We understand how complicated the financial aid process can appear to be.

There are seemingly reams of documents to be obtained, forms to be filed, personal questions to be answered, and financial issues to be settled. It can take a long time to digest all the information out there relating to financial aid, especially for those who are applying for the first time. The best advice we can offer is to leave no stone unturned in the search for college funding. And the biggest rock (and sometimes the toughest to move) is the U.S. federal government, which dispenses more money to students for school than any other organization or agency.

Summary for Success

Here are a few tips to help you make the most of your financial aid options

• Maintain satisfactory academic progress with your studies
• Stay current on new financial aid rules and regulations
• Determine how much aid you are eligible for from loans, grants, and scholarships
• Apply for state-funded undergraduate and graduate scholarships
• Plan ahead for loan repayments after college graduation
• If you have or will be getting several different loans while in college, think about consolidating these loans into one
• Consider paying back a portion of your loans through new community service programs

Dealing with Deadlines

TIP…Financial Aid forms can be obtained after November 1 of every year from your financial aid office, the college or university you are planning to attend, or from your state agency. Remember, do not submit your application until after January 1 or it will be returned to you unprocessed.

Even if the college(s) to which you wish to apply have not posted specific deadlines for returning all of their required aid forms, contact their financial aid office for advice on the best time to submit financial aid applications for maximum consideration. Don’t count yourself out by missing deadlines. Also, know that the later you apply in the year, the less free money there will be. It’s almost certain that those who are applying for federal aid in April will not receive any aid for the following fall enrollment regardless of need because all the money has already been distributed. Deadlines for private scholarships, however, vary. A student could conceivably apply for this type of funding year round.

Common Financial Aid Questions and Answers

As a summary of the information contained within this report, we have compiled this list of financial aid questions commonly asked by parents and students. Some of the answers you already know; but others may serve to brush up your financial aid knowledge.

Q: Do I need to be accepted to a school before I apply for financial aid?
A: No, most schools do not notify students of their acceptance until after the application deadlines for financial aid. Applications for financial aid are available in November of each year, so get an application and fill it out immediately. If you are filling out the FAFSA, mail it as soon as possible after January 1 for maximum consideration.

Q: Once I’ve received financial aid, do I have to reapply every year?
A: Yes.

Q: What happens if I can’t meet my expected contribution?
A: If you can’t come up with the required amount, and have exhausted all resources for free money such as private grants and scholarships, you’ll most likely have to take out a loan to cover any unmet expenses.

Q: Do male students have to be registered with the Selective Service to be eligible for aid?
A: Yes. Male students 18 years or older must be registered to be considered eligible for all federal financial aid programs.

Q: What if my parents cannot meet their contribution, or are experiencing unusual financial difficulties?
A: Usually if your parents are unable to meet their contribution, they (or you) will have to take out a loan to cover the outstanding portion. If the difficulties are a result of unusual circumstances, contact the financial aid offices at the school(s) to which you are applying and explain your family’s situation in detail. You will be asked to provide specific financial documentation.

Q: If I only go to school part-time, can I still receive financial aid?
A: Yes. All federal programs grant assistance to students enrolled at least half-time.

Q: Will my parents’ assets (home or farm) be a factor in determining their expected contribution?
A: For the most part, no. Home and farm values are not included in determining the projected parental contribution when applying for federal aid. Family-owned businesses and profits they generate are taken into consideration, but with certain restrictions. But you should know some colleges, particularly private institutions, will continue to reduce their own aid packages to families with home equity, even though federal guidelines don’t require them to do so.

Q: I am divorced, how will parent’s income be assessed for our child?
A: When applying for federal aid, the income of the custodial parent is evaluated. The government defines “custodial” as the parent with whom the student lived more during the past 12 months. If the child lived an equal amount of time with both parents then the custodial parent becomes the parent who contributed more financially to the student in the past 12 months. The government does not allow the student to choose the parent with less income, when filing for financial aid make sure and follow all of their guidelines carefully.

