Paying for college or career training can feel overwhelming, but don’t worry—YOU'RE NOT ALONE.

In fact, 72% of undergraduate students in the U.S. rely on financial aid, with an average award of $14,100 per year (NCES, 2023). Whether you’re heading to a university, trade school, or training program, there are government programs designed to help you cover the costs.

This comprehensive guide breaks down everything step-by-step. Follow along to learn how to apply for aid, what you might be eligible for, and strategies to reduce costs so you can pursue your education with confidence.

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1. Determine Eligibility

WIOA programs primarily serve:​

• Adults with low income or barriers to employment: Priority is given to recipients of public assistance, other low-income individuals, and those who are basic skills deficient. ​
• Dislocated workers: Individuals who have lost their jobs due to layoffs, plant closures, or other economic factors. ​
• Youth (ages 14–24): Particularly those who are out-of-school and face barriers to education and employment. ​

Veterans and eligible military spouses often receive priority for WIOA services. Eligibility criteria may vary by local area; consult your local AJC for specific requirements.​

2. Locate Your Nearest American Job Center

WIOA funding is accessed through local American Job Centers (AJCs), also known as one-stop career centers. Each state has a network of these centers. You can find your nearest center via the U.S. Department of Labor’s directory. ​

3. Meet with a Career Counselor

At the AJC, you'll meet with a career counselor who will assess your eligibility and help you develop an Individual Employment Plan. This plan identifies suitable training programs and outlines steps toward achieving your employment goals.​

4. Explore Approved Training Programs

WIOA funding supports various career and technical education programs that lead to in-demand jobs. This is ideal for certifications in healthcare such as Certified Nursing Assistants (CNAs), phlebotomists, and medical assistants. It also covers IT roles like cybersecurity and coding bootcamps, as well as trucking licenses such as CDL training. Additionally, WIOA can fund skilled trades programs, including careers as electricians, plumbers, and welders.

5. Apply for WIOA Funding

The application process generally involves:​

• Completing an application form​. Remember, you won’t use the FAFSA; you apply through your local American Job Center (AJC).
• Providing documentation to establish eligibility (e.g., proof of income, layoff notice)​
• Collaborating with your career counselor to finalize your training plan​

If approved, you'll enroll in the selected program, and WIOA funds will be disbursed directly to the training provider.​

6. Understand Funding Coverage

WIOA funding may cover:​

• Tuition and training fees​
• Books and supplies​
• Uniforms​
• Supportive services like transportation or childcare assistance during training​

Note: The extent of coverage can vary; discuss specific details with your career counselor.​

7. Timing and Availability

WIOA programs operate on a rolling basis, but funding can be limited each year. It's advisable to inquire as early as possible. Some areas might have waitlists if demand is high. Also, you must apply before starting your training, as WIOA generally does not reimburse for training already begun or completed.​

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Understand Federal Student Loans (Subsidized vs. Unsubsidized)

Federal student loans are a key resource for financing higher education when grants and scholarships are insufficient. They offer favorable terms compared to private loans, including fixed interest rates and flexible repayment options. Here's an overview:​

1. Types of Federal Student Loans

• Direct Subsidized Loans: Available to undergraduate students with demonstrated financial need. The U.S. Department of Education pays the interest on these loans while you're enrolled at least half-time, during the six-month grace period after leaving school, and during deferment periods. ​
• Direct Unsubsidized Loans: Available to undergraduate, graduate, and professional students regardless of financial need. Interest accrues from the time the loan is disbursed, and you're responsible for all interest payments. ​

2. Interest Rates for 2024–2025

For loans first disbursed between July 1, 2024, and June 30, 2025, the fixed interest rates are:​

Undergraduate Students:

• Direct Subsidized and Unsubsidized Loans: 6.53%​

Graduate or Professional Students:

• Direct Unsubsidized Loans: 8.08%​

Parents and Graduate or Professional Students:

• Direct PLUS Loans: 9.08%​

3. Annual and Aggregate Loan Limits

Federal student loans have both annual and aggregate (total) borrowing limits:​

For Undergraduate Students:

Dependent Students:

Annual Limits:

• First Year: Up to $5,500 (maximum $3,500 subsidized)
• Second Year: Up to $6,500 (maximum $4,500 subsidized)
• Third Year and Beyond: Up to $7,500 (maximum $5,500 subsidized)

Aggregate Limit: $31,000 (maximum $23,000 subsidized)

Independent Students (and Dependent Students Whose Parents Don't Qualify for PLUS Loans):

Annual Limits:

• First Year: Up to $9,500 (maximum $3,500 subsidized)
• Second Year: Up to $10,500 (maximum $4,500 subsidized)
• Third Year and Beyond: Up to $12,500 (maximum $5,500 subsidized)

Aggregate Limit: $57,500 (maximum $23,000 subsidized)

For Graduate or Professional Students:

• Annual Limit: Up to $20,500 in unsubsidized loans​
• Aggregate Limit: $138,500 (including undergraduate loans; maximum $65,500 subsidized)​

4. Repayment Options

Federal student loans offer various repayment plans to accommodate different financial situations:​

• Standard Repayment Plan: Fixed payments over 10 years.​
• Graduated Repayment Plan: Payments start lower and increase every two years, typically over 10 years.
• Extended Repayment Plan: Fixed or graduated payments over 25 years; available to borrowers with more than $30,000 in outstanding loans.
• Income-Driven Repayment Plans: Payments are based on income and family size, potentially leading to loan forgiveness after 20–25 years of qualifying payments.​

