Financial Aid for College
January marks the beginning of the financial aid application season and the time to make important decisions about paying for college. The process begins with the Free Application for Federal Student Aid (FAFSA). You MUST complete this free application and submit it to the U.S. Department of Education to determine your eligibility for federal student aid. This aid includes grants, scholarships, work-study and loans to help you pay for college. The form collects financial and demographic information. Many schools also use this form as part of their application process for non- federal aid.
It costs nothing to fill out a FAFSA, not even a stamp, if you do it online. Yet every year many students fail to complete the FAFSA, depriving themselves of thousands of dollars in grants and low-cost loans. Don’t be one of these students. File a FAFSA even if you think you will not qualify. You may not qualify for a Pell Grant but could be eligible for assistance from the State or your college. At a minimum, you’re eligible for a federal student loan with a below-market interest rate.
Your FAFSA must be filed by the end of February!
When you fill out the FAFSA, you’ll be asked to list up to six colleges or universities. Your information will be sent to those schools. Once you’ve selected the schools that will receive your application, check their deadlines and find out if they require additional information.
You and your parents will need to provide information about your income, which is easier to do after you’ve completed your tax returns. Even if you haven’t filed your taxes yet, you can file a FAFSA. Estimate your income using last year’s tax returns and your year end pay stub, and revise the form later
Be aware that many private colleges will require a second form, called the CSS Profile. CSS Profile information forms are on the bookshelf outside my office.
Please be sure to read the information I sent home to your parents in December. The letter contained all the websites and information that you will need to complete the financial aid process. It’s important for both you and your parents to work together on filling out the FAFSA.
Again, your FAFSA must be filed by the end of February.
If you have any questions or concerns please stop by Mrs. Chan's office.
Financial assistance for college comes from a variety of sources:
Colleges and universities, State government, Federal government
Business, professional groups and civic organization AND is available though a number of means, including low interest loans, scholarships or grants based upon financial need and / or academic merit.
The federal government supplies the largest amount of all student aid, about 70% (over 42 billion) annually through the U.S. Department of Education’s various programs. Federal Student Aid means:
Grants, which do not have to be repaid, are available to students with exceptional financial need. Financial need simply defined, represents the difference between the cost of the attending the college your child chooses and the ability of the student, and the student’s family to pay. The two most common grants are Federal Pell Grants and Federal Supplemental Educational Opportunity Grants.
Loans, which must be repaid.
There are two types of federal student loans:
Subsidized: Subsidized loans are awarded to students on the basis of financial need. The government covers the borrower’s interest while the student is in school.
Unsubsidized: Unsubsidized loans are not need –based. The borrower must pay interest throughout the life of the loan.
Subsidized and unsubsidized loans are available to students.
Plus Loans, available for parents, are always unsubsidized.
The William D. Ford Federal Direct Loan Program enables eligible students and parents to borrow from the U.S. Department of Education instead of a bank.
The funds lent under the Federal Family Education Loan (FFEL) Program are provided by banks and other lenders and are guaranteed by State agencies and reinsured by the federal government.
Work-Study money (which you earn and do not pay back).
This aid can help pay for most types of education after high school. It is available if you are attending a college, professional, vocational, or technical school. Programs include both need –based and non need-based financial aid. Many of these federal programs are administered through colleges. The largest most popular federal student aid programs are:
Federal Pell Grants
Stafford Loans
Plus Loans
Consolidation Loans
Federal Perkins Loans
Federal Work Study
Federal Aid Must Be Applied For Yearly!
Scholarships are awarded to outstanding undergraduates in recognition of their academic achievements, leadership, or promise.
Honorary scholarships are awarded on merit alone. Financial need is not considered in determining either eligibility or the size of most awards.
Need based scholarships are granted on the basis of merit to students who apply and qualify for need based financial aid.
Scholarships are funded by individuals, corporations, professional associations, alumni and directly by the college or university.
How to apply:
A student wishing to apply for financial aid must submit a Free Application for Federal Student Aid (FAFSA) between January 1 and March 2, prior to the academic year they intend to utilize aid.
California residents must also submit a GPA Verification Form to the California Student Aid Commission during the same period.
Additionally, to be eligible for student financial assistance program funds, a student must:
Have financial need (except for some loan programs)
Have a high school diploma or GED
Be enrolled as a regular student in an eligible program
Be a U.S. citizen or eligible non citizens
Have a valid Social Security Number
Make satisfactory academic progress
Sign a statement of educational purpose/certification statement on refunds and default (both found on the FAFSA form)
Register with the Selective Service, if require
Records that will be needed to complete a FAFSA form:
U.S. Income Tax Return, if completed
U.S. income tax return
W-2 forms and other records of money earned in 2008
Records of 2008 untaxed income
Current bank statements
Records of stocks, bonds, trusts and other investments.
Tips for completing the FAFSA
Complete your FAFSA as soon as possible after January 1. Early submission maximizes your chances of receiving financial aid.
Submit the FAFSA even if you don’t think you qualify for aid. Sometimes being rejected for federal aid is a prerequisite for receiving private awards.
Contact your prospective college’s financial aid office for additional information. Your college may require forms in addition to the FAFSA or may have an earlier submission deadline. Don’t forget to keep copies of all submitted documents for your records.
If you provide an e-mail on your FAFSA, you will receive your PIN and Student Aid Report (SAR) via e-mail only. You will not receive it via U.S. Postal mail.
5 Common FAFSA Mistakes
1. Do not leave a field blank. Use a zero if the question does not apply to you.
2. Don’t forget to report ALL required sources of untaxed income, such as Social Security or child support.
3. Use the 1040 Federal Tax return for income reporting and taxes paid, not the W-2.
4. Include yourself in your parents’ household size, even if you didn’t live with them the previous year.
5. Sign the application. If you are filing as a dependent, make sure your parents sign too. Approximately two to four weeks after the FAFSA is submitted, you will receive a Student Aid Report (SAR) from the Department of Education. The report indicates your actual EFC, which financial aid administrators use to calculate your financial aid eligibility.
Your EFC is the amount of money your family can be expected to contribute each year to your college costs.
The Expected Family Contribution (EFC) is calculated using the completed FAFSA.
Typically, colleges and universities review and augment State and Federal Government financial aid awards and offer a “Financial Aid Package” to each of their students who qualify for aid.
Review your Student Aid Report (SAR) carefully. The SAR is your official record that the federal processor received your FAFSA.
If you find any errors on your SAR, report them to your prospective college’s financial aid office to ask how you should make corrections. Unresolved errors could delay your eligibility for aid.
Call 1-800-433-3243 if you do not receive your SAR in 4-6 weeks.
Note your Data Release Number (DRN). Your DRN is the four- digit number located on the bottom left hand corner of your SAR. You will need it to apply for aid to any school you did not originally list on your FAFSA.
Check if your SAR has been selected for verification. If there is an asterisk (*) after your EFC, it means your SAR has been selected for verification. Your prospective college will compare your SAR with documents, including tax returns, that verify your financial status. If asked for verification, submit the information requested to your prospective college’s financial aid office ASAP.
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