Financial aid awards is a big Award for any student. Sometime financial aid awards don't include what is officially called the cost of attendance, "The cost of attendance is supposed to include such things as tuition, room/board, travel, textbooks and fees for such things as health services, labs and student life. Ideally, the costs will be itemized on your financial aid letter. The cost is one of the critical things that you need to know to determine if your award is any good. As strange as this will sounds, some schools don't include the cost of attendance in their letters. Other institutions low ball the cost by leaving out some expenses."Some things below to look for when reviewing a financial aid letter:
1. Check for grants and scholarships
This money doesn't have to be repaid, so you want to see a healthy portion of grants and scholarships in a financial aid award.
2. Look for the cost of attendance
What is the school's sticker price? Sometime financial aid awards don't include what is officially called the cost of attendance. The cost of attendance is supposed to include such things as tuition, room/board, travel, textbooks and fees for such things as health services, labs and student life. Ideally, the costs will be itemized on your financial aid letter.
The cost is one of the critical things that you need to know to determine if your award is any good. As strange as this will sounds, some schools don't include the cost of attendance in their letters. Other institutions low ball the cost by leaving out some expenses.
3. Watch out for the loans
One way that schools make their packages look more attractive is to include loans. The only loans in an aid package should be government loans with more favorable terms that families qualify for due to their lower incomes. The two loans in that category are the subsidized Stafford Loan and the Perkins Loan. Don't be impressed if you see a PLUS Loan for Parents or an unsubsidized Stafford Loan, which are available to all parents of all incomes.
4. Look for your expected contribution
You won't know if your award is a generous one unless the letter includes what the parents and the child are expected to contribute. These contribution figures will be based on the calculations that are generated when a family files for financial aid. There should be a line stating what a school expects the child to contribute (it will be minimal) and what the parent(S) must contribute.
Without knowing what these numbers are, you can't adequately assess the offer. For instance, let's suppose that the combined expected contribution of the parents and child is $20,000 and the school costs $55,000. If the school only provides grants totaling $7,000, the family would face a $28,000 gap between what the family can afford to pay and what the school is offering.
5)Complete the Fafsa
The Free Application for Federal Student Aid (FAFSA) is used for determining federal, state and institutional need-based aid eligibility. If you're applying for any kind of need-based aid, you must fill out the FAFSA form (www.fafsa.ed.gov). At private institutions, a supplemental application may be necessary.
6)Need more aid?Apply for a private loan.
If your other options don't get you as much financial aid as you actually need, private loans can help cover additional expenses (but at a higher interest rate). Exhaust other resources first.
7)Watch those deadline
Many applications have early deadlines; make sure you know when applications are due. For instance, if you're planning to attend college in the fall, fill out the FAFSA in January. (It won't be accepted before January 1, but get it in as soon as you can after the first.)
8)Colleges want to help
Given the state of the economy, financial aid officers are working hard to accommodate all financial situations. To make the process easier, many colleges are sending out award letters as soon as possible, or posting the information online.
9)It may not be their final offer
If a college's financial aid award isn't as much as you need, contact the financial aid office and ask what other options are available. Some schools make adjustments to the financial aid formula on a case-by-case basis.
Friends just obey this tips for won of the Financial Aid Award.Make sure to carefully examine all financial aid awards. If you don't understand something in the award offer, contact the school.
1. Check for grants and scholarships
This money doesn't have to be repaid, so you want to see a healthy portion of grants and scholarships in a financial aid award.
2. Look for the cost of attendance
What is the school's sticker price? Sometime financial aid awards don't include what is officially called the cost of attendance. The cost of attendance is supposed to include such things as tuition, room/board, travel, textbooks and fees for such things as health services, labs and student life. Ideally, the costs will be itemized on your financial aid letter.
The cost is one of the critical things that you need to know to determine if your award is any good. As strange as this will sounds, some schools don't include the cost of attendance in their letters. Other institutions low ball the cost by leaving out some expenses.
3. Watch out for the loans
One way that schools make their packages look more attractive is to include loans. The only loans in an aid package should be government loans with more favorable terms that families qualify for due to their lower incomes. The two loans in that category are the subsidized Stafford Loan and the Perkins Loan. Don't be impressed if you see a PLUS Loan for Parents or an unsubsidized Stafford Loan, which are available to all parents of all incomes.
4. Look for your expected contribution
You won't know if your award is a generous one unless the letter includes what the parents and the child are expected to contribute. These contribution figures will be based on the calculations that are generated when a family files for financial aid. There should be a line stating what a school expects the child to contribute (it will be minimal) and what the parent(S) must contribute.
Without knowing what these numbers are, you can't adequately assess the offer. For instance, let's suppose that the combined expected contribution of the parents and child is $20,000 and the school costs $55,000. If the school only provides grants totaling $7,000, the family would face a $28,000 gap between what the family can afford to pay and what the school is offering.
5)Complete the Fafsa
The Free Application for Federal Student Aid (FAFSA) is used for determining federal, state and institutional need-based aid eligibility. If you're applying for any kind of need-based aid, you must fill out the FAFSA form (www.fafsa.ed.gov). At private institutions, a supplemental application may be necessary.
6)Need more aid?Apply for a private loan.
If your other options don't get you as much financial aid as you actually need, private loans can help cover additional expenses (but at a higher interest rate). Exhaust other resources first.
7)Watch those deadline
Many applications have early deadlines; make sure you know when applications are due. For instance, if you're planning to attend college in the fall, fill out the FAFSA in January. (It won't be accepted before January 1, but get it in as soon as you can after the first.)
8)Colleges want to help
Given the state of the economy, financial aid officers are working hard to accommodate all financial situations. To make the process easier, many colleges are sending out award letters as soon as possible, or posting the information online.
9)It may not be their final offer
If a college's financial aid award isn't as much as you need, contact the financial aid office and ask what other options are available. Some schools make adjustments to the financial aid formula on a case-by-case basis.
Friends just obey this tips for won of the Financial Aid Award.Make sure to carefully examine all financial aid awards. If you don't understand something in the award offer, contact the school.
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