The Ins and Outs of Student Financial Aid

In recent years, the job market has become increasingly competitive and a college education is a must. Unfortunately, the price tag on most universities and colleges has risen astronomically. Don't despair.

The following series of articles cover the basics of financial aid. Articles go over the different types of aid available, myths about student aid, Web resources, and many other vital student aid information.

Financial Aid Planning Guide

Step 1: Begin searching for financial aid during the spring of your junior year in high school, if not before. This will give you plenty of time to find and apply for scholarships.

Step 2: Be in touch with the schools you are applying to, and ask their financial aid offices about their institutional aid opportunities as well as what federal programs they participate in. This will help you hone in on the scholarship opportunities you are most likely to receive. And if you plan to apply for any of these programs, create a detailed schedule of your deadlines. Pay close attention to these dates! When you've chosen the applications you want to fill out, contact the schools that are hosting the opportunities to inquire about their definition of an application deadline. Is it the receipt date and time or the process date and time of the application? Not only will each school's financial aid office inform you of their deadlines and procedures, but they will also let you know when you will receive your award if you are selected as a recipient.

Step 3: Fill out the Free Application for Federal Student Aid (FAFSA) , which is the federal application for financial aid. The beauty of this application is that you can also use it to apply for aid from other sources, including your state government or a school. The federal student financial aid deadlines may differ among the schools you apply to, however, so be sure to check with your high school guidance counselor or the college and university financial aid offices of the schools you are applying to about the FAFSA deadline. Some schools may also require that you fill out additional forms, so be prepared to add this to your to-do list.

Step 4: Be sure to also research non-federal aid early. A variety of sources award these scholarships, including schools, employers, private companies, religious groups, professional organizations, individuals, and nonprofits and are therefore advertised at different times throughout the year. This is yet another reason why it will behoove you to start your application process early. Generally, these sources offer scholarships for a variety of reasons, which may include the achievement of a certain GPA, participation in athletic or music programs, community or religious affiliations, and identification with a particular minority.

It is important to note that because independent scholarships are offered by different organizations for varying purposes, each scholarship will have its own requirements and deadlines. For this reason, you should begin searching and applying for scholarship opportunities as soon as possible.

Step 5: Be sure to remind yourself of your application deadlines by marking them on a calendar and scheduling check points to review your progress as your deadlines approach. This will help you to be sure that you will meet all of your deadlines. Include any relevant information about who your application should be addressed to, where it should be sent, the names of any recommenders you might have, etc. Keep all of this information together in order to reduce the risk of missing an important detail.

Take this application process seriously! You will need to abide by your scholarship deadlines to have a any chance of receiving an award.

Article Resources:

FAFSA: Free Application for Federal Student Aid
Student Aid on the Web

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Myths About Paying for School

Many students worry that the cost of higher education will be expensive, but you shouldn't let the price tag stop you from applying! There are many resources available to help you fund your education. In fact, most students receive some form of financial aid from either federal and/or private sources. Be confident that you can make your education a reality: All you need is the self-determination to find assistance and the creativity to get the most for your dollar.

The U.S. Department of Education should top your list for places to look for financial aid. They award an average of $96 billion every year in the form of low-interest loans, work-study, and grants to students attending colleges and universities. Early on in your scholarship search, you should begin filling out the Free Application for Federal Student Aid (FAFSA). With this form, the Federal government will determine how much money your family is expected to contribute to the price of your postsecondary education and how much Federal money will be awarded.

Myth 1: My family makes too much money to get financial aid.
Contrary to what many believe, there is no income cut-off to qualify for federal student aid. Remember that all the information you provide on the FAFSA will be taken into account, including your family size and the age of your parents.

Myth 2: My grades aren't good enough to get financial aid.
Don't sweat it if your grades aren't top-notch. While some may tell you otherwise, your high school grades are not taken into account when you apply for most federal student aid programs. When you begin receiving your award, however, you will be held to a certain standard of academic achievement.

Myth 3: The only way to get financial aid is through the government.
You should also consider contacting your state government, employer, professional organization, and/or religious group about their scholarship opportunities. Private companies, nonprofits, and community members in your area may also offer scholarships you will want to apply for. Ask your high school guidance counselor for information about local scholarships.