Q: How many forms do I need to fill out?
A: It can vary. You’ll need to fill out the FAFSA at the very least; you may also be required to fill out the Financial Aid Profile or some other forms, depending on your school. Some states require the completion of independent forms for state aid or scholarships. Check with all the schools to which you are applying to find out which forms you will need to submit.

Q: I have two or more children attending college at the same time do I have to pay an EFC for each one individually doubling or more the amount of money I have to contribute.
A: No. The financial aid process will take into consideration this extra expenditure and adjust your EFC accordingly.

Q: How much “free” government financial aid will I receive?
A: This depends on your dedication to finding the money and on your financial need factor. Many financial aid applicants receive some free aid through the Pell Grant or FSEOG programs. Other students have to seek private scholarships or take out small loans to cover remaining college expenses.

Q: Are federal and state aid the only available resources for financial aid?
A: No. There are thousands of private scholarships and grants available from corporations and organizations nationwide. You can look in Perpetual Press’s The Financial Aid Book for listings and further explanation on how to apply for these funds.

Q: What happens if I don’t get my financial aid application in on time?
A: If you miss a deadline, loans are available, but most likely there will be no “free” money left in the Pell Grant or FSEOG programs. You will also be too late to qualify for the low-interest Perkins Loan. Remember, too, that funds are distributed by individual schools using a “first come, first served” method. In some cases, even if you meet all the deadlines, there still may be a shortage of funds available to you. Financial aid experts recommend that you find out what the “optimal time” is to get all your paperwork in for maximum funding consideration at your particular school.

Q: If I don’t receive financial aid my first year in school, should I try again next year?
A: Yes. The amount and requirements for financial aid change every academic year (along with your financial situation). If you need assistance to cover tuition and expenses, apply.

Q: Once my financial aid is awarded, how will I receive it?
A: Every school has its own disbursement system, so check with the financial aid office at your college or university. Most schools disburse aid during the first week of classes.

Q: Do you have to be considered independent to be eligible for financial aid?
A: No. Dependents and independents are both eligible to receive aid. The only difference between the two is that parents of dependent students are expected to contribute money to the cost of their child’s education.

Q: Should I apply for aid if I have siblings in college who are receiving aid?
A: Definitely. The more brothers and sisters you have applying for aid while attending college, the more your eligibility and the amount of aid you may receive increase.

Q: If I have a student loan, when do I have to start paying it back?
A: This depends on the type of loan you have. If you have a subsidized Stafford or Perkins Loan, repayment starts six months after you finish school. Payments for unsubsidized loans usually begin while you are still in school. If you have any questions regarding repayment be sure to ask the lender before you sign the promissory note.

Q: How long do I have to repay my loans?
A: Most loans allow you to make monthly payments during a five- to ten-year period.

Q: How often do the rules and regulations of financial aid change?
A: The laws are constantly changing. It’s important to familiarize yourself with the new regulations every academic year.

Q: Does it cost anything to apply for financial aid?
A: Federal and state applications are free. Other forms you may be required to fill out may have a small cost associated with them, with the exact amount noted in the instructions.

Q: I don’t know which of several colleges I’m going to attend, and they all use different financial aid forms for their institutional aid. Do I have to fill out separate forms for each school?
A: Yes. While they all should be using the FAFSA for Title IV aid programs such as Pell Grants and the federal Work-Study program, many colleges have other forms for their own campus-based aid or what some people call “institutional” aid. Ask the financial aid officer at each college to send you the appropriate forms to fill out. However, you can use just one copy of the FAFSA to apply for federal financial aid at to up to six different schools.

