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Financial Aid is a wonderful program to help with the cost of college. It is a program that helps to supplement the cost of education and offers opportunities to those who otherwise may not have the means to further their education.

The first step to receiving financial aid is to filling out the free application for federal student aid. This is the agency that determines what the family contribution should be. The difference between the cost of attendance and expected contribution for a student, determines how much funds should be awarded based on need. There are some programs that are based on merit or are non-need based and can replace expected contributions from a family source.

By applying early, several funding sources for assistance can be considered. An eligible student with demonstrated need should not be denied the opportunity to attend college. Though the maze of financial aid can be intimidating, if it is taken on a step at a time it’s as easy as drawing a line from A to B.

Begin by determining your eligibility to participate in federal, state and local financial aid assistance. Once you have determined that you are a good candidate for eligibility, apply for and receive your financial aid. After your initial application for Federal Student Aid, the remainder of the process should be completed at your prospective college or university. The Financial Aid office can be very helpful with this process.

To ensure your success, plan a college education budget. Understand the policies and procedures that will affect your financial aid experience; and if a student loan is part of your budget be sure you understand all the repayment options. Another important financial aid opportunity that you can’t afford to overlook is the work-study program. Often you will be given a part time job within your college or university to help you with expenses. With proper planning, nearly anyone can obtain a good education.

James Hunt
http://www.articlesbase.com/education-articles/financial-aid-information-for-students-10912.html

Summary Notes:

College Financial Aid Pre-High School Activities: Saving – The 12 Things You Need to Know

1. Putting aside money for college is a good idea, the earlier the better.

2. Saving beats borrowing hands down.

About 60% of all aid is in the form of loans, and increasing.

Saving: For example, if you start saving when your child is 5 years old, you will have 13 years to save before your child enrolls in college. If you can put aside $167 per month – that’s $2,000 per year – you will have saved $26,000 by the time your child begins college.

With a 6% return over the thirteen-year period, your $26,000 will have grown into $40,000. That $40,000 will be available to help you pay for your child’s college expenses like tuition and room and board.

Borrowing:If you choose not to save when your child is young, it is likely that your child will have to borrow to help pay for college. For comparative purposes, let’s assume you borrow $40,000 in increments of $10,000 per year for 4 years. Assuming a 6.8% interest rate and a 10 year repayment period, borrowing $40,000 will ultimately cost your child $55,200.

Difference: The difference between borrowing and saving is nearly $30,000 ($55,200 ─ $26,000 = $29,200). Thus, saving beats borrowing hands down.

3. The tax system gives incentives to college savers.

Both state and federal laws allow families to earn tax-free interest on college savings. The following example illustrates the advantage of earning interest tax free:

Assume when your child is born you invest a one-time, lump sum of $18,000 in a state 529 plan (see Points 4 – 6 below to learn more about 529 plans). By the time your child is ready to enroll in college at the age of 18, you will have access to $63,000 in order to help pay for your child’s college expenses.

If the same $18,000 were invested in a taxable vehicle with the same rate of return as the 529 plan, after subtracting the federal and state taxes that would be due each year, you would have access to only $43,000 to help pay for college.

The difference, which is essentially a government subsidy to promote college savings, is $20,000, all else being equal. Furthermore, some states actually allow deductions for contributions, making the 529 plan even more attractive to college savers.

4. 529 plans are the most popular and convenient way to save.

There is approximately $100 billion currently invested in state 529 plans.

5. Not all 529 plans are alike.

Each state has its own 529 plan. Investment options and fees may vary from state to state, so it pays to shop around. A couple of useful sites for comparing the different state plans are savingforcollege.com and Morningstar.com.

Most state plans have websites that include free electronic college saving calculators to help you decide how much to save in order to meet your saving goals.

6. The money saved in a 529 plan is not forfeited if the beneficiary does not go to college or gets a full scholarship.

Money saved in a 529 plan may be used to pay the college expenses of other family members, including siblings, parents, cousins and stepchildren. The money can even skip a generation and be used for a grandchild in the unlikely event that became necessary.

7. There is no right amount to save. It depends on your financial situation.

8. Do not save for college at the expense of maintaining your normal lifestyle or your retirement.

You don’t want to short change the amount you set aside for retirement. If you run out of money, there is no such thing as a retirement loan. On the other hand, it is relatively easy to get a college loan.

9. Two ways to save are:

• Save what you can afford after taking care of family expenses.

As was stated in Point 5 above, most state 529 plan websites have free electronic college saving calculators. Other websites, like finaid.org, have them as well. By using these calculators you can periodically check to see how well your savings are keeping pace with college costs.

