FAFSA

If you are a high school senior, or the parent of one, you might be getting some very important mail from the colleges to which you have applied. This is the time of year when colleges are sending out financial aid award letters to students who have been accepted for admission. The school has reviewed the information you submitted on your Free Application for Federal Student Aid (FAFSA) and your Expected Family Contribution (EFC) to determine the financial aid it believes you are eligible to receive from federal, state, school and private sources. It is likely that there will still be some costs for which you and your parents will be responsible, but the financial aid award letter should give you a much better idea of what those out-of-pocket amounts will be. If you have not already selected your college, you can then use this information to help narrow down your choices. Although individual colleges may have different labels, the financial aid award letter contains at least two very important pieces of information: • The Cost of Attendance (COA): This is the starting point of what it costs to attend this college and includes such items as tuition, room and board, books, fees, average living expenses, and transportation. • Grants and Scholarships: This is the amount of financial aid for which the school believes you are qualified. Subtract the grants and scholarships from the cost of attendance to determine the net amount you will be expected to pay yourself through savings, non-work study employment, outside scholarships and federal or private student loans. Compare this amount with the bottom line figures you receive from the other colleges on your list. Weigh financial considerations along with your likes and dislikes about each school to make a final decision. Be Sure You Completely Understand Your Financial Aid Award Letter If you do not understand anything about your financial aid award letter, you can ask questions of the financial aid office at your selected college. If the amount does not seem right compared to your other schools, ask what criteria they used in the determination process that could have made the difference. If the cost of attendance is higher than what you anticipated, ask if there is any way you might be eligible to qualify for additional aid. If your financial situation has changed, find out if you can submit supplemental information. Your college financial aid advisor can also answer any questions you might have about your financial aid award letters and help you compare offers from the various colleges. Your advisor might also be able to talk to the college on your behalf to determine if there is anything else which can be done to help offset the cost of attendance at that institution. Set up an appointment with College Financial Aid Advisors (CFAA) to find out what other steps you can take to make sure you receive the maximum amount of college financial aid available.

Completing the FAFSA (Free Application for Federal Student Aid) can take some careful thought and consideration. Many students and parents don’t want to think about it again once they’ve got it completed, but it’s important to take the next steps. In most cases, the FAFSA is your key to federal, state and college financial aid programs. Unlock those doors and you’ll increase your likelihood of being able to afford attendance at your selected college. So, strap those thinking caps back on and be sure to take these three crucial actions after you’ve finished the FAFSA: 1. Check Your Work! Mistakes can delay your application and limit the amount of aid you are eligible to receive. Homeroom, the official blog of the U.S. Department of Education, lists seven common FAFSA mistakes. Although it’s easy to understand mistakes in income and dependency status, the most surprising mistakes have to do with entering the wrong name and Social Security number. You must enter your full name as it appears on official government documents. An unnecessary mistake is completing the FAFSA, but then failing to sign it using a Federal Student Aid PIN. 2. Review the SAR and EFC: If the FAFSA is completed properly you will receive a Student Aid Report (SAR) from the office of Federal Student Aid at the U.S. Department of Education within three days to three weeks. This is a summary of the FAFSA data you submitted, and offers another chance to be sure you didn’t make a mistake on your FAFSA. It is still possible to correct certain errors on your FAFSA at this point, but be aware that it will further delay the financial aid process. If your application is complete, an Expected Family Contribution (EFC) will display in the upper right-hand corner of your SAR. The EFC is the number that is used to determine your eligibility for federal student financial aid. If your application is incomplete, your SAR will not include an EFC, but will instead tell you what you need to do to resolve any issues. 3. Ask Questions if Necessary: If you think you made a mistake, are not sure about something on your Student Aid Report, or need more information about your Expected Family Contribution, it is important to ask questions now. The Federal Student Aid website has many resources to help answer your questions. You can also talk to the Financial Aid Office at any of the colleges that will be receiving your information. While some students might think a college financial aid advisor only helps through completion of the FAFSA, an impartial third party advisor can also provide advice on taking the necessary actions after you have finished the FAFSA, too. Set up an appointment now for a free financial aid strategy session with College Financial Aid Advisors (CFAA) to find out what other steps you can take to make sure you receive the maximum amount of college financial aid available.

