The Road to College: Financial aid begins with FAFSA
By: AGNES DIGGS - Staff Writer | ∞
The most challenging step toward higher education is often financial aid. Unless families are independently wealthy, there's a better-than-good chance that a scholarship, grant or loan will have to figure into plans for a college education.
Financial experts absolutely agree on one piece of advice: Start the process as soon as possible, and the earlier the better.
"You can start your search for scholarships as early as seventh and eighth grade," said Joyce Suber, lead coordinator of the AVID/Learning Resources and Educational Technology programs of the San Diego County Office of Education. AVID stands for Advancement Via Individual Determination, an academic support program for grades 5-12 that prepares students for college eligibility and success.
Suber suggests that students who are unsure of what requirements they'll have to meet in terms of admissions and financial aid can check out the California State University Web site for clues as to what help is available.
Also, students should talk to their high school counselors about school-sponsored aid workshops or other ways to gain helpful information.
"High school counselors are quite adept at disseminating formation about financial aid," Suber said.
In their quest for aid, students should plan to do research, fill out applications and keep in mind that organizations and institutions offering scholarships are looking for stellar students who have done the work, taken the time to carefully complete the applications, and written an excellent essay, Suber said.
Students need to take the most challenging classes possible ---- including math and science classes ---- and do their very best in those classes, she said. Grade point averages and teacher recommendations are also important, she said.
Unclaimed funds
Many sources of financial aid are available, both public and private. But every year, some funds go unclaimed because no one applied for them for a variety of reasons, including lack of awareness that they exist and inadequate paperwork.
"Our goal is to increase the number of seniors who apply for the FAFSA this year," said Patti Cates, project specialist with the San Diego County Office of Education. The Free Application for Federal Student Aid, used to determine eligibility for federal and state student grants, loans and work-study programs, is the first step in preparing to apply for aid, Cates said.
Once the FAFSA is completed and verified, students who are California residents can apply for a state-funded Cal Grant, a federal Pell Grant and other federal grants and loans. Once the Department of Education processes an application, a Student Aid Report is issued and made available to the schools the applicant has listed on the FAFSA.
"Start as early as possible," Cates said. "Do your homework. Prepare in advance by organizing your information."
Cates is co-manager, with Becky Breedlove, of EdFund AVID Region Nine Grant. Region Nine includes Imperial, Orange and San Diego counties. EdFund is one of the nation's leading providers of student loan services under the Federal Family Education Loan Program, said Cates. The organization also offers a "Fund Your Future Financial Aid Workbook 2005-2006" in six states, including California. The publication describes federal and state aid programs and is available in Spanish and English.
Gather your files
Before beginning the application process, students should gather and organize the necessary information. Among the items to have ready are your Social Security number, driver's license, income records such as W-2 forms, parental federal income tax form, bank statements, mortgage information, or alien registration card if you are not a U.S. citizen. Students can fill out a pre-application worksheet before going online.
Applicants should register for a personal identification number before filing, which will be used to file and track their application and to access the Student Aid Report. Students can set up that ID number as early as spring of their junior year, Cates said.
"Anything you can do to help yourself and your parents to get started is good," she added.
Hard copies of the FAFSA form are already available. The online forms will be available Jan. 1. The advantage to filing online is a quick turnaround, Cates said.
"Hard copy might take up to two weeks to get the (student aid report) to you. Online takes two to three days."
In keeping with using online sites for FAFSA and other financial-aid business, Cates recommends that students set up an e-mail address to use in the process.
"Use an e-mail address that is reliable so you don't have problems inputting your information," she said. "An address that no one else has access to."
Another tip from Cade: Keep all records in a secure place and accessible for easy reference.
Start the process now
The cost of college and the family's ability to pay will determine the need for financial assistance. Expenses that should figure into any calculations include tuition, books and fees, and possibly food, housing, transportation, supplies, and personal expenses. Whatever the student's personal and family resources can't cover will be the amount needed in financial aid.
Seniors should be starting the application process, and many experts also encourage sophomores and freshmen to begin now to search for information.
Useful Web tool
One useful Web site to launch college aid and admission research is www.fastweb.com.
FastWeb is a free Internet scholarship search service that can help students find and pay for a college, and look for jobs during and after college. Students create a personalized profile that can be matched against databases of colleges and scholarships, said Baird Johnson, FastWeb spokesman.
"It's a great tool for anyone starting in high school," he said. "It's the oldest free online scholarship matching service, and our database has over 600,000 scholarships totaling more than $1 billion."
The databases are updated as more scholarships become available, and once students sign on, FastWeb continually notifies them of new opportunities and approaching deadlines, he said.
There is one restriction, he said: Federal regulations designed to protect minors require students to be 14 and over to use the site.
"Under that age, we're not allowed to collect the information needed to send them the scholarship information," Johnson said.
The important thing to know is that it's free and anybody can use it, Johnson said.
