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Financial aid experts recommend that you apply for financial aid before deciding which college or university you are going to attend. High school seniors are not usually notified of acceptance at an institution until long after the deadline to apply for aid has come and gone. For many students, the amount of aid they will be eligible to receive determines the
school they choose to attend. It is very important to estimate the general costs of each institution you are considering.

College costs differ greatly from one campus to another and depend on several factors. Whether or not you live on campus, attend an in-state or out-of-state school, or work during the year all influence the amount of money you will need to cover expenses. When estimating your school budget, include the basic costs of tuition, room and board, and books and supplies, but do not forget money for yourself. One of the most common mistakes students make in budgeting is not to consider money for personal expenses such as clothing, transportation, medical bills, and recreation.

When estimating costs, also think about ways to cut costs. Consider the following if you're on a tight budget or just want some extra spending money:

• Leave your car at home, if possible. On most campuses, a car is simply not needed and parking, maintenance, and insurance costs add up quickly.
• For entertainment, try your school's free offerings, such as movies or plays. Also try cheap activities like basketball, rock climbing, or lifting weights at the school gym.
• Use online bookstores to find better book bargains such as Amazon.com or www.varsitybooks.com
• Check if free tutoring is available.
• Try to make the bulk of your cell phone calls during your free minutes hours or look into using an internet connection for free phone calls
• Try not to eat out. Grocery shopping really is a lot cheaper.
• Look for used textbooks, which are often half as expensive as new books.
• Stay away from credit card purchases. Use credit cards only for emergencies.

Many people shrug off the idea of financial aid because they don't think they will qualify. If the idea of financial aid has crossed your mind you probably qualify, the worst that can happen is you apply and get turned down, it's free to apply so why not?

Post-secondary education is a huge investment, but receiving aid—whether it comes in the form of grants, loans, or scholarships—can relieve a large portion of that financial stress. As noted earlier, anyone who needs assistance should apply for financial aid to help cover college costs. Unfortunately, many families avoid filing for aid because of myths and misconceptions that surround the process, especially for federal financial aid. Perhaps the most common myth is that a student and her family must be financially very poor in order to receive federal aid. As you now know, that simply is not true. Student financial assistance programs in general are designed to help as many people as possible; however, the U.S. government does have some minimal conditions that must be met by all applicants.

Basic Requirements

Before you apply for federal financial aid, you must be:

• A U.S. citizen or eligible non-citizen (see below)
• Attending half- or full-time at an accredited trade school, college, or university or will be enrolling at an accredited trade school, college, or university
• Registered with the Selective Service office, if applicable (males 18 and older)
• Registered with the Social Security office (exceptions for non-citizens)
• In good standing on any previously received federal financial aid (no defaults)

If you have any questions concerning these basic eligibility requirements, check with a financial aid counselor or the Federal Student Aid Information Center on the web at www.studentaid.ed.gov or by phone at (800) 4FED-AID.

Eligible Non-Citizens

A special note to foreign students: The U.S. federal government will require documentation from all non-citizens who are requesting federal aid for schooling. To qualify for U.S. government assistance programs, you must be an "eligible non-citizen." All federally funded aid programs, such as loans and grants, are available only to U.S. citizens, their spouses, and permanent residents of the United States who have:

• A passport stamped " Processed for I- 551 or I-151″
• An Alien Registration Receipt Card, typically referred to as a "Green Card"

In addition to the above, individuals in the United States who are classified with one of the following stamps on their passports will be considered eligible non-citizens:

• Cuban-Haitian entrant, status pending
• Refugee
• Asylum granted
• Conditional entrant (if issued before April 1, 1980)
• Indefinite parolee and/or humanitarian parolee

Residents of the Federated States of Micronesia, the Marshall Islands, American Samoa, Swain's Island, and Palau are also eligible for U.S. government financial aid. Laws and regulations regarding financial aid can change fast, so it's best to check with the school you are applying to for the latest information on non-citizen eligibility rights. For additional materials and assistance, foreign students wishing to study in the United States can also contact:

The Institute for International Education

Information Section

809 United Nations Plaza

New York, NY 10017

(212) 883-8200

www.iie.org

(They request that you come in-person to their offices to obtain information.)

While U.S. federal government aid programs may be unavailable to foreign students who don't meet the above criteria, there are hundreds of private scholarships open to all students based on criteria other than United States citizenship. Be sure to see Perpetual Press's Financial Aid Book for more information on these scholarships.

Dependent vs. Independent

One common factor involved in all federal and state aid applications is determining your status as dependent or independent from your parents. Students who are claimed on their parents' yearly income tax forms and who receive financial support from their parents are classified as dependents. When filing for financial aid, dependent students must report their parents' yearly income and assets on their aid applications. Independent students are financially self-supporting and are not claimed by their parents for tax purposes.

If your parents don't claim you as a dependent on their tax forms and you are 24 years of age or older, then only your income will be used to determine your ability to pay for college, thus increasing your eligibility for financial aid. What if you are under 24 years of age and your parents don't claim you as a dependent? Declaring financial independence isn't as easy as it used to be, unfortunately. The U.S. government believes parents are still chiefly responsible for their children's education whether or not they are classified as independent. Because of past abuses, more proof of independence is now required (see below). Under new laws, the parents of so-called under-age independent students may still have to provide income and asset information on financial aid applications even if they don't officially claim the student on their tax return forms. While it is difficult for students under the age of 24 to establish independent status, the possibility is worth pursuing if you are having extreme difficulty getting your parents to contribute to your college expenses or even signing your application forms. Be sure to see your financial aid advisor if you have questions about changing your status due to special circumstances.

How the Government Determines Your Status

It's important for you to know how the government determines your status. As a student, you qualify as independent if you meet one or more of the following criteria:

• Are at least 24 years old by December 31 of the award year
• Are married
• Are a U.S. Armed Forces veteran
• Are enrolled in a graduate or professional program
• Are an orphan or ward of the court
• Have legal dependents other than a spouse

You may declare yourself a veteran if you were honorably discharged (or will be as of June 30 of the award year) from any branch of the U.S. Armed Forces (including the Coast Guard). Students who attended a military academy in the United States and left in good standing can also be considered veterans. Former wards of the court over the age of eighteen can declare themselves independent if they were wards up to the age of eighteen. As for what qualifies a person under a student's care for dependent status, this can include natural children, adopted children, foster children, or any other person who receives over half of his or her support from the student during the award year. For example, an elderly parent or grandparent under your care can be declared a legal dependent.

If you fall into any of the above categories, then your parents do not need to provide financial information on your application forms. For more information on this subject, contact your financial aid office, or call the Federal Financial Aid Informational Center at (800) 4FED-AID.

Couples who plan to attend college are better off financially if they don't get married first. Once you get married, your spouse's income will be factored in to determine how much aid you get, and your income will similarly affect your spouse's eligibility. If you live together, there is no legal association and your partner's income is ignored.

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