Getting your student into the best possible college with the least amount of financial impact on your child’s future and your family’s finances can be a very challenging and difficult time. Parents facing this challenge for the first time may feel like they are in above their heads, but even those who have done this before might have problems keeping up with some of the changes. Here are ten tips to help you navigate the financial aid process successfully: 1. Ace the FAFSA: The Free Application for Federal Student Aid is the first step in the entire financial aid process. Minimize errors here and increase your chances of qualifying for the maximum amount of student aid to which you are entitled. 2. Know Your Deadlines: It can be helpful to have a giant calendar on the wall listing all deadlines for financial aid, scholarships, and grants. Don’t miss out on money because you missed a deadline! 3. Compare Net Costs: Don’t remove a college from contention based on a first glance at tuition and expenses. As colleges send out their financial aid packets, you will have a better idea of the bottom line cost for attending once all financial aid is taken into consideration. 4. Appeal Where Appropriate: If you feel a college is out of line with your other offers, you can ask about why there is a difference. Given the huge number of applications each college processes, it is possible for errors to be made. 5. Provide Supplemental Information: If your financial circumstances have changed due to job loss, medical emergency, divorce, or another situation which affects your ability to pay, document those changes and supply additional information to the schools. 6. Borrow Smart: If you need to borrow money to make up any shortfall, be smart about the process. Understand the difference between federal and private student loans, learn about interest rates, and calculate repayment amounts. 7. Don’t Borrow Too Much: Student loans should only be used for college expenses, not living expenses. Talk to your child about scholarships and employment opportunities. 8. Start Repayment Planning Now: Don’t wait until your child graduates to think about repayment. Make sure the amount your child can earn will be able to cover the estimated monthly payments. 9. Learn About Loan Consolidation: While it feels like it makes sense to consolidate loans to minimize paperwork and possibly lessen monthly payments, it might end up costing more money in the long run. 10. Invest the Necessary Time: Work the process properly and you could save your child and your family thousands of dollars. The best way to navigate the financial aid process successfully is to work with a professional advisor who can guide you through every step. Set up an appointment now for a free financial aid strategy session with College Financial Aid Advisors (CFAA). 

This is the time of year when parents and high school seniors are receiving their financial aid award letters from various colleges. After reviewing your financial situation, each college sends out a letter which details the financial aid they have determined you are eligible to receive from federal, state, school and private sources. There is usually some difference between the cost for each college and the financial aid packages available that you will have to pay for yourselves. In some cases this amount might be substantial, but in others it could be relatively small compared to the full cost of attendance. For some students, though, it might impact their decision about which college to attend. While there is the option of taking out federal or private student loans to cover any remaining costs, another option is to go back out and see if there are any scholarships still available that might just make the difference. One great scholarship opportunity that was just announced is from Discover Student Loans. The company will be giving away scholarships to forty students in the amount of $1000 each for the 2014-2015 academic year. Students and their parents can use these scholarships to help pay for the cost of college attendance, including tuition, housing and books, at accredited, non-profit, four-year colleges and universities in the United States. The scholarships are available to high school seniors planning to attend college this fall, as well as students currently enrolled in college or graduate school. The application deadline is April 15, 2014. An independent judging organization will conduct a random drawing from all of the eligible entries. No transaction or loan application is necessary to enter or win one of these scholarships. The Scholarship Search Continues But don’t stop there. Keep looking for other late-deadline scholarships that can put you over the top at your college of choice. If you don’t know where to start, Discover Student Loans also has a new online scholarship search capability which provides access to over three million scholarship and grant opportunities worth more than $18 billion. You can receive personalized search results based on key categories such as your career goals, interests, and field of study. If you truly have your heart set on attending a particular college, don’t give up until you have exhausted all possible forms of college financial aid. Scholarships are a wonderful way of making up the shortfall between the cost of attending a certain college and the amount of financial aid available, but they don’t usually come looking for you. You have to do some work and go out and find them on your own. If you need more information on the financial aid award letter or finding scholarships to close the gap, set up an appointment now for a free financial aid strategy session with College Financial Aid Advisors (CFAA).

