FAFSA and Other Types of Financial Aid

VSTUDENT ERSION

FAFSA

Let’s Get Started!

Introduction

Introduction

WHERE TO START

This booklet is a stepby-step guide to walk you through the FAFSA. A complicated process that will be simplified by using this booklet.

TYPES OF LOANS

This booklet will cover all types of financial aid (Grants, Loans, Need/Merit based ETC) details about each, how to find them, apply and understand the purpose and understand how colleges utilize these.

Where To Start KEEP IT SIMPLE

My aim is to make this somewhat complex process simpler for you. This guide will take you through the crucial steps of understanding the FAFSA, how to complete it to maximize your benefits, the necessary information you need, where to look for scholarships and loans if required, and what steps to take if you do not receive all the funds you need from FAFSA.

Make sure to read through to the end, as I’ve reserved some of the best resources for the final sections.

Filling out the FAFSA can be daunting initially, but it is the most crucial step a student or family can take to fund college education. Some schools even require it for high school graduation. Indeed, many schools will not consider you for their scholarships if they do not have a FAFSA on file. Even if you think you may not qualify for financial aid, it is essential to complete the FAFSA.

The US Department of Education distributes over $120 billion annually in federal grants, loans, and work-study funds. I hope to see some of these funds go to you. These funds support roughly 10 million students at over 6,000 institutions each year. You can find out more about this in the Federal Student Aid annual report. In 2019, the US Department of Education introduced the NEXT GEN FSA.

This initiative has enhanced student aid systems and processes with new online tools available on the StudentAid.gov website and the myStudentAid mobile app.

Where To Start

The updated FAFSA form makes it easier for many students to complete the required documents. The app’s helpful and timesaving features let students and parents quickly and securely fill out and submit the Free Application for Federal Student Aid (FAFSA®). The improved mobile app streamlines the signature process and includes a checklist to help guide students and parents through subsequent steps in the financial aid process. It also enables notifications and provides role-specific messages.

Remember, nearly everyone who applies will qualify for some type of student grant or loan. It's important to apply to see what financial aid you might receive. You aren't obligated to accept any financial aid offered. Keep in mind, many schools require a FAFSA on file to consider students for any additional scholarships or awards, including those not based on financial need

"FillingouttheFAFSAcanseem

Where To Start

There are several ways to fill out the FAFSA. The paper version of the FAFSA has 100+ questions and can be overwhelming to complete. That is twice as long as the standard IRS tax form.

I highly recommend using a mobile device or a computer to access the FAFSA and fill it out electronically. The online FAFSA however, uses a skiplogic technology to give applicants only the most relevant questions. This cuts down on the time drastically and makes the process less intimidating.

Depending on your status, the FAFSA will take different amounts of time to complete. For example, if you are an independent student, you will likely have more questions to answer than if you are a dependent of your parents. This is because you will have to include both your income as well as your parents’ income. Be sure to know the difference in filing independently or as a dependent and the impact that will have on your taxes and your parents’ taxes.

Completing the FAFSA is most labor intensive the first time you fill it out. It usually takes an hour or less to complete the FAFSA regardless of your situation. There are a few critical things to know to get started

Need to Know

HERE’S WHAT YOU NEED TO KNOW

Makesureyouknowwheretogotofillout theFAFSA.Studentscanfillouttheonline FAFSAapplicationusingtheircomputer ormobilephone.Alternatively,thepaper version,knownasthePDFFAFSA,canbe printedandfilledoutmanuallyorfilledin onthescreenpriortoprintingand mailing.

Themobileversionisagreatoptiontouse whentheFAFSAopenseachyear.The DepartmentofEducation'sphone-friendly versionaimstoincreaseFAFSA completionrates Tocompletetheform viamobilephoneoratablet,familieswill needtodownloadthemyStudentAidapp fromeithertheAppleAppStoreorGoogle Play

WhatisaFAFSAIDandhowdoIget one? Thefirststep,beforefillingoutthe FAFSA,istocreateanFSAID,whichisan electronicsignature.Parentsandstudents canfindalinktoobtainanFSAIDthrough theFederalStudentAidwebsite. Tocreate auniqueID,applicantswillneedtheir SocialSecuritynumber,dateofbirthand theirnameasitappearsonofficial documents.

TheFSAIDisrequiredinordertosignthe FAFSAonlineandtologintothe myStudentAidmobileapp.Parentsand studentswillneedtogeneratetheirown specificIDs,sinceapplicantsaren't allowedtocreateoneonsomeoneelse's behalf Aparentwhodoesnothavea SocialSecurityNumbercannotcreatean FSAID Inthiscase,besuretocallFAFSA andaskanyquestions.

