Once you’ve decided to attend a college or university, the question of funding quickly follows. People often refer to “tuition” as how much they will need to spend for college. Tuition, in fact, refers to only one aspect of the overall cost; there are also books, room and board, travel and personal expenses.
When calculating your financial needs, remember to include all of the costs of education. “Financial need” is the difference between the total cost of education and the amount the student and family can contribute. You’ll need financial aid to cover the difference.
Financial aid comes in three forms: grants and scholarships (which you do not have to repay), work-study (which you earn while in school) and loan (which you have to repay). These types of aid can be categorized in three ways based upon their source: government money from federal or state agencies; institutional money from the college you attend; and private money from businesses, organizations and foundations. Most students cover educational costs by a combination of forms of financial aid.
Financial Aid Myths Dispelled:
Financial aid is available in the form of need-based and merit-based programs.
Cost is not a good way to compare colleges: students need to also compare the academic benefits of colleges in making a college choice.
As is the case with cost as a comparison, the college that offers the most aid may not be the best academic choice for the students. College choice should be based on other factors such as the quality of the educational program, the size and location of the school, etc.
Aid is available at every college.
Aid is available to all students who demonstrate financial need.
Income may not be too high to qualify; other factors are also considered in determining a student’s eligibility for need-based financial aid.
The student may be eligible even if a sibling or friend didn’t qualify for aid.
Financial Aid Checklist: Junior Year
Take college admission test (ACT, SAT I)
Consider and select colleges
Research private scholarships, grants and other sources of financial aid.
Fall of Senior Year
Narrow college selection to several colleges
Obtain and complete college admission applications
On or After January 1 of Senior Year
Complete, sign, and mail FAFSA as instructed.
Contact the college financial aid office for deadlines and ask if a separate application and/or other documentation is required.
4 Weeks after FAFSA is Filed
Receive Student Aid Report (SAR) and follow instructions from the financial aid office. If SAR needs to be corrected, contact the financial aid office for instructions.
Receive Monetary Award Program (MAP) grant announcement letter from ISAC or your college. Follow instructions in the letter.
March through July of Senior Year
Receive financial aid award letter from college.
Accept all or part of financial aid offered, sign and return award letter to the college.
After You Receive an Award Letter
Follow financial aid office procedures if applying for a student or parent loan.
When You Receive Scholarship(s)
Report private scholarships to the financial aid office.
Important Items to Remember:
Work hard! Keep your grades up throughout high school and college.
Photocopy and keep all completed forms and worksheets.
Notify college of enrollment plans. Typically you have until May 1st to respond to an admission offer.
Inform financial aid administrator about any changes affecting your family’s income.
You must reapply for financial aid each year you continue in school.
Stay in contact with the financial aid office during the year.
If questions arise regarding financial aid during the school year, contact your financial aid administrator.
Ask the financial aid administrator about disbursement procedures and tuition payment procedures at the college.
If you receive a loan, you may be making payments to someone other than the original lender. Student loans may be sold to another lender or secondary market. You are still responsible for keeping in touch with that lender/holder and fulfilling the terms of repayment.
Make sure the college and lender/holder are notified when you move or change your name. Notify your lender/holder should you drop out of school or drop below half-time attendance.
Financial Aid Terminology
College Work-Study – Virtually every college has some system of work-study. Responsibility for finding a work-study job is the student’s. Most colleges will regulate the number of hours to be worked, to allow time for studying. State-funded programs allow students to accept jobs off-campus if the job is related to career objectives.
Educational Loans (Federal) – The low-interest Perkins Loan is available to undergraduate and graduate students through the college’s financial-aid office. Because not all schools participate in this program, check before enrolling.
Stafford Loans are low-interest loans made by private lenders such as banks. No interest accrues while the student is in school and students have at least five, and up to 30 years to repay this loan. Similar, less-expensive direct federal loans are now offered through designated colleges and universities.
Unsubsidized Stafford Loans and Parent Loans for Undergraduate Students (PLUS) provide additional funds borrowed by parents or students for educational expenses, without having to demonstrate financial need. The interest rate varies.
FAFSA – Free Application for Federal Student Aid is the form that will be used to apply for a Federal Pell Grant, other federal student aid programs, an ISAC Monetary Award Program (MAP) grant, and a Federal Stafford Loan.
Financial Aid Office – Every two-and for-year college has a financial aid office. This is the office you must contact when you have any questions or concerns about your college costs or your financial aid package. This office is also extremely helpful in helping locate possible scholarship opportunities.
Financial Aid Package – Your financial aid package is based on what is termed “financial need.” Assuming that your family shows financial need, a financial aid package may be offered by the college financial aid office. This package shows what grants, work study, or loans qualify for.
Grants – Many colleges and universities give their own money in the form of direct grants. Sometimes students are required to complete additional aid and scholarship forms. For federal and state grant programs, apply by completing the Free Application for Federal Student Aid (FAFSA).
Pell Grants are for undergraduates who have demonstrated financial need the maximum award has been about $2,300; however, this can change. Pell Grants are “portable”, which means they follow the student should she/he wish to transfer.
Supplemental Educational Opportunity Grants (SEOGs) are offered to undergraduates who have demonstrated financial need. Schools receive a set of amount of money for SEOGs annually. Applying on time increases the chance that money will be available.
The Washington State Need Grants (WSNGs) program provides aid to low-income, full-time students and their families. State residents who attend a participating institution as full-time students are automatically considered for this grant when they apply for financial aid.
IASC – The Illinois Student Assistance Commission is the state agency in Illinois which administers scholarships, grant and loan programs, a secondary market for student loans, and a savings plan.
MAP – The Monetary Award Program is a state-funded grant program which assists Illinois students in paying tuition and mandatory fees at approved Illinois colleges and universities.
MRS – The Merit Recognition Scholarship is a scholarship program for students who rank in the top 5% of their high school graduation class at the end of the seventh semester.