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Show me the (college) money!



By Mark Brenner, Vice Chairman and Executive Officer, College Loan Corporation

With the holiday season firmly behind us, there's one topic that students and their families across the country should be thinking about this January: money! Money for college, that is. With the New Year comes a new financial aid season and the opportunity to score some big bucks to help with tuition and college expenses.

The fact is that college bills are soaring. Last year, the average undergraduate tuition at a four-year public university jumped 10.5 percent, pushing the average price of attendance to $11,354 per year. Private college tuition now stands at an average of $30,295, according to the College Board. In addition, the number of students applying for financial aid is likely to grow too. A record 17 million young Americans are expected to enroll in college this year -- that's an increase of over 250,000 compared to last year. Although these enrollment figures mean that even more students will be applying for financial aid, you can still receive all of the money for which you qualify with some discipline and a little work.

The good news is that there's a lot of financial aid available for students and families. An estimated $122 billion dollars in state, federal, institutional and private financial aid is available, according to The Chronicle of Higher Education. The important thing is to know where, when and how to apply.

The starting point? As many students already know, the place to begin your government aid search is the Free Application for Federal Student Aid (FAFSA).The FAFSA form (available at http://www.fafsa.ed.gov, from local libraries and from guidance counselors), is the key to unlocking federal, state and local aid. An important tip: make sure you and your parents complete 2005 tax returns before beginning. Even if you don't file the tax return until April, it's important to complete the FAFSA with the completed tax forms in hand. And be sure to apply quickly! Filing your FAFSA as close to January 1st as possible increases your chances of receiving institutional aid that is awarded on a first-come, first-served basis.

Several weeks after the FAFSA form is submitted to the Department of Education, you will receive a student aid report (SAR). This letter details your expected family contribution (EFC), determines your eligibility for student loans and explains how much need-based and other aid you qualify to receive. It is important to check the accuracy of your SAR, as your college will also use it to determine your specific aid package. Need-based aid is calculated according to financial criteria, while other types of aid, like student loans, are available to almost all applicants.

After checking on state and federal aid, you should also check with your college or university to see if they offer financial aid to their students. In most cases, the school will use the information they received in your Student Aid Report. However, many schools require an additional college-specific application; you should check with the financial aid office of each school you may be attending to determine this.

What is an award letter? Schools will take their in-house forms or the Student Aid report to create a financial aid award letter. The award letter officially notifies you of how much financial support you will be awarded through the federal government, state government and the school. Financial aid can include: grants, scholarships, work-study and student loans. For new college students, the award letter is your opportunity to compare the actual price of your college attendance between all of the schools where you have been accepted to see which college is the best for you.

Finally and importantly, every single student should conduct a scholarships search. Scholarships aren't just for academic and athletic superstars! Regardless of need, there are hundreds of thousands of scholarships available for students with a variety of talents, traits and backgrounds. Whether it's awarded for being left-handed, raising awareness about organ donation or vegetarianism, being short/tall, being overweight, skateboarding or having great duck calling skills (all real scholarships!), there is an award out there for everyone.

No matter who you are, you should apply for a scholarship, and you should do it for free. College Loan Corporation's free scholarship search engine, available at www.collegeloan.com can connect you with 8,000 programs, 150,000 awards and $35,000,000 in total award money!

If you need help with any part of this process, give College Loan Corporation a call. We are available 24 hours a day, 7 days a week. Our experienced Loan Consultants can provide you with all of the information required to complete your paperwork and get the student aid you deserve.