Say to students, “You want to buy a new pair of sneakers, but you don’t have the cash. How many different (legal) ways can you think of to get the money for the sneakers?” Have the class brainstorm ways to raise money. (Among other things, students might suggest: ask a parent for cash, do chores or find a job to earn the money, borrow money.)

Tell students that just as there are different ways to raise or earn money for sneakers, there are different ways to raise or earn money to pay for a college education.

Purpose: Students determine the differences between scholarships, grants, and loans and identify questions about financial aid to guide their research.

1. Students understand the differences between scholarships, grants, work-study programs, and loans.

Tell students that the cost of college should NOT be the deciding factor in their selection of schools. Point out that two of the most expensive schools, Harvard and Stanford, give financial aid to more than half of the students they accept. Tell them that close to half of all college students receive some sort of financial aid. Also, many students work while going to school.

Divide students into eight groups and assign each of the following words to the groups (two groups will work on each word): “scholarship,” “grant,” “work-study,” and “loan.” Instruct each group to develop a definition for their word as they think it relates to financing college.

When students have developed definitions, ask each group to share their results with the class. You may want to have prepared definitions for each of these terms.

2. Students brainstorm financial aid questions.

Instruct each group to develop a list of questions that they have about financial aid and getting money for college. When groups have finished, ask a volunteer from each group to write their questions on the board or chart paper. Display the list for students to refer and add to throughout this lesson.

Purpose: Students research and report on sources of financial aid.

1. Students research financial aid sources.

Divide the class into pairs or small groups (about 14 groups). Have the following written on index cards and placed in a bag:

• Federal Stafford Loan
• Federal PLUS Loan
• Federal Perkins Loan
• Federal Pell Grants
• Federal Work-Study Program (FWS)
• Military and Veterans’ Programs
• Federal Supplemental Educational Opportunity Grant (FSEOG)
• Federal Family Education Loan (FFEL)
• [Name of your state] aid programs
• Athletic scholarships
• Aid for women
• Aid for people with disabilities
• Aid for ethnic minorities
• Local banks

Have each group pick a card from the bag. Then, have groups become financial aid “experts” about the program, group, or source of aid they have chosen. Tell each group that they are to find as much information as they can and that they will present that information to the rest of the class.

The following websites and books from the school library or guidance office will get students started on their research:

• www.fastweb.com
• www.finaid.org
• https://studentaid.gov/
• www.collegeboard.org

Give each group one or more copies of the “Here’s the Money” activity sheet to complete. Tell students to fill out this sheet with the information they find. Explain to students that at the end of class, you will photocopy all of the activity sheets, creating a class set for each student to use for reference in the future.

2. Student groups share their findings with the class.

Give each group time to prepare and present the results of their research to the class. Remind them to address the list of questions from Part I.

Students will discover that every federal financial aid program requires the Statement of Educational Purpose/Registration Compliance. Distribute copies of the “Statement of Educational Purpose/Registration Compliance” activity sheet. Read through the activity sheet with students and give them time to complete it.

3. Students learn about scholarship contests.

Tell students the story of Benjamin Kaplan, who won $90,000 in scholarship contests. He discovered that most scholarship applications asked for an essay, a list of activities, an academic transcript, and letters of recommendation. Kaplan wrote several essays and adapted them for each scholarship. His themes included college plans, career goals, and future contributions to society. He entered large national contests and contests available to local students or members of organizations. His hunt began in his senior year, but he discovered that there are contests for younger students, too.

Purpose: Students examine the FAFSA form.

1. Students work with partners to read through the FAFSA form.

Give each pair of students one FAFSA (Free Application for Federal Student Aid) form and a highlighter. Tell students to read through the form and highlight any lines or directions that need clarification. Then instruct students to use the resources from Part II to answer each other’s questions.

When students have finished working, have each group share what they found. Clarify for students as needed.

2. Students begin to fill in the FAFSA form.

Help students begin to fill in the form to the best of their ability. If they do not finish the form in class, or if students need help discovering some of the information on the form, have them complete it at home with their parents or guardians. Remind students that their parents/guardians may not want to share their financial information with them. When the time comes to submit the FAFSA to schools, parents/guardians might choose to complete and submit it without sharing it with students. Tell students to keep these forms in a safe place so they can use them when they are applying to college.

Elicit students’ opinions regarding how this lesson has changed their thinking about pursuing a college education. Elicit from them the following key points that were taught in this lesson:

• There are many different ways to pay for a college education.
• There is money for college available from schools; local, state, and federal governments; and the private sector. There are also scholarship contests that students can enter. 
• Applying for any kind of financial aid involves research and filling out forms carefully, honestly, and on time.