Learn about Funding for Education
Facts about MDCS/ MassHire Career Center Funding
While you are selecting your training program, you also need to think about how you will pay for your training. If you do not have the funds to pay for training, you will need to investigate sources for financial assistance.
It is important to remember that MDCS has no funding to pay for your training.
Under the Workforce Investment Act, you may be eligible to receive funding to pay for some or all of your training costs through a MassHire Career Center. This funding is called an Individual Training Account or ITA.
Eligibility for an ITA is determined by income, residency and other criteria established by each of the state's 16 workforce areas.
In order to be eligible for an ITA, the training provider you select must also be on an approved vendor list, certified by the appropriate workforce area.
In addition, some areas may not have funding available, and most areas have a limit on the amount that may be available to each customer who is approved to receive training funds. The maximum amount of funding will vary depending upon the funding limit set by each of the 16 areas.
Making Sense of Scholarships and Grants
According to salliemae.com, "Grants and scholarships are forms of financial aid that do not have to be paid back. Some grants and scholarships are based on financial need, others are awarded based on achievement, religious affiliation, ethnicity, memberships, hobbies or special interests."
Beware of some private scholarship search services that lure you with promises of free financial aid. Many of them do not deliver. Their services can cost up to $150 or more; they may provide listings of sources of private and other financial aid that you can apply for, but all too often these sources can be limited and not all applicants will receive awards.
To check the reputation of a particular scholarship service, contact the Consumer Complaint/Information Section of the Massachusetts Attorney General's office at (617) 727-8400.
A more reliable resource for scholarship information and listings is at your local high school, vocational school or college. The financial aid office there will likely have information on public and private scholarships that are available at no cost or for a minimal charge.
Find Out About Education Loans
Before you take out a loan, particularly one offered by a vocational school, make sure you get the following information from the school and the lender about:
- Loan limits, loan fees, and interest rates
- Loan consolidation and refinancing
- When you can postpone repayment of your loan and provisions for loan cancellation;
- Estimated monthly repayment amounts
- Consequences of failing to repay your loan on time
- Your rights and responsibilities as a borrower
You should be aware that when you sign for a student loan, you must repay that loan according to the terms of the loan contract. This applies even if you do not finish the course or are not satisfied with the program.
Education Funding Strategies
To get the funding you need, start your search early.
- Meet with staff at the financial aid office at the school or training facility you're interested in attending to learn about financial resources that are available to you.
- Student aid may also be had from other federal agencies, such as the U.S. Public Health Service and the U.S. Department of Veterans Affairs. If you (or your spouse) are a veteran or dependent of a veteran, educational assistance may be available through the Montgomery GI Bill, or the Massachusetts Army National Guard Educational Assistance Program.
- Check foundations, religious organizations, labor unions, fraternities or sororities, and town or city clubs. Include community organizations and civic groups such as the American Legion, YMCA/YWCA, 4-H Club, Elks, Kiwanis, Chamber of Commerce, and the Girl or Boy Scouts.
- Check possible sources of aid from professional organizations connected with your field of interest. Your public library likely has various directories of associations.
Federal Aid
The following information is adapted from the U.S. Department of Education Web site, www.ed.gov.
The HOPE Scholarship
The Taxpayer Relief Act of 1997 signed by President Clinton created the $1,500 HOPE Scholarship Program, aimed at making the first two years of college accessible to all Americans. Here's how The HOPE Program works: For students in the first two years of college (or other eligible post-secondary training), taxpayers are eligible for a tax credit equal to 100 percent of the first $1,000 of tuition and fees and 50 percent of the second $1,000. (This is subject to change.) The credit is available on a per-student basis for net tuition and fees (less grant aid) paid for college enrollment.
The credit can be claimed in two taxable years (but not beyond the year when the student completes the first two years of college), but the individual participating in educational training must be enrolled on at least a half-time basis for any portion of the year.
Pell Grant
The following information is adapted from The Student Guide to Financial Aid from the U.S. Department of Education.