• Set a target figure. A number to shoot for is the tuition fee at the major public university in your state. For a more ambitious goal, you might use the out-of-state tuition charge. This higher figure would also allow you to accumulate enough savings to pay for a good part of the tuition cost at a private college.

Most college saving calculators found on state websites automatically include information on the current and projected (in-state and out-of-state) tuition rates for the state’s main universities.

10. If you save in a 529 plan and later apply for aid, you may be subject to a very light “penalty” in terms of how much the amount you have saved will increase your expected family contribution.

If the child’s parents are the owners of the 529 plan, they may be asked to contribute some of that money under the rules of the need formula. (There is no such “penalty” if the plan is owned by the child’s grandparents. See Point 12 below for more on grandparents.) Let’s look at the example in order to better understand.

If you, the parent, manage to have $100,000 saved in a 529 plan by the time your child is ready to start college, the first $50,000 will not be considered at all when calculating your child’s aid award. (This is one of the ways the system rewards you for saving.) Only 5% of the second $50,000, or $2,500, will be assumed to be available to pay for college. In other words, the amount of your need will decrease by that amount.

Thus, one could argue that by diligently saving $100,000, you are ultimately worse off by $2,500. However, if you consider that you are very likely to have earned around $35,000 in tax-free interest over the saving period, you will realize that by saving you are actually about $32,500 better off.

11. There are other ways to save besides 529 plans. To look into other options, it is best to consult with a financial advisor.

Remember to choose an advisor who in very familiar with all applicable aid rules. The need formula treats savings differently depending on whether the parent or the child is the owner.

12. Grandparents too can help through 529 plans.

Based on a recent poll, two-thirds of grandparents say they are interested in helping to pay for their grandchildren’s college education. It is worthwhile to know, that money saved in grandparent-owned 529 plans is not considered when calculating the grandchild’s aid award. Furthermore, grandparent-owned 529 plan savings are not counted as part of the grandparent’s estate for estate tax purposes.

Don Betterton
http://www.articlesbase.com/education-articles/college-financial-aid-prehigh-school-activities-saving-the-12-things-you-need-to-know-81357.html

There are many types of financial aids offer to college and university students. While a few are gifted aids and do not need to be paid back; others are provided as a loan and need to be paid back after the completion of the education program.

In general, student financial aids are grouped in below categories:

• Grant
• Fellowship
• Scholarship
• Loan
• Work Study
• Waiver

What are the differences between these financial aids? Many people confuse especially on grant, fellowship and scholarship. Let’s take a brief look on these financial aids. Grant, Fellowship & Scholarship A grant is a gifted financial aid for a student that does not have to be paid back. Fellowship is a fund awarded to a graduate student in a college or university. And scholarship is a financial aid usually awarded based on merit or academic achievement. Both fellowship and scholarship are grant. Practically, these terms very little in different and in fact, these terms are used interchangeably in representing fund gifted to students to support their college or university study.

Loan

A study loan is a financial aid offers to students and these money need to be repaid after the completion of the study program. Although there are loans offered with zero interest rate by charities, associations or religions organization, most of loan programs have repayment provisions and repayment interest rate applied.

Work Study

This program provides jobs that enable students to earn a portion of school costs through employment at the institution. Many colleges and universities offer job to students where they can earn their school fee and part of their living expenses.

Waiver

Under certain circumstances, a college or university may allow a student to attend the courses without paying tuition or other costs. A certain eligibility requirements need to be met in order for eligible for the waiver.

Last Words

Ideally, all students are dreamed to get free money (grant, fellowship or scholarship) to aid their study needs. Although there are many scholarships available out there for students to apply, beware of “Scholarship Scam”. Remember if you have to pay to get money, it probably a scam.

That’s all for this time. See you soon.

Next time we shall talk about “Scholarship scam” and how to protect yourself from these scholarship scams.

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Jullie Harvard
http://www.articlesbase.com/loans-articles/student-financial-aid-types-you-should-know-84433.html

As a parent, you may be thinking of the financial needs your child need once he enters college.

Think of the payments you need to settle like the SATs, Application forms, Campus Visits, and Transcript of records your child may need before he enters college.

It could be daunting and bothering at times. But with a good planning and finding a credible college financial aid plan, everything can work out easily.

Here are some tips on how to look for a college financial aid program.

1. To start it off, you should look and research for prospective universities and financial aid programs as early as your child is still in high school.

You may search the Internet for possible options on where to find financial aid programs that is perfect for your child.

