12 STEPS TO FINANCIAL AID

By Bridget Gramling

“If a man empties his purse into his head, no one can take it from him. An investment in knowledge always pays the highest return.” - Ben Franklin

A college education can be expensive these days, especially if a family doesn’t take advantage of all the resources available to help with this investment. Since very few families can write a check for the total cost, financial aid can determine whether or not the family can afford the student’s first- choice college. Unfortunately, many see the process of applying for financial aid as complicated or overwhelming and either give up in frustration or choose the path of least resistance. The truth is that with a small investment of time and a little perseverance, families can successfully negotiate the process and find resources to make the college of choice affordable.

Below are some basic tips that you can use in finding the resources that, in combination with family resources, will provide for the important investment that a college education represents.

1. Financial aid includes three different types of programs. A grant or scholarship is free money that doesn’t have to be repaid and may be awarded by the school, the state or the federal government. Work-study gives you the opportunity to work on campus for money which can be used to help pay college costs (or to provide you with spending money). Loans provide resources that have to be repaid, usually with interest.

2. Start looking for outside scholarships now. Visit scholarship search sites like www.fastweb.com to discover scholarships for which you might qualify. Some scholarships are only awarded to high school juniors, so the sooner you start looking, the better.

3. Beware of scams that offer to find you scholarships and financial aid for a fee. You should never pay for a scholarship or financial aid search. High school and college counselors (as well as the Internet) will help you do this easily and at no cost.

4. Get to know the FAFSA (Free Application for Federal Student Aid). It’s the basis for virtually all need-based financial aid (federal, institutional and state). You can’t get any need-based assistance without it. You can find the form (as well as a lot of helpful information about it) online at www.fafsa.ed.gov. (Note: The FAFSA is free. If submitting the form online requires a fee, you are not using the official FAFSA site.)

5. Your parents’ financial information, in conjunction with yours, will be used to determine what the Federal Government says you can afford for a year of college. This is your Expected Family Contribution (EFC). Colleges subtract the EFC from their cost of attendance to figure out how much financial aid you will be awarded.

6. Things to remember about the FAFSA:
   
   • You and your parents (if you are a dependent student) each need a Personal Identification Number (PIN) to apply on-line. You can apply for them online now at www.pin.ed.gov. Parents can use the same PIN for multiple children.
   • You must file early. Financial aid tends to be awarded on a first-come, first-served basis. If you file too late, you may miss out on money for which you would have been eligible otherwise.
   • You can’t file any earlier than January 1 of your senior year, but you should file as soon as possible after that date. Don’t wait until your parents file their tax returns! Fill out the FAFSA with your best estimate and go back and update the information later
   • In order to be eligible for state grants and scholarships, many states have FAFSA filing deadlines. To find your state’s deadline, visit www.fafsa.ed.gov.

7. Once you decide where you’re applying for admission, find out what financial aid forms and deadlines each college has. Does the school require any financial aid paperwork in addition to the FAFSA? Is there an absolute deadline for filing the FAFSA and other required materials? Requirements may vary from one college to another, and it is your responsibility to make sure that you know the rules.

8. College is an investment in your future. Just as you might borrow to make an investment in a home, you may need to take out a loan to pay for college. The Federal Stafford Loan is likely to be part of your financial aid package. Other loans (the Federal Parent Loan for Undergraduate Students [FPLUS], the Federal Perkins Loan and alternative loans) may also be available to help you meet the cost of your college education. For information on federal loan options, visit www.studentaid.ed.gov. For information about alternative loans, contact the college you plan to attend for a list of lenders.

9. It is possible to borrow student loans and not have to repay them. Loan-forgiveness programs are available in a number of states and in a number of different fields. If you’re willing to work in an area that’s desperate for teachers, nurses or biomedical engineers, for example, you may find that the state will erase a percentage of your student loans each year you work there. Check your state’s website for a list of eligible professions or to find additional information.

10. When you receive financial aid packages from the colleges where you have been admitted, place them side by side for comparison. First compare the cost of attendance for each institution, including tuition, room, board, books and transportation. Then compare the amounts and types of awards that are being offered by each college. What are the requirements to renew your aid each year? How does the difference between cost and aid at each institution compare? Does the investment required by your first-choice institution match the expected experience and outcome?

11. Remember that May 1 of your senior year is the National Reply Date. Nearly all institutions expect students to make an enrollment decision by this date by submitting a tuition deposit and accepting financial aid awards.

12. Take a deep breath. Relax. Use the free resources that are available to find the assistance you need to attend your dream school. And remember, there’s no such thing as a stupid question when the answer could mean the difference between attending your first-choice college or not.

Bridget Gramling is the Associate Dean of Admission at William Jewell College