I would never claim to be an expert on financial assistance, college financing plans or pretty much anything that has to do with the money side of college. Admissions, yes expert. Finances, not so much. Still I think it’s been important for me to gain a broad understanding of the financial assistance side of things. After all life won’t go so smoothly if my clients have ten acceptance letters (yay!) and the inability to finance their education. I teamed up with college financial assistance counselors to provide these tips since this isn’t my forte.
An ongoing NYTimes series answers questions about the financial assistance process. Hopefully it will be as helpful to you as it’s been to me.
There is enough financial assistance available to make it possible for you to get a college education. Assistance in the form of scholarships and grants, subsidized student loans, and on-campus part time jobs is available to you if you qualify for need-based financial aid. Typically, all that is required to access these resources is the completion of an application — the Free Application for Federal Student Aid (FAFSA). The result is a determination of your eligibility for need-based financial aid. The FAFSA must be completed in order to receive need-based financial aid.
Check with your college to see if any additional forms are required. Many schools require students to complete the CSS Profile form as well.
Required Information – The financial information requested on the form is based on the federal income tax returns you and your parents file during your senior year, and the form is available to be filed after January 1. You should file the form as soon as possible after it becomes available. If your family’s federal income tax has not been filed, you can estimate the amounts based on the previous year’s tax return.
Due Date – The FAFSA contains a list of the 50 states with a different deadline date for each state. It’s important to file the FAFSA by your school’s deadline date to receive the max amount of aid possible. Remember that you must fill this out every year you are in college.
Here are some key words and acronyms you will encounter as you go through the process of applying for need-based financial aid.
EFC – Expected Family Contribution is the calculated amount your family should be able to pay for one year of your college education, based on the information contained in your FAFSA.
SAR – The Student Aid Report will be mailed to you upon the completion of the FAFSA. It lists all the information that you submitted on the FAFSA. It is important that you check the accuracy of the information; if you find an error, you have the opportunity to correct it. The SAR also contains your EFC amount in the upper right- hand corner of the form.
Cost Of Attendance – The Cost of Attendance is the total cost of one year to attend a particular school and is made up of tuition, fees, room, board, books, incidental expenses (recreation, laundry, personal grooming, etc.) and travel to and from home. Each school will have its own unique Cost of Attendance. A school’s Cost of Attendance is usually available on the school’s web site.
Need – Your “Need” is the Cost of Attendance minus your Expected Family Contribution — the amount to be filled by a financial aid award package.
Financial Aid Award Package – The total amount of financial aid awarded by a particular school that fills your “Need.” The package is made up of scholarships, grants, work study and student loans.
FWS – The Federal Work-Study Program subsidizes your earnings while working part- time on your college campus. You must be eligible to receive need-based financial aid to participate in the program.
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