With the total costs of many private colleges now exceeding $25-30,000 per year, financial aid is a topic on the minds of an increasing number of people. Perhaps the most important thing to keep in mind regarding financial aid is this: You will not know whether or not you qualify for assistance, and you will not receive any aid, if you do not apply .
Information Worth Noting:
There are
basically two different types of financial assistance offered by colleges and
universities: need-based and merit-based.
NEED-BASED ASSISTANCE
Every school will require that you submit the Free Application for Federal Student
Aid ( FAFSA ) in order to be considered for aid. The FAFSA
is available in the WCHS Office or online at the end of November but cannot
be submitted until after January 1. Some schools will also ask you to
complete the Financial Aid Profile , a second form available
in the early fall and with which you must send a processing fee. Both
forms are submitted to processors who then calculate your expected family contribution
and forward that information to you and to any schools to which you have asked
the information be sent. The FAFSA calculations are based on federally
legislated methodology. The Financial Aid Profile calculations take additional
discretionary information into account, as requested by the various schools
to which you are applying.
Some colleges ask that applicants for financial aid submit the school's own
financial aid form directly to the school, in addition to the FAFSA, and sometimes
the Financial Aid Profile as well. If this is the case for a school to
which you are applying, be attentive to deadlines and provide complete information.
There are four possible combinations of forms required for
financial assistance: Some colleges will want only the FAFSA, some will
want the FAFSA, Financial Aid Profile, and an institutional form, others will
want the FAFSA and an institutional form, and still others will want the FAFSA
and Financial Aid Profile. When applying for any type of financial aid,
it is important to be accurate and prompt in filing all of your forms.
The Financial Aid Office at each institution will take the information provided
by the form processor and put together a financial aid "package" which
might be some combination of grant, scholarship, loan, and/or work-study.
Unfortunately, an increasing number of colleges are not able meet 100% of the
demonstrated need of their applicants. That means there might be a "gap"
between what you can afford and what the college can provide to assist you.
Grants and scholarships are monies given
to you by the college which do not have to be repaid. The Pell
Grant is the largest of the federal grant programs, and its awards
range from $200 to $2400. Determination is made on the basis of information
provided by review of your FAFSA. The Supplemental Educational
Opportunity Grant (SEOG) is another federal program (administered by
the colleges) for students with exceptional need. Awards range from $200
to $4000 in excess of the Pell amount.
Loans must be repaid and have different terms. The Stafford
Student Loan is a federal program (administered by private lenders)
based on need. Freshmen may borrow up to $2625per year. Amounts
are increased for upperclassmen. The loan is interest free while the student
is in college and until repayment begins. The federal government pays interest
while you are still in school and for six months afterwards. The repayment
period is five to ten years, and there is a 5% origination fee subtracted from
the loan. Perkins Loans of up to $3000 per year are
federally funded and are offered by the colleges. They are based on need.
The interest rate is 5%for the first four years and 8% for the last six years
of the repayment period. Interest is not paid while you are a student and
for nine months after graduation. Unsubsidized Stafford Loans
are designed for students who do not demonstrate need. The terms
are the same as for the Stafford Loan described above, except that interest
must be paid while the student is in college. Repayment of principle begins
upon graduation. PLUS (Parents Loans to Undergraduate
Students) and SLS (Supplemental Loan to Students) Loans
are also not based on financial need, but you usually must first apply
for Pell and Stafford Loans before being considered. Both have yearly
maximums. Interest rates are tied to the 52-week T-bill rate. Interest
accumulates while you are a student, but payment can be deferred until after
graduation. The repayment periods are five to ten years.
College Work Study is employment which you must take while
in school, earning a salary which you are expected to contribute toward your
expenses. The program is administered by the colleges, and the financial
aid or work study office will help you find a job which qualifies. Most
work study jobs are part-time and clerical in nature.
MERIT-BASED ASSISTANCE
A growing number of colleges and universities are making available scholarship money which is awarded not on the basis of need, but for some outstanding quality or accomplishment demonstrated by the student. The only way to learn of these awards is to seek them out; check the literature you receive from the schools to which you are applying and do a search on the web.
Many privately-funded
scholarships are also awarded each year, from businesses, associations, civic
groups, corporations, and others.
BEWARE! of individuals and firms which claim to be
able to uncover hidden riches available for you to use for college. There
are extensive, FREE, scholarship searches available on the World Wide Web.
Check these web pages for a lot of free information on financial aid and free
scholarships searches: www.finaid.org
and www.fastweb.com . Also
check our school website for scholarships: http://www.woodlandchristian.org/College/scholarships.htm