2. Visit the financial aid main office of the prospective college or university where your child wants to enroll. You should take the chance to ask for the school’s college financial aid offers.

3. Do not forget to request for the scheduled deadlines for the filing and submitting of financial aid application forms.

4. Encourage and motivate your child to search for scholarships and other privilege aids that can support his college education.

There are many options that he can choose from as long he has good scholastic records from high school.

5. Consider filing an application for a Federal college financial aid program. Most state colleges and universities offer this kind of assistance to students who deserve and are qualified to be in college but do not have the finances.

You may personally submit the Free Application Form Student Aid or the FAFSA. There are deadlines for filing the FAFSA, make sure that you have filed it before January 1st of your child’s last year in high school.

6. Tell your child to get the application form from his school guidance counselors’ office. You may even fill out forms on the Internet by logging in the state’s FAFSA application web site.

7. You should prepare and get all FAFSA requirements such as your records of untaxed returns, current statement of accounts, business records, your child’s drivers license and TIN number, W-2 forms, records of monthly income, current mortgage information and business records.

8. After you have completed all FAFSA requirements, you may now file for the application form and see other aids that you can be qualified for.

Navigate the Internet for possible aids that may be applicable for your status.

9. Make sure that you understand and you know all the privileges before accepting the financial aid package.

You should consider the financial aid’s years of support and assistance for your child. You should also consider if it is renewable.

There are many instances that your child may need to pay miscellaneous fees for his college education. You may have the option to consider a private institution that may lend finances using loans for students.

You may even find creditors that offer lesser interests rates if you are paying on time.

Dave Poon
http://www.articlesbase.com/non-fiction-articles/need-help-with-college-financial-aid-53007.html

In a recent college admission industry journal a brave admissions Vice President commented that “Sadly, in the last 20 years we have lost our way in admissions. Colleges are no longer centered on counseling students; we are focused more on recruiting and competing for them. The students are just a way of keeping score. Furthermore, we charge different prices to students whom we value more or less because of our internal institutional priorities…Private counselors who strike a balance between helping students find the right match for their abilities, interests, and personality and assisting families in locating affordable choices are valuable.”

We couldn’t agree more. So who is looking out for your student in the admissions and financial aid process? Not the colleges anymore. Independent counselors, however, have no agenda other than what is best for their students. College is big business, first and foremost. You may not need a CPA to do your basic taxes and you may not need legal help for routine matters. But if you’re facing an IRS audit or having to go to court you want a professional in your corner. The same can be said of college admission and financial aid. The stakes are high, to say the least. Given that a bachelors degree from a public institution will cost $50,000 to $75,000 and a degree from a private institution can cost upwards of $175,000 or more the dollars alone beg for a professional’s expertise. Consider also that the difference in average lifetime earnings between a high school graduate and a college graduate is $1.2 million and climbing.

So where can you find help? And how do you know that you’ve found a professional?

In an ideal world, the first place to seek assistance would be from your high school counseling office. But in reality, too many high school counselors are not ‘college’ counselors per se; only a small amount of their time and resources are dedicated to college admission and only very rarely do counselors understand the intricacies of the financial aid process. Too many counselors are simply overworked and lack the time and resources to offer meaningful personal attention and guidance.

There are also no widely-known and recognized certifications for independent counselors such as the CFP or CPA designations, although such certifications do exist. And it is all too easy to find ‘independent counselors’ with little or no experience other than their own children’s admissions and financial aid processes. A disgruntled parent can make a bad counselor.

However, armed with the right questions, you can find true experienced professionals. When interviewing an independent college counselor be sure to have these questions answered to your satisfaction:

1. Professional Credentials/Experience

Do not ask if they have college admission and college counseling experience – ask them to tell you specifically how many years in admissions, how many years in financial aid, how many years in college counseling, how many years in private practice, and which institutions they served. The ideal is to find someone – or a team – who has direct experience in all of these areas and knows the tips, tricks, ins, outs, politics, processes, calendars, expectations, and language of college admission and financial aid.

2. Professional Associations

Ask if your independent counselor is a current member of professional associations. Professional associations, such as regional chapters of the National Association of College Admission Counseling, keep counselors up to speed with developments, issues, ethics, and news within the college admission and financial aid industries, not to mention that such associations foster collegial relationships between professionals. It would be nice to have your counselor personally know the deans and directors at the colleges your student will apply to.

3. Number of students

You want to know that your counselor is a full time professional and will work with your student appropriately. However, you also want your counselor to have a reasonable case load. You do not want your student to be that counselor’s fourth (why so few – does she know what she’s doing?) nor his 400th (will he be able to spend any time with my student?).

4. College & Campus Familiarity

You want to know that your counselor has personal experience with many different campuses and that they visit different colleges whenever possible. Matching the student to the right college is crucial. Colleges have personalities. Students have personalities. If your counselor has not visited the campus they do not have a good understanding of the college, period. It would be like finding a mate through an old-fashioned classified ad (nice college with leafy trees and okay professors seeks student with 1200 SAT score…). The better the counselor knows the colleges and knows the students the more successful the matching. 45% of students who start college do not finish; often this is because the it’s just not the right place for them and, frustrated and demoralized, they drop out.

5. Money Matters

No, we’re not talking about counselor fees here (although these vary wildly – we’ve seen everything between $500 and $30,000). You need to know to what extent your counselor understands the financial aid process. Ask if they fill out or help you with the FAFSA and CSS Profile applications for need-based financial aid. Ask them if they think you need to fill out the forms even if you don’t think you will qualify for need-based aid (the answer is yes, of course, so you can be eligible for merit awards and loan packages). Ask if they will be able to provide you with a college funding plan with a breakdown of estimated family contribution numbers, line-by-line estimated financial aid packages, and if they work with a financial planner or college funding specialist to suggest ways to improve the family’s bottom line. Most independent college counselors do little to none of this, so you may want to cut them some slack; just know that such help is out there for those who want and need it.

The stakes are high, but there is excellent help available. Just be sure you find a pro, someone you trust, respect, and whom you know will work well with your student.

Bill Mccumber
http://www.articlesbase.com/non-fiction-articles/need-admissions-and-financial-aid-help-heres-how-to-hire-a-private-college-counselor-50823.html

Financial aid is everywhere. It comes in many forms and with many different types of strings attached. If you do not have trust fund or unlimited amounts of personal resources, then you are going to have to explore different ways of funding your education.

The Internet is a great resource for finding financial aid opportunities. Any search engine will direct you to millions of web sites that deal with financing your college education. Finding funding opportunities that apply to you will take some time. Be patient. Go about your search with a sense of sustained interest. This is your future we’re talking about. You need to be in control of it. Using the Internet is the most basic way to start seeking out financial aid opportunities.

If you’re in high school, seek out advice from your teachers and counselors. Ask them if there are any specific financial aid opportunities that you qualify for. Start your search for funding options early, so that you can have your funds available when you need them.

If you’re in college, visit your school’s financial aid office. Ask questions about your situation. Clarify anything you don’t understand about your own obligations and funding sources. See if the campus offers any university-wide or subject-specific aid opportunities.

Scholarships and grants are the most attractive college funding options, because they don’t need to be repaid. Purchase books and periodicals that list scholarship and grant opportunities. Go online and hunt for your money. Apply for every conceivable grant option from local, state and federal organizations.

If you are serious about your financial aid search, the results can be dramatic. You could go to college at a drastically reduced price, or you could end up going for free. If working while you’re in school doesn’t sound appealing to you, then put yourself in a position to receive financial aid checks in the mail.

There is certainly a lot of money out there for college students, put no one is going to just give it to you. You have to apply. Put in serious time researching these opportunities, and once you find one that you qualify for, pounce on it. Get all your stuff in early. Take time to answer every application questions completely, and write a high-quality personal statement that you can be proud of.

The cool thing about looking for financial aid opportunities is that it forces you into self-categorization. You have to look for different identity boxes and see if you fit in them. If you don’t feel comfortable squeezing into a particular identity box, then don’t plan your future around that identity. Clarification of your educational interests and professional goals is a secondary bonus of the financial aid hunt. Your primary goal should be achieving the ultimate bonus, going to school for less than free.

Chris Stout
http://www.articlesbase.com/college-and-university-articles/ways-to-find-additional-financial-aid-84728.html

Many teenagers see university as the next step to their becoming an adult. The choice of classes is left to them. For many of these students their finances are now in their hands. It is usually at this point that they will think about the need for money to help them with their education. The many different student financial aid plans to help these students and others who need financial help are available from their school’s financial office.

Information about the various student financial aid plans is also available from the local library and from any of the universities and colleges in the country. Some of the financial programs can offer details of these programs when you call them. You should also be able to find out these various details from the internet. In addition to getting details about the aid plans you can take a look at the forms which you will need to apply.

Now before you choose a student financial aid plan and apply, you should read the various terms which will have been provided with the aid document. From this plan you will see how much you have to pay in order to end the financial re-payment. The time limit you will have once you have graduated or even finished classes will be stated as well.

