Before I go into what types of grants and loans are available for college students (and their parents), I must first mention a critical step that everyone must remember in seeking financial aid, which would be filling out the FAFSA (Free Application for Federal Student Aid) form. Submitting this form is something that you MUST remember to do in order to be eligible for many existing financial aid programs. Let me explain why.
First, what is the FAFSA?
The FAFSA is a form that college students (as well as high school seniors planning to attend college) and their parents must fill out in order to determine their eligibility for federal student financial aid. The financial aid that you will receive as a result (hopefully) can be in the form of loans, grants, scholarships, and also work-study programs. Schools also use the FAFSA to determine if you are financially deserving of any scholarships they may have available. Students must fill out form annually in order to determine if they are eligible for aid that year. The government also requires it to be re-done annually in order to account for changes in income affecting a family's eligibility. For example, if a parent receives a pay raise from $50,000 per year to $500,000 per year (ahh, wouldn't that be nice!) the government expects that they can afford the college costs and won't provide them with any more assistance designed for the financially needy.
How does it work?
In filling out the FAFSA, a family will have to complete a lengthy questionnaire about both the parents' and the student's finances. The government then enters these answers into a formula that determines their Expected Family Contribution (EFC), or how much they expect the family to pay on their own for college after financial aid. Factor's that determine one's EFC include family size, income, number of children in college from immediate family, and assets (i.e. investments, homes, etc. 401k and retirement will not be included). The government requires all of this information, as they expect that parents will contribute to their child's education, whether or not they will actually do so. This can create a problem for children whose parents really aren't going to contribute. In this case a student should contact someone for help on how to receive the forms of aid out there without having to complete the FAFSA information on their parent's income.
In order to be eligible for any federal aid and often awards offered through colleges, YOU MUST FILL OUT THE FAFSA FORM! Colleges and many other financial aid programs (almost always the case for government) only use this to determine if you are financially deserving. If you decide not to fill the FAFSA out, you will probably be rejected from school scholarships that are “need-based”, and will also be ineligible for many loans, grants, etc. that can ease the high cost of college.
Basic requirements for federal aid eligibility:
-Be a U.S. citizen, U.S. national, or an eligible non-citizen
-Have a valid social security number
-Have a high school diploma or GED (once you are in college)
-MUST REGISTER WITH THE US SELECTIVE SERVICE (if you are a male aged 18-25)
-Don't owe refunds on any federal student grants
-Not in default on any student loans
-Haven’t been found guilty for the possession or sale of illegal drugs during the time that received federal aid
-Complete the FAFSA form, and promise to use the financial aid only for educational purposes
-And also...not be filthy rich =)
It is also critical that you FILL OUT EVERYTHING ON THE FORM CORRECTLY! Failing to do so and making mistakes can slow the application process, and you will likely have to fill the FAFSA out all over again (trust me, you do not want to do that…it took me several hours to fill this thing out!). The FAFSA is a rather long form, so grab a cold drink be prepared to sit at your desk for awhile :)
Later on after submitting the FAFSA, you will hear back from the government on how much you expected contribution will be. The amount that you are determined to be eligible for in aid could be in the form of anything from loans, to grants/scholarships, to work-study. Obviously the best item to receive will be scholarships and/or grants. Then, it's time to start figuring out how you plan to cover the EFC every year.
I will repeat my self in saying this: make sure that you fill out this form! Even if you don't think you are eligible for anything, you may be surprised. I expected to receive federal aid anyways, but the amount that my family was offered was still a pleasant surprise. My daughter received a Cal Grant that covered her full tuition during her first year at UCSD; she also received several scholarships later on from UCSD as a result of our need, which we would not have received if we didn't submit the FAFSA. She has also took advantage of a great low-interest student loan (the subsidized Stafford Loan) that we received only because of the FAFSA. A few of my colleagues did not expect to receive anything at all from the FAFSA, but their kids ended up receiving thousands of dollars each (in forms including low-interest loans, work study, and even a school grant for one of them)! Like with applying for scholarships, taking the time to fill out your FAFSA will definitely pay off well.
Here are a few useful links that should help you fill out the FAFSA:
-General guide to filling out the FAFSA and the questions that you will be asked
-FAFSA FAQ
-Free e-Book on filling out FAFSA
Filling out the FAFSA is definitely a tedious process regardless, but taking enough time to complete it will certainly pay off. Good luck!
Dec 28, 2008
