Financial aid is the vehicle many students use to finance their college educations. There are many forms of it which can make it confusing.

In truth the better you understand your financial aid package, the better you will be able to make good decisions about funding your education. The first step is to complete the FAFSA, any college financial aid forms, and possibly the PROFILE application. Without your application materials, your school will not be able to provide you with the best financial aid package available.  Apply early to obtain the best financial aid package.

When you receive the letter detailing what your college can offer you, knowing a bit about each component of your package will help you make the best decisions. Remember, grants and scholarships don’t have to be paid back. Subsidized loans are less expensive to pay back and Unsubsidized loans are the most expensive to pay back. Here are some details about the most common forms of financial aid offered:

• Pell Grant -  This is a needs-based grant that is awarded to students who have not yet earned a bachelor’s degree.  The amount of money you receive will be based of your EFC (estimated family contribution) score. Although everything you read will say they are funded at a little over $5,000 per year it really isn’t true. The average Pell Grant award is currently $3551 per year because the program is very underfunded. So expect about $3,500 per year from this funding source. You do not pay this money back.
• SEOG –  This is a needs-based grant that is awarded to the students with the lowest EFC (estimated family contribution) scores. This table from Forbes magazine will help you understand how a low EFC score will qualify you for a better financial aid package.In other words, it is awarded to the students who demonstrate the greatest need. If you have a low EFC and was not awarded this grant, you may want to contact your financial aid office to see if they can help you.  The SEOG is one of those types of aid that you may miss out on if you don't get your application in early. You do not pay this money back.
• Federal Work Study –  This is a program that gives you the opportunity to earn money during the school year. If you accept the award, you apply for jobs identified as work-study opportunities at your school and interview. If hired, you will receive a paycheck just like a regular job. The federal government typically pays half of your wage while the employer pays the other half.  You do not pay this money back.
• Merit Scholarship – These are scholarships awarded to you based on your past academic performance.  The scholarship may be good for one year only or for several years (based on you keeping your gpa above a certain cut-off score). Contact your high school or college counselor to get details on how to apply for these scholarships.  You should start looking for Merit Scholarship opportunities the year before you graduate from high school. You do not pay this money back.
• General Scholarships – There are dozens of places to look for extra money on the internet. Many of these scholarships are small. However, the money can add up fairly quickly if you are vigilant and apply for as many scholarships as you can.  Some of the more well known sites include Good Call,  Student Scholarship Search, Fastweb, and  Scholarship Points.  Another great source is Cappex; a website that can help you with  both college selection and scholarship opportunities. You do not pay this money back.
• Institutional Scholarships – Many colleges and universities receive large donations from college alumni that allow them to grant institutional scholarships to students. These scholarships are typically need-based. Contact the college you are attending to see if these types of scholarships might be available to you. You do not pay this money back.
• TEACH Grant –  You can receive up to $4,000 per year to pay for your educational expenses if you are preparing to be a teacher. But this grant has a catch – if you don't teach in a high need field at a low income school for 4 years after you graduate, the grant turns into an unsubsidized loan that must be paid back.  Your teaching must occur in the first 8 years after you graduate (and the big catch in this economy is that you actually have to be hired to do the teaching).
• Perkins Loan – This is a needs-based loan program funded by the federal government. The amount you can borrow depends on your year in college. During the first year you can borrow up to $3,500; in the second year of college you can borrow up to $4,500; and any year after that you can borrow up to $5,500. You will be charged 5% interest for the life of the loan. It’s called subsidized because the federal government pays the interest on the loan while you remain in school. This can save you a bundle.  There is a 6 month grace period after you graduate or drop below half time school attendance before you have to start making payments. There are a few ways to have your Perkins Loan forgiven.
• Stafford Loan -  This loan is backed by a bank and is an unsubsidized loan. You do not have to demonstrate need to qualify for it. It’s called unsubsidized because you are responsible for the interest for the life of the loan.  The loan limits for these loans are tied to your subsidized loans. For example, if you're in your first year of school – your total loans cannot exceed $9,500 for the year.
• PLUS Loan – Did you know your parents may be eligible  take out a low interest loan to help pay for your education? If you're a graduate student, you can get one of these loans on your own.  

As you can see, there are a lot of options available to help you meet your educational expenses. It is always better if you can avoid taking loans but with the cost of education, that is not always an option.  Remember to capitalize on CLEP tests, credits for A.P. tests, and early college options to help allay some of the expenses.

May 1st is officially known as May Day.  This day is a celebration of Spring when children exchange baskets of flowers and dance around the maypole in a Pagan-gone-Christian holiday.  And yet May Day is also referenced as a call of distress – an urgent request for help.  Which leads us to the distress potential students are experiencing as they try to choose the perfect school before the May 1st deadline.