There has been a lot of talk in the media lately about student loans. They seem to point with some alarm to the amount of outstanding debt, but don’t really go into detail about how many students have been able to attend the college of their dreams with this assistance. When handled properly, federal and private student loans can make a substantial difference in a student’s ability to attend college. Since some of the problems do focus on repayment, here are four smart tips for making student loan payments the right way: 1. Consolidate Where Possible: Many students or their parents take out a number of loans from federal and private sources throughout their college years. When the time comes to start repayment the student may be faced with different payment amounts, interest rates, payment dates and services. Consolidation allows you to combine multiple federal education loans into one loan. The result is a single monthly payment instead of multiple payments. You can also consolidate your private loans together to equal one payment after graduation. 2. Take Advantage of Income-Based Options: Several repayment plans are available to meet the different needs of borrowers. To make payments more affordable, these options can give you more time to repay your loans or can be based on your income. Federal student loans may be eligible for an Income-Based Repayment Plan (IBR). Your maximum monthly payments will be 15 percent of discretionary income, the difference between your adjusted gross income and 150 percent of the poverty guideline for your family size and state of residence (other conditions apply). Your payments change as your income changes, with a repayment term of up to 25 years. Be aware that you will pay more for your loan over time than you would under the 10-year standard plan. Loan servicers can help find a federal student loan repayment plan that’s best for you. 3. Be Aware of Interest Rates: As with credit cards, student loans may have different interest rates. When possible you want to repay the highest interest rate loans quickly. Consolidation may be another option if interest rates are lower when you graduate. 4. Make Timely Payments: Falling behind on student loan payments can cause an avalanche of problems down the road. Penalties and interest charges add up and you find yourself falling farther and farther behind. Think ahead when taking out student loans and have a repayment plan in mind. Don’t take out more loans than you reasonably think you will be able to repay. Student loans are a helpful way of making up the shortfall between the cost of attending a certain college and the amount of financial aid available, but they are not to be taken lightly. Set up an appointment now for a free financial aid strategy session with College Financial Aid Advisors (CFAA). Also be sure to request your free copy of The Twelve Most Helpful College Financial Aid Tips.

It has been a busy year so far. Now that the weather is calming down, it’s time for high school seniors and their parents to get to the serious business of figuring out how to pay for college. Some parents already have savings accounts or 529 plans, but most have to deal with the intricacies of the college financial aid process. Many find it overwhelming and feel they are not capable, but those with patience and perseverance who find their way through all the mazes come out on the other side with a substantial reward – their child gets to attend the best possible college with the least possible financial impact on the family or the student’s future. To help you find your way to this most desirable outcome, here are five tips for getting the financial aid you deserve: 1. Fill Out The FAFSA Correctly: Failure to fill out the FAFSA (Free Application for Federal Student Aid) correctly is perhaps the largest source of missed opportunity in the financial aid world. Although there is over $150 billion available in grants, work-study funds, and low-interest loans, the U.S. Department of Education estimates that “the majority of people fill out the FAFSA in such a way that they do not receive all of the aid they are eligible for.” 2. Meet or Beat Your Deadlines: Many parents are surprised to find that some colleges have FAFSA deadlines that fall very early in February. Colleges need time to review the applications and make their decisions so they can make timely offers to interested students. In addition, some financial aid is awarded on a first-come, first-served basis, so it is always best to get your FAFSA in as soon as possible. 3. Search Diligently for Scholarships: Scholarships are possibly the most underrated of all financial aid options, but it can be well worth the time to research opportunities if your child is awarded a substantial amount of scholarship money. 4. Compare College Offers: Once you start receiving financial aid packets from colleges you can calculate what your actual costs of attendance will be. If you don’t have offers from all of your selected colleges yet, use the net price calculator on each college’s website to determine your estimated expenses. Sometimes the college that appears to be the most expensive can be the most affordable once the financial aid package is taken into consideration. 5. Seek Out Professional Advice: Be sure you have tapped into all of your available financial aid resources. Even if you have already filed your FAFSA it may be possible to submit supplemental information if your financial circumstances have changed. Don’t miss out on getting the financial aid you deserve. Set up an appointment now for a free financial aid strategy session with College Financial Aid Advisors (CFAA).

