The TEACH Grant: The Teacher’s Pet Way Of Affording College

Posted on May 9, 2009 | Filed Under Articles

-By Brett Wallach

How The Teach Grant Program Can Help Prospective Educators

We all hear about how schools, especially those in low-income areas, are failing their students. The reasons for these failures are many and subject to debate. No matter what side of the political spectrum that you may be on, I think that we can all agree that good, dedicated teachers represent a vital solution to this on-going problem. The Teach Grant Program not only helps children in low-income schools, it can help your child get a good, affordable education, no matter what your income level.

Congress created the Teacher Education Assistance for College and Higher Education (TEACH; and you thought Congress couldn’t be clever) Grant Program in 2007 to provide grants of up to $4,000 per year to students who intend to teach in a public or private elementary school that serves students from low-income families.

There is no such thing a free lunch, and the TEACH Grant Program comes with certain conditions. They are:

• Completing the Free Application for Federal Student Aid (FAFSA), although you do not have to demonstrate financial need
• Enrolling as an undergrad, post-baccalaureate or grad student in a postsecondary educational institution that has chosen to participate in the TEACH Grant Program; not all schools do
• Enroll and/or complete course work necessary to be a teacher (this may include subject area courses such as Science courses for Science teachers, etc.)
• Maintain high academic achievement (typically scoring above the 75th percentile on a college admissions test or maintaining a G.P.A. of at least 3.25)
• Sign the TEACH Grant Agreement to Serve
• Teach in a “high-need” field (see below)
• Teach four academic years within eight calendar years of completing the program

Students must be aware of the fact that failure to complete the service obligation of the TEACH Grant Program will result in their grant being converted to a Federal Direct Unsubsidized Stafford Loan, meaning that the money granted, plus interest, would have to be repaid to the U.S. Department of Education; a six-month grace period is extended before the grant is converted to the above loan, however.

Schools serving low-income students, listed in the D.O.E.’s Annual Directory of Designated Low-Income Schools for Teacher Cancellations Benefits, are the ones at which the student receiving the TEACH Grant must work. You may access that Directory at: https://www.tcli.ed.gov/CBSWebApp/tcli/TCLIPubSchoolSearch.jsp.

High-need fields are those required for the program and include such areas of learning as Bilingual Education, Foreign Language, Mathematics, Reading, Science, Special Ed and other subject shortage areas listed at the following site: http://www.ed.gov/about/offices/list/ope/pol/tsa.doc.
Therefore, only those students who are really interested in teaching and ready to dedicate themselves to the profession, as well as those who truly want to work at low-income schools should utilize the TEACH Program.

It can be said that those who follow through on the TEACH Grant are not only helping themselves, but helping children and schools with the greatest need. And what is better than that? Does that sound too hippie-ish? Regardless, what a groovy way to help garner a college education and earn a living upon graduation!

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The Audacity Of The Hope Credit

Posted on May 8, 2009 | Filed Under Articles

- By Brett Wallach

A Way For Middle Class Students To Maximize College Funding

At a time when the economy is suffering and parents (like me) are wondering how to afford to send our prodigies off to school during these difficult times, the Hope Credit has been increased from $1,650 to $1,800 for parents with a modified adjusted gross income (MAGI) between $48,000 and $56,000, and twice those amounts if you are filing a joint return. Many middle class families fall between these numbers and for them, the Hope Credit may just be the ticket to make college costs somewhat easier to swallow.

Before you get a headache trying to figure out what all of the numbers mean, or before you ask your brilliant offspring to whip out their fancy calculators, I will try to make this as simple as possible (I understand; Math was never my strong suit either). The amount of the Hope credit (per eligible student) is the sum of 100% of the first $1,200 of qualified education expenses for the eligible student and 50% of the next $1,200.

The Hope tax credit reduces the income taxes that you may have to pay; unlike a deduction, which reduces your income subject to be taxed, the Hope credit is a nonrefundable credit, meaning that it directly reduces the taxes that you owe, down to zero if applicable! It must be added that, obviously, if the credit is more than the tax that you owe, the excess is not refunded to you.

