Get Money
By Jay Crump
When it comes to preparing for college, many first-time students and their parents underestimate the
importance of applying for financial aid.
There are many options available to students requiring some sort of financial aid based on need and, according to local colleges and university financial aid offices, the process to receive financial aid begins with the FAFSA form.
FAFSA
The FAFSA (Free Application Form For Student Aid) must be filled out by the student (and their parents if they are still listed as a dependent) to determine the student’s financial need and eligibility for federal grant money. Essentially, filling out the FAFSA makes you eligible to apply for federal loans and grants.
According to Julie Haack, Director of Financial Aid, St. Ambrose University, it’s important to check with your school of choice for application deadlines. “Every school has its own specific deadlines to apply for aid. The student should contact their school of choice and speak with someone in their financial aid department.” You should also visit the school’s website to research loan procedure and aid availability.
Colleges and universities have financial aid departments that can help students navigate the FAFSA form. Volunteers are generally on staff to help students fill out the necessary forms.
“We offer a FAFSA worksheet that corresponds to the online version,” says Haack. “Everything is online now. Parents and students will need to register. They’ll each receive a federal pin number that they will use throughout the student’s career.”
According to the Federal Student Aid Pin website (www.pin.ed.gov), “Your PIN can be used each year to electronically apply for federal student aid and to access your Federal Student Aid records online. If you receive a PIN, you agree not to share it with anyone. Your PIN serves as your electronic signature and provides access to your personal records, so you should never give your PIN to anyone, including commercial services that offer to help you complete your FAFSA.”
Filling out the FAFSA form online can appear very daunting and complex. However, it doesn’t need to be. According to Haack, parents are required to enter information from their most recent federal tax forms. “A lot of the information on the form is based on the assessment of the student’s needs and this is based on many factors, including their adjusted gross income and taxes paid,” she says.
According to Jane Haugland, District Financial Aid Officer, Eastern Iowa Community College District, there are many different grants available to students. “Many scholarships, including merit-based and work-based programs are available.”
The FAFSA form is free to fill out and submit. Students should go to www.FAFSA.ed.gov. “Don’t go to FAFSA.com,” warns Haugland. “They charge a fee to process the form.”
Be Active In The Process
Once the process for applying for financial aid begins, schools will mail out information regarding the status of the student’s aid progress. “Students need to be active in the process,” says Haack. “Read the information sent by the college. It has very useful information that will help students during this process.”
The current interest rate for subsidized school loans is 5.6 percent for the 2009–2010 school year, while un-subsidized loans are 6.8 percent. According to Haack, subsidized loan rates will be incrementally decreased over the next three years. “These are set at 4.5 percent for the 2010–2011 school year, and 3.4 percent for the 2011–2012 school year.”
Typically, loan disbursement is decided by the college or university over the year attended by the student, and loans must be applied for each year the student attends college.
Another source of financial aid is the Perkins Loan Program. Fixed at 5 percent, the Perkins is a campus-based, high-needs loan. “The government will pay the interest on a Perkins while the student is in school, and payments don’t begin until nine months after graduating,” Haack says. Perkins loans are repaid to the college or university.
Grants such as the Pell are considered need-based aid and eligibility for the Pell is based on the results of the FAFSA. “Pell awards are based on EFC score or the expected family contribution,” explains Haack. “After the FAFSA is completed the student will find out if they are eligible for the Pell Grant.”
Though navigating such aid can seem daunting, there are many people available to help students and parents through the process. The first point of contact for student should be their student counselor. “Admissions counselors should be knowledgeable about various programs available,” says Haack. “Finaid.org is another excellent source for financial aid information.”
Scholarships
Another source of potential aid comes in the form of scholarships. College-bound students should begin looking into scholarship opportunities while in high school. “Fastweb.com is an excellent source for finding applicable scholarships,” Haack says. “Another great source is your parent’s workplace. Often times they will offer scholarships to students of employees. We encourage them to look for outside scholarships.”
In addition, Haugland says community colleges have direct lending programs. “Federal Stafford loans are fixed-rate federal student loans for undergraduate and graduate students attending college at least half-time,” she said. Stafford loans are one of the most common and one of the lowest-cost ways to pay for school.
Haugland also advises students to file for aid early. “We recommend students file early. Many colleges have a limited pool of funding and a lot of students tap into those by filing early. You want to stay on top of filing deadlines.”
With more and more employers laying-off workers, Haugland says she has seen an increase between 40 and 45 percent in FAFSA applicants.
Keep Lines Of Communication Open
Aside from putting your degree to good use, students must be prepared to address any student loans they’ve accepted throughout their college career. In other words, don’t ignore your obligation.
“They’ve essentially made it virtually impossible to default on student loans,” says Haack. “There are many different deference’s available to help college graduates. It’s very important if you’re having trouble finding a job or are going through a hardship to keep the lines of communication open with your college financial aid office.”
If you have any questions regarding loan repayment due to “special conditions,” contact your college’s financial aid office. “We look at each case individually and assess them based on significant changes in the student’s life. There are way too many options available. Just don’t bury your head in the sand,” explains Haack.
Additionally, Haugland advises students not to go overboard borrowing money for college. “Be very conservative with student loans and only borrow what you need.”
Facebook & Finance
According to Linda Noble, guidance counselor at Pleasant Valley High School in Bettendorf, Iowa, students should be aware that their friends aren’t the only ones looking at social networking sites, such as Facebook or MySpace.
“A lot of students use Facebook or MySpace as a way to communicate and stay in touch with their friends,” she says. “But, they should also be aware that whatever they place on their pages could be viewed by high school and college officials.”
According to Noble, there is high-likelihood that your Facebook page will be checked. “We often will look at these for illegal activity,” she says.
Another reason to monitor what you place on your social networking pages is that colleges, future employers, and others search these for potential job candidates. “The average kid who wants to get a scholarship should know it could come down to a committee looking at their Facebook,” says Noble.
Carmine Draude, academic advisor for Assumption High School, Davenport, Iowa, agrees the social networking sites could work for or against a student’s financial aid position. “When a student is up for a scholarship, people are making an investment and standards need to be made aware of,” she said. “It could limit their options with this type of information on the net.”
She also takes a pragmatic approach when discussing online social networking site with students, “I tell them they shouldn’t put anything online about themselves their grandmother couldn’t see.”
