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Start applying for financial aid early
Mistakes can cost you, so double-check federal student aid application.
By Sarah Linder - Life Guide
October 26, 2008
We all have a long list of financial anxieties lately, and, for many parents, paying for college is near the top of that list.
The New York Times reported Oct. 17 that "More families are applying for federal aid, and a recent survey found that an increasing portion of families (is) expected to need student loans. College administrators worry that as fresh cracks appear in family finances, they will not have enough aid money to go around, given that their own endowment returns are disappointing, states are making cutbacks and fundraising will become more difficult."
Not that funding college was easy before all the economic upheaval started.
"The economy aside, there are more students applying for college than ever before," says Kristen Campbell, national director of college prep programs for Kaplan Test Prep and Admissions. "That means more students potentially applying for financial aid. Layered on top of that is a lot of this uncertainty."
So if college is coming up soon, how can you pay for it while minimizing borrowing (after all, no one needs more debt now, either)? The financial-aid experts we talked to stressed two key points:
While it seems like a basic step, apply for aid early and make sure all the information in your applications is correct. That could give you an edge over other candidates.
Be persistent in your search for scholarships because it will pay off.
The paperwork
The first step in obtaining financial aid is filling out the FAFSA (Free Application for Federal Student Aid). According to the FAFSA Web site (fafsa.ed.gov), students use the form to "apply for federal student financial aid, such as the Pell Grant, student loans and college work-study. In addition, most states and schools use FAFSA information to award their financial aid."
"You can begin to file for that Jan. 1 of next year," Campbell says. "Many parents don't think about starting the process that early." But, she adds, they should.
"The key is really applying early," she says. "Try to be that first person in line. With federal financial aid, there is a limit to the dollars. So getting in early and qualifying for it is the best way."
Another reason to start early: The form can be time-consuming.
"I'm a CPA and I thought it was onerous," says Donna Wesling, an Austin accountant. "It's not an easy form to fill out."
Allow plenty of time to double-check your FAFSA. Making errors on it is one of the most common mistakes students make in applying for financial aid, say Campbell and Erin Chiaro, director of financial aid at Fairfield University in Connecticut. These mistakes can cost you money.
You could also end up with an unpleasant financial surprise if you don't send along the appropriate supplemental information, such as tax documents, with the FAFSA.
"Another common mistake we see is when families complete the FAFSA or CSS Profile with incorrect financial information and do not submit their required tax documents to the Office of Financial Aid by the required deadline," Chiaro said via e-mail. "When we receive the tax documents and adjust the financial information accordingly, a student's need level can change dramatically, sometimes reducing the amount of need-based grants that appeared available originally. When this all occurs late in the process, it can lead to a student needing to come up with a large sum of money rather quickly."
Let the school know about any special circumstances that aren't reflected on the FAFSA, or if your situation changes after the form is filed, said Jeanette Kucera, associate director of counseling in the office of academic scholarships and financial aid at Baylor University.
The paperwork doesn't end with the FAFSA. Check with your school's financial aid office to make sure you've filled out all of the forms required to be considered for assistance, Kucera said in an e-mail. The biggest mistake of all, though, is not filling out applications at all because you assume your family does not qualify, Campbell and Chiaro said. Go ahead and fill out the forms - you might be surprised.
Scholarships
If your budget for college has gotten tighter, there's more payoff than ever in doing some legwork to find scholarships. You don't have to have straight A's or hold your school's football rushing record to get a scholarship, either. "There are a ton of scholarships for all sorts of different talents, skills and abilities," Campbell says. Yes, there are a lot of other students out there competing with you, but there are also plenty of scholarships that are still under the radar, she adds. Here are some ideas for finding them.
Online:
Fastweb.com got the most mentions from our sources as a place to find scholarship listings.
Also worth checking is meritaid.com, which rounds up merit-based scholarships from colleges.
Don't overlook the Web sites of your high school and the colleges you want to attend, many of our local sources said. If they don't have good scholarship listings, try other schools in the area, says Kelly Tanabe, author of "The Ultimate Scholarship Book 2009" and the founder of supercollege.com.
If you've already decided on a major and career, check for scholarships offered by professional organizations, Kucera says.
More Web ideas from Tanabe: www.collegeboard.com and www.review.com.
Offline:
Scout your community. Lots of scholarships are available from clubs, churches, local employers and local foundations, Dion McInnis, associate vice president for university advancement at the University of Houston-Clear Lake, said via e-mail. Even keeping an eye on your neighborhood newsletter could turn up scholarship information, McIinnis adds.
Since these local scholarships might not be online yet, working your contacts is the best way to find out about them, says Rod Bugarin, a financial aid expert for applywise.com and ivywise.com. Talk to your counselor, your relatives, your family's friends and other community members. You don't have to make a pest of yourself asking for college money; just let them know that you're looking for opportunities, Bugarin says. Then, if they hear about any scholarships, you'll be fresh in their mind.
Whatever scholarships you apply for, your persistence will be rewarded. For example, even if you aren't a perfect match for a scholarship's requirements, apply anyway, Lee Harrell, Ohio Wesleyan University's assistant vice president of admission and financial aid, said via e-mail. The scholarship's administrators might end up easing its criteria to make sure its funds are put to the best use.
And as you're searching, beware of scams. "During economic down times, often there are folks out there who are taking advantage of people who are in need of aid," Campbell says. One red flag to look for: You should never have to pay for a list of scholarships, Campbell says. There are plenty of free resources that provide this information.
slindner@statesman.com; 445-3826
Start applying for financial aid early
Mistakes can cost you, so double-check federal student aid application.