The benefits are even greater for students attending an eligible educational institution in “Midwestern disaster areas”, defined as specific counties within Arkansas, Illinois, Indiana, Iowa, Missouri, Nebraska and Wisconsin. The Hope credit for students in these areas is 100% of the first $2,400 of qualified education expenses and 50% of the next $2,400. Thus, the maximum credit is double; $3,600 per student in these areas as opposed to the $1,800 per student elsewhere.

So…how many of you, like me have begun Googling bus transportation to Hope, Arkansas?

You don’t need to fret or move. No matter where you reside, the Hope credit can be a godsend for many middle class parents struggling with college costs, which keep rising while the value of our 401K investments and homes is decreasing, along with our incomes in many cases.

A caveat: the Hope credit would be in lieu of the lifetime learning credit; you cannot claim both. Generally speaking, if your total qualified education expenses for a student are less than $9,000, the Hope credit is the way to go.

If you pay qualified education expenses for more than one student in the same year (my unenviable fate in the very near future) you can choose to take credits on a per-student, per-year basis. This means that you can take the Hope credit for one student and the lifetime learning credit for another.

Look, nothing is going to make college cheap or the economy instantly rebound. The Hope Credit, is, if not really audacious, at least one of many means towards making our dreams of a college-educated child possible. Now as to retirement…anybody have any lucky Power Ball number suggestions?

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Are you a Scholarship Snob?

Posted on May 6, 2009 | Filed Under Articles

My youngest daughter is a money magnet. Whenever we go out, she finds money.

Sometimes it’s a penny. Sometimes a dime. Sometimes a quarter. It doesn’t matter – money always finds her and she picks it up.

There is no amount of money that is not worth bending over and picking up. And when she picks it up, she shouts at the top of her lungs “I’m a money magnet!”

On the other hand, my oldest daughter understands the difference between coins and she is starting to think pennies aren’t worth picking up. In her mind, they don’t have the same value as other coins. So I see her stepping over the same pennies that her little sister races to pick up.

What does picking up coins have to do with scholarships?

Like my oldest daughter – some parents and students step over applying for the smaller scholarships while investing all of their time on the competitive large dollar scholarships. They don’t see the value of the smaller scholarships. I call them scholarship snobs.

What is a scholarship snob?

A scholarship snob is a parent or student that can’t be bothered applying for the small dollar scholarships because they are focused on pursuing the big money scholarships.

But what they are overlooking is – money is money. No scholarship money is better than others. And the only person who is being harmed by you not applying for the smaller denomination scholarships – is you and your family.

What you don’t realize is . . .

You are more likely to get a $250 – $1000 scholarship than you are to receive a $10,000 scholarship.

That’s because when applying for scholarships, you are have the least competition for the smaller dollar amount scholarships. And you may have to apply for $30,000 worth of scholarships to obtain $10,000 worth of scholarships because you won’t get every scholarship you apply for.

Where is the best place to apply for scholarship money?

In a word – locally. Or through a relationships you already have. If you are looking for scholarships, now is not the time to be shy. Talk to your guidance counselors to find out about scholarships graduating seniors received. Explore fraternities, sororities, and service organizations like Elks, Kiwanis and Rotary. Your local school board may also have scholarship opportunities. Tell anyone and everyone you know that you are interested in applying for scholarships – no matter how big or small.

Why are you more likely to get smaller denomination scholarship?

Because your student is most competitive at the local level where there are fewer applicants and fewer students that are as bright and talented as your student.

The length, competitiveness and anxiety of the college application process has everyone relaxing once the first acceptance letter arrives. Both parents and students have spent their energy focusing on getting into the right college academically, so much so that applying for scholarships occurs for many like an after thought. And when they think about applying for scholarships, the investment of time seems to be better suited to applying for large dollar amount scholarships.

Parents and students who think there is no value in applying for smaller dollar amount scholarships are like the farmer in the Acres of Diamonds story who sold his farm to go out looking for riches when he had a field of diamonds in his backyard.

All scholarship money obtained is money that you don’t have to pay out of your pocket.

So the next time a scholarship application crosses your desk for $250, ask yourself “Am going to be a scholarship snob?

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