"Even students who are questioning if they should go to college or if they have the grades should do it," he said. "We encourage them to go ahead and use it because you have nothing to lose. There's no down side to it. Don't be afraid to try to find out as much as you can. Get started early. "
The FastWeb site was put together in 1995, Johnson said. The organization's founders saw it as a perfect application of the Internet and created it as a free search engine because they felt it was so important for students. More than 26 million people have done searches in the 10 years since it started, Johnson said.
Scholarship scams
One last bit of advice financial experts offered was to be very cautious of potential scholarship scam artists and services that ask for an application fee. Some of these organizations will prey on first-timers who don't know better, using scare tactics to get parents to pay a fee.
"The student shouldn't have to pay more than the price of a postage stamp to apply for a scholarship," Johnson said. "And anybody who wants to go to college should be able to find a way to get there."
Important Links for Financial Aid
Financial Aid Information: www.finaid.org
Extensive information for students, parents and educators on scholarships, loans, other types of aid, addresses key questions about financial aid application process and college admission; handy Student Financial Aid Checklist beginning in junior year of high school
EdFund: www.edfund.org
For students, parents, schools, and lenders; information on this Web site mainly involves loans as financial aid; order publications
EdWise: www.edwise.org/edwise/edFundFrame.html
Online Financial Planning Guide ---- loan management tool for students
California Student Aid Commission: www.csac.ca.gov
Concise information for students, parents, and educators on a number of grant programs, scholarships, loan and work-study programs; FAQs, Financial Aid Calendar, GPA Verification Form, order Cash Box
Cal Grant: www.calgrants.org
Flashy site with information on Cal Grants A, B & C; forms, FAQs and links
Chaffee Grant: www.chafee.csac.ca.gov
For foster youth and former foster youth ---- online application and FAQs
College Board's Financial Aid Site: www.collegeboard.com
Free Application for Federal Aid: www.fafsa.ed.gov
Directed at students, this site provides a comprehensive step-by-step process for completing the Free Application for Student Federal Aid; registering PIN to track application information; follow up after applying, FAQs
Federal Student Aid Information Center: www.studentaid.ed.gov
For students, parents, educators ---- step-by-step process of preparing for and financing education beyond high school. In English and Spanish, loan repayment information, list of free college fairs students can attend to aid in deciding on a college
Federal Student Aid for Counselors: ifap.ed.gov/FSACounselors/index.html
Comprehensive information for counselors
- Information courtesy of the San Diego County Office of Education, Region IX
Six signs that a scholarship search may be a scholarship scam:
1. "This scholarship is guaranteed or your money back."
2. "You can't get this information anywhere else."
3. "May I have your credit card or bank account number to hold this scholarship?"
4. "We'll do all the work."
5. "This scholarship may cost some money."
6. "You've been selected by a 'national foundation' to receive a scholarship," or "You're a finalist" in a contest that you have never entered.
Don't be scammed. Check out all the free services first.
- Information courtesy of "Career and College Planning," a publication of the San Diego County Office of Education
Road to College checklist
---- Various sources, including the San Diego County Office of Education, contributed to this checklist
Financial Aid Glossary
Assets ---- Cash in checking and savings accounts, trusts, stocks, bonds, other securities, real estate (excluding home), income-producing property, business equipment, and business inventory. Considered in determining expected family contribution (EFC).
Asset Protection Allowance ---- The portion of parents' assets that are not included in the calculation of the parent contribution (calculated by Federal Methodology formula).
Budget ---- The estimated cost of attendance for a student at an institution: typically includes tuition, fees, books, supplies, room, board, personal expenses and transportation.
Campus-Based Programs ---- U.S. Department of Education federal student aid programs administered by colleges and universities. Includes: Federal Perkins Loan, Federal Supplemental Educational Opportunity Grant and Federal Work-Study.
Central Processing System (CPS ) ---- Computer system that receives the student's need analysis data. The Central Processing System performs database matches and calculates the official Expected Family Contribution and sends out the Student Aid Report.
Collateral ---- Property used to secure a loan. Can be seized if the borrower defaults on a loan.
Consolidation Loan ---- Loan that allows borrowers to lower their monthly payments by replacing their original loans with one loan. Consolidation loans typically have longer repayment periods and greater interest.
Cooperative Education (Co-op) ---- Many college programs offer paid opportunities to gain professional, full-time work experience while enrolled in college.
Default ---- Failure to repay or otherwise meet the terms and condition of a loan. Default typically occurs after six months of delinquent payments. Penalties include a bad credit rating, loss of future financial aid eligibility, withholding of tax refunds, garnishing wages and loss of monthly payment options.
Deferment of Loan ---- Period during which the repayment of the loan is suspended because the borrower meets certain eligibility requirements (e.g., enrolled in college at least half-time).
Delinquency ---- Failure to make a scheduled loan payment.
Dependency Status ---- A student's dependency status determines the degree to which the student has access to parent financial resources. An independent student is at least 24 years old as of January 1, is married, is a graduate or professional student, has a legal dependent other than a spouse, is a U.S. Armed Forces veteran or is/was an orphan or ward of the court.
