Financial Aid, Q&A
How do I apply for Federal Financial Aid?
To apply for federal financial aid, you must complete the Free Application for Federal Student Aid (FAFSA). You can apply on the Web at www.fafsa.ed.gov. For general questions call 1-800-4-FEDAID. Hard copies of the form are available from any local high school counselor or college financial aid office. To download the form from the web, go to: FAFSA Express at http://www.ed.gov/offices/OPE/express.ht....
Are Distance Learning Students eligible to claim the Hope Scholarship?
Yes, however a student must be enrolled at least part-time and must be working towards a degree during their freshman or sophomore years at an eligible institution.
What is the Hope Scholarship?
President Clinton signed the HOPE Scholarship into law in 1997. The goal of the legislation is to make the first two years of college universally available. Taxpayers in their first two years of college (or other eligible post-secondary training), will be eligible for a tax credit equal to 100% of the first $1,000 of tuition and fees and 50% of the second $1,000 (the amounts are indexed for inflation after 2001). The credit will be available on a per-student basis for net tuition and fees (less grant aid) paid for college enrollment after December 31, 1997. The credit is phased out for joint filers between $80,000 and $100,000 of income, and for single filers between $40,000 and $50,000 (indexed after 2001). The credit can be claimed in two taxable years (but not beyond the year when the student completes the first two years of college) with respect to any individual enrolled on at least a half-time basis for any portion of the year. For more information consult the IRS at http://www.irs.ustreas.gov/prod/hot/not9....
What is the Lifetime Learning Credit and does it apply to distance learning students?
The Lifetime Learning Credit applies to distance learning students, and it is more flexible than the HOPE Scholarship. A student does not need to be enrolled for a minimum number of courses, and as long as the course is either in a degree program or is taken to improve job-related skills it is eligible. All University Access courses would be eligible.
The Lifetime Learning Credit is for college juniors, seniors, graduate students and working Americans who are pursuing lifelong-learning to upgrade their skills. For those beyond the first two years of college, or taking classes part-time to improve or upgrade their job skills, the family will receive a 20% tax
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