A major obstacle that all students must overcome is the cost of attending any post-secondary opportunity. College can be expensive and may be more of a challenge for a student with a disability if the person is on a fixed income. However, there are several programs and opportunities that may be helpful. Most families pay for college using some combination of income, savings, scholarships, and financial aid (federal, state, and from a post-secondary school). In addition, many students with disabilities may qualify to have some (or all) of their higher education costs paid for by federal or state vocational rehabilitation funds or via a Medicaid waiver service.

Understanding your options can help you make the right decision for your personal situation. There are several types of financial aid including grants (typically do not have to be repaid), federal or private loans (a sum of money that is expected to be paid back with interest), and scholarships (typically do not have to be repaid but may have achievement criteria to maintain funding). 

Most grants are need-based. This means that they are usually awarded based on your or your family’s financial situation. Most scholarships are merit-based. This means that they are awarded to students with certain qualities, such as proven academic or athletic ability. Many scholarships have rules to maintain funding. For example, you may need to maintain a minimum grade point average (GPA) to continue receiving aid. Most student loans must be paid back, most with interest. 

It is important to begin your research with sources that do not use your own savings or income. It is generally best to apply for grants, scholarships, and lastly federally backed or private loans. If you have a disability you will also want to speak to a case manager with a vocational rehabilitation service agency to explore all of the support they may be able to provide. Lastly, if you have a Medicaid waiver service, your case manager will be able to help guide you through all of the options that your waiver service may provide. 

First Step: Every student’s (and potentially a guardian or supporter) first step is to complete a Free Application for Federal Student Aid (FAFSA) which may allow them to access a variety of grants, federal grants, work-study programs, and subsidized or unsubsidized loans. Additionally, most post-secondary schools will use the data from the FAFSA to also match the student with potential funding that the school may have available. Many schools and some states award financial aid on a first-come, first-serve basis, so it is important to complete your FAFSA as early as you can.

Federal grants and loans

After every student completes the Free Application for Federal Student Aid (FAFSA) you will receive a notification of the award.  

Federal Pell Grant: This need-based grant is usually awarded to undergraduates only. The amount available to any qualifying student changes from year to year. It also depends on a variety of factors such as your FAFSA information, cost of attendance and student enrollment status.

Federal Supplemental Educational Opportunity Grant (FSEOG): This grant is administered directly by your college's financial aid office, but not all colleges participate. If eligible, there are a range of awards available depending on your financial need and the availability of funds at your school.

Federal work-study Program: Provides part-time jobs to undergraduate and graduate students with financial need to help earn money for college expenses.

Federal student loans - Federal student loans are funds borrowed from the U.S. government and must be repaid, usually with interest. All federal undergraduate loans have a fixed interest rate, determined by Congress. These loans usually don't have to be paid back until after graduation, but students can begin making interest-only payments while in school. The sooner you repay your loan, the less money you will pay in interest.

There are two types of loans for undergraduate students: Federal Direct Subsidized and Federal Direct Unsubsidized. You may be able to qualify for one or both of these types of federal loans. The difference between the subsidized and unsubsidized loans is that the government pays the interest on the subsidized loan while you're in school (at least half-time enrollment) and during the first six months after you leave school (known as a grace period). Federal Direct Subsidized Loans are only available to students with financial need, so not all students qualify for them. For Federal Direct Unsubsidized Loans, financial need is not a requirement, but you're responsible for the interest throughout the entire life of the loan. 

Federal Direct PLUS Loans: These loans are available to eligible parents with students attending college, graduate students and professional students. Direct PLUS Loans are always unsubsidized.

Scholarships

A growing number of scholarships are available for students with disabilities. These awards can significantly lower the cost of earning a degree by thousands of dollars and do not have to be repaid. 

• Best Colleges: Scholarships for Students With Disabilities (https://www.bestcolleges.com/resources/diversity-equity-inclusion/disability-scholarships/)

• College Board Scholarship search  (https://bigfuture.collegeboard.org/scholarship-search)

• ThinkCollege lists (https://thinkcollege.net/sites/default/files/files/resources/HTTC11_Scholarships_update%202024_R.pdf )

• Check with your local providers, groups, and organizations. Many disability-focused and service-oriented groups have scholarships available. 

• Lastly many churches, veterans’ groups, rotary clubs, businesses, foundations, banks, and others offer annual scholarships are part of their community programs. 

