Financial Aid: Paying for College
Paying For College: Financial Aid
Financial aid: funds provided to students and families to help pay for college.
Honest communication between parents and students is essential for choosing a college that is feasible and reasonable as a financial obligation. The discussion about money, costs, and projected spending can be a difficult one, but it is best to begin this discussion early so that you, as a student and family, can make reasonable college choices.
Categories of Financial Aid
Need-Based: based on family income
Non Need-Based: based on merit, academic achievement, leadership, artistic/athletic ability, etc.
Types of Financial Aid
-Scholarships
Money that does not have to be paid back
Usually awarded to students with strong academic and/or arts records.
-Grants
Money that does not have to be paid back
Usually awarded on basis of financial need
-Loans
Money students and parents borrow to help pay college expenses
Available from federal programs (
-Employment/Work Study
Allows student to earn money while in school to help pay educational costs
In form of a paycheck, or non-monetary compensation, such as room and board
Sources of Financial Aid
Federal Government
Largest source of Financial aid
Aid awarded primarily on the basis of financial need
Must apply every year using the Free Application for Federal Student Aid (FAFSA)
Students and parents should complete the FAFSA (http://www.fafsa.ed.gov/) by February of the year the student will be attending college. The FAFSA determines the family’s EFC (Expected Family Contribution) number based on the previous year’s tax information. With that number, the colleges to which the student has applied develops a Financial Aid package that will accompany the acceptance letter. You will receive a different Financial Aid package from each college.
State Government
Residency requirements
Award aid on the basis of merit and need
Some programs use information from the FAFSA
Deadlines vary from state to state (March 1 for
For more information: www.mhec.state.md.us
Private sources
Foundations, businesses, charitable organizations
Deadlines and application procedures vary widely
Begin researching private aid sources early
Free Internet Scholarship Search Engines:
Civic organizations and churches
Research what is available in your community
To what organizations and churches do the student and family belong?
Application process usually begins in spring of senior year
Small scholarships add up!
Employers
Companies may have scholarships available to children of employees
Companies may have educational benefits for their employees
Schools (the colleges/conservatories to which the student is applying)
Largest source of grant aid.
Contact Financial Aid Office of school for requirements
Merit and need-based aid
Applications and deadlines
WHERE TO START?
Contact schools/visit schools’ Financial Aid websites to find out:
?Scholarship requirements
?Need-based aid requirements
?Required forms (school applications, CSS profile – used for non-federal student aid, federal tax returns, etc…)
?Financial Aid scholarships and deadlines (in addition to Application deadline) that are specific to each school
Investigate private sources and learn more about aid available.
Families are encouraged to get an early estimate of their eligibility for federal student aid (FAFSA4caster) at www.FederalStudentAid.ed.gov
Complete the Free Application for Federal Student Aid (FAFSA) by the earliest deadline. The FAFSA is available every year on January 1. See below.
WHAT IS THE FAFSA?
The Free Application for Federal Student Aid (FAFSA) is a standard form that collects demographic and financial information about the student and family.
The FAFSA is filed electronically at http://www.fafsa.ed.gov/ (available in English and Spanish).
Information from the FAFSA is used to calculate the Expected Family Contribution (EFC). This is the amount of money a student and his or her family may reasonably be expected to contribute towards the cost of the student’s education for the following academic year. The EFC is almost always higher than you think it should be!
STEPS TO FEDERAL STUDENT AID*
1. Get free information and help from the financial aid office at the college you plan to attend, or the U.S. Department of Education at www.FederalStudentAid.ed.gov or 1-800-FED-AID. Free help is available any time during the application process. If an organization offers to help you through the process, and charges you a fee, it is a scam! YOU SHOULD NEVER HAVE TO PAY FOR HELP.
2. Get a Federal Student Aid PIN, a personal identification number. A PIN lets you apply, ‘sign’ your FAFSA, make corrections to your application information and more – so keep it safe. Go to www.pin.ed.gov to get your pin number.
3. Collect the documents needed to apply, including income tax returns and W-2 forms (and other records of income). A full list of what you will need is at www.fafsa.ed.gov. Tax return not completed at the time you apply? Estimate the tax information, apply, and correct information later.
4. Most colleges require that you file the FAFSA by January 15-February 1 for Regular Decision applicants. Apply as soon as possible after January 1 to meet school and state aid deadlines. Apply online at FAFSA on the web (the fastest and easiest way) by going to www.fafsa.ed.gov. If you don’t already have your PIN, you can get it when you complete the online FAFSA.
5. The U.S. Department of Education will you send you your Student Aid Report (SAR) – the result of your FAFSA. Review your SAR and, if necessary, make changes or corrections and submit your SAR for reprocessing. Your complete, correct SAR will contain your Expected Family Contribution (EFC) – the number used to determine your federal student aid eligibility. IMPORTANT: Do not assume that the EFC number is the amount you will have to pay for college. It is simply a guideline for schools to assess how much need you have.
6. The college that you plan to attend may request additional information from you. Be sure to respond to any deadlines, or you might not receive federal student aid.
7. The colleges will tell you how much aid you can get at a particular school. Contact the financial aid office if you have any questions about that aid being offered. Review award letters from schools to compare amounts and types of aid being offered. Decide which school to attend based on a combination of (a) how well the college suits your needs and (b) its affordability after all aid is taken into account.
CSS PROFILE
Many private colleges require the College Scholarship Service (CSS) PROFILE form in addition to the FAFSA. You may register for the PROFILE online at https://profileonline.collegeboard.com. Consult this site to determine which private colleges require submission of the profile. Some schools require the PROFILE to be submitted by November 1 of senior year.
FINANCIAL AID PACKAGES
Based on the EFC, each college to which the student has applied will develop a financial aid package.
Financial aid packages can vary widely and are usually a combination of scholarships, grants, loans, and work study.
PLEASE, PLEASE, PLEASE do not be seduced into going to a particular school if you will have to take out a large amount of loans to do so. It is important to remember that you will be repaying these loans (which can end up being $300, $500, $800 a MONTH for up to 30 years!) And that is before graduate school!
*from www.FederalStudentAid.ed.gov/pubs
