By: Taniah Tudor

In the faltering economy, more students are turning to financial aid to help with the costs of education, according to the UA Office of Financial Aid.

The financial aid office has already disbursed over $22 million more than last year at this time, said Kattie Wing, director of financial aid.

“Probably about 70 percent of students are using some kind of financial aid,” Wing said.

The number of students applying for loans and the number of loans being awarded has increased over the last two years, Wing said. The amount of financial aid awarded last year was up 9.4 percent from the previous year, and is up another 6.2 percent so far this year, she said.

Entering freshmen applying for scholarships, and the quality of both freshman and current student applicants, has increased, said Bryan Hembree, director of academic scholarships, making competition for scholarships tougher.

For resident undergraduates at the UA, college can cost more than $21,000 a year and as much as $30,000 for nonresident undergraduates, according to the UA financial aid Web site.

To receive financial aid, students must fill out a Free Application for Federal Student Aid, or FAFSA. Students should apply for financial aid early so everything can be ready when their classes begin, Wing said.

To be eligible for financial aid, students must be enrolled as a regular student in an eligible program, complete the application process through the Office of Financial Aid, not be in default on any Title IV loan or owe a refund on any Title IV aid, and be a citizen or eligible non-citizen, according to the financial aid Web site.

Students use loans, grants and work study to pay for school, or go only part-time to help manage the costs, Wing said. Some have employers who pay for tuition, but this area has decreased, she said.

Work study is one of the best forms of financial aid, Wing said, because the amount earned is not calculated as earnings when the student fills out his FAFSA the next year. If a student is awarded work study, Wing suggests he find a job as soon as possible.

Wing has noticed more veterans going to school and expects to see more students use the military to pay for school, she said. Active duty service members and veterans can receive a monthly benefit that is valued at nearly $40,000, according to Military.com.

This tax-free benefit can be used for tuition, books, fees and living expenses while earning a degree or certification, including undergraduate and graduate degrees, or attending trade school, according to the military Web site.

New G.I. benefits give many veterans who served after Sept. 11, 2001, full tuition and fees, a new monthly housing stipend and a $1,000 a year stipend for books and supplies, according to the military Web site, and also gives Guard and Reserve members who have been activated for more than 90 days since 9/11 access to the same G.I. Bill benefits.

Wing encourages students to live as economically as possible, she said. Students should remember that taking out loans could mean paying them back for the next 20 to 25 years, she said.

“It doesn’t matter how much money you make, there’s always going to be something more you want,” Wing said.

It’s important for everyone to make and save more than they spend, she said.

Students should watch their budget closely, Wing said. Some of Wing’s suggestions included buying off-brands in the grocery store, living close to campus and in a less expensive apartment, riding the bus and forgoing weekend trips.She also suggested students use the free child care on campus, which can save up to $1,000, she said.

Students can visit the Credit Counseling of Arkansas Inc. Web site and check out the financial tips link to find more ways they can save.

Sarah Derouen, a freshman journalism major, is one of the luckier students at the university. Derouen has scholarships and loans to pay for school, but her parents took out the loans in her name, mainly to help her build credit, she said. They will take responsibility for paying her loans, so she will be free of debt when she graduates, she said. Derouen is a nonresident student, and works during summer and the Christmas holiday. She is receiving about $5,000 in loans for the year and expects to receive about the same every year until she graduates.

Josh Goseland, a freshman mechanical engineering major, is receiving $6,000 in loans for the year in addition to scholarships and a Pell Grant, and he works part-time as well as attending school full-time, he said.

Goseland hopes to receive more scholarships in the future to minimize the amount he must take out in loans, he said.