Financial Concerns
Financial aid is important to many families. It may be impossible for some people to receive formal education and earn a degree without this type of aid.
Financial assistance can come from the federal and state government, private organizations, and colleges. The first place to look is the Department of Education. They offer the Free Application for Federal Student Aid (FAFSA). You will hear this term a lot. On their website, https://fafsa.ed.gov, you will have the opportunity to submit your and your family’s financial information, which is used to determine your level of financial need.
The following are major types of financial assistance:
Grants and scholarships. This is free money that is awarded based on merit, need, and sometimes characteristics, such as ethnicity, place of origin, or field of interest. You will not have to pay this back.
Loans. This is money lent to students, typically with a low and fixed interest rate. The money borrowed can be paid while in school or, usually, after graduation and a grace period. The two forms of this aid are subsidized and unsubsidized. With subsidized loans, the interest is paid for you by the government, while with unsubsidized loans the interest is added to the principal (the original amount borrowed). There are often limits to the amount of each you can receive every year and in total. The yearly amount slightly increases as you progress in your education.
Work-study. If you have a financial need, you may be eligible to find work on or off-campus that your institution will pay you to do.
Veteran’s Assistance. As a result of serving your country or having a family member serve, you may be eligible for particular benefits, which are usually enumerated by the Veteran’s Affairs Office on campus.
For more information on types of aid, see https://studentaid.ed.gov/sa/types.
The information you submit for the application will include your parents’/guardians’ assets, debt, income, and other financial information. This information is typically available on bank statements, pay stubs, tax returns, and other official documentation from employers and the state and the federal government.
This personal information is required in the FAFSA application:
Many of you will be considered a dependent student, which generally means that you are greatly financially supported by your parents and under a certain age. In this case, the above information will be about your parents.
If you believe that you should be considered an independent student due to your financial or family situation, research this on the FAFSA website and notify the colleges to which you are applying. Being an independent student means that you will be able to take out more loans—but be careful whenever taking out loans. The rule of thumb is that if you can avoid them, do so!
FAFSA states that you should have certain information before starting the application, but you can take a look at the application and become familiar with it before beginning. You should also start the application early and break up the application process into manageable sessions. The first time filling it out often takes the longest. In subsequent years it will be easier and go smoother, given that many of the answers will be the same and you’ll know most of the terms.
Soon after submitting your information through FAFSA, the schools you’ve listed will receive your information. You’ll also receive a Student Aid Report (SAR) from FAFSA. This report summarizes the information you provided—make sure the data is correct.
You’ll then be notified by the school if you need to provide documents to support the statements you made on your application. Always keep an eye on your emails for updates and any communications. Eventually, you’ll receive a separate award letter from each college, sometime between mid-January and early April. You can compare them side by side.
In addition, some universities will require you to also complete a CSS (College Scholarship Service) PROFILE. This information helps colleges determine your financial situation and what form of non-government financial aid they can offer you. This aid can be school grants, scholarships, and loans. You can see a list of colleges that require the CSS Profile on the College Board’s website (https://cssprofile.collegeboard.org). The application is available every year on October 1. There are also extensive tutorials and information on their website to help you understand this process.
Money can be tight as a student. A study from Wisconsin HOPE Lab at Temple University reported that 36 percent of students go hungry, and about one out of every ten college students has been home-insecure in the past year. Not having enough money is one factor in not attending and failing at college.
You to do a few things to ensure the best possible financial situation. One, talk with your academic advisor and financial aid officer. Two, make sure that you know how to manage money, such as budgeting. Three connect with the College and University Food Bank Alliance (https://sites.temple.edu/cufba), and ask your college administrators to become involved.
Main points to remember:
Activity #1: Use the internet access and answer the following
Resources
Google Budgeting & Apps
Free Application for Federal Student Aid (FAFSA)
Raise
Federal Student Aid Finding Scholarships
Fast Web
Scholarships.com
College Abacus
College Navigator: U.S. Department of Education
Family and College Finances: www.moneycentral.msn.com
Financial assistance can come from the federal and state government, private organizations, and colleges. The first place to look is the Department of Education. They offer the Free Application for Federal Student Aid (FAFSA). You will hear this term a lot. On their website, https://fafsa.ed.gov, you will have the opportunity to submit your and your family’s financial information, which is used to determine your level of financial need.
The following are major types of financial assistance:
Grants and scholarships. This is free money that is awarded based on merit, need, and sometimes characteristics, such as ethnicity, place of origin, or field of interest. You will not have to pay this back.
