States, businesses and colleges are offering free college money so that parents can build up college savings accounts. Though free grant money is available to help students pay for college, there are a few catches too. However, parents need to be a little more careful while applying and signing up for anything. If there is anything that sounds suspiciously good may make you fall prey to a scholarship scam or a grant scam. Apart from that most of the grants money offered for free is comparatively modest. Since the start of the year 2009, around half a million people have signed up for one grant program or rebate program at least.
Given below are six ways to receive free grant money for college savings :
1. States
To encourage savers and boost college savings, different states provide free money for college. Some of the states target only low-income and medical-income families while there are others that provide free college grant money to boost the savers' college savings. States like Arkansas, Colorado, Michigan, Minnesota, Rhode Island and Utah in the United States target low and middle income families.
Deadlines to apply for these free grants vary from state to state. For some states, long application forms are provided to parents early every year while in other states free college grant application forms can be submitted till the end of May each year. In states like Utah, there is a limited availability of grant money for college. Therefore, parents need to check out the details of applying procedure and submission of free grant application depending on the state where they reside.
2. Employers
There are a number of employers that also provide parents free college money for students. To avail the grant benefits, parents need to open a 529 savings account before the arrival of the baby's first birthday.
3. Credit Cards
Companies like Fidelity and Upromise provide credit cards with rebate options. In some cases the rebate checks will be sent to the respective 529 accounts. Rebates offered on these credits may vary depending on the type of purchases you make. What is to be noted here is that credit card companies are not doing any charity. Of course, they are giving back but are making more money as borrowers continue to purchase. The rebate can range between 1 to 10 percent as per the item purchased.
4. Websites
There are many online companies and websites that also offer rebates to help save money for college. These websites have partnered with retailing companies. As shoppers click through these websites and make purchases from the retailers, the websites send cash back to shoppers.
5. Colleges
There are hundreds of colleges that offer free college grants to parents. To provide free grant for college, different companies work in collaboration with private colleges. To avail these free college grants, parents have a range of saving plans to choose from. For example, if a parent with a 10-year-old put around $29,000 in the plan today, may have the benefit of having paid a year;s tuition fees in 2017, amounting to around $40,000.
Most of these plans are only ‘Tuition Reward' plans. That means the plans do not cover expense for room, board, books etc. To receive the promised free college grant money, students need to attend the respective member colleges. In case, they do not attend the member colleges (as mentioned in the college savings plan), they are not going to receive a single penny. So, these are actually pre-paid plans available to parents for boosting their college money savings.
6. Relatives & Friends
Different online companies offer electronic tools to help parents get free college grant money. Suppose a relative or a friend of your want to present your child with a birthday gift or a graduation gift. Instead of giving the gift, they can have the option of donating to your college savings account. However, the donation money will depend on the number of wealthy relatives you have. Normally, the donated money (in the form of free college grant) will amount no more than $100.