Direct Loans ---- A new federal program where the school becomes the lending agency and manages the loan funds directly, with the federal government providing the loan funds. Not all schools currently participate in this program.
Expected Family Contribution (EFC) ---- The dollar amount that a family is expected to pay toward a student's educational costs. EFC is based on family earnings, assets, students in college and family size.
FAFSA ---- see: Free Application for Federal Student Aid.
Federal Direct Student Loan Program ---- Loans provided by the U.S. government directly to students and their parents through their schools.
Federal Methodology ---- Need analysis formula used to determine a family's expected contribution. The Federal Methodology considers family size, the number of family members in college, taxable and nontaxable income and assets.
Federal Processor ---- The organization that processes the information submitted on the Free Application for Federal Student Aid and uses it to compute eligibility for federal student aid.
Federal Stafford Loan ---- Federally-guaranteed, low-interest rate for students. There are two types: subsidized (need-based) and unsubsidized (non need-based). Both allow deferment of payments until a student leaves school.
Federal Supplemental Educational Opportunity Grant ---- Federal grants for students with exceptional financial need (as determined by the college).
Federal Work-Study ---- Federally sponsored Work-Study Program provides undergraduate and graduate students with school-year part-time employment. The program pays some of the student's salary. Eligibility is based on financial need.
Fellowship ---- Financial aid for graduate students that does not need to be repaid.
Financial Aid Package ---- The total amount of financial aid a student receives, including grants, loans, and federal work-study. Unsubsidized Stafford loans and PLUS loans are not considered part of the package.
Financial Aid Transcript ---- A record of all financial aid awards a student received at other educational institutions.
Financial Need ---- The difference between the student's educational costs and the Expected Family Contribution.
Free Application for Federal Student Aid ---- The application students must first complete to apply for virtually all forms of financial aid. Available at high schools and colleges or by calling 1-800-4-FEDAID, and on the WEB by following the links at www.fafsa.ed.gov.
Gift Aid ---- Grants and scholarships that do not need to be repaid.
Grant ---- Financial aid that does not have to be repaid. Typically based on financial need.
Income Contingent Repayment ---- The size of the monthly payments depends on the income earned by the borrower. As the borrower's income increases, so do payments.
Need Analysis ---- The process used by a college to evaluate an applicant's financial resources and determine how much the student or family can pay toward the cost of the education.
Pell Grant ---- Federal grant program for undergraduate students who demonstrate financial need.
Perkins Loan ---- Low-interest, subsidized federal loan for students with exceptional financial need (as determined by the college).
PLUS Loans (Parent Loans for Undergraduate Students) ---- Federal loans available to parents of dependent undergraduate students to help finance their child's education. Parents may borrow up to the difference between education costs and financial aid received from a bank or other lending institution.
Prepaid Tuition Plan ---- A college savings plan guaranteed to rise in value at the same rate as college tuition. Several states and institutions offer such programs.
Scholarship ---- A form of financial assistance that does not require repayment or employment and which is usually offered to students who show potential for distinction, or who possess certain characteristics important to the scholarship provider (such as religious beliefs, hobbies, ethnicity, etc.)
Simplified Needs Test ---- An alternate method of calculating the expected family contribution for families with adjusted gross incomes less than $50,000, who have filed or are eligible to file an IRS Form 1040A or 1040 EZ; or who are not required to file an income tax return.
State Student Incentive Grants ----- Matching funds from the federal government to help fund this program for state residents.
Student Aid Report ---- The official notification sent to students who have submitted the FAFSA. Students may be required to submit this document to the college's financial aid office.
Student Contribution ---- A quantitative estimate of the student's ability to contribute to postsecondary education expenses. (Typically 35 percent of his or her savings and half of the student's summer earnings above $1,750).
Supplemental Education Opportunity Grant ---- Federal grant program for undergraduate students with exceptional need. Grants up to $4,000 are awarded by the school's financial aid office.
Title IV Programs ---- Federal student aid programs authorized under Title IV of the Higher Education Act of 1965, as amended. Includes Federal Pell Grants, Federal Supplemental Educational Opportunity Grant, Federal Work Study, Federal Perkins Loan, Federal Stafford Loan, Federal PLUS Loan, Direct Loan, Direct PLUS Loan and SSIG.
Unsubsidized Loan ---- A loan that student borrowers must pay all the interest on, including while they are enrolled.
Verification ---- Documentation requested from a financial aid applicant to verify the accuracy of the application.
Information courtesy of Fastweb.com
Contact staff writer Agnes Diggs at (760) 740-3511 or adiggs@nctimes.com.
More Stories
Advertisement
First name only. Comments including last names, contact addresses, e-mail addresses or phone numbers will be deleted. Attempts to misrepresent your identity or impersonate any person will not be approved. All comments are screened before they appear online, so please keep them brief. Comments reflect the views of those commenting and not necessarily those of the North County Times or its staff writers. Click here to view additional comment policies.
Today's Stories
Advertisement