Financial Aid Basics
I was the first in my big family to go to college, so I know how confusing it can be. I want to give you the kind of help I needed.
Before you can pick up some of that money called "financial aid," you need to know what it looks like, who's giving it away, and how you can get some. So I'll start with the basics about scholarships, grants, work-study, and loans – all different types of financial aid.
Types of financial aid Financial aid means any help you and your family get paying for college. It includes:
Most students need a combination of free money, loans, and family & personal savings & earnings to be able to afford college.
Sources of financial aid The biggest source of financial aid is the federal government. For low-income students, this may be free money (gift aid) like Pell Grants. Students who aren't low-income enough to qualify for Pell Grants may still get help, but most of it will be in the form of student loans. “Subsidized federal loans” are the best, since taxpayers pay the interest on the loan as long as you are a student.
The next most common source of financial aid is the college you are attending. Through donations from alumni and others, colleges build financial reserves to help low-income students afford even the most expensive schools. In fact, some of the most selective and highly-regarded schools have the most generous financial aid, offering qualified low-income students the chance to attend with no loans at all.
Then there are private sources of scholarships. These include nonprofit and service organizations, corporations and private citizens. Different organizations will have different requirements for their scholarships, so read the instructions carefully.
To maximize your chances at getting enough financial aid, apply for all types:
The basic formula for financial aid Your browser may not support display of this image.
Colleges try to help students meet costs that run beyond what their family can afford. Every college will begin with this computation:
=Need or “Demonstrated Need”
All colleges and universities use this same formula to help them decide which students receive the most aid. Some schools pledge to meet all students’ Demonstrated Need (not necessarily with all “gift aid.”) Other schools are not able to meet all Demonstrated Need, but will still use this calculation.
Reasons for financial aid There are 3 different reasons you might get financial aid:
How financial aid is given out Each college has its own Financial Aid office. Visit the Financial Aid website for every college where you plan to apply, and keep a list or chart of all requirements and deadlines for each school.
The Financial Aid officer will look at your Demonstrated Need (= COA – EFC, see above) Your Expected Family Contribution is not how much you plan to spend on college but rather a computed amount based on your family’s answers to the FAFSA and maybe the school’s own separate form as well. Instead of having their own form, some school’s just rely on the FAFSA, or they use a form offered at www.CollegeBoard.com called the CSS Profile. For every school you might attend, you need to know which forms they require, and when the deadlines are.
When to apply for financial aid Do not wait until you know which college you will attend! The school’s Financial Aid office’s deadlines will be posted on their website, and usually are in Fall or Winter of your Senior Year. The federal form, the FAFSA, should be filed in January or February of your Senior year.
Deadlines for private scholarships differ. Once the application is closed, there’s nothing you can do, even if you are the perfect candidate.
You can begin applying for financial aid anytime in high school. Most scholarships are aimed at high school seniors – they like to see your high school grades and other activities. But there are private scholarships for younger students. Since they can’t decide based on your high school record, most of these require you to write an essay, design a poster or create a video or public-service announcement.
Late in your Junior year or at the very beginning of your Senior year, find out how you can learn about any scholarships offered through or tracked by your school. Your Counselor will know who handles this job. Get informed about how you can learn about each scholarship, its requirements and deadlines. It is unlikely you will be called in and offered a scholarship – you must take the initiative.
Apply for multiple scholarships! This is more like dating than proposing marriage: the more scholarships you “ask out” the better your chances of having a good financial aid package in the Spring when you choose your college.
Ask Laurel Send me any questions you have about financial aid or the college process in general and I will try to help in my next blog.
Laurel
Before you can pick up some of that money called "financial aid," you need to know what it looks like, who's giving it away, and how you can get some. So I'll start with the basics about scholarships, grants, work-study, and loans – all different types of financial aid.
Types of financial aid Financial aid means any help you and your family get paying for college. It includes:
- “gift aid” which is free money, usually called scholarships or grants, and
- “self-help aid” where you either earn or borrow the money. Includes Federal Work-Study and various student and parent loan programs.
Most students need a combination of free money, loans, and family & personal savings & earnings to be able to afford college.