Myth 4: Financial aid only goes towards tuition.
Most financial aid will not only help you cover the cost of tuition, but also cover other fees as well. Your scholarships and award money may be used for tuition and fees, books and supplies, personal expenses, room and board, as well as travel to and from the postsecondary institution you enroll in.

Myth 5: I will be paying off student loans for the rest of my life.
While the prospect of paying back student loans can seem daunting, keep in mind that student loan companies usually allow a period of reprieve upon graduation called the "grace period" where you have time to find a job and settle yourself. Further, debt can be a good thing for your credit history. If you pay your bills on time, your credit history will benefit. Finally, keep in mind that those with a college education earn significantly more than those without. While you may be stuck with a hefty debt, you will also have a better job.

Myth 6: Scholarships are only for really smart people.
Not true, scholarships are given for a variety of attributes. While merit is one of them, there are numerous scholarships available for ethnicity, volunteering, background, and personal interest.

Myth 7: Student loans will look bad on my credit history.
If you pay your loans back on time, student loans can actually benefit your credit history.

Myth 8: State schools offer better financial aid.
While state schools have fantastic financial aid programs, private universities do understand that their institutions come with a hefty price tag. Most private universities take this into consideration when accepting students and, as a result, have fantastic financial aid packages available for their students.

Myth 9: Nobody else uses financial aid.
False. More than 60% of all students enrolled in post-secondary education are receiving some form of student financial aid.

Article Resources:

34 Ways to Reduce College Costs
How to pay

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What is the FAFSA and Why Is It Important?

Students enrolled in postsecondary institutions can use the Free Application for Federal Student Aid (FAFSA) to apply for Federal student financial aid, which is made available by the U.S. Department of Education. With this form, the Federal government will determine how much money a student and her family are expected to contribute to the price of her postsecondary education.

What information do you need to fill out the FAFSA?
To fill out the FAFSA, you will need your Social Security Number, driver's license number (if you have one), W-2 Forms and other records of your income, Federal Income Tax Return, current bank statements, investment records, your parents Federal Income Tax Return (if you are a dependent student), and your alien registration or permanent resident card if you are not a US citizen.

What will the amount I receive depend on?
As a prospective college student, the federal aid you qualify for will depend on your Expected Family Contribution (EFC).When you fill out the FAFSA, you will be required to provide information about your family's finances—including their income levels and assets—and your family's size. Your EFC will be based on this information. Schools use this number to determine the amount of federal aid you will receive when you enroll.

What sort of financial aid packages are offered?
Depending on your eligibility, you may be awarded financial assistance in the form of grants, loans, and work-study. Federal student aid programs include the Pell Grant, Federal Stafford Loan, Federal PLUS Loan, Federal Perkins Loan, Federal work-study, and the National Science and Mathematic Access to Retain Talent Grant. For more detailed information about grant applications and awards, visit the U.S. Department of Education's website . Keep in mind, however, that some schools do not participate in specific student aid programs; be sure to check with your school's financial aid administrator about their involvement in federal student aid programs before you apply.

Most students rely on financial aid to make attending college a reality. Completing the FAFSA is the single most important step toward securing financial aid because it is the only way to receive state and federal financial aid. You may be surprised to learn that expenses like tuition and fees, books and supplies, room and board, and transportation are all covered by federal student aid. Federal and state aid can also help you pay for dependent childcare expenses and a computer.

When should I fill out the FAFSA?
Fill out the FAFSA as early as possible after January first of the year you plan to enroll in school. You do not have to wait until you have been accepted for admission to your college or university to apply for financial aid. Remember, without a Student Aid Report, you have very little change of getting the best scholarships and student loans.

Keep in mind: The FAFSA is only available for those enrolled in accredited institutions.

Article Resources:

FAFSA: Free Application for Federal Student Aid
How to pay

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Factors Affecting Financial Aid

Countless factors influence your eligibility for financial aid and will vary depending on what form of financial aid you apply for. For instance, if you fill out the Free Application for Federal Student Aid (FAFSA), you will be evaluated on a much different set of criteria than when you apply for a grant or a local scholarship.

