Financial Aid Overview

 

How to pay for college is one of the most important decisions a student and family can make. Applying for financial aid is a key step in the pursuit of a college career. It should not be overlooked even if you don’t believe you are eligible for aid. It can help immensely with continuously rising college costs. The FAFSA form may be a bit intimidating at first, but it is the gateway to $82 billion in grants, loans and other assistance. Financial Aid Officers are there to assist you in any way they can.

Now, even if you read nothing else on this website (we do NOT recommend that), at least read the following "checklist."

As you begin your college search, follow these helpful financial aid hints:

• Discuss as a family how much you all can contribute to your education, and find out the total out-of-pocket cost for each school that you are interested in attending. Gather information about scholarships and grants, and determine if you will need to take out student loans.
• Create a Financial Aid File that you can update as needed.
• Keep close track of tax information, W-2s, and financial statements for the student and parents. You will need this information to file the FAFSA form after January 1st of senior year. Keep copies of everything handy in your Financial Aid File.
• Make a calendar to keep track of deadlines for scholarships, grant applications, and other forms of financial aid. Hang it on your fridge!
• Find out if your parents' and/or your workplace offers scholarships or matching funds for their employees' children. If they do, APPLY EARLY.
• Check with your guidance counselor for available scholarships. Request applications and be sure to complete them as early in the process as possible.
• Once you have selected a school, ask the college Financial Aid Office for a listing of possible scholarships that you may be eligible for. Again, APPLY EARLY. (See the trend here? Competition for scholarships and grants is intense, so always apply as early in the process as possible.)
• Compile an accurate list of phone numbers for your college's Financial Aid Office and keep it in your Financial Aid File. Be certain you have all the necessary forms the Financial Aid Office requests.
• Prepare the FAFSA (Free Application for Federal Student Aid). The FAFSA is a required document for most student aid packages, public and private. Get a copy of the FAFSA form from your college Financial Aid Office, online at fafsa.ed.gov, or at your local library.
• Complete and submit the FAFSA form on or after January 1st. Parents' current-year tax return information must be included in the FAFSA (Note: trying to estimate will cause major headaches for everyone. Complete your tax filing first, and then use the real numbers.) Keep a copy of all your forms and records in your Financial Aid File.
• If your college has a separate application for financial aid, submit it by the deadline. Remember, submitting applications and essays for financial aid rarely costs anything. Also, keep in mind that every little bit helps, so don't overlook even small scholarships.
• Once you have received your SAR (Student Aid Report), meaning your FAFSA has been received and is being processed, sign and return your acknowledgement. Your SAR lists the aid that you have qualified for. It includes any grants (money you are not responsible for paying back) and loans (money you are responsible for paying back with interest) that are available to you. Be sure to send copies of your SAR to each school you have applied to.
• Compare the financial aid packages offered by each of your possible schools. While the total amount of financial aid you qualify for on your SAR is the same no matter what school you attend, different schools may offer you greater or lesser scholarships, grants, or award monies. Compare each school's offer carefully, and decide what you can afford by reviewing the total out-of-pocket cost of attending each school.
• When you have chosen a school and have a final estimate of how much out-of-pocket money you will need, now you have to decide how you will pay for it.
• A federal Stafford Loan is a low-interest, long-term student loan. This loan has a relatively low annual maximum limit, $2,625 for the first year (as of December 2006). Students will not have to begin making payments until after they finish school. The loan may be subsidized or unsubsidized. The federal government pays the interest on the subsidized loan while the student is in school and during any deferment or grace periods, but does not pay the interest on the unsubsidized loan.
• A Federal Parent PLUS Loan is a low-interest loan that parents can take out to pay for any remaining college costs. This loan has a fairly high annual limit, but parents will have to start making payments on the loan immediately.
• Because scholarship and federal loan amount limits can be low, your family may need an Alternative Education Loan (also called private loans) to cover the remainder of your school's Total Cost of Education. These are available at CampusDoor.com.
• If your family’s financial aid circumstances change significantly from the time you submitted the FAFSA to the time you start college, contact your Financial Aid Officer to request a professional judgment review of your situation. Include documentation of any extenuating circumstance or financial hardship.
• Your FAFSA may be selected for verification. 30% of FAFSAs are selected to provide additional documentation to the federal government. If you have kept a complete and accurate record of all your forms and documents in your Financial Aid File, this process will be much easier.
• Sign and return any school-specific financial aid awards. Let your school know what monies you do or do not plan on using to pay for school.
• One to two months before classes begin, contact your school to make sure that all your financial aid requirements have been met.
• The first week of classes, visit your Financial Aid Office to tie up any loose ends and sign any necessary documents.

REMEMBER: You will need to reapply for financial aid each year that you are enrolled in school. Keep accurate records throughout the year within your Financial Aid File.