FINANCIAL AID
Financial Aid is money that the government and other organizations give you or lend you so you can pay for college. To qualify for Financial Aid, you must apply. Financial aid comes from the federal government (the largest source), state governments, colleges and universities, private organizations (such as companies, clubs and religious organizations), and banks and lending companies.
Four Main Types of Financial Aid
1. Grants
Grants are called gift aid because they do not have to be paid back. Grants come from federal and state governments and from colleges. Most grants are need-based, which means they are usually given based on your or your family’s financial circumstances.
2. Scholarships
Scholarships are also gift aid. Scholarships come from colleges and private organizations. They may be awarded for academic or athletic ability, interest in a certain subject, or volunteer work, for example. Some scholarships are given based on membership in an ethnic or religious group. Companies may also give scholarships to children of employees.
3. Loans
Borrowing money from a bank, government or lending company is called taking out a loan. A loan must be paid back with an extra charge called interest. The federal government offers low-interest loans to students with financial need. Other lenders charge more interest.
4. Work-Study Programs
The Federal Work-Study Program offers paid part-time jobs to help students pay for part of their college cost.
How & When to Apply for Financial Aid
You must complete the FAFSA and/or the CSS/Financial Aid Profile your senior year to be considered for financial aid from the federal government, state governments and colleges. If you are not eligible to complete the FAFSA, check out the Dreamer's Resources page.
Free Application for Federal Student Aid (FAFSA)
You must complete the FAFSA to be considered for financial aid from the federal government, state governments and many colleges. This application is completely free and you may file your FAFSA with your previous year's tax information. There is nothing hurt by applying to see what is possible. In the worst case scenario your family would not qualify for any grants, but still could qualify for loans through the federal government. This works in your favor because the interest percentage for the loans you would get from the government is much lower than the rate from any other institution offering loans. Another reason to take out a loan is to start building good credit. Also, some colleges award merit scholarships and require the FAFSA to be filled out in order to be considered for scholarships.
CLICK HERE to complete the FAFSA Form
Before You Apply:
Complete your income tax return. When completing your FAFSA, you and your family will be able to use your most recent completed tax returns. You can transfer your income data directly from the IRS website to your FAFSA, making it easier to accurately complete the FAFSA.
Create an FSA ID. When you start your FAFSA on the web application, you will set up your account by creating a user ID and password. These will become your online identifiers for all federal student aid programs. You will need to provide your own email address and password. (Parents will create their own account using a different email address and password). Set up your user ID and password before you start your FAFSA.
Oct. 1 is the first day you can file the FAFSA!
Be sure to complete your FAFSA soon after it becomes available on Oct. 1 of Senior Year. Filling out your FAFSA as early as possible can help you get a jump on other financial aid applications (state or institutional aid) that may have early deadlines. It also will give you more information earlier about the financial aid you qualify for and will help you make an informed decision about which college is the best financial fit for you. It is highly recommended to complete the FAFSA by November 15.
CSS/Financial Aid PROFILE
The other major financial aid form that several hundred usually selective, private colleges use is the CSS. The Profile collects more specific data than the FAFSA and sends it to colleges. Since there is a cost for this service, students should check directly with the college or scholarship foundation to be sure the Profile is required. Families can complete this form early in the senior year.
CLICK HERE to complete the CSS Profile and the check participating schools and scholarship foundations.
Net Price Calculator
Net price is the real price that a student pays to go to a college. It’s the published price of the college minus the gift aid that the student receives. The net price of a college is often much lower than its published price. Colleges offer a tool on their websites called a net price calculator. This online tool gives an estimate of the actual price you would pay to go to a certain college, based on information you enter about your finances. Your net price will be different for every college, so it’s a good idea to use each college’s net price calculator.
NET PRICE = Cost of Attendance - Gift Aid
Net Price Calculator Tools
Web tool designed by Federal Student Aid to assist high school juniors, seniors and their families plan for education beyond high school. The student will receive:
an estimated Expected Family Contribution (EFC) by entering the information into FAFSA4caster
the potential Federal Pell Grant eligibility
reduce the time needed to complete the FAFSA when the student applies as a senior October 1st
FREE of charge.
Students and their families are expected to contribute to the cost of college to the extent that they’re able. Use the Expected Family Contribution (EFC) Calculator to:
Estimate how much the student’s family will be expected to contribute for the year. After all, you can’t make a realistic plan to cover the student’s share if you don’t have any idea what the student’s share could be.
Gain insight into the student’s financial aid eligibility. If you’re unable to contribute the entire cost of college, financial aid is available to bridge the gap. That's how the financial aid system works. The difference between the total cost and the student's EFC is considered the student's financial need and the amount of aid you’re eligible to receive.
Deciphering Your Financial Award Letters
By April of senior year, you'll receive financial aid award letters from colleges you've been accepted to. Each award letter may look different, but they should all have the same core information. When you compare aid offerings, tally all expenses from each college to get the most accurate sense of affordability.
Award Letter Comparison Tool
FinAid.org provides a great Award Letter Comparison Tool to help you compare and contrast the financial aid packages from the colleges that have admitted you. In particular, it highlights differences in the cost of attending each school.
Use this Financial Aid Comparison Worksheet to generate a side-by-side comparison of your financial aid offers.
Financial Aid Resources & Tips
Financial Aid Websites
This provides information on federal and private loans and scholarship programs sponsored by the National Association of Student Financial Aid Administrators.
Illinois Student Assistance Commission (ISAC)
Also referred to as College Zone, ISAC has primary responsibility for student financial aid for Illinois students and their families.
Don't rule out expensive colleges! - Best Colleges on Financial Aid
A college with a higher price tag might offer you generous financial aid. It might even be more affordable than colleges that charge lower tuition. So think about net price, not published price, and don’t be afraid to apply to colleges you think you can’t afford. Once you hear from the colleges you’ve applied to, compare your financial aid offers (usually offered in March or April) to see which options are best. You have until May 1 to commit to a college.
Listed below are the best colleges and universities that meet financial aid need! “Need” is the difference between the amount your family can afford to pay for your education (determined by the FAFSA and CSS Profile, called your Expected Financial Contribution or EFC) and the price to attend the college or university (referred to as the “sticker” price, or the total amount it would cost to attend if given no financial aid). These schools generally have the highest endowments and strongest financial aid programs.
These colleges have made a priority to make college affordable to anyone who is admitted, and often times will increase financial aid packages if a student appeals their original amount. The schools on this list vary in size, selectivity, location and type of institution.
List of Best Colleges on Financial Aid