Every so often you will hear something in the media about how expensive the cost of attending college has gotten. Yet every year, right about this time, tens of thousands of high school students across the country are anxiously awaiting notice of whether they have been accepted into the college of their dreams. While the cost of college might rise, just as the cost of everything else does, parents and students are being just as determined in their search to find ways to pay for it. The number one way to pay for college is through financial aid. Each year, the U.S. Department of Education awards about $150 billion a year in grants, work-study funds, and low-interest loans to more than 14 million students. This aid can help cover the costs of tuition, fees, room, board, books and supplies. In addition to the federal government, aid can come from your home state, the college you plan on attending, or an outside organization. There are also many great grants and scholarships which can help cover your college costs. These are often considered “free” money because they do not have to be repaid. Some are based on need and some are based on merit, while others have unique factors which apply. It is well worth the time to research the types of grants and scholarships which are available because they can go a long way towards helping you pay for college. About one-third of today’s costs are being met through scholarships and grants. Another third or so is covered by parent and student savings. After that it comes down to student and parent borrowing through federal and private student loans. An August Discover student loans poll of 1000 parents of college-bound students revealed that twenty-nine percent of parents said that most of the money to pay for college will come from student loans. Half of the parents said that their children plan to use student loans, with 54 percent planning to use a combination of both federal and private student loans, 32 percent just using federal, 4 percent just using private, and 10 percent not sure. Knowledge Can be Powerful The poll also revealed that understanding the differences between federal and private student loans can help families determine what suits them best. While 68 percent of parents said they were very or somewhat knowledgeable about the differences, and 30 percent were either not very, or not at all knowledgeable. If you don’t understand the differences between these types of loans it is best to talk to the financial aid office at your college or talk to a trusted private college financial aid advisor who can help you make informed choices about the best choices for you. Set up an appointment now for a free financial aid strategy session with College Financial Aid Advisors (CFAA). Also be sure to request your free copy of The Twelve Most helpful College Financial Aid Tips.

What can you do after you have determined your federal and state college financial aid eligibility, applied for scholarships, and still find yourself short of funds needed to attend college? For some students, a student loan can help bridge the financial gap. While grants and scholarships do not have to be repaid, a loan must be paid back with interest. If you take out a loan, make sure you understand who is making the loan and the loan’s terms and conditions. Student loans can come from the federal government or from private sources such as a financial institution. To avoid financial difficulties in your future, don’t make these common student loan mistakes: 1. Not understanding the difference between subsidized and unsubsidized loans: Under the federal direct loan program, the Department of Education is the lender. Students who demonstrate financial need can qualify for subsidized loan programs. The Federal Perkins Loan Program is available to undergraduates with exceptional financial need. Under this program, the school is lender. Interest rates, amounts available and repayment terms vary based on the loan type. 2. Not taking advantage of PLUS loans: These loans are made to parents of dependent undergraduate students. While they involve an origination fee and different interest rates, they do offer deferment options while the child is in school. 3. Not understanding the difference between federal and private loans: If you still need funds after exhausting your eligibility under the federal loan programs, you may need to search for private loans. These loans are made by a lender such as a bank, credit organization, state agency, or a school. There are differences from federal loans and from lender to lender. Be sure you understand the terms of any private loans. 4. Borrowing too much money: You are allowed to borrow less than your school offers, and should only borrow what you need. Plan on using the money loaned to you only for educational expenses, and not living expenses. Student loans can add up quickly and you may find yourself with a larger amount of debt than expected upon graduation. 5. Failing to understand repayment terms: Understand that your student loans may become due if you drop out or reduce the number of classes you are taking. Upon graduation find out about any deferment or consolidation options. Failure to make payments on student loans will cause an adverse mark on your credit history and could follow you for many years to come. Learn More About Student Loan Options. Rules and terms about student loans are constantly being reviewed and updated. Talk to a college financial aid advisor who can help you sort through the options and make the smart money moves for your individual financial situation. Set up an appointment now for a free financial aid strategy session with College Financial Aid Advisors (CFAA). Also be sure to request your free copy of The Twelve Most helpful College Financial Aid Tips.