How do you find the college that will be your perfect home for the next four years? How do you identify the college that will be a perfect fit for you?

One item on your agenda is most likely affordability. You can’t simply look at the sticker price of each of the colleges; this can be deceiving.  You need to calculate the cost of attending the college in your specific case. Be sure you've complete your FAFSA so you will have a complete financial aid picture. Will your AP test scores allow you to attend for a shorter time, thereby lessening the cost of your undergraduate education? How much will it cost to attend each school each year? Will the return on a higher price tag result in better prospective job opportunities? These are important questions.

However, money isn’t everything. College quality is ranked by U.S. News and World Report for quality and difficulty getting accepted this can provide some guidance but it isn't a blanket answer for everyone. Hopefully you’ve planned to visit the campus and sit in on a class to see if the school would be a good fit for you socially. Some schools have a heavy religious influence while others may have a social activist bent.  Additionally, some schools excel in graduating fabulous social workers while others are notable for graduating future Nobel Prize winners in the sciences. Look at the majors offered by each school and use that plus your campus visit to help determine if the school is right for you. Also, check out College Prowler for a review of the campus by current students. 

One cautious student was determined to go to NYU and was excited to be accepted! When she visited the campus she was chagrined to realize the campus was too open and too busy for her tastes. Fortunately, she was also accepted to Vassar. Her visit there revealed a relatively closed campus which felt somehow safer to her. Despite her love for NYU and her desire to live in the city, she chose to attend Vassar. In retrospect she believes this was the best answer for her.

Another factor is distance from home. This factor will determine how often you see your family and friends. It will also speak to whether you need to reserve more money in order to live in dorms or an apartment. Living away from family can be a good thing – living too far away from family may be great or not so great depending on your relationship with your family. Living too close to home may influence you to live at home. This can be a great way to save money but living at home may interfere with your ability have an actual college experience (e.g., join clubs, attend activities outside of class time, hang out in the library, etc.) 

No one can really make the right college choice for you but you. It takes careful research, considerable calculation and balancing, and a realistic look at your finances and your relationship with your family. Consider all of these factors and you’ll be sure to choose the college that’s exactly right for you. And as you slip your deposit into the mail, you can be confident that May Day will be a year of celebrating new beginnings.

Now that you've successfully chosen a college that chose you, it’s time to concentrate on the hard stuff. For most of us, that means figuring out how to afford school. Fortunately, most financial aid offices are staffed with knowledgeable, friendly people who are excited to help you make your dreams come true.  In order for them to succeed in helping you succeed, you need to make sure you take a few important actions.

1. Check with your financial aid office to ensure you have completed any forms needed to start the financial aid process.  This is an important step in alerting the school to your need for some monetary assistance. You may want to log in to your college’s web-site under the Financial Aid section for the best information and advice.
2. Complete the FAFSA. This is an integral step in obtaining financial aid. Without it your college can’t determine your eligibility for grants, loans, work study, or need-based scholarships. You can check here to find  the FAFSA deadline for your state. But don’t wait! It’s really important to take this step early because a lot of the financial assistance is limited: when it’s gone, it’s gone. You want to be at the first of this line.
3. You and your parents will want to obtain Federal Pin Numbers as you can use them to electronically sign the forms and send them to your school as quickly as possible. Obtaining this PIN is also a free service.  Tuck this PIN number in a safe place because you'll need it every year to repeat this process.
4. Check with your college. You may be required to complete the PROFILE application through the College Board website.  This is a two-step process. First, you complete the online documents and submit them along with a processing fee. Next, you will complete an idoc packet to verify the information on your PROFILE. Again, time is of the essence as awards cannot be calculated until everything has been submitted and reviewed.
5. Check frequently with your school’s financial aid website to ensure you have completed all of the steps necessary to maximize your opportunity to finance your education.

When you complete the FAFSA, you will be asked to provide income information for your parents (if you are still considered a dependent). If your parents are no longer married, you are only asked to provide income information for the parent with whom you live most of the time. Also, be sure you are on the correct website. Some unscrupulous people will try to convince you to pay for making this application if you are unlucky enough to land on their website. Submitting the FAFSA is free!

When you complete the PROFILE application, you are required to provide income information for both of your parents regardless of their marital status or living arrangements. It is assumed that both parents will be responsible to aid you in your educational endeavors.  If your parents are no longer together, you will complete the PROFILE application with one parent and a separate web session will be available for your other parent to complete. This ensures both parents’ private information remains private.  In rare instances, special circumstances would allow you to submit the income information for only one parent. If you feel you may be the exception, contact your college’s financial aid office; they are happy to work with you to see if you would qualify for this exception.

Again, complete your financial aid applications as quickly as possible because once a college has awarded all of its funds, there is nothing that can be done for subsequent applicants.


by: Sherry Thompson