The first step to getting financial aid is to fill out the Free Application for Federal Student Aid (FAFSA). The FAFSA can be completed each year after January 1st either using income tax forms or estimated income information. The sooner your complete the FAFSA the better. Within four weeks of submitting the FAFSA (or within 5 days when submitting electronically) you will receive a Student Aid Report (SAR). This report will contain what is called the Expected Family Contribution (EFC). This is the magic number that colleges use to determine a student’s eligibility for financial aid. Once the schools financial aid office has processed your FAFSA there are a number of financial aid options available to you, including:
Scholarships are given to students who have exceptional grades, are superior athletes, or who excel in music and the arts or any number of special talents, qualities or community involvement. There are also scholarships geared specifically towards students pursuing certain majors. There are literally thousands of scholarships available through private companies, charitable organizations, foundations, clubs, and city, state and Federal government programs. A simple online search can turn up hundreds of results, or you can ask a guidance counselor, academic advisor or financial aid officer to guide you in the right direction. Scholarships are sometimes referred to as “free money” because they do not have to be paid back, but there are often small requirements like maintaining a certain grade point average, community service or writing a thank-you note to your benefactor each year.
Grants are awarded to students who have a financial need. The government and/or universities establish these needs. Unlike a loan, a grant does not have to be paid back. Grants are available from the Federal government, state government, schools, and private organizations.
Student loans are long-term, low-interest loans for graduate and undergraduate students. These loans offer easy repayment options, which include the ability to stop payments while in school or in times of financial crisis. Many students turn to the Stafford loan program, while parents look at the PLUS loan to help fund a child’s education.
Work-study programs provide students with a part-time job, either on or off campus, to help pay for school. Besides helping with education costs, it also allows the student to obtain professional work experience. The work experience the student gains can help them obtain a better career when they graduate. Students in work-study programs can even end up with a career in which they did their work-study.
There is a common myth that if a family’s income is too high they will not qualify for financial aid. The truth is there are more factors than pure income that are considered, such as the size of your family and the age of your eldest parent. In addition, many schools will not consider students for college grants and scholarships if they have not applied for Federal aid. The only way to know if you qualify is to apply. There is little to lose by filling out the FAFSA, and besides, as the name implies – it’s free!