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Financial Aid
More than half of all American college students
or their families borrow part of the cost of their education.
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ready to pay for it? That's the question you're probably going to face,
even if you've been actively investing in a college fund since your son
or daughter was small. Financial aid, in the form of scholarships and
loans, may provide the extra funding you need. But to apply for it, you
must supply detailed information about your family's finances on the Free
Application for Federal Student Aid form (www.fafsa.ed.gov).
 That information determines whether your child will
qualify for federally funded loans and the amount you're expected to contribute
to the annual cost of the education. You get a copy of the report, and
so does each of the colleges to which your child applies.
You may have to file a separate application for state-sponsored
aid, and some colleges require individual financial aid applications in
addition to the federal form.
FACTORS THAT DETERMINE AID ELIGIBILITY:
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Family income
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Family's savings and investments
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Student's savings and investments
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Number of other students in the family also paying
tuition
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Family expenses, both ordinary and unusual
FACTORS THAT INFLUENCE WHAT YOU GET:
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Financial resources
of the college or university
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Needs of other
students
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Special interest
in your child
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FOUR YEARS'
WORTH
When a college offers
a financial aid package, it's usually for one year at a time. The amount
can be - and often is - less after the first year, even if the
student does well. Ask the college to make a four-year commitment as long
as your child meets academic requirements. You've got nothing to lose. Colleges
are sometimes willing to negotiate.
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LINING UP THE
MONEYSome federal loans are offered directly through the
college or university your child attends as part of the financial aid package.
In other cases, you apply to a lender, such as a bank or credit union. When
you're borrowing this way, it's smart to apply early. If you wait until
August, when the first semester's bill is due, you could get caught short.
It can take six weeks or more to get action on applications for government-sponsored
loan programs.
SPREADING THE PAIN
You might look into
the year-round payment options some colleges offer. They let you divide
the year's cost into ten or more equal payments, usually for a small fee.
Your money may earn enough in interest or dividends to offset the charge
- and then some.
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© 2006 by Lightbulb Press, Inc.
All Rights Reserved.
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