPM for the total amount of the loan payback.  Thirdly, the payback is taxable and the $10,000 will be taxed as ordinary income.  Make sure you get everything in writing.  For more information, click on Questions & Answers.

NATIONAL COMMISSION FOR COOPERATIVE ED

80 percent of the top Fortune 500 companies employ co-op students according to the National Co-op Commission.  As noted in Cost Effective College, students may earn as much as $14,000 to $18,000 annually through a college co-op program. One of the best co-op programs or summer employment opportunities can be found at the NSA web site.

BOOMING DISTANCE EDUCATION
As distance education continues to grow, students are now able to earn their Bachelor's or Master's Degree on their home computer at virtual schools like JIU and UofP, or online with UMUC, Moody or Liberty.  For an updated list of schools offering online degrees, log onto ClassesUSA.  One word of caution; be sure the school you choose is truly accredited by CHEA.

529 INVESTMENT FUNDS 
A 529 Plan may be a family's best investment tool to offset the increasing cost of college. It is also a great place for parents or grandparents to add to a student's college savings account without the usual tax consequences.   For more information and new savings plans, check out Comparative Plans, College Savings and Vanguard.

A DEGREE AND MASSIVE DEBT

Heather Schopp in California has nightmares about her student loan debt.  But then why not?  How many people owe $165,000 right out of college?  However, there is hope. Log onto Find Alternatives.