Everything You Need to Know About Financial Aid
Know the sources, learn the process and apply early to get your share of the college funding pot of gold.
By Cameron Huddleston
February 6, 2007
Now that the college application forms that were due December or early January are completed, it's time to fill out the forms that really matter. You know, the ones that will determine what funding you'll get to help pay for that college education: financial aid forms.
Below you'll find links to five comprehensive stories from Kiplinger on how to make the process work best for you, plus a link to a calculator that will help you figure out how much aid you can expect.
Technically, you have until next summer to submit the Free Application for Federal Student Aid (FAFSA) to receive federal funding for the 2007-08 school year. But the federal government doesn't have an endless supply of financial aid. And many states have financial aid application deadlines as early as March.
"By completing the application early and in advance of state and school deadlines, students and families have a better chance of securing cheap or even free money for college," says Martha Holler, spokesperson for Sallie Mae, which provides education loans. "Nearly eight out of ten full-time undergraduates receive some sort of money for college, so it is important to submit a FAFSA to qualify for your portion of the pot of gold."
There's even a chance you or your child will get free money in the form of a grant or scholarship. Studies show that a third of all full-time undergraduates will receive a federal grant that does not have to be repaid. In fact, the federal government started offering two new grants last year: the Academic Competitiveness Grant and the National SMART Grant. However, Holler says a recent study suggests that 1.8 million students may have missed out on free money to pay for college simply because they did not apply.
And don't think just because you are an upper-income family that you have no chance of getting financial aid. There are federal, state and institutional financial aid options that are not based on financial need. "Even Donald Trump can submit the FAFSA and receive federal student loans," Holler says.
Plus, the amount of money available to help families pay for college is increasing, Holler says. More than $152 billion in college financial aid was awarded in the 2005-06 academic year compared with $139 billion the previous year, according to the College Board. And changes to the law last year increased federal loan limits and expanded the PLUS Loans for parents program to graduate students, allowing a graduate student to borrow on his own behalf up to the cost of attendance, including tuition, room and board, books and even travel.
We've already told you that you have to apply early if you want to increase your chances of receiving college funding. But what are the sources of funding, how does the process work and what are other ways of improving the odds of getting tuition money? The stories below will tell you everything you need to know about financial aid.
Master the Financial Aid ProcessDon't spend a dime for financial aid advice. Simply learn the system, the sources and apply early.
Early Birds Grab the Financial AidTo get any help with paying the bills, every parent needs to file this form now.
Everyone Should Apply for Financial AidYou might qualify for funding to help pay college bills -- even if you think your income is too high.
Winning the Financial Aid GameWhen you receive a financial-aid offer, don't assume that the numbers are written in stone.
Free Money for Grad SchoolHere are four things you can do to boost your chances of getting someone to pay for your master's or PhD.
Tool: How Much Aid Can You Expect?Fill out this simple worksheet to get an idea of how much colleges will expect you to contribute toward tuition."
Take a look at the financial aid and scholarship matching services. They are a great way to find the funding that you need - it's faster and easier than ever to apply and find those grants and scholarships!
Tags: financial aid and scholarship matching, money funding for school