Vocational Rehabilitation (VR) funds may be available from your state’s Vocational Rehabilitation agency (various names are often used: DVR, Workforce Rehab, and many others). Vocational rehabilitation is a process that enables people with disabilities to overcome barriers to accessing, maintaining, or returning to employment, accessing higher education, or learning other useful occupations. While multiple federal agencies may be involved in supporting vocational rehabilitation efforts, there is typically only one state agency or department that works directly with a person with a disability. VR services can include, vocational evaluation, job development and placement, training, and employment counseling. 

Vocational rehabilitation funds are a great way to pay for post-secondary school and can cover tuition and fees at college as well as other school-related costs, such as assistive technology, books, class supplies, parking passes, room and board, and transportation. 

• Understanding Vocational Rehabilitation: Think College (https://thinkcollege.net/resources/resources-by-topic/vocational-rehabilitation)

Waivers Services can help pay for college-related expenses for people with disabilities, but it depends on the state and the type of waiver. 

Home and Community-Based Services (HCBS) is the most common type of Medicaid waiver and oftentimes can help pay for tuition, fees, transportation, peer support, and career counseling. However, Medicaid waivers cannot be used for housing, food, or books. Each state has a wide variety of waiver services, oftentimes limited availability, long or short waiting lists, and various qualifications that have been developed by each state. In short, each person wishing to use waiver service funds for college will need to speak with their service provider, plan manager, and or managed care organization to understand the requirements for accessing funds.

• Can Medicaid waivers help pay for college? Think College (https://thinkcollege.net/think-college-news/can-medicaid-waivers-help-pay-for-college)

Any combination of the above options can be used while many families of students with disabilities pay any remaining balances with a 529 savings plan, an ABLE account, or with personal savings. 

Private pay (personal income of the student and family)

Using private funds or personal savings can still have favorable tax considerations for both the student and parents (https://www.irs.gov/pub/irs-pdf/p970.pdf). This publication explains tax benefits for 2023 tax returns that may be available to you if you are saving for or paying education costs for yourself or, in many cases, another student who is a member of your immediate family. Most benefits apply only to higher education.

There are other tax-advantaged savings vehicles such as 529A Plans. 529 Education Plans are savings and investment accounts operated by a state or educational institution, with tax advantages and potentially other incentives to make it easier to save for college and other post-secondary training. The owner of the account is typically not the designated beneficiary who would be the student going to a post-secondary school.  

Earnings (capital gains) are not subject to federal tax and are generally not subject to state tax when used for the qualified education expenses of the designated beneficiary, such as tuition, fees, books, as well as room and board at an eligible education institution.

Learn more about state 529 plans (https://www.irs.gov/newsroom/529-plans-questions-and-answers).

An ABLE account is a savings and (or) investment option for people with disabilities who qualify. This 529 option is built on Section 529A of the Internal Revenue Service tax code. The ABLE Act allows a person whose disability began before age 26, to save money in the ABLE account without affecting most federally funded benefits based on need. The money in the account may be used to pay for qualified disability expenses including higher education costs. 

Learn more about ABLE Accounts (https://www.ablenrc.org/what-is-able/what-are-able-acounts/). 

Fun Fact: For certain 529 education and ABLE plans, there may exist state tax breaks and tuition offsets for in-state tuition for a person who is a beneficiary of a 529A Education account or an ABLE account. Typically, you must be a resident of the state or have an account in the state offering the incentive to receive those benefits. If you want to go to a specific program in a specific state, you may want to find out if there are any advantages to participating in that state’s 529 options or a particular school’s prepaid options. 

  GTC can assist you in understanding what programs you may qualify for and other        opportunities such as new scholarships or state/federal funding that may be                  available.

GTC cannot provide tax assistance or guidance as the tax code changes often and each state may have a different set of rules and regulations. In addition, any information listed above or links about specific scholarships or programs are only listed to assist you in understanding the many options that can be leveraged to help you pay for post-secondary education. New programs, scholarships and opportunities are expanding every year. 

For More Information:

1. Federal Student Financial Aid - How Financial Aid Works (https://studentaid.gov/h/understand-aid/how-aid-works)

2. Types of Aid and Eligibility - (https://financialaidtoolkit.ed.gov/tk/learn/types.jsp)

3. Paying for college when you have a disability (https://blog.massmutual.com/planning/paying-for-college-with-a-disability)

4. Paying for College - Financial Aid and Scholarships, More Ideas and Strategies (https://nccsd.ici.umn.edu/clearinghouse/financial-aid/paying-for-college).