Paying for college seems overwhelming. Where do I start?
Start with your guidance counselor. He or she will have plenty of resources available to help you get started. If you're homeschooled, or if you go to a small private school with limited resources, take advantage of the services of a local public school guidance counselor.
Ask your guidance counselor about the two broad categories of financial aid--need-based and merit-based. Need-based aid is granted to students who would otherwise have trouble meeting college costs. Merit-based aid is based on a student's high school performance--academic and otherwise. Ask your counselor any questions you or your parents have about the differences between these two types of aid, and how you go about getting them.
Also, talk to someone in the financial aid office at one of the colleges you're considering. Take advantage of their wisdom. They'll be glad to help.
Familiarize yourself with financial aid terminology. Many of these terms are defined on page 54. As you talk to the experts, you'll have a better understanding of what they're talking about as they mention things like the FAFSA and Pell Grants and SEOGs. (Whew!)
There are tons of excellent books on the subject of financial aid. Here's one we'd recommend: College Money Handbook 2009 (Peterson's).
The federal government is a good source, too. Get a free copy of Funding Education Beyond High School: The Guide to Federal Student Aid by calling the Federal Student Aid Information Center at 1-800-4-FED-AID. It's also available online at studentaid.ed.gov/students/publications/student_guide/index.html
What's the difference between scholarships, grants and loans?
Scholarships and grants are gifts toward your college education; you don't have to pay them back. But you do have to pay back loans, usually with interest.
Scholarships are usually awarded for some special achievement or talent. Scholarships are also sometimes awarded based on a student's financial need.
Grants are usually awarded according to financial need only; earning a grant has nothing to do with your performance or skill in a certain area.
Sometimes scholarships and grants are referred to as "gift aid." Gift aid can come from many places--the federal government, state governments, the colleges and universities themselves, and tons of private sources, sometimes as close as your own church.
What's the FAFSA?
FAFSA is the Free Application for Federal Student Aid. But it's more than just an application for federal aid. It's an application for all types of aid--federal, state and college financial aid. This form gathers information about your family's income and financial situation--information the government uses to determine how much aid you're eligible for.
You'll want to pick up a FAFSA in the fall of your senior year. You can get a FAFSA from your guidance counselor's office, from one of the colleges you're considering, or by calling the Federal Student Aid Information Center at 1-800-4-FED-AID.
Another option is to file the FAFSA online. You can submit your FAFSA by going to fafsa.ed.gov. If you apply online, a built-in help service is available. You also can get help at ed.gov/help/landing.jhtml?src=gu or by calling 1-800-4-FED-AID. Filing electronically is the fastest, easiest way to apply. In fact, the Department of Education encourages this option.
Note: If you file electronically, you'll need to use a Personal Identification Number to sign your application. You and your parents can request this PIN at pin.ed.gov, and it serves as a legal signature for several Department of Education transactions. You can receive your PIN through the mail or by e-mail. A note of caution: There are several "dot.com" websites that charge families to complete the FAFSA. Don't go this route. Save money by filing your FAFSA through the government's services.
Fill out the FAFSA as soon as possible after January 1 of your senior year. You'll have to report financial information for both you and your parents, so you'll need your current tax returns and your Social Security Numbers. If you and/or your parents haven't filled out your tax returns by late January, go ahead and fill out the FAFSA anyway, estimating your answers. You'll be able to correct them later.
When you file the FAFSA, keep a copy of it, as well as copies of all tax and financial forms. You may need them later on.
You can list schools you're interested in attending on the FAFSA, and those schools will get the results of your FAFSA after it's been processed. You aren't required to list colleges on the FAFSA, but doing so speeds up the financial aid process.
About four weeks after mailing the FAFSA, or two weeks after filing online, you'll receive a Student Aid Report (SAR) from the government. The SAR will repeat the information you provided on the FAFSA. Check the SAR carefully for mistakes; this is your chance to correct them by sending in a response form. If you don't receive your SAR after four weeks, call the processing center at 1-800-4-FED-AID.
If the information you provided on the FAFSA was correct (that is, no estimates), your SAR will include your Expected Family Contribution (EFC). The EFC, determined by a formula established by law, is exactly what it implies: a dollar amount the federal government says you and your family will be expected to pay for your freshman year at college. Colleges use the EFC to determine the amount of your federal grant, loan or work-study, if you are eligible. Colleges also use this information to determine the makeup of your entire financial aid package.
Read More of Mark Moring's Article from the Christian College Guide
