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Paying For College |
Just about everyone is interested in information on financial aid. Don’t assume that you can’t afford a particular college or university until you have investigated all aspects of financial aid.
Need-Based/Merit-Based Financial Aid
There are two basic categories of financial aid: need-based and merit-based.
Need-Based Financial Aid: Need-based financial aid is money that goes to families who do not have sufficient financial resources to pay for college. When determining eligibility for need-based financial aid, the family’s financial situation is the only thing that is considered. A student’s academic record is not a factor.
Merit-Based Financial Aid: Students are awarded merit-based financial aid based on outstanding abilities, talents, and/or accomplishments, or ties to an organization such as a service club or labor union. When awarding merit-based financial aid, the financial situation of the family is usually not considered.
Most financial aid is based on financial need, so most financial aid is therefore need-based.
Need-Based Financial Aid: Need-based financial aid is money that goes to families who do not have sufficient financial resources to pay for college. When determining eligibility for need-based financial aid, the family’s financial situation is the only thing that is considered. A student’s academic record is not a factor.
Merit-Based Financial Aid: Students are awarded merit-based financial aid based on outstanding abilities, talents, and/or accomplishments, or ties to an organization such as a service club or labor union. When awarding merit-based financial aid, the financial situation of the family is usually not considered.
Most financial aid is based on financial need, so most financial aid is therefore need-based.
Types of Financial Aid
The Four Types of Financial Aid
To qualify for any financial aid students must maintain a 2.0 GPA each semester and be enrolled halftime or more.
- Grants. Grants are need-based. T hey do not have to be repaid and you do not need to work to earn them. Grant aid comes from federal and state governments and from individual colleges.
- Scholarships. Scholarships can be need and/or merit-based. Most colleges have scholarship money that they award on a first come, first served basis for students who meet specific academic requirements. Financial aid counselors also recommend that students register with one of the scholarship search engines such as www.fastweb.com, and others which can be found in the Internet Resources section of this Guide for a customized scholarship search. Many scholarships are awarded based on merit, ethnic background, or personal interests regardless of financial need.
- Work-Study. This is money the student earns by working at a college job, usually 10-15 hours a week. Work-study positions are need-based. Student employment and work-study aid helps students pay for education costs such as books, supplies, and personal expenses. Work-study is a federal program which provides students with part-time employment to help meet their financial needs and gives them work experience at the same time.
- Loans. Loans are borrowed money that must be repaid. Most financial aid comes in the form of loans. Most loans that are awarded based on financial need are low-interest loans sponsored by the federal government. These loans are subsidized by the government so no interest accrues until you begin repayment after graduation.
To qualify for any financial aid students must maintain a 2.0 GPA each semester and be enrolled halftime or more.
Financial Aid Forms
- The FAFSA. The Free Application for Federal Student Aid (FAFSA) is the federal form that determines how much money a family can afford to pay for college. Colleges and universities require the FAFSA to establish eligibility for need-based and some merit-based financial aid. In most cases, families seeking financial aid must submit a FAFSA. Parents who do not think they will be eligible for need-based financial aid should still complete a FAFSA as some programs want to know that a student is not eligible for need-based aid before they award merit-based aid.
Filling out the FAFSA is much like filling out a tax form. It asks parents and students for information about income, assets, debts, etc. form the previous year—information which must be taken directly from the parents and students’ income tax filing form.
The FAFSA is filed online at www.fafsa.ed.gov. Online filing assures greater accuracy and faster processing of your application.
The FAFSA should be filed as soon as possible after January 1st of the senior year and before March 1st for priority consideration of financial aid distribution by colleges. There is no cost to submit a FAFSA. NEW***The class of 2017 will be able to begin their FAFSA in October of 2016 using 2015 tax information! NEW***
Approximately 4-6 weeks after submitting the FAFSA, a Student Aid Report (SAR) is sent to the student and to the colleges the student listed on the FAFSA. The SAR will show the Expected Family Contribution (EFC). This is the amount colleges will expect the family to contribute towards college expenses the following year. With financial aid in its various forms, the colleges will attempt to make up the difference between the EFC and the cost of attending their institution. This is called the financial aid package. - The College Financial Aid Form. In addition to the FAFSA, many colleges require that students also complete their institutional financial aid application.
- The Profile. The Profile is a one-page need analysis form that gives colleges and scholarship programs additional information on a family’s financial situation. Nationally, about 300 colleges and 125 scholarship programs require that families complete the Profile in addition to the FAFSA.
