FINANCING YOUR EDUCATION
The primary responsibility for paying a student’s educational expenses belongs to the family. However, the choice of a college should not be determined by family finances alone. A student and family should choose a college based not only on finances, but on the student’s desire and ability to attend that college. If the proper procedures are followed, a financial aid partnership of parents, student, government and university can become a reality.
FUNDAMENTALS
Basically, there are two types of financial aid: merit-based and need-based.
Cost of Attendance
- Your EFC (Estimated Financial Contribution on FAFSA)
- Outside aid (scholarships)
= DEMONSTRATED NEED
You do not need to be poor to receive aid. There are funds available to help all students who demonstrate need. In order to receive financial aid you must ask for it, i.e., complete the forms and applications. And remember, if you apply for assistance early, you may be more successful in finding the aid you need.
- Merit-based awards are typically given by a private institution, your college, or the government. These awards recognize your academic, athletic, musical and various other talents.
- Need-based aid is awarded according to your ability to pay for college. Colleges calculate your need using this formula:
Cost of Attendance
- Your EFC (Estimated Financial Contribution on FAFSA)
- Outside aid (scholarships)
= DEMONSTRATED NEED
You do not need to be poor to receive aid. There are funds available to help all students who demonstrate need. In order to receive financial aid you must ask for it, i.e., complete the forms and applications. And remember, if you apply for assistance early, you may be more successful in finding the aid you need.
HINTS
o Keep copies of Everything
o Open and read all mail
o Use scholarship search engines
o Apply for every scholarship, even if you don’t think you will receive it
o Open and read all mail
o Use scholarship search engines
o Apply for every scholarship, even if you don’t think you will receive it
FAFSA (Free Application for Federal Student Aid)
You should fill out the FAFSA as soon as possible after Jan 1. Complete your income tax return before filling out the FAFSA. Institutions have different priority filing deadlines, so it may be necessary to estimate tax information to meet those dates. For answers to questions regarding the FAFSA, guidance is provided through FAFSA by phone or online, or you may wish to contact the specific institution to which you are applying.
Financing Methods (Financial aid usually comes in a “package” ~ a combination of the following methods.) http://www.fafsa.ed.gov/
Financing Methods (Financial aid usually comes in a “package” ~ a combination of the following methods.) http://www.fafsa.ed.gov/
- Scholarships(monies you don’t pay back)
- Grants(monies you don’t pay back)
- Loans(monies you must pay back)
- Employment(money you earn)
- Grants(monies you don’t pay back)
Scholarships: Keep informed about ALL scholarship opportunities…Check with all sources: school counselor; employer; parents’ employers; local organizations; web searches; and specific college admissions & financial aid offices.
o Private scholarships - FREE Scholarship Searches are available via the WEB. (See page 19 of this handbook for a partial list of these websites.)
o Many institutions offer “automatic” scholarships. Applications are screened upon admissions and monies are awarded if applicant meets criteria.
o Information on institutional scholarships may be obtained by writing to the Director of Financial Aid or checking the college’s website under “financial aid”.
o While there are thousands of scholarships, many of them have strict requirements or are so competitive that they are available only to a few students.
Grants: Application for grants is made through completing the FAFSA.
◦ Pell Grants~ These grants range in amounts depending on a student’s estimated financial need. Like all grants, this money does not require repayment.
◦ Supplemental Educational Opportunity Grants
Loans: (Check in the Guidance Office for free resources.) Repayment, including interest, typically begins after a student graduates or leaves school. Be careful to note any special circumstances.
o Perkins Loans
o Stafford Loans
o Parent Loan (Federal PLUS Loan)
Employment: Students may seek employment on their own while in college, or they may be eligible for Work-Study if financial need is demonstrated.
A quick summary of steps to Financial Aid:
1. File federal income tax forms as soon as possible (preferably in Jan) in order to provide accurate data on financial aid forms.
2. Complete the FAFSA which is required by all colleges. Colleges may require supplemental financial aid forms, such as the PROFILE. Contact the individual colleges to which you are applying. Forms are available in the Guidance Office around Winter Break.
3. Apply for federal and state funds by checking the appropriate boxes in FAFSA.
4. Tell each college if you are applying for financial aid. Usually this is done by checking the appropriate box on the application. A college may also have its own financial aid form for you to complete.
5. Check for scholarships for which you are eligible:
o from each college
o those posted in the Guidance Office, on the GHS website, and those announced at school
o Corporations where parents are employed
o Military
o various search engines
6. Begin your Stafford Student Loan application by checking appropriate boxes on the FAFSA.
7. If you have properly filled out the financial aid forms, you will receive a Student Aid Report in approximately 4-6 weeks (sooner if you apply online). It will give you your eligibility index for federal and state aid. You will be asked to sign an acceptance of the amount received, and the money will be sent to the college. Colleges will notify you of further grants/loans you are to receive in their financial aid “package”.
8. Ask your counselor for assistance if you have general questions. Specific questions should be directed to the college financial aid offices or the financial aid agencies.
o Private scholarships - FREE Scholarship Searches are available via the WEB. (See page 19 of this handbook for a partial list of these websites.)
o Many institutions offer “automatic” scholarships. Applications are screened upon admissions and monies are awarded if applicant meets criteria.
o Information on institutional scholarships may be obtained by writing to the Director of Financial Aid or checking the college’s website under “financial aid”.
o While there are thousands of scholarships, many of them have strict requirements or are so competitive that they are available only to a few students.
Grants: Application for grants is made through completing the FAFSA.
◦ Pell Grants~ These grants range in amounts depending on a student’s estimated financial need. Like all grants, this money does not require repayment.
◦ Supplemental Educational Opportunity Grants
Loans: (Check in the Guidance Office for free resources.) Repayment, including interest, typically begins after a student graduates or leaves school. Be careful to note any special circumstances.
o Perkins Loans
o Stafford Loans
o Parent Loan (Federal PLUS Loan)
Employment: Students may seek employment on their own while in college, or they may be eligible for Work-Study if financial need is demonstrated.
A quick summary of steps to Financial Aid:
1. File federal income tax forms as soon as possible (preferably in Jan) in order to provide accurate data on financial aid forms.
2. Complete the FAFSA which is required by all colleges. Colleges may require supplemental financial aid forms, such as the PROFILE. Contact the individual colleges to which you are applying. Forms are available in the Guidance Office around Winter Break.
3. Apply for federal and state funds by checking the appropriate boxes in FAFSA.
4. Tell each college if you are applying for financial aid. Usually this is done by checking the appropriate box on the application. A college may also have its own financial aid form for you to complete.
5. Check for scholarships for which you are eligible:
o from each college
o those posted in the Guidance Office, on the GHS website, and those announced at school
o Corporations where parents are employed
o Military
o various search engines
6. Begin your Stafford Student Loan application by checking appropriate boxes on the FAFSA.
7. If you have properly filled out the financial aid forms, you will receive a Student Aid Report in approximately 4-6 weeks (sooner if you apply online). It will give you your eligibility index for federal and state aid. You will be asked to sign an acceptance of the amount received, and the money will be sent to the college. Colleges will notify you of further grants/loans you are to receive in their financial aid “package”.
8. Ask your counselor for assistance if you have general questions. Specific questions should be directed to the college financial aid offices or the financial aid agencies.