5. Application Process

To apply for federal student loans:​

1. Complete the Free Application for Federal Student Aid (FAFSA): This form determines your eligibility for federal financial aid, including loans.​

2. Review Your Financial Aid Offer: After submitting the FAFSA, your school will provide a financial aid offer detailing the types and amounts of aid available to you.​

3. Accept or Decline Loans: You can choose to accept the full loan amount, a partial amount, or decline the loan.​

4. Complete Entrance Counseling and Sign a Master Promissory Note (MPN): These are required steps before receiving loan funds.​

5. Considerations

• Borrow Responsibly: Only borrow what you need, as loans must be repaid with interest.​
• Understand Your Obligations: Be aware of your repayment terms and options to avoid default.​
• Stay Informed: Keep track of any changes in federal student loan policies that may affect your loans.

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Check for State and Local Programs

In addition to federal financial aid, many states and local communities offer programs to assist with tuition and workforce development. These initiatives can provide substantial support for students pursuing higher education or vocational training. Here are some notable examples:​

State Tuition Assistance Programs:

• Tennessee Promise: This program offers eligible Tennessee high school graduates up to two and a half years of tuition-free attendance at community or technical colleges. It operates as a last-dollar scholarship, covering tuition and mandatory fees not addressed by other financial aid sources like the Pell Grant or HOPE Scholarship. Participants also benefit from mentorship and are required to complete community service hours. The application period typically runs from August 1 to November 1 each year. ​
• New York Excelsior Scholarship: This scholarship enables students from families with an adjusted gross income of $125,000 or less to attend a SUNY or CUNY college tuition-free. Applicants must be enrolled full-time, complete at least 30 credits per year, and commit to living and working in New York State for a duration equal to the number of years they received the scholarship. The application for the 2025–26 academic year is expected to open in May 2025. ​

Local Workforce Development Programs:

Many local workforce boards and American Job Centers offer training funds and support services. These programs can cover tuition, training materials, and even provide assistance with transportation or childcare for eligible individuals. To explore these opportunities, contact your local workforce development board or visit an American Job Center. They can provide information on available programs tailored to your community's needs.​

Community and Civic Organizations:

Local community foundations, nonprofits, and civic groups often provide scholarships or grants to residents. These organizations may have specific criteria based on academic achievement, community involvement, or financial need. It's advisable to research and reach out to such organizations in your area to inquire about potential funding opportunities.​

How to Find These Opportunities:

• State Resources: Visit your state's higher education agency website, which typically lists state-administered aid programs, including grants, scholarships, and loan forgiveness options.​
• Local Resources: Check your city or county government websites for information on education assistance programs. Additionally, local career centers or American Job Centers can provide guidance on workforce-related funds and training opportunities.​
• Educational Institutions: Consult your school's financial aid office, as they often have information on state and local programs or can direct you to relevant resources.

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Find Scholarships and Additional Funding Sources

Scholarships and employer-sponsored tuition assistance programs can significantly reduce the financial burden of education. Here's how to explore these opportunities:​

1. Employer Tuition Assistance Programs

Several companies offer tuition assistance to their employees:​

• Starbucks: Through the Starbucks College Achievement Plan, eligible employees can earn a bachelor's degree online from Arizona State University with 100% tuition coverage.
• Amazon: Amazon's Career Choice program provides tuition support for employees pursuing bachelor's degrees, industry certifications, high school diplomas, GEDs, and ESL proficiency certifications.
• Walmart: The Live Better U program offers Walmart and Sam's Club associates access to education programs, including certificates and degrees, with tuition and books covered.

2. Military and Veteran Benefits

The GI Bill provides educational benefits to veterans and their families:​

• GI Bill Benefits: Eligible veterans can receive financial support for tuition, housing, and other educational expenses.

3. Scholarship Databases

Utilize reputable scholarship databases to find additional funding opportunities:​

• U.S. Department of Labor's Scholarship Search Tool: This tool allows you to search for scholarships based on various criteria.

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Maximize Your Aid with These Tips

• Apply Early: Early FAFSA filing and scholarship applications increase your chances of receiving funds.​
• Ensure Accuracy: Mistakes on aid applications can reduce or delay funding—double-check all information.​
• Appeal Decisions: If your financial circumstances change (job loss, medical expenses), you can appeal your aid offer through your school’s financial aid office.​
• Keep Costs Low: Reduce borrowing by starting at community college, choosing affordable housing, or working part-time.​
• Maintain Eligibility: Stay on top of academic requirements to renew grants, scholarships, and federal aid.​

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FAQs

What is the best way to fund education?

The most effective approach combines federal grants, state funding, scholarships, and employer tuition assistance, supplemented by federal student loans if necessary.​

Who provides the most funding for education?

The U.S. federal government provides the largest share of student financial aid through grants, loans, and work-study programs, notably through the FAFSA.​

What is the source of most funding for public education?

Most public education funding comes from state and local governments, supported by federal funds primarily for student aid and special programs.​

Conclusion

Navigating how to pay for college or career training doesn’t have to be stressful. By carefully exploring these government funding options, staying on top of deadlines, and knowing where to look, you can get the most out of every dollar available.

Ready to get started? Check out Dreambound to easily find programs that match your career goals, schedule, and budget. Don't just dream it, do it!