On the online FAFSA form, a student can enter all zeros where it asks for the parent's Social Security number and then select the option to print a signature page at the end of the application

It can get tricky with students and parents all trying to access the same FAFSA application, so I recommend doing it all together or having a single point person who manages the process. For students aged 24 and under who are seeking an associate’s or bachelor's degree, both student and parent FSA IDs are required unless the student is considered independent on the FAFSA.

To be considered independent on the form, the student must be married; a veteran or current member of the armed forces; an orphan; an emancipated minor; a homeless youth or one at risk of being homeless; a parent who provides more than half of the financial support for a child or dependent; or have received foster care or been a ward of the court for any period after age 13.

Graduate and professional students are considered independent when filling out the FAFSA

Need to Know

InformationyoundforFAFSA

YouneedtoknowthedeadlinetomakesureyouhaveyourFAFSA submittedontime.

YouwillneedaFAFSAID.Seeinformationaboveonhowtoobtain this.

PreviousYearTaxDocuments.Thesewillbeyourparents’tax documentsifyouareadependent.Thesewillbeyourtax documentsifyouareindependent.

Alistofschoolsyouareconsideringattending.

Besuretosigntheform.Manypeoplethinktheyhavecompleted andsignedtheformandoftenmissthisstep.

WhatyouneedtoknowabouttheIRSRetrievalTool. StudentsandtheirfamiliescansavetimewiththeIRSDataRetrieval Tool,calledDRT,whichautomaticallytransferstaxinformationtothe onlineapplication.Thisfeatureisalsoavailableonthemobileapp.

Tousethetool,incometaxreturnsfromtheprioryearneedtohavebeen filedelectronicallytwotothreeweekspriortocompletingtheFAFSA.If thetaxreturnswerefiledviamail,thenapplicantsneedtoallowatleast eightweeksbeforeusingthetool.

UnderthefinancialinformationsectionoftheFAFSA,anapplicantcan click“LinktoIRS”topre-filltheformwiththeprioryear’staxes.When usingthetool,theapplicantwillbetransferredtotheIRSwebsite After theinformationtransfers,thesitewilldirecttheuserbacktotheFAFSA application

Besureyouknowthedeadlinesandwhenyouneedtohavethis completed Eachschoolhasitsowndeadlineswhichareoftenbeforethe June30thdeadlineimposedbytheFAFSA.

Deadlinesforeachstatevary,butthereareafewthatdistributeawards onafirst-come,first-servedbasis.

Helpful Information

Thirteen states award state aid on a first-come, first-served basis or until funds are depleted. These states include Alaska, Illinois, Kentucky, Missouri, Nevada, North Carolina, North Dakota, Oklahoma, Oregon, South Carolina, Texas, Vermont and Washington.

Twelve states have February or March deadlines, including California, Connecticut, Idaho, Indiana, Maryland, Michigan, Mississippi, Montana, Oregon (private scholarships), Rhode Island, Texas (public schools) and West Virginia (Promise Scholarships). - Only Louisiana and New York have the same June 30 deadline as the federal government.

Many people file their FAFSA and wonder what happens next? When will I hear something? These are great questions. After submitting the FAFSA, the applicant will receive a Student Aid Report or SAR The report includes the applicant's responses to the form's questions as well as the federal EFC if the application is complete. The Department of Education sends this report via email or postal mail

The SAR is a summary of the FAFSA data submitted, so applicants should review it carefully for any mistakes.

What to do if you have questions….

Students and families with questions about the FAFSA can contact the Federal Student Aid Information Center, known as the FSAIC, which provides support on behalf of the Department of Education. The FSAIC is available at 800-4333243. Hearing impaired applicants may call 800-730-8913.

Another excellent option for help with the FAFSA is on YouTube. There are many FAFSA videos that walk you through each step of the process. I find these to be very helpful.

Helpful Information

arcovrdbyfinancialaid.

There are several types of financial aid: Grants.

Scholarships Work-study. Federal or private loans.

Financial aid can be used for any supplies, living expenses, dorm costs, computer or technology costs or any education-related expenses.

“The different types of aid are provided through various sources. This can include federal and state agencies, universities, work study programs, The amount of aid a student receives depends on the state and federal guidelines for that student, as well as the guidelines for the university they are choosing to attend Different schools give different award packages so what you can expect to pay at one school will possibly be very different at another university.”

Financial Aid will offer different types of monetary resources. Some of those things will need to be repaid and other funds will not need to be repaid.

In addition to the FAFSA, some schools will require a CSS form as well. This is the College Scholarships Service Profile. This will require a $25 submission fee

A list of schools that require this form can be found here There are about 250 schools that participate in this. The CSS takes into account that generally are not included on the FAFSA. Basically, the CSS will take a more in-depth look at your finