Applying for financial aid should be something that every student does, no matter what their family’s ability to pay for college might be. Even affluent families can find shelling out $45-50,000 or more annually for tuition and related expenses to be quite a hit, especially if no aid is forthcoming.

These days students are not only encouraged, but expected to apply for financial aid, given the high cost of college education and the myriad number of ways in which aid is awarded. So, to get started we’ve outlined seven steps that prospective students should take to get the financial aid train rolling down the track:

1. Apply to School – Financial aid cannot be awarded until you apply and are accepted to a college in the first place. Only when you are fully accepted (not provisionally) will you be able to complete the steps which follow.

2. Apply for Financial Aid — Your Free Application for Federal Student Aid (FAFSA) will determine financial aid eligibility, but before you can apply you must first obtain a personal identification number (PIN) from www.pin.ed.gov. Both the student and one parent must have a PIN in order to complete the FAFSA.

Your PIN is important, something that you will need throughout the financial aid process. In addition, you’ll want to make sure that you follow all signature requirements which can delay your application if signatures are not completed. You’ll be filling out a pre-application worksheet before you submit your FAFSA.

3. Submit the FAFSA – Visit http://www.fafsa.ed.gov/ and submit your FAFSA. Double check your federal tax forms before applying. Make certain that you enter the school’s correct Title IV institutional code onto the form, otherwise you could delay your application.

4. Receive your SAR – About one month after submitting your FAFSA, you’ll receive a Student Aid Report (SAR) from the U.S. Department of Education. Review your SAR for accuracy; follow the instructions on how to make changes if mistakes are found. Your school will receive a copy of your SAR about the same time as you receive your information.

5. Obtain Your Financial Award Letter – Your college will review your SAR and send to you a financial award letter which will outline your complete financial aid package.

6. Apply For Stafford Loan – If your financial aid package sufficiently provides what you need to pay for college, then you’re all set. Otherwise, if you fall short, you can apply for a federal Stafford loan, a type of student loan managed by the federal government. Visit http://www.hesaa.org/index.php?page=apply-now-for-federal-stafford-and-plus-loans to apply today. Also, consider various private student loan options to help you pay for college.

7. Set Up A Loan Entrance Review – Before starting school, your college will contact you to set up an appointment to review loan documentation. This conversation will discuss funds awarded, distribution, and review of other financing options you may want to consider.

Financial aid can spell the difference between attending college or going without a degree, therefore applying for assistance is critical to help you learn how much of your college costs will be covered by your school as well as discovering what your personal share of these costs will be.

Tags: College Financial Aid, college tuition, FAFSA, financial aid

College costs are increasing at a speed that is just over twice the rate of inflation, meaning that annual tuition costs are rising at about 8-10% per year. For the current college student, these increases are a tough pill to swallow, but for future students paying for college can seem downright daunting.

Thankfully, current and prospective college students have some options available to them, choices
which can help defray at least some of the costs of higher education. Besides a 529 college savings plan, the following eight student financing options are available to everyone:

First Things First — Prior to applying for financial aid, students should fill out a Free Application for Federal Student Aid (FAFSA) form and submit it to the federal government. The information you provide on that form will help the government create an SAR (Student Aid Report) which will be sent to your college with a copy sent to the student’s family.

Based on the SAR, your college will create a financial award letter that lists the amount of aid you will receive from the school. Once that amount is known, then you’ll know the exact amount of monies that you will need to raise on your own.

College Scholarships — With billions of dollars of scholarship money awarded each year, students have an excellent way to find free money to pay for their education. Tens of thousands of different scholarships are available each year, with every scholarship having their own eligibility requirements. You can apply for as many scholarships that you are eligible for.

Check Out Financial Aid Charts – After you receive your SAR, will you know the exact amount of money that you will need for school? Likely, you’ll have a ballpark figure, but to sharpen your answer you need to access certain financial tools to find that out.

Consider Stafford Loans — Government student loans are now called Federal Stafford Student Loans, which can be a terrific way for you to fund your schooling. Eligibility requirements are rather strict, so don’t rely on this method of financing only.

PLUS Loans– These are government backed loans that cover up to 100% of a dependent child’s educational costs, minus awarded financial aid.

Private Student Loans — Families can borrow as much as $45,000 annually via a private student loan. They’re easier to get than Stafford Loans, but interest rates are somewhat higher.

Consider Other Aid Options — Federal Pell Grants, home equity loans, college savings accounts, borrowing retirement money, military service funding, tax abatements, work-study programs, and loan forgiveness options are all worth taking a look at.

Maintaining A Budget - Once your adult student has started school, keeping track of the money is critical in order to avoid running out of funds before the academic year comes to an end. Stick to a budget and you’ll make sure that there is enough funding available to see you through the year.

No doubt, college costs will continue to rise, but with excellent planning on your part, you can limit the sting of paying for higher education and limit your debt obligations.

Tags: College Financial Aid, college scholarship, Student Loans