College and Your Finances

Free Application for Federal Student Aid (FASFA) https://fafsa.ed.gov/

Pennsylvania State Grant Program: PHEAA - A Grant is a type of financial aid award that you don’t need to repay, as long as you meet all eligibility requirements. Apply by May 1st. http://www.pheaa.org/

College And Your Finances

Just about everyone is interested in information on financial aid. Don’t assume that you cannot afford a particular college or university until you have investigated all aspects of financial aid.

There are two basic categories of financial aid, merit-based and need-based. Merit-based is generally given in recognition of special skills, talents and/or academic ability. These include merit scholars, top ten percent of the class, outstanding athlete, accomplished musician, etc. The second category, need-based, represents the major portion of help available for post-secondary education. Need-based (commonly called financial need) is the difference between what it will cost to attend the post-secondary institution and what the family will be able to pay (expected family contribution). There are basically four categories of financial aid:

· GRANTS - money given to the student, usually because of financial need

· SCHOLARSHIPS - money awarded because of academic achievement, outstanding talent or skill, and/or financial need

· WORK STUDY - money the student earns through a job on campus

· LOANS - money that must be paid back

Grants and scholarships are free money that do not have to be paid back. Loans and work study jobs are considered self help. It makes sense to apply for grants and scholarships before taking out loans. A college will put together a financial aid "package". This package is a combination of grants, scholarships, loans, and/or work study. A package varies from college to college so it is important to compare financial aid packages.

APPLYING FOR FINANCIAL AID

There are two financial aid forms that you need to be aware of - the FAFSA (Free Application of Free Student Aid) and the College Profile, required by some colleges and universities.

The FAFSA must be completed by all students interested in obtaining financial aid. This form will be mailed to every senior who has taken the SAT in the spring of their junior year. The form will arrive in December of the senior year and cannot be filed prior to January 1. It is recommended that families complete their income tax form before completing the FAFSA as a lot of the same information will be needed. Approximately 3-10 weeks after you have mailed your FAFSA, you will receive a SAR (student aid report) which will inform you of your EFC (estimated family contribution). This is the amount they have determined you can afford to pay for education that year. If the cost of the college is more than your EFC, you have a financial need and should be eligible for financial aid. This aid may come in the form of grants and or loans.

In addition to the FAFSA, some private colleges require submission of the CSS/Financial Aid Profile. The Profile is a supplemental need analysis document used to determine eligibility for private, nonfederal funds. The Profile requires a registration fee and an additional fee for information sent to each college. We recommend that this form be completed only when required by a school.

Two Financial Aid Workshops are offered at Dallas High School generally in the months of October and February each school year. In addition financial aid presentations are availble at most college fairs, such as Luzerne County Community College Annual College Night.

Complete the FAFSA as early as possible, even if you feel you will not quality for any need based aid because of your income. Colleges verify that students are not eligible for federal or state aid before they award institutional and/or private funds. Some loan programs require the FAFSA. Make a copy of your FAFSA before you mail it. Also keep a copy of your income tax return forms. The FAFSA must also be completed in order to be eligible for a federal Pell Grant.

Parents and students often find that they must take out a loan to finance educational expenses. Lending institutions provide Stafford loans to students and PLUS loans to parents. Repayment of a Stafford loan begins after the student has graduated. The Subsidized Stafford Loan is for students with financial need and the unsubsidized Stafford Loan is for students without financial need. (The government pays the interest on Subsidized Stafford Loan). PLUS loans are not based on financial need and repayment begins within 60 days.

Other ways to finance a college education include co-op programs and military programs. Money can be saved by attending a local community college and then transferring to a four-year college after one or two years. Not all students live on campus but commute to college, saving room and board expenses.

SCHOLARSHIPS

Scholarship money sometimes goes unclaimed because many scholarships have very specific eligibility criteria. Academic scholarships generally require a 3.5 GPA or better, high SAT scores, excellent recommendations, and high involvement in extracurricular and community activities. Athletic scholarships or special talent scholarships go to the student who has demonstrated outstanding abilities.

When looking for scholarships, please consider the following:

· Start looking for scholarships during your child’s junior year.

· Contact the financial aid office when applying to colleges to learn about scholarship opportunities.

· Apply for local scholarships. The high school guidance office has a filing cabinet devoted to scholarship opportunities.

· Scholarship deadlines are not flexible. Some scholarship applications are due soon after being publicized.

· Scholarship opportunities are often overlooked. Be sure to check with your place of employment, your church, and other organizations that you or your family are associated with to see what scholarship opportunities they offer.

· The guidance office has books and computer access where scholarship opportunities can be found.

· Check to see if financial aid and scholarships are renewable.