Case Study: Applying for Financial Aid without the Support of a Parent

Joanne, having graduated from high school, wasn’t sure what major she wanted to pursue or even what kind of school she wanted to attend. Not wanting to waste time and money taking courses that might not be useful to her later,

she elected to postpone college until she decided on her goals. She worked as a waitress for two years, living on her own and establishing her independence. When it came time to apply for financial aid, this meant that only her income and not her family’s would be used to calculate her monetary need. This was an important factor because her father, who had not attended college himself, thought it was unnecessary and did not want to help pay for her higher education. The two years on her own allowed Joanne to save about $1,500 and sort out her career path. She opted to apply to a small, private arts college in a major urban area to seek a theater degree. Yearly tuition at the school was approximately $8,000, so she knew that she would not be able to attend without substantial assistance. Immediately upon being accepted, she filled out the correct government forms and had copies sent to her prospective school. She didn’t apply to any private sources for scholarships; in her words, “I didn’t think there was anyone who wanted to give money to an aspiring actor.” The school examined her financial report and sent her an award letter which indicated her total need as $12,600, including tuition, books, room and board, transportation, and personal expenses. They offered her aid as follows:

The disparity between her perceived need and the amount her school offered was made up partially through her savings and partially, she said, “by living very frugally. I ate a lot of macaroni and cheese.” Joanne spent about fifteen hours each week working on campus to fulfill her work-study requirements. She had a few different jobs during the summers, which she sometimes found by checking the bulletin boards in her financial aid office. These included being a receptionist at an employment agency and working in the frame shop of an art gallery. She even was able to occasionally act in industrial and educational films, which paid up to $250 for just a day or two of work.

“I was fortunate to live in a city with decent employment opportunities, especially for actors,” she said. By saving money in the summers and continuing to live moderately, she was able to offset the difference between her perceived need and aid offered each year. Small tuition increases were counteracted by equivalent increases in her loan and grant awards. By Joanne’s senior year, she was aware of the many scholarship options, so she applied for several and was awarded $2,500 which allowed her to accept less loan money that year to decrease her post-graduation debt. Joanne is now performing for a repertory theater company as a paid intern. She ultimately plans to go to graduate school for a master’s degree in fine arts, and is pleased about the passage of President Clinton’s financial aid reform program.

“Filling out all those forms year after year was a real pain. The system is pretty much a hassle, but I wouldn’t have a college degree without it.” * *This information was obtained in 1998 and although the numbers are dated students repeat this scenario every year. The moral of the story is: financial aid is available if you are determined to find it!

The Top 15 Best Financial Aid Tips

And the winners are…

• As you are considering what college or university to attend, contact each school’s financial aid office for:

• total college costs
• general financial aid information
• financial aid procedures, applications, and deadlines

• If you know you will definitely need some assistance with paying your college costs, start by filling out the FAFSA. By doing so, you are applying to all Title IV federal financial aid programs. Correctly answer all the required questions on it and make a copy to keep for your record.
• Send the form in as far ahead of the school’s deadline as you can (but not before January 1) and be sure to always use the forms that correspond to the academic year in which you want to receive the aid.
• FAFSA on the web has a “follow up” section where you can print out your Student Aid Report (SAR). Review the form and make any corrections necessary.
• Send the SAR to the financial aid office at the schools of your choice if required. (Often the SAR is sent directly to each school as indicated on the FAFSA, so you won’t have to worry about this step.) Keep a copy of the SAR for your own records.
• After the financial aid office reviews your application for aid, it will issue an award letter telling you how much aid you will actually receive. This letter typically comes out many weeks after filing all your original financial aid forms.
• Accept all or part of the aid package, then sign and return the award letter to the financial aid office.
• If loans are part of your aid package, start investigating interest rates and terms with a private lender or pursue a federal direct student loan.
• Get a loan application from the financial aid office, fill it out, and send it to the lender you’ve selected.
• Receive loan approval, usually about six to eight weeks after applying (unless you receive a direct student loan. These loans typically only take a week for processing). Sign the promissory note which stipulates the conditions and repayment terms of the loan.
• If federal Work-Study is a part of your aid package, make arrangements to meet with your financial aid adviser to receive details on matching you to a suitable job. (Most will be on campus and will relate to your major.)
• Maintain good grades and aid eligibility throughout your college years.
• Complete a financial aid application for every year that you need aid.
• Follow the steps listed above.
• Keep track of your loans; make your repayments on time. Do not fall into default. If you need to make alternative repayment arrangements, contact your lender immediately.

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