The Fury of Financial Aid
Does planning for financial aid have you feeling lost? Here’s a map.
Make sure to use your PIN to check the SAR on your FAFSA and see if your EFC will qualify you for a PELL grant.Say what?If you’re having trouble navigating your way through the modern financial aid system, you’re not alone. Finding, applying and receiving different types of financial aid can be one of the biggest headaches associated with college-bound children or grandchildren. But it doesn’t have to be that way.With only a little know-how and some financial planning, you can easily findyour way through the maze known as financial aid. The confusion above candisappear with just a small amount of studying. (Besides, your kids areexpected to study hard the next few years, so you should set a good example!)One of the most crucial pieces of advice that college planners have to offeris to ALWAYS apply for financial aid, even if you believe you won’t qualify.So how do you apply for it? Simple. It’s a form called FAFSA and it can befilled out quickly and easily online. When you apply, you are given a PIN, whichfunctions just like a PIN that a bank gives you. You use this PIN to log on to andoff of your forms and sign them when you are finished.The most basic financial aid to fill out in the United States is nicknamedFAFSA, one of many acronyms I’ll tell you about. FAFSA stands for FreeApplication for Student Financial Aid. It is administered by the U.S.Department of Education and for years has given lower income students achance to go to college. But it’s not just for lower income families. Anyone andeveryone can apply and depending on how soon you apply and the moneyavailable, families with many different levels of income can receive some typeof aid.It is recommended that every family fills out a FAFSA form as well as thefinancial aid forms required by the schools you have applied for. Each schoolwill put together a financial aid award package based on the results of yourFAFSA form.FAFSA forms have a mathematical formula which determines your EFC. EFCstands for Estimated Family Contribution. It is the amount of money a family isexpected to contribute towards a child’s education. This number does notrepresent how much the family can afford, but rather what they believe youshould be able to afford. This may require you to take out an extra loan as afamily or withdraw savings, but the number helps decide how much aid youare eligible to receive. Your EFC is given to you when you submit your FAFSA.It is located on your SAR.The SAR is your Student Aid Report and it’s a summary of all the answers and information you’ve entered into the FAFSA form. You always want to print a copy of your SAR to keep for your own records. That way, when you fill out the individual school financial aid forms, your information will be consistent.Once your school receives your information, they will put together a financial aid package and present it to you. Your package can contain a wide variety of options for you to choose from, including grants, loans, and scholarships. If your EFC is low, you may be offered a PELL Grant. Pell’s are grants that help pay for college and do not need to be paid back.
Your financial aid package may also include an option of work-study, where your child can work at a campus job and make extra money. Most packages also include a variety of loan options. Some loans are government-subsidized others are not. There are many different types of loans available to parents and students and you should analyze your current financial situation carefully before choosing one. Government subsidized loans are offered interest-free while your student is in school, and allow the student to wait until six months after college graduation to pay back the principal. However, there is a limit to how much you can borrow and you must complete your degree by a certain date, so make sure you plan wisely.So the next time someone asks if you used your PIN to check the SAR on your FAFSA to see if you are eligible for a PELL, you can reply with a resounding and confident “Yes!”I hope I’ve been able to guide you through the maze of financial aid and shed some light on the whole process. It can be intimidating to say the least, but with a little work, the whole process may be transformed into one of the most rewarding college planning experiences you will have- literally.
Showing posts with label education finance. Show all posts
Showing posts with label education finance. Show all posts
Thursday, December 4, 2008
Tuesday, December 2, 2008
FINANCIAL AID FOR EDUCATION
The Truth About Connecticut College Financial Aid Awards That Colleges Don't Want You To Know
Many Connecticut parents feel like they are hit by a city bus when they find out that the many months of work they have done to push their child to do community service, study hard for the SAT and fill out financial aid forms only allows their student to qualify for student loan debt. It is not a good feeling to have to sit your child down and explain that all of their efforts allowed them the exclusive once in a lifetime opportunity to go into debt.The worst part about it is that many Connecticut colleges promote student loan debt like it's the best thing since sliced bread when the real truth is the same Connecticut colleges are sitting on billion dollar endowments that can be used to really help students pay for the rising cost of college. One of the popular statements that colleges tell you that it is a good way to establish credit for an otherwise credit challenged young person.That's rubbish.Your child will have way too many opportunities to get credit from all of the credit card companies that are allowed on Connecticut college campuses to push their credit cards onto defenseless and under-informed students.If Connecticut colleges really wanted to give financial aid awards to help parents then why not help the families qualify for grants and scholarships as opposed to borrowing money from the government or local banks. All the colleges would have to do is offer a workshop titled how to qualify for a best grants and scholarships and I guarantee that there would not even be enough room on the campus grounds to hold all the cars of parents who really need the financial aid to pay for the cost of college.If you are the parent of a college bound high school senior that has received a financial aid award letter that is mostly comprised of student loans then to learn how you can use your financial aid awards letter to get more real free money.Find out the single biggest mistake 9 out of 10 parents make when applying for aid to Connecticut Colleges that literally cost them thousands of dollars! More importantly, how to avoid this fatal error!How to double, or in some cases triple, your eligibility for FREE grant money for Connecticut Colleges.