Requirements for Federal Financial Aid
In order to receive federal student aid, you must first meet certain basic requirements. An applicant must be a citizen of the United States (or an eligible non-citizen) and have a valid Social Security number. Students must hold a high school diploma or a General Education Development (GED) Certificate and be accepted for enrollment as a regular student at a college or university that participates in Federal student aid programs and is accredited. If you are a male between the ages of 18 and 25, you must be registered with the Selective Service. You cannot have a drug conviction for an offence that occurred while you were receiving federal student aid. You must also be able to demonstrate financial need.

Additional Factors of Consideration for Federal Financial Aid
If you meet these requirements, you are welcome to fill out a FAFSA. There are many additional factors on top of the minimum requirements that affect the amount of money you will be awarded by the FAFSA. Your parents' age, your family's size, and its net asset value are among them. The latter holds perhaps the most weight because it takes into account what possessions your family owns. For instance, if you own a second home, chances are your Expected Family Contribution (EFC)—or the amount of money your family will be expected to pay for your education—will rise. When you fill out the FAFSA, it will be wise for your family to try to reduce the appearance of its assets. Do this by moving money into a retirement account or pay down debt—financial aid officers won't include this money in their assessment of your family's expected contribution to the cost of school.

Requirements for Private Financial Aid
Private sources that offer financial aid, however, will consider a number of other factors when evaluating your candidacy. Some scholarships that are merit based are only awarded to students who meet certain minimum standards of academic achievement. Your special talent for classical piano or soccer or karate, for instance, might also be the determining factor of your candidacy for a scholarship. Or perhaps your dedication to volunteering through Key Club or at your local animal shelter will win you an award. Still other private scholarships may be awarded to you based solely on your financial need.

Requirements for Grants
Grants are another form of gift money awarded to prospective students of postsecondary institutions. Grant money typically comes from federal or state government sources and postsecondary institutions, and candidates are usually evaluated on their financial need. The Federal Supplemental Educational Opportunity Grant, for instance, is awarded to students who have exceptional financial need and who are enrolled in a postsecondary institution. According to the U.S. Department of Education, there is much more grant money available now than there was ten years ago, so students should actively pursue this form of financial aid when applying for college.

When you start receiving acceptance letters from the schools you applied to, be prepared for the amount of financial aid you are awarded to differ among the schools to which you applied. Each institution has a unique set of fees—including tuition, lab fees, housing, etc—and characteristics—for instance, a public or private funding source—that affect your eligibility for financial aid and/or need. So don't be surprised to receive several different student aid packages.

Article Resources:

FAFSA: Free Application for Federal Student Aid
Student Aid on the Web

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Resources for Financial Aid Assistance

FAFSA : The FAFSA may well be the most important application you fill out for college. Without it, you are completely ineligible for any Federal financial aid.

Federal Academic Competitiveness and National SMART Grants : The National SMART Grant is given to students who took difficult math and science classes in high school. It aims to support the global economy through encouraging the growth of math and science.

Federal PELL Grant : The Pell Grant is a need-based grant for low-income, undergraduate students. There are 5,400 participating institutions.

Federal Supplemental Educational Opportunity Grant : Like the Pell Grant, the FSEOG Grant caters to low-income families and students. There are currently 4,000 participating schools.

Federal Student Aid : Federal Student Aid is awarded each year by the government to thousands of students. The following site has information on various kinds of aid, repayment tips, and frequently asked questions.

Federal Work-Study : Federal Work-Study is a program sponsored by the Federal Government that allows students to work at campus jobs while attending school in order to help pay for their education. To qualify for this, you must fill out the FAFSA.

Perkins Loan : The Federal Perkins Loan is awarded to low-income students. There are currently 1,800 participating schools.

PLUS Loan : The PLUS Loan is specifically for parents who are paying for their college education. PLUS Loans have flexible repayment options, 0.25% interest rate discounts, and a fixed interest rate.

Scholarship Experts : Scholarship Experts provides a database of free scholarships. You must first register an account and then you can begin searching! Forbes describes Scholarship Experts as, "The best scholarship search engine we've found!"

Stafford Loan : The Stafford Loan is a fixed rate loan for undergraduate and graduate students. Stafford loans are one of the most common types of loans given to students.

TEACH Grant : The Teacher Education Assistance for College and Higher Education Grant Program gives students who intend to teach in public and private schools up to $4,000 per year.

The U.S. Department of Education : The USDE has all the information you may need on financial aid, accreditation, and repayment options.

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