The Profile is available online at www.collegeboard.com. The form and website list schools that ask for the Profile. It can be submitted as early as October of the senior year. There is a fee for filing a Profile.
Scholarships
Scholarships are not granted automatically; you must work, search, and apply for them.
Who should apply for scholarships? All students! Any student interested in attending a technical college, community college, or a 4-year school should consider applying for free money to help pay for school.
When should you apply for scholarships? Most scholarships are offered during your senior year. You should start to familiarize yourself with the process beginning second semester of your junior year.
Where can you find out about local scholarships? Every few weeks, the Scholarship List is updated. You can find this list in the Guidance Office and on the PHS Guidance & Counseling webpage. You should also check with your parents’ place of employment and any clubs or organizations you or they belong to, as often local organizations offer scholarships to members.
Where can you find out about national scholarships? Go to any of the scholarship search sites such as www.fastweb.com and others listed in the Internet Resources section of this Guide for lists of national scholarships. You will be asked a series of qualifying questions and then get information on how to apply for scholarships for which you meet requirements. You may want to set up a separate email account just for scholarship notifications from the scholarship search engines you use.
What items are usually required besides the application? Many scholarships require you to submit a resume, a transcript, letters of recommendation, and/or an essay. Applying for scholarships takes organization and time but it is time well-spent given the potential for the money you may receive.
Who should apply for scholarships? All students! Any student interested in attending a technical college, community college, or a 4-year school should consider applying for free money to help pay for school.
When should you apply for scholarships? Most scholarships are offered during your senior year. You should start to familiarize yourself with the process beginning second semester of your junior year.
Where can you find out about local scholarships? Every few weeks, the Scholarship List is updated. You can find this list in the Guidance Office and on the PHS Guidance & Counseling webpage. You should also check with your parents’ place of employment and any clubs or organizations you or they belong to, as often local organizations offer scholarships to members.
Where can you find out about national scholarships? Go to any of the scholarship search sites such as www.fastweb.com and others listed in the Internet Resources section of this Guide for lists of national scholarships. You will be asked a series of qualifying questions and then get information on how to apply for scholarships for which you meet requirements. You may want to set up a separate email account just for scholarship notifications from the scholarship search engines you use.
What items are usually required besides the application? Many scholarships require you to submit a resume, a transcript, letters of recommendation, and/or an essay. Applying for scholarships takes organization and time but it is time well-spent given the potential for the money you may receive.
Applying for Scholarships
- Type or word-process your application or the application may be online! READ DIRECTIONS CAREFULLY!
- Meet the deadline. If you do not meet the deadline, you will not be considered for the scholarship.
- Present yourself well. Make sure your application represents your best work. As with college applications, follow directions carefully. Making mistakes in spelling, word usage, and grammar is a sure way to get your application put at the bottom of the pile.
- Keep your resume to one page. Scholarship review committees have many applications to read and a 2-3 page document can count against you.
- Be yourself in your essay. Do not write what you think others want to hear. Don’t be pretentious or exaggerate to impress--readers pick up on your lack of true voice. Instead, write about things that you know and that make you unique. Give examples that show what you are talking about and that make you “come to life” for the reader.
Common Mistakes in Pursuing Financial Aid
- Missing deadlines. There is no forgiveness for missed deadlines. Applications will not be considered if received after the posted deadline.
- Not applying for financial aid because you think you won’t qualify.
- Assuming expensive private colleges are out of reach. Some may offer significant financial aid.
- Waiting too long to file the FAFSA with the U.S .Department of Education. This paperwork determines how much federal aid families receive and requires figures from the current year’s tax return which can be estimated and corrected later. The FAFSA should be filed as soon after January 1st as possible since many selective colleges make financial aid decisions by February 15th.
- Not applying for financial aid through the college. This is often the best source of assistance and can be the foundation for all other financial aid received.
- Assuming financial aid from the college will continue past the first year. Families should confirm any financial aid with the college and determine what is required for the scholarship to renew.
- Failing to understand that financing college often means borrowing money and working. Families need to have open financial discussion with their student prior to selecting and applying to colleges.
- Paying companies to search for financial aid or scholarships. Paid services are often scams.
- Assuming students will get a good financial aid offer from an out-of-state public college. Schools often reserve their need-based aid for residents of their state.
Financial Aid Websites
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