A Pell Grant is a federally funded program where eligibility is based on demonstrated financial need. A Pell Grant does not have to be repaid. Funds are awarded to students enrolled in undergraduate programs but who have not yet earned a bachelor's or professional degree (A professional degree would include a degree such as in the field of pharmacy or dentistry.)
How much you can get depends upon:
- the cost of attending the training;
- whether you attend full-time or on a part-time basis;
- whether you attend school for a full academic year or less; and
- a government formula known as the EFC or Expected Family Contribution.
If you're collecting UI benefits, you may be eligible for Pell grants and other financial aid to assist you in paying for education and/or job training. Learn more.
Federal Supplemental Educational Opportunity Grant (FSEOG)
A Federal Supplemental Educational Opportunity Grant is for undergraduate students who demonstrate financial need. Priority is also given to those who receive Pell Grants. The financial aid office of the local educational institution awards this grant.
Like the Pell Grant, eligibility is based on demonstrated financial need. Funds are available to undergraduate students enrolled at least part-time in a degree program. Like the Pell Grant, the money you receive does not have to be repaid.
While the U.S. Department of Education guarantees that each participating school will receive enough money to pay for the Federal Pell Grants of its eligible students, there is no guarantee that every eligible student will be able to receive an FSEOG. Students at the approved education institutions are awarded these grants based on the availability of funds.
Stafford Loan
The U.S. Department of Education administers the Stafford Loan. There are two types:
- Subsidized, which is based on student need and awarded as financial aid by your school. The government pays the interest while you are in school and for six months following graduation.
- Unsubsidized, which is available to all students, regardless of need. The borrower is responsible for the interest, not the government.
The government does set borrowing limits. To qualify for a Stafford Loan, applicants must complete a FAFSA (Free Application for Federal Student Aid). Information on how to obtain this application is provided at the end of this guide.
Federal Lifetime Learning Credit
This program was created for those beyond the first two years of college, or taking classes part time to improve or upgrade their job skills. The Lifetime Learning Credit enables families to receive a 20 percent tax credit for the first $5,000 of tuition and fees through 2002, and for the first $10,000 thereafter. Credit is available on a per-taxpayer (family) basis.
State Aid for Education
The following information on state aid is adapted from the Web site of Bridgewater State College, www.bridgew.edu.
Access Grant Program
The Massachusetts Community College Access Grant Program reduces the tuition and fees at community colleges for students enrolled in associate degree programs. Individuals with a household income of $36,000 or less can receive financial assistance that will meet the full cost of tuition and fees. Contact a financial aid counselor at the community college of your choice for further information.
Tuition Waiver
The Tuition Waiver program is funded by the Commonwealth of Massachusetts and awarded by the financial aid office of local educational institutions, including community and junior colleges. Eligibility is based on demonstrated financial need and is available to Massachusetts residents enrolled full-time in an undergraduate program. This benefit applies to state funded undergraduate degree courses only. MASSGrant Program
Funded by the Commonwealth of Massachusetts, MASSGrant eligibility is based on demonstrated financial need and is available to state residents enrolled full-time in an undergraduate program. This money does not have to be repaid since it is considered to be "gift aid." To qualify, applicants must file a Free Application for Federal Student Aid or FAFSA in the spring.
MASSGRANT Performance Bonus Program
Also funded by the Commonwealth of Massachusetts, eligibility is the same as the general MASSGrant Program, but has the following two criteria:
- Students must have cumulative grade points average or GPA of at least 3.0
- Students' expected family contribution or EFC as determined by a federal needs analysis must be (0).
To qualify, applicants must complete a Free Application for Federal Student Aid or FAFSA.
Online Resources for Financial Aid
www.ed.gov
To receive information on federal and state grant, loan and scholarship programs.
www.mass.edu
Provides information on financial aid from the Commonwealth's Board of Higher Education.
www.salliemae.com
Contains information on paying for college costs from Sallie Mae, a leading provider of educational loans. Check out the information on "scholarship scams."
www.masscc.org
Comprehensive source for information on Massachusetts' 15 community colleges.