Top 10 Tips for Financial Aid

Tip 1:

Prioritize your efforts, starting with the federal government. Then turn to the private sector for additional assistance. Visit http://financialaidstop.blogspot.com/ to learn about all your funding opportunities.

Tip 2:
Learn all you can about the college financial aid process. Be sure to meet your aid administrator and establish a relationship.


Tip 3:
Submit the Free Application for Federal Student Aid (FAFSA) at fafsa.ed.gov, even if you don’t think you qualify for aid. Being rejected for federal aid is sometimes a prerequisite for private awards. Submit the FAFSA even if you didn’t qualify last year, as criteria change every year.

Tip 4:
Apply for aid as soon as possible after January 1. Do not wait until you’ve filed your taxes or been admitted. The early bird always gets the worm — and sometimes the scholarship!

Tip 5:
Inform financial aid administrators about atypical expenses or unusual financial circumstances. Certain adjustments may be made to assist you.

Tip 6:
Take advantage of tuition prepayment discounts. Some colleges offer up to a 10% discount for early payment.

Tip 7:
Money from grandparents should be paid in your name directly to the school. This avoids gift tax liability. But sometimes it is better for grandma and grandpa to wait until after you graduate to help you pay off your student loans, since money paid directly to the college may reduce your need-based aid eligibility. See Why Your Grandparents Could be Your Meal Ticket to College for other advice for grandparents.

Tip 8:
Investigate company-sponsored tuition plans. Many employers will invest in the education of their employees.

Tip 9:
Apply! You can’t win awards or receive funds for which you do not apply, so pay attention to deadlines.

Tip 10:
Use free scholarship matching services like FastWeb at www.fastweb.com to help you find the private sector assistance you need!

Federal Supplemental Educational Opportunity Grants

Federal Supplemental Educational Opportunity Grants (FSEOG) are for undergraduates with exceptional financial need. Pell Grant recipients with the lowest EFCs will be the first to get FSEOGs. Just like Pell Grants, FSEOGs don't have to be paid back.

How much can I get?

You can receive between $100 and $4,000 a year, depending on when you apply, your financial need, the funding at the school you're attending, and the policies of the financial aid office at your school.

If I am eligible, how will I get the FSEOG money?

If you're eligible, your school will credit your account, pay you directly (usually by check), or combine these methods. Your school must pay you at least once per term (semester, trimester, or quarter). Schools that do not use semesters, trimesters, or quarters must disburse funds at least twice per academic year.

Updated rules for appealing for financial aid

The US Department of Education just issued a new “Dear Colleague Letter”, which in financial aid industry jargon is usually a regulatory change or a change in how regulations and laws are supposed to be interpreted. In the April 2, 2009 Dear Colleague Letter, the Department of Education has offered additional flexibility to financial aid administrators.You can read the original letter here.

Financial aid administrators are now permitted to use a 12 month window for projected future earnings and base family income, a departure from the traditional calendar year/tax year.

Example: if you lose your job in November of 2008, for financial aid appeal purposes, instead of the financial aid office using calendar year 2008 for determining your aid eligibility, they are now permitted to use December 2008-November 2009 projected earnings as the basis of how much aid you’re eligible for.

Why this is important: given the current economy, people are out of work and remaining out of work longer than average; some families are using up their entire unemployment insurance allotment, which is half a year. Being able to use a drastically reduced income estimate will qualify more students for aid and assistance.

Financial aid administrators were also urged by the Department to steer students away from private student loans unless all other federal financial aid options were exhausted, and to do more aggressive outreach to families to let them know that they can appeal for additional aid and at the very least can help connect more families to the federal Stafford loan if they’re not already taking advantage of it.