Many Connecticut parents feel like they are hit by a city bus when they find out that the many months of work they have done to push their child to do community service, study hard for the SAT and fill out financial aid forms only allows their student to qualify for student loan debt. It is not a good feeling to have to sit your child down and explain that all of their efforts allowed them the exclusive once in a lifetime opportunity to go into debt.The worst part about it is that many Connecticut colleges promote student loan debt like it's the best thing since sliced bread when the real truth is the same Connecticut colleges are sitting on billion dollar endowments that can be used to really help students pay for the rising cost of college. One of the popular statements that colleges tell you that it is a good way to establish credit for an otherwise credit challenged young person.That's rubbish.Your child will have way too many opportunities to get credit from all of the credit card companies that are allowed on Connecticut college campuses to push their credit cards onto defenseless and under-informed students.If Connecticut colleges really wanted to give financial aid awards to help parents then why not help the families qualify for grants and scholarships as opposed to borrowing money from the government or local banks. All the colleges would have to do is offer a workshop titled how to qualify for a best grants and scholarships and I guarantee that there would not even be enough room on the campus grounds to hold all the cars of parents who really need the financial aid to pay for the cost of college.If you are the parent of a college bound high school senior that has received a financial aid award letter that is mostly comprised of student loans then to learn how you can use your financial aid awards letter to get more real free money.Find out the single biggest mistake 9 out of 10 parents make when applying for aid to Connecticut Colleges that literally cost them thousands of dollars! More importantly, how to avoid this fatal error!How to double, or in some cases triple, your eligibility for FREE grant money for Connecticut Colleges.
FINANCE YOUR EDUCATION
Ways of Financing Postsecondary Education
The Federal government provides students with many loans to help pay the cost of postsecondary education pursuits. The search engines on the U.S. Department of Education website are designed to be used by students, parents, teachers and administrators because each entity approaches educational loans with a different perspective. Students can contact financial aid professionals through this link to educational loans and learn what options are available without going through the list.Every college and university is equipped with a financial aid office. Students can submit applications directly to the school for processing with the college tuition paperwork, but students have options of searching the internet for various grants that will help reduce the overall cost of college over a four-year period. Financing postsecondary education is the responsibility of the student but the financial aid specialists are in place to guide students into making the right decisions on loans.Students can apply for several loans through the Federal Family Education Loan program. Students when financing postsecondary education costs use the Stafford loan to reduce the total cost of a two-year or four-year credentialed degree. Interest will accrue on the loan from day one and until the final balance is paid. The Federal Government will pay interest on the Stafford Loan while the person is attending college and during grace periods or any deferment periods.Other portions of the Federal Family Education Loan will be utilized to absorb the totals for financing postsecondary education. PLUS loans are designed to be used by parents when financing a child's education. The interest rates on the PLUS loans are considerably higher than the Stafford Loan, but are in place to give students a financing option that will reduce the total cost of financing postsecondary education pursuits.Students can utilize Unsubsidized Stafford loans to finance college tuition costs, but the Federal Government does not pay interest rates for those loans. Students have the option of consolidating student loans after graduation to obtain a lower interest rate, but student consolidation loans do not have to be finalized right after graduation. Loans obtained for financing a two-year postsecondary education can be extend to include the loan costs of a four-year degree program if the students want to obtain a bachelor's degree.Graduates are given a six month grace period following graduation before any payments on students loans will be due, and even then, college students can defer payments for over a year if some hardship is experienced that makes repayment difficult. The Department of Education will bill students after six months and offer convenient monthly payment options for students to consider when repaying the costs of a postsecondary education. Sallie Mae will also send students a payment book with low monthly rates.The student can consolidate these two student loan payments and use grants to reduce them further. With a little attentiveness and tenacity, monitoring federal interest rates will pay off because the student might be able to obtain an interest rate that is lower than the original loan because consolidation loans are based on the current interest rates, which are being reduced again and again as the country prepares to enter a recession.
The Federal government provides students with many loans to help pay the cost of postsecondary education pursuits. The search engines on the U.S. Department of Education website are designed to be used by students, parents, teachers and administrators because each entity approaches educational loans with a different perspective. Students can contact financial aid professionals through this link to educational loans and learn what options are available without going through the list.Every college and university is equipped with a financial aid office. Students can submit applications directly to the school for processing with the college tuition paperwork, but students have options of searching the internet for various grants that will help reduce the overall cost of college over a four-year period. Financing postsecondary education is the responsibility of the student but the financial aid specialists are in place to guide students into making the right decisions on loans.Students can apply for several loans through the Federal Family Education Loan program. Students when financing postsecondary education costs use the Stafford loan to reduce the total cost of a two-year or four-year credentialed degree. Interest will accrue on the loan from day one and until the final balance is paid. The Federal Government will pay interest on the Stafford Loan while the person is attending college and during grace periods or any deferment periods.Other portions of the Federal Family Education Loan will be utilized to absorb the totals for financing postsecondary education. PLUS loans are designed to be used by parents when financing a child's education. The interest rates on the PLUS loans are considerably higher than the Stafford Loan, but are in place to give students a financing option that will reduce the total cost of financing postsecondary education pursuits.Students can utilize Unsubsidized Stafford loans to finance college tuition costs, but the Federal Government does not pay interest rates for those loans. Students have the option of consolidating student loans after graduation to obtain a lower interest rate, but student consolidation loans do not have to be finalized right after graduation. Loans obtained for financing a two-year postsecondary education can be extend to include the loan costs of a four-year degree program if the students want to obtain a bachelor's degree.Graduates are given a six month grace period following graduation before any payments on students loans will be due, and even then, college students can defer payments for over a year if some hardship is experienced that makes repayment difficult. The Department of Education will bill students after six months and offer convenient monthly payment options for students to consider when repaying the costs of a postsecondary education. Sallie Mae will also send students a payment book with low monthly rates.The student can consolidate these two student loan payments and use grants to reduce them further. With a little attentiveness and tenacity, monitoring federal interest rates will pay off because the student might be able to obtain an interest rate that is lower than the original loan because consolidation loans are based on the current interest rates, which are being reduced again and again as the country prepares to enter a recession.
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