As I continue finding ways to save money by scrimping (and trying to save for a house, argh!), I’m having to get creative on funding my education. This year my Quickbooks income and expense report is calculating that I have made less money than in previous years from January through March. Because I’ve reduced many of my extraneous expenses and paid down my credit card debt, I’m not feeling the difference on a day-to-day basis, but my savings account is definitely showing it! Usually by this time of year, I have an overflow of cash ranging from a $1,000 to $5,000 that I can place in savings and portion some of that off to fund next semester’s tuition. Since this year is a little tight, that extra money towards tuition hasn’t showed up yet.
I’ve started researching a few non-debt inducing options, meaning alternatives to taking out another student loan. Grants and scholarships are my number one focus and my best options. Scholarships are awards that do not have to be repaid and the probability of receiving one is pretty good considering many students don’t apply for them, so there is less competition. I’m currently working on applying for two scholarships that would cover a third of next semester’s tuition. I’m guessing that the reason most students don’t bother applying is the gathering of the paper work needed; college transcripts, a summary of why you are the best candidate for the reward, and recommendation letters. Many students may have difficulty managing their time and completing the required paper work, this works to my advantage.
Grants are yet another option. Some of them are monies that do not have to be paid back, while others do require repayment if the grant requirements are not fulfilled. One of these grants that I’ve been batting around my head is the Teach Grant. The Teach Grant will “lend” a student up to $4,000 a year towards tuition and books. This grant does not need to be repaid if the following requirements are met within 8 years of graduation:
- Teach full-time in a high-need area (like math and science)
- or at a low-income school
- for four academic years within an 8-year period
This doesn’t sound all that demanding. However, it means that I must be hired at particular schools since not all schools are eligible for the Teach program. It also means that if I am hired at a school I don’t like, I’m technically “stuck” there until I’ve completed my 4 years of teaching. Another problem I am having with this program is that I would have 8 years to complete it. It sounds like plenty of time, but in the area I live in there aren’t any teaching positions available (I’m not exaggerating). I’m a little concerned that I won’t be able to get a job right away. If the terms are not met, the entire sum of money that is borrowed must be paid back in full including interest charges (it converts to an unsubsidized Stafford Loan).
I currently substitute at a local elementary school. I love working there, I know all of the kids and am on friendly terms with the teachers. The teachers really want me to be a part of their faculty (they tried last year to hire me – a RIF’d teacher took the position). Not only is this school not eligible for the Teach Grant program, they are facing having to displace some of their current teachers because of our state’s severe budget crisis. Since getting hired at my local school is looking a bit slim right now, I think I’ll continue subbing and working towards my bachelor’s degree in early education. Maybe in a couple of years, they will be able to hire outside of the district’s pool of teachers. So, for now, I’m holding out and not applying for the Teach Grant.
What are your experiences with grants? Does anyone you know currently have a Teach Grant they are working on completing?
5 Comments
@Simple in France – The grant you mention sounds similar to the teach grant. I could apply for a single subject credential along with my MS credential, however I’m not sure I have enough math or science classes in my undergrad to qualify. Yes, CA really stinks when it comes to a steady teaching job. At least I’m still able to sub and I guess eventually I will be able to secure a job. Thanks for the information, I will look into a single subject credential as well. 😉
I realize this is a 2 year old post, but the requirements are (as of May 2012):
Teach full-time at a low-income school AND in a high-need area (like math and science) for four academic years within an 8-year period.
I was offered the TEACH grant and I may take it, even knowing the likelihood of being able to fulfill the requirements are slim to none in this economy, and in our rural area. Teaching jobs just are not available. But knowing that it will turn to a loan, I’m ok with that. Our family has been struggling a lot and my husband’s pay has been steadily going down over the last few years, we are even on food stamps. I don’t want to be $4,000 more in debit than I already am, but I’m more concerned about being able to get our bills paid right now. 🙁
Thank you for your take on this!
@Adriana – I think the Teach Grant is a good option and who knows, maybe things will get better in a couple of years. You have up to 8-years to fulfill the Teach grant requirements. Good luck!
I used a Teach Grant to help pay for my Graduate degree. I was already teaching and was confident I would easily meet the requirements and not have to pay it back. Somewhere along the way I neglected to fill out ONE essential piece of paperwork and my grant converted to a loan. I have been trying to rectify the mistake for a year, with no luck. I have found the beaucracy frustrating to navigate and the people at the other end very unhelpful. I am currently complying with the stipulations of the grant AND took a pay cut to work at a high-need school, but am paying the grant back as a loan because of this one error in paperwork. Be very careful if you take this grant. Keep very good track of your paperwork!
@Diana – Great point. I know that there is a lot of paperwork involved with these grants. I ended up taken out a small portion of this grant and am working on getting a job. Thanks so much for sharing your experience.