F is for FInancial Aid!

For all families at Uni, college is an expensive venture no matter what the family's income is. That's why I have a whole blog devoted to figuring out financial aid. Financial aid is divided up into two categories: need based aid and non-need based aid.

Need Based Aid

Colleges decide how much aid you might be eligible for by a simple formula: Tuition-Estimated Family Contribution (EFC)=your need. They calculate EFC using the CSS Profile and the FAFSA (Free Application for Federal Student Aid), which you can research more into at http://www.collegeboard.com/student/pay/scholarships-and-aid/409.html

Keep in mind that the college might also have a financial aid that you will have to fill out too. What exactly are these forms looking for? They ask such questions pertaining to: Assets, Annual Income for both parents, Savings, Mortgage/Rent, Student Income, Student Savings, and much more.

My advice:

-Set a good hour or so to work on this in one fell swoop

-Get started as soon as the forms are available, just in case you need forms mailed, etc.

-Have your tax forms by you for reference. For me, I had to have my mother's 2009 tax forms, as well as estimate 2010's. I will have to mail 2010's to my colleges as soon as they are available. For the juniors, you probably will use 2010's and estimate 2011's, so keep that in mind come April.

-Not all colleges require the CSS. However, you definitely want to double check if your college does because you DON'T want to miss the deadline

-If your parents are divorced, the parent you spend less time with will have to fill out the noncustodial profile, which is available along with the CSS. Make sure that they know that they will have to fill this out and the deadline they must meet. If your parents are divorced and you have no contact with one of your parents, there is a box to check.

Your financial aid package based on need can be made up of several different things. The best kind is grant/scholarship/tuition waiver money. This is gift money and doesn't have to be repaid. The second kind are loans. There are two kinds of loans, and it is important to know the difference. Subsidized loans are based on your need. These loans have yearly interest, but you don't have to pay back these loans until after you graduate. The other kind of loans are unsubsidized, and they aren't based on your need. You have to pay back the yearly interest while you are still in school. The third kind is work study, in which you work during both the school year and the summer. For all of these, it is important to ask the college questions regarding the money. The Collegeboard has a number of questions you should ask: http://www.collegeboard.com/student/pay/ways-to-pay/412.html

Non-Need Based Aid

This is often known as Merit Aid, and is pretty much money based upon talents. Many scholarships are awarded based upon talent and not family's income (though many scholarships still use this as criteria). There are academic, leadership, volunteerism, art, writing, political, all kinds of scholarships! The two best resources for researching are fastweb.com and scholarships.com. Make accounts soon because unlike college, the deadlines vary.

IMPORTANT: There are scholarship scams. Don't fall for them. Here are some important tips to keep in mind.

http://www.collegeboard.com/student/pay/scholarships-and-aid/408.html

However, if you aren't sure, talk to Lisa. She's been in the business of college for years, and she can help you discern the legitimacy of a scholarship. No scholarship should cost money-->kind of against the logic, don't you think? Money is nice for college, but be smart and vigilant. Families trying to make college dreams come true can be a nice target.

Colleges can also give Merit Aid scholarships, usually academic or departmental. For example, I am eligble for a $2,500 Humanities scholarship from Loyola because I am an intended history major. The thing about Merit Aid is that the lesser known schools or the ones you have a better chance of getting into are going to be the ones giving the best merit aid. This is because you are going to be an above average student, thus a strong contender for merit money. That's a big reason Lisa and all of us PCCs push for broadening your college possibilities by research. Some of these non-brand name schools are academically sound, places you might be happy at, and a bargain because of merit aid. Keep that in mind as you do your research.

Anyway, I will write about Gap Year soon!

-Celinda :]