A new year always brings a flurry of resolutions and to-do lists, some of which even get fulfilled. Why is it so hard do things we know will benefit us in the long run? Do something different this year, and make a to-do list you can actually use. For high school seniors and their parents this means sitting down and paying close attention to the financial aid aspect of attending college. Put these five items on your to-do list now and you’ll have a better chance of being able to pay for the school of your dreams: 1. File the FAFSA: No two ways about it – the Free Application for Federal Student Aid is the entry point for all things having to do with college financial aid. It is the gateway to federal aid, and many states and colleges use it to determine your eligibility for financial assistance as well. The new 2020-21 FAFSA is available online now. Since some financial aid is awarded on a first-come, first-serve basis the sooner you fill it out, the better your chances of receiving the highest amount of aid to which you are entitled. 2. Check Your Work: The number one reason for failing to receive the maximum amount of financial aid is errors on the FAFSA. Don’t submit your form until you have checked all of your work. If you are not sure of something, ask someone. 3. Watch Deadlines: Each state has a different deadline for submitting your information. Some are a lot earlier than you might expect. 4. Understand the Financial Aid Process: You want to obtain the greatest amount of financial aid, scholarships, and grants first as this is money that does not have to be repaid. If there is still a gap, you will need to explore private financial lending sources. 5. Keep Looking for Scholarship: There is scholarship money available in many different shapes and forms. Some have earlier deadlines than others, and amounts vary from small to large, but it is well worth your time to expand your scholarship hunt. Resolve To Seek Help When Needed Most people are not born knowing how to complete the financial aid process, and few have the time available to fully learn all of its intricacies. There are professionals available who understand all aspects of this process. Talk to your high school counselor, the financial aid office at your college, or Federal Student Aid has live chat sessions available. All of these people can help make it easier and less stressful for you. It can also be helpful to speak with a college financial aid advisor who is totally focused on helping you receive the highest amount of financial aid available. Set up an appointment now for a free financial aid strategy session with College Financial Aid Advisors (CFAA). 

Each year The Lawlor Group conducts extensive research of their own, and also reviews other available research, to identify trends in the higher education marketplace. One of the trends they identified is called “The Power of Perception.” Their research indicates that “Economic conditions are influencing the way prospective students and their families view the value of attending a particular college.” Some of their specific findings include: • What students are paying: Lawlor reviewed College Board statistics which found that most students attend a college with tuition and fees of less than $11,100 per year, but for more than half of students at private colleges, tuition is over $31,000. • What students are borrowing: Students appear to be borrowing more than recommended, and are quickly ending up in default on their student loan debt much more than anticipated (Federal Student Aid). • Tuition increases may be outpacing median household income: In 2011-12, full-time dependent students had an average out-of-pocket cost (total price of attendance minus all aid, including loans) of $18,100 at four-year private institutions (NCES).  According to a Discover student loans poll, 79% of parents of college-bound students are “very” or “somewhat” worried about having enough money to contribute toward their child’s college education. Other polls suggest that parents may be restricting the colleges to which their children apply based on tuition price alone. In fact, Sallie Mae found that 67% of families eliminated colleges based on cost at some stage during their research and admission process – either before researching, after research but before applying, after admission, or after financial aid. However, these parents may be doing their students an injustice by eliminating a college too early in the process. It Ain’t Over Until the FAFSA is Filed The only true way to know whether a college is too expensive for a family’s budget is to complete the entire financial aid application process. This starts with the FAFSA (Free Application for Federal Student Aid) and finishes with a SAR (Student Aid Report). The FAFSA determines how much a student might be eligible for of the over $150 billion in grants, loans and work-study funds available each year. In addition FAFSA information may be used to calculate eligibility for state and school aid. FAFSA forms are available now. It is important to complete your form early as some funds are granted on a first-come, first-served basis, but it is even more crucial to make sure your FAFSA is completed correctly. The Department of Education reports that “the majority of people fill out the FAFSA in such a way that they do not receive all of the aid they are eligible for.” Make sure you get all the facts about finances before ruling out any college. Set up an appointment now for a financial aid strategy session with College Financial Aid Advisors (CFAA).