By Sarah Linder - Life Guide
October 26, 2008
We all have a long list of financial anxieties lately, and, for many parents, paying for college is near the top of that list.
The New York Times reported Oct. 17 that "More families are applying for federal aid, and a recent survey found that an increasing portion of families (is) expected to need student loans. College administrators worry that as fresh cracks appear in family finances, they will not have enough aid money to go around, given that their own endowment returns are disappointing, states are making cutbacks and fundraising will become more difficult."
Not that funding college was easy before all the economic upheaval started.
"The economy aside, there are more students applying for college than ever before," says Kristen Campbell, national director of college prep programs for Kaplan Test Prep and Admissions. "That means more students potentially applying for financial aid. Layered on top of that is a lot of this uncertainty."
So if college is coming up soon, how can you pay for it while minimizing borrowing (after all, no one needs more debt now, either)? The financial-aid experts we talked to stressed two key points:
While it seems like a basic step, apply for aid early and make sure all the information in your applications is correct. That could give you an edge over other candidates.
Be persistent in your search for scholarships because it will pay off.
The paperwork
The first step in obtaining financial aid is filling out the FAFSA (Free Application for Federal Student Aid). According to the FAFSA Web site (fafsa.ed.gov), students use the form to "apply for federal student financial aid, such as the Pell Grant, student loans and college work-study. In addition, most states and schools use FAFSA information to award their financial aid."
"You can begin to file for that Jan. 1 of next year," Campbell says. "Many parents don't think about starting the process that early." But, she adds, they should.
"The key is really applying early," she says. "Try to be that first person in line. With federal financial aid, there is a limit to the dollars. So getting in early and qualifying for it is the best way."
Another reason to start early: The form can be time-consuming.
"I'm a CPA and I thought it was onerous," says Donna Wesling, an Austin accountant. "It's not an easy form to fill out."
Allow plenty of time to double-check your FAFSA. Making errors on it is one of the most common mistakes students make in applying for financial aid, say Campbell and Erin Chiaro, director of financial aid at Fairfield University in Connecticut. These mistakes can cost you money.
You could also end up with an unpleasant financial surprise if you don't send along the appropriate supplemental information, such as tax documents, with the FAFSA.
"Another common mistake we see is when families complete the FAFSA or CSS Profile with incorrect financial information and do not submit their required tax documents to the Office of Financial Aid by the required deadline," Chiaro said via e-mail. "When we receive the tax documents and adjust the financial information accordingly, a student's need level can change dramatically, sometimes reducing the amount of need-based grants that appeared available originally. When this all occurs late in the process, it can lead to a student needing to come up with a large sum of money rather quickly."
Let the school know about any special circumstances that aren't reflected on the FAFSA, or if your situation changes after the form is filed, said Jeanette Kucera, associate director of counseling in the office of academic scholarships and financial aid at Baylor University.
The paperwork doesn't end with the FAFSA. Check with your school's financial aid office to make sure you've filled out all of the forms required to be considered for assistance, Kucera said in an e-mail. The biggest mistake of all, though, is not filling out applications at all because you assume your family does not qualify, Campbell and Chiaro said. Go ahead and fill out the forms - you might be surprised.
Scholarships
If your budget for college has gotten tighter, there's more payoff than ever in doing some legwork to find scholarships. You don't have to have straight A's or hold your school's football rushing record to get a scholarship, either. "There are a ton of scholarships for all sorts of different talents, skills and abilities," Campbell says. Yes, there are a lot of other students out there competing with you, but there are also plenty of scholarships that are still under the radar, she adds. Here are some ideas for finding them.
Online:
Fastweb.com got the most mentions from our sources as a place to find scholarship listings.
Also worth checking is meritaid.com, which rounds up merit-based scholarships from colleges.
Don't overlook the Web sites of your high school and the colleges you want to attend, many of our local sources said. If they don't have good scholarship listings, try other schools in the area, says Kelly Tanabe, author of "The Ultimate Scholarship Book 2009" and the founder of supercollege.com.
If you've already decided on a major and career, check for scholarships offered by professional organizations, Kucera says.
More Web ideas from Tanabe: www.collegeboard.com and www.review.com.
Offline:
Scout your community. Lots of scholarships are available from clubs, churches, local employers and local foundations, Dion McInnis, associate vice president for university advancement at the University of Houston-Clear Lake, said via e-mail. Even keeping an eye on your neighborhood newsletter could turn up scholarship information, McIinnis adds.
Since these local scholarships might not be online yet, working your contacts is the best way to find out about them, says Rod Bugarin, a financial aid expert for applywise.com and ivywise.com. Talk to your counselor, your relatives, your family's friends and other community members. You don't have to make a pest of yourself asking for college money; just let them know that you're looking for opportunities, Bugarin says. Then, if they hear about any scholarships, you'll be fresh in their mind.
Whatever scholarships you apply for, your persistence will be rewarded. For example, even if you aren't a perfect match for a scholarship's requirements, apply anyway, Lee Harrell, Ohio Wesleyan University's assistant vice president of admission and financial aid, said via e-mail. The scholarship's administrators might end up easing its criteria to make sure its funds are put to the best use.
And as you're searching, beware of scams. "During economic down times, often there are folks out there who are taking advantage of people who are in need of aid," Campbell says. One red flag to look for: You should never have to pay for a list of scholarships, Campbell says. There are plenty of free resources that provide this information.
slindner@statesman.com; 445-3826
