Wednesday, September 24, 2014

Financial Aid Information

A few points parents and students should remember about financial aid
  1. Never rule out a college because of cost alone (college may offer scholarships, grants, aid, etc).
  2. For students to be considered for financial aid - money given or loaned to students to help them pay for college - they must apply.
  3. Applying for financial aid is like applying for admission to college, but they're not the same thing.
  4. The financial aid application process usually has its own forms, deadlines and requirements - and students don't have to wait to be admitted to a college before they apply for financial aid.
  5. Compare costs before applying to a college - Net price calculators can provide an estimate of financial aid eligibility and remaining college costs and should be available on every college's website.
  6. Get advice - The financial aid office at local colleges often provides workshops or can give advice.
  7. Compare awards - Look at grants, loans and parental contributions before making a final decision on a college.
Terms
  • Grants - Financial aid, usually based on financial need, that does not need to be repaid.
  • Scholarships - Money awarded to students based on academic or other achievements to help pay for education expenses.
  • Loans - Borrowing money from the federal government or a college is called taking out a loan.  A loan must be paid back with an extra charge called interest.  Loans are considered financial aid.
  • Work-study - The Federal Work-Study Program offers paid part time jobs to help students pay for part of their college cost.  Not available up front to pay tuition.  Work-study can be earned throughout the academic year.
FAFSA (Free Application for Federal Student Aid)
www.fafsa.gov
  • Online application that collects demographic and financial information about the student and family.
  • Normally filed electronically and is available online in both English and Spanish (a paper application in either English or Spanish is available upon request).
  • For the 2015-2016 academic year, the FAFSA may be filled out beginning January 1, 2015. 
  • While most colleges set FAFSA filing deadlines, do not forget to check for state filing deadlines.
IRS Data Retrieval Tool
  • The IRS Data Retrieval Tool allows students and parents to access their IRS information to complete the FAFSA by transferring the data directly into their FAFSA from the IRS website.
  • If the student and family are eligible to use the IRS Data Retrieval Tool, it is highly recommended that they use the tool for several reasons:
    • It's the easiest way for students and families to provide their tax data.
    • It's the best way of ensuring that the FAFSA has accurate tax information.
Summer Term Students
Class of 2015 high school graduates that are admitted to a University/College for the summer term of 2015 will need to apply for the FAFSA now for the current school year (2014-2015).  Then apply for the FAFSA again beginning January 1 for the next school year (2015-2016).