Paying for College
A college education is one of the largest financial investments you'll make for your future. You have a lot of options when it comes to choosing a program and a school that's right for you, all of which cost some money and most of which cost a lot. Fortunately, you also have several options when it comes to managing your financial commitment.
Whether you are just now exploring how much college costs or planning your continued education, you may feel a little overwhelmed. Don't let that stop you from pursuing your dreams. Remember:
- The money you spend now is an investment.
- With a college education, you can earn up to $800,000 more over your lifetime than you would with only a high school diploma, according to a 2007 College Board study.
- With costs rising yearly, a semester of college costs less now than it will later on.
- You can find ways to reduce your cost.
- Pursue scholarships and grants. Continue to be involved in activities and organizations to develop your skill base, and search out scholarship and grant opportunities throughout your school years.
- Savings and earnings can help pay for tuition, fees, housing and daily expenses. Every little bit helps, so weigh your spending decisions carefully.
- Financial aid is available for students. Fill out financial aid forms each year you enroll in higher education.
The Cost of College
Private four-year: $13,000-$52,392 per academic year
Public four-year (Iowa Regents): $8,938-$8,492 per academic year
Public two-year (Iowa): $156-$199 per credit hour
Remember, you'll also have to pay for room and board, transportation, fees and personal expenses. Most colleges have an estimated cost for these expenses.
Financial Aid
Financial aid is simply the grants, scholarships, work-study and/or federal loans you qualify for. To apply for aid, you'll need to fill out a Free Application for Federal Student Aid (FAFSA) and submit it to the U.S. Department of Education. The FAFSA is a free form that may be completed without professional assistance via paper or electronic forms provided by the U.S. Department of Education.
Grants. Grants are given by the government, schools or organizations to help you through school. Grants do not need to be repaid and are usually given based on financial need. Grants are awarded as part of your overall financial aid package.
Scholarships. Scholarships also don't need to be repaid and are usually given based on financial need or merit (meaning you've earned it by being a good student, a good athlete or meeting some other qualification). Scholarships are awarded by private donors or schools.
Work-study. This program involves a part-time job, usually on campus, so you earn a paycheck (usually to cover personal expenses) while attending school. Work-study jobs are awarded as part of your overall financial aid package, but you'll need to check the openings and apply for jobs.
Loans. Because all loans must be repaid (with interest), they are often used to cover expenses that can't be paid for in other ways. Many college loans are set up so you don't need to begin making payments until after you graduate.
FAFSA
THE FREE APPLICATION FOR FEDERAL STUDENT AID (FAFSA)
The federal government has one form called the Free Application for Federal Student Aid (FAFSA) that it uses to decide how much financial aid you qualify for. This form is sent to each school you list so those schools can award financial aid based on your family's financial situation. State governments may also use the FAFSA to determine your eligibility for state aid. The FAFSA is a free form that may be completed without professional assistance via paper or electronic forms provided by the U.S. Department of Education.
Request an FSA ID
An FSA ID, or Federal Student Aid Identification, is used to electronically sign or update the electronic form. You can also use your FSA ID to check the status of your application online. You and one of your parents should each request an FSA ID at: http://fsaid.ed.gov/npas/index.htm
Why Does the Form Need to Be Filled Out?
The Free Application for Federal Student Aid (FAFSA) needs to be filled out (by you and your parents) every year you want to be considered for financial aid. The information on this form is used to decide how much financial aid you qualify for from the federal government, the state and colleges.
When Should It Be Filled Out?
The form can be filled out anytime after October 1st of your senior year of high school and before your college's financial aid priority deadline. Students need to complete the FAFSA every year they are in college.
Where Is the Form?
You can go online to www.fafsa.gov to fill out an electronic form or you can use a paper form. If you want to have a paper form sent to you, call the Federal Student Aid Information Center at (800) 4-FED-AID. It's a good idea to file the form electronically so mistakes aren't made by someone else inputting your information and so your form will be processed more quickly.
What Materials Are Needed to Fill Out the Form?
You and your parents will need your most recent federal tax returns and W-2 forms, plus your current bank account and investment statements. Here is a checklist for what you need to fill out the FAFSA.
Is Help With the Form Available?
You can fill the forms out and file them yourself. But if you find that you do need help, contact the Iowa College Access Network (ICAN).
Will I Need to Submit Anything Besides My Form?
Obviously, you will need to file applications with any schools you hope to attend. Besides that and the FAFSA, schools may need additional forms before financial aid is determined. Check with each school you're applying to on its requirements.
Can I Find Out What I Qualify For Before Oct. 1?
You can get an estimate of the federal financial aid you may qualify for by using the U.S. Department of Education's FAFSA 4caster.
Additional Resources:
Iowa College Student Aid Commission
Iowa College Access Network (ICAN)