Loans. This is money lent to students, typically with a low and fixed interest rate. The money borrowed can be paid while in school or, usually, after graduation and a grace period. The two forms of this aid are subsidized and unsubsidized. With subsidized loans, the interest is paid for you by the government, while with unsubsidized loans the interest is added to the principal (the original amount borrowed). There are often limits to the amount of each you can receive every year and in total. The yearly amount slightly increases as you progress in your education.
Work-study. If you have a financial need, you may be eligible to find work on or off-campus that your institution will pay you to do.
Veteran’s Assistance. As a result of serving your country or having a family member serve, you may be eligible for particular benefits, which are usually enumerated by the Veteran’s Affairs Office on campus.
For more information on types of aid, see https://studentaid.ed.gov/sa/types.
The information you submit for the application will include your parents’/guardians’ assets, debt, income, and other financial information. This information is typically available on bank statements, pay stubs, tax returns, and other official documentation from employers and the state and the federal government.
This personal information is required in the FAFSA application:
- Social Security Number
- Alien Registration Number (if you are not a U.S. citizen)
- Your most recent federal income tax returns, W-2s, and other records of money earned (you may be able to transfer your federal tax return information into your FAFSA using the IRS Data Retrieval Tool)
- Bank statements and records of investments (if applicable)
- Records of untaxed income (if applicable)
- An FSA ID to sign electronically
Many of you will be considered a dependent student, which generally means that you are greatly financially supported by your parents and under a certain age. In this case, the above information will be about your parents.
If you believe that you should be considered an independent student due to your financial or family situation, research this on the FAFSA website and notify the colleges to which you are applying. Being an independent student means that you will be able to take out more loans—but be careful whenever taking out loans. The rule of thumb is that if you can avoid them, do so!
FAFSA states that you should have certain information before starting the application, but you can take a look at the application and become familiar with it before beginning. You should also start the application early and break up the application process into manageable sessions. The first time filling it out often takes the longest. In subsequent years it will be easier and go smoother, given that many of the answers will be the same and you’ll know most of the terms.
Soon after submitting your information through FAFSA, the schools you’ve listed will receive your information. You’ll also receive a Student Aid Report (SAR) from FAFSA. This report summarizes the information you provided—make sure the data is correct.
You’ll then be notified by the school if you need to provide documents to support the statements you made on your application. Always keep an eye on your emails for updates and any communications. Eventually, you’ll receive a separate award letter from each college, sometime between mid-January and early April. You can compare them side by side.
In addition, some universities will require you to also complete a CSS (College Scholarship Service) PROFILE. This information helps colleges determine your financial situation and what form of non-government financial aid they can offer you. This aid can be school grants, scholarships, and loans. You can see a list of colleges that require the CSS Profile on the College Board’s website (https://cssprofile.collegeboard.org). The application is available every year on October 1. There are also extensive tutorials and information on their website to help you understand this process.
Money can be tight as a student. A study from Wisconsin HOPE Lab at Temple University reported that 36 percent of students go hungry, and about one out of every ten college students has been home-insecure in the past year. Not having enough money is one factor in not attending and failing at college.
You to do a few things to ensure the best possible financial situation. One, talk with your academic advisor and financial aid officer. Two, make sure that you know how to manage money, such as budgeting. Three connect with the College and University Food Bank Alliance (https://sites.temple.edu/cufba), and ask your college administrators to become involved.
Main points to remember:
- The process of getting financial aid can seem difficult. However, all that is necessary is time and the right information.
- It may seem like a lot of information to learn and get through, and it is. But once you’ve learned it, you’ll be better able to make informed decisions, and the following applications should be a lot easier.
- Several universities are need-blind, which means that they do not look at your family’s wealth or other financial information while making admissions decisions.
- The information you provide to the Department of Education may be checked for accuracy, either by the government or school you wish to attend.
- Start early and meet the deadlines (deadlines for federal, state, and colleges may differ).
- There may be resources for financially struggling students in your local area or offered by the school you wish to attend.
- Withdrawing from your classes, doing poorly in your courses, and other factors like these can restrict your following term’s financial aid.
Activity #1: Use the internet access and answer the following
- What is the financial aid deadline for one of the schools you are interested in or are currently attending?
- What is the interest rate of a federal unsubsidized loan?
- Where is the Financial Aid office on your campus (or one that you are interested in)?
- What’s one scholarship online that is based on your merit (academic performance), ethnicity, socioeconomic standing, or field of interest?
- Define the following terms: Expected Family Contribution (EFC), Master Promissory Note (MPN), and Entrance Counseling.
Resources
Google Budgeting & Apps
Free Application for Federal Student Aid (FAFSA)
Raise
Federal Student Aid Finding Scholarships
Fast Web
Scholarships.com
College Abacus
College Navigator: U.S. Department of Education
Family and College Finances: www.moneycentral.msn.com