It's hard to believe. That little bundle of joy that you brought home from the hospital is now getting ready to graduate from high school. It's also hard to believe that it's nearly time to begin to pay for that college education that's so important to your graduate's future. Let's take a deep breath and some time to explore how to get college grants and scholarships.
Most US citizens are eligible for some financial aid. If you don't qualify for a grant, you may still qualify for a loan. There is no easy way to determine if you are eligible for financial aid. The formula is fairly complicated and is different for each school. If you have any question at all, it's wisest to apply for aid. The one thing that is sure, if you don't apply for aid you won't receive aid.
Remember, it's not necessary to be accepted by a school to apply for aid. In most cases you'll want to apply for aid before your student is accepted at his or her favorite school.
There are two main types of aid that do not need to be repaid: grants and scholarships. Grants are awarded based on the student's financial need. Scholarships are given based on the student's scholastic merit, but need may be considered in determining the size of the award.
Information on federal government programs can be obtained by calling 1-800-4FED-AID. Ask for a free copy of "The Student Guide: Financial Aid from the US Dept. of Education". The federal government brochure reminds us that applying for federal aid is free. There is no application fee. When applying for non-federal student aid, such as state or institutional, an application or processing fee may apply.
The most important document in applying for federal government aid is called the "Free Application for Federal Student Aid" or FAFSA. You can get a FAFSA from the Federal Student Aid Information Center or from the school you're planning to attend.
If you applied for federal student aid last year you're already familiar with FAFSA. You will be able to file a renewal application.
The federal government offers a number of student aid programs. To be eligible for any federal program you must complete the FAFSA.
To fill out the FAFSA you'll need to provide financial information about your family. Certain records will help you to complete the forms. A copy of your US income tax return is important. You'll be asked to provide exact numbers from specific lines on your tax return.
It wise to keep copies of your FAFSA application with the copies of the documents you used to complete the application. When you submit your FAFSA application, you must send an original. A copy is not acceptable.
"The Student Guide - Financial Aid from the US Department of Education" points out that application must be received by May 1, 1996 for the 1995-96 school year. Remember, your particular school may have a different deadline that is earlier or later than May 1st.
After you've submitted your completed FAFSA it will be processed in approximately four weeks. You'll receive a "Student Aid Report" or SAR in the mail. The SAR will report the information you submitted on the FAFSA and show your "Expected Family Contribution" (EFC). The EFC is used to determine how much aid your student will be eligible to receive.
If four weeks pass and you haven't received a SAR, you can write The Federal Student Aid Information Center at PO Box 84, Washington, DC 20044 to request a status. When writing you'll need to include your full name, permanent address, Social Security Number, date of birth and signature.
The SAR will give you an idea of how much aid to expect, but it's not the final word. The school will make the final determination based on your EFC and the cost of education at that institution. Financial need is calculated by subtracting EFC from the "Cost of Attendance" at the specific college or university of your choice.
You'll want to contact the school that you're considering early. Find out what the application procedures and deadlines are for that particular school. Some schools will require additional forms along with the FAFSA. Each school will have different aid programs available. Some schools may require a processing fee for financial aid applications. They may want you to complete a "Financial Aid Profile".
A number of questions are frequently asked by parents and students alike. One common question concerns how much money parents are expected to contribute. The amount of money that parents are expected to contribute depends on the number of parents with income, the age of the older parent, family size and the number of college students in the family. The only way to know for sure is to submit a FAFSA.
What about assets that parents have been saving for their own retirement? Are they considered in the needs analysis? Assets held in an IRA, 401K, Keogh or 403b account for retirement are usually not considered in calculating financial need.
Most seventeen and eighteen year olds want to consider themselves independent from their parents. Normally, this causes parental distress. However, it can be an advantage in applying for financial aid. But to be considered `independent' a student must be 24 years old or married; have a dependent; be a veteran , a graduate or professional student or a ward of the state.
What about students with divorced parents? Who is responsible for filling out the FAFSA? If the student's parents are divorced, the custodial parent is responsible for filling out the FAFSA.
What is a Pell Grant? The federal Pell Grant is a program that provides money for undergraduates. It was set up by Congress and requires a completed FAFSA. It provides money to every eligible student.
With the cost of college higher than ever, financial aid is increasingly important. But that aid is not out of reach. It just takes a little bit of homework. And most students I know will be happy to introduce their parents to homework!