Once you have this point cleared up you should take a look at the loan amount you will receive. This loan amount and the interest rate are other items that are given on the student financial aid forms. These many details are ones that will help you to see which student loans are possible avenues of aid.

There are other better ways that you can receive student financial aid. One of the items that most state and other student aid assistance groups look for is that of a FAFSA approval form. They will look through the details which have been provided for them. Based on these details and the information just about any student financial aid plans will be more than happy to help you with your education.

As many people say education is very important. One of the more important steps that you can take is to study at university. The various student financial aid programs have been designed to help you out with there many loan schemes and loan amounts. The time period you will have to pay this loan back is also very generous.

Rene Graeber
http://www.articlesbase.com/finance-articles/student-financial-aid-129870.html

In this day and age, going to college is virtually essential if you want a well-paying occupation that can sustain a quality way of life. However, college is not cheap – it can be very expensive, depending on the prestige and quality of the university, the program you are interested in enrolling, and how long it will take to earn your degree.

Therefore, it’s essential to get as much financial aid as you can. And yes, even non-traditional (over age 25) students that are taking online courses can receive financial aid.

First, you can file for the Free Application for Federal Student Aid (FAFSA) at any age; the main requirements to qualify are (taken from the FAFSA website):

“- You have to be a U.S. citizen or eligible non-citizen. – You have to have a valid Social Security number (unless you’re from the Republic of the Marshall Islands, the Republic of Palau, or the Federated States of Micronesia.) – You comply with Selective Service registration, if required. – You have a high school diploma, General Education Development (GED) Certificate, or pass an approved ability- to-benefit (ATB) test. – You have to be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program at a university that participates in the federal student aid programs. – You must NOT owe a refund on a federal grant or be in default on a federal student loan. – You must have financial need (except for unsubsidized Stafford Loans.) – You must NOT have certain drug convictions. – Other requirements may apply, depending on the university you apply to.”

How much financial aid you can expect to receive from FAFSA is dependent on your Expected Family Contribution (EFC,) your year in school, your enrollment status, and the cost of attendance at the school you will be attending. You should contact your university’s financial aid office to see how much you can receive at that school.

If you are attending an accredited university, your school will send you a 1098-T form at the beginning of each year. This form will include important tax information about your education-related expenses that the school has to send to both you and the IRS. Once you receive this information, you can then file for tax deductions that can save you up to $2,000, including the following –

The Lifetime Learning Tax Credit – available to all students who take at least one class from an accredited school. Qualifying students can get credit for 20% of the first $10,000 they spend on educational expenses, up to a maximum of $2,000. To be eligible, single filers must make an adjusted gross income of less than $52,000 and joint filers must make less than $105,000.

The Hope Scholarship Tax Credit – offered to students who are enrolled at least half-time and are in their first or second year of undergraduate study. Filers who meet the income cap requirements (same as for the Lifetime Learning Tax Credit) and who have no felony convictions involving the possession or distribution of controlled substances can receive up to $1,500 in credit.

Higher Education Tuition and Fees Deduction – the income cap requirements are higher with this option, as singles with adjusted gross incomes between $65,000-$80,000 and families who make between $130,000-$160,000 are eligible for a $2,000 deduction.

Other types of aid include government and private loans, government, university, and private grants, and university and private scholarships. There are ones available for non-traditional students as well. There are online resources that can help you locate ones that are specifically for non-traditional students. The Fastweb Scholarship Database lists more than 50 awards that have a minimum age requirement of 30 or older and over 230 awards with a minimum age requirement of 25 or older. Over 1,800 awards have no age restrictions at all.

Regarding loans, if at all possible, try to obtain government loans – they usually offer the most reasonable rates and terms compared to private loans from banks.

While many schools restrict eligibility for the school’s own financial aid programs to the first Bachelor’s degree, some schools will waive that restriction if an adult is returning to school and working toward earning a second degree in preparation for a career change. Check with your university to see if you’re eligible for their financial aid programs.

Also check with your current employer to see if he/she is willing to reimburse you for part or all of your tuition. Of course, this likely will only happen if you are taking courses to further your current career and are likely to remain at the company you are currently working at, but if you fall into this category, you should seek out your employer to see if he/she can help ease the financial burden of your courses.

Paying for college is never easy, especially for non-traditional students who don’t qualify for many forms of financial aid, but by utilizing the Internet and other resources, you can find loans, grants, and scholarships that you are eligible for to help make your return to college a bit easier on your finances.

Bryan Wong
http://www.articlesbase.com/education-articles/financial-aid-for-online-students-what-is-possible-and-where-107719.html