Sources of financial aid The biggest source of financial aid is the federal government. For low-income students, this may be free money (gift aid) like Pell Grants. Students who aren't low-income enough to qualify for Pell Grants may still get help, but most of it will be in the form of student loans. “Subsidized federal loans” are the best, since taxpayers pay the interest on the loan as long as you are a student.
The next most common source of financial aid is the college you are attending. Through donations from alumni and others, colleges build financial reserves to help low-income students afford even the most expensive schools. In fact, some of the most selective and highly-regarded schools have the most generous financial aid, offering qualified low-income students the chance to attend with no loans at all.
Then there are private sources of scholarships. These include nonprofit and service organizations, corporations and private citizens. Different organizations will have different requirements for their scholarships, so read the instructions carefully.
To maximize your chances at getting enough financial aid, apply for all types:
- In Fall of your Senior year, find out about the FAFSA (Free Application for Federal Student Aid) form. You and your parents will need to complete this very important form in January-February of your Senior year.
- Investigate scholarships offered by your home state, and what you need to do to qualify for them. In California, ask your Counselor about Cal Grants.
- Check the Financial Aid webpages of each college on your list to learn about the school’s own scholarship forms and deadlines, and any offered by alumni or related groups,
- find the Counselor or school staffer who tracks local private scholarships, and
- ask your parents to ask to their employers’ Personnel or Human Resources offices about any scholarships. If you have a job, you do the same, and
- conduct online searches for scholarships, through sites like FastWeb.com and others.
The basic formula for financial aid Your browser may not support display of this image.
Colleges try to help students meet costs that run beyond what their family can afford. Every college will begin with this computation:
| COA | Cost of Attendance = tuition, fees, books, room and board, plus a few extras |
| EFC | minus the Expected Family Contribution (what you + your parents can afford, based on your answers to the “FAFSA” federal form or to the school’s own financial aid forms) |
=Need or “Demonstrated Need”
All colleges and universities use this same formula to help them decide which students receive the most aid. Some schools pledge to meet all students’ Demonstrated Need (not necessarily with all “gift aid.”) Other schools are not able to meet all Demonstrated Need, but will still use this calculation.
Reasons for financial aid There are 3 different reasons you might get financial aid:
- Demonstrated Need = you and your family can’t afford for you to go to college without help.
- Merit = some achievement, talent or chacteristic that will add to your college, such as high grades, leadership, community service, athletic or artistic ability.
- Combination of Need and Merit = Cal Grants are an example of this type, where you must demonstrate Need and have a certain GPA.
How financial aid is given out Each college has its own Financial Aid office. Visit the Financial Aid website for every college where you plan to apply, and keep a list or chart of all requirements and deadlines for each school.
The Financial Aid officer will look at your Demonstrated Need (= COA – EFC, see above) Your Expected Family Contribution is not how much you plan to spend on college but rather a computed amount based on your family’s answers to the FAFSA and maybe the school’s own separate form as well. Instead of having their own form, some school’s just rely on the FAFSA, or they use a form offered at www.CollegeBoard.com called the CSS Profile. For every school you might attend, you need to know which forms they require, and when the deadlines are.
When to apply for financial aid Do not wait until you know which college you will attend! The school’s Financial Aid office’s deadlines will be posted on their website, and usually are in Fall or Winter of your Senior Year. The federal form, the FAFSA, should be filed in January or February of your Senior year.
Deadlines for private scholarships differ. Once the application is closed, there’s nothing you can do, even if you are the perfect candidate.
You can begin applying for financial aid anytime in high school. Most scholarships are aimed at high school seniors – they like to see your high school grades and other activities. But there are private scholarships for younger students. Since they can’t decide based on your high school record, most of these require you to write an essay, design a poster or create a video or public-service announcement.
Late in your Junior year or at the very beginning of your Senior year, find out how you can learn about any scholarships offered through or tracked by your school. Your Counselor will know who handles this job. Get informed about how you can learn about each scholarship, its requirements and deadlines. It is unlikely you will be called in and offered a scholarship – you must take the initiative.
Apply for multiple scholarships! This is more like dating than proposing marriage: the more scholarships you “ask out” the better your chances of having a good financial aid package in the Spring when you choose your college.
Ask Laurel Send me any questions you have about financial aid or the college process in general and I will try to help in my next blog.
Laurel
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