What is financial aid? Financial aid is basically any type of money that helps you pay or college. This money is comprised of the following: Grants; Educational Loans; Work Study; and, Contents/ Competition.
Types of Financial Aid
Securing Financial Aid
For some students, attending of applying for college is not the hardest part, but ensuring that they have tapped into all their options can be nerve racking. There's nothing like missing out on an opportunity to receive financial aid in the form of a scholarship, grant, or even a loan only after all the deadlines have passed.
To ensure that you are fully infomred about your financial aid for college, here is an in depth look into what is out there for you.
FAFSA
The Free Application for Federal Student Aid (FAFSA) is one of the most important applications out there to receive financial aid as it determines your need for financial aid. The FAFSA takes your Expected Family Contribution (EFC) and subtracts it from the Total Cost of Attendance at the school you are applying, in order to determine financial need. As indicated in its name, it is free of charge to fill out this application. Youc an either complete your FAFSA online or submit a peper application in the mail.
Financial Need = Expected Family Contribution (EFC) - Total Cost of Attendance (TCOA)
You are able to use a FAFSA calculator to get an estimate of how much financial aid you can expect.
CSS Profile
The CSS/ Financial Aid Profile is unique to many private colleges and universities who require you to complete the CSS Profile. These colleges and universities use the CSS Profile to determine what non-government financial aid you are eligible to recieve. To complete the CSS Profile online, visit College Board. Be sure to ehck with your school's financial aid office as to whether or not they require you to complete the CSS Profile.
Educational Loans
- Need-based financial aid is received because a student demonstrates a strong level of financial need. Education loans are big contributors under this type of aid. It is beneficial that many have low interest rates, due in part to the government providing the. Need-based loans are also subsidized, so the government takes charge of your loan interest payments during your course of study.
- Non-Need financial aid includes loans helpful in paying for education, but these are not strictly baesd on the overall financial circumstances of a student. Many individuals need college money, but their lower financial need levels disqualify them from need-based loans. Interest rates are often higher, and the loans are unsubsized interest not paid for by government). All of this leads to more debt at the end, interest added on. If it's possible, try to make interest payments during school to keep your debt down.
Finding Additional Financial Aid
- Communicate with your community. Talk with organizations, businesses, churches, and clubs about the scholarships, grants or loans they have available to college students. Sometimes you will be surprised at how many of these groups are right in your own hometown or nearby.
- Search the web. Use your talents to help bring in financial aid for college. For example, if you are a writer, there are several contests on the web and maybe even in your city that hold writing contests and give award money to the top 3 winners. Be creative in finding financial aid for college.
Hopefully, with this information, finding opportunities to receive financial aid for college is a little easier. You are not just confined to the FAFSA.
Go beyond and seek out all your financial aid options. It just may make a huge difference in your financial future!
Maximizing Your Financial Aid
When it comes to getting the most for your money, don’t be afraid to ask for help! Asking for financial aid help can save you a lot of money. You (or your child) worked hard, got into college, and are embarking on a whole new experience called college.
Here are some quick tips to help you along the way.
Apply ASAP.
There is a limited amount of scholarship and grant money available each school year, so remember to apply early. The earlier you apply the better the your chances are of receiving financial aid in the form of grants and scholarships. Grants and scholarships are the most desirable form of financial aid because this is money you will not need to pay back. This type of financial aid is awarded on a need based and first come, first served basis. Remember the deadline for filling out your FAFSA is June 30th. However, the longer you wait the slimmer your chances of receiving aid even if you are eligible.
Get your taxes done early.
Taxes may not be due until April 15th but the sooner you complete your IRS 1040 the easier it will be for you to fill out your FAFSA application. By completing your taxes early, you will have easy access to all of your financial information in one place. If you do not complete your taxes earlier in the year, consider getting FAFSA help by hiring a financial aid consultant.
Get your FSA ID.
You can apply for this ID online. It will give you access to the FAFSA form and your financial records online throughout your college career. This number can be mailed or e-mailed to you. Keep it in a safe place, but if you do lose it you can request it again.
Let someone else decide you're not elligible.
You cannot receive what you do not apply for. There are a wide variety of grants and scholarships out there and chances are you will find something you qualify for. Keep searching, you will be surprised what is out there.
Minimize student assets.
Students’ assets are weighed more heavily than parents assets. For this reason, students should spend their assets before their parents in order to minimize the amount expected to go towards education. Check out our FAFSA Calculator to estimate your Expected Family Contribution (EFC). Remember to keep in mind expenses a student may have including a computer, books, dorm supplies, etc. The FAFSA does not take these into account. To minimize your assets, consider paying bills ahead of time.
Stay organized!
Gather all the materials you will need to complete your FAFSA, it will save you time and the aggravation of looking once you've started your application. You will need: your social security number, driver’s license number, W-2 forms, your (and your spouse’s or parent’s) Federal Income Tax Return, a current bank statement, current business and investment mortgage information along with any other investment information.
Don't leave anything blank.
Remember in order for a FAFSA application to be processed, all of the blanks need to be filled in. Use zeros or not applicable instead of leaving information blank, too many blanks may cause FAFSA to reject your application. If you aren’t sure about something, check with a FAFSA and CSS Profile consultant.
Remember to renew your FAFSA.
In order to keep your grants and loans coming, you will need to renew your FAFSA yearly. You can use the FAFSA renewal form online. This form will pre-populate information, allow you to update information, and fill in your current tax information.
Don't be afraid to ask for help!
There is plenty of financial aid help available from financial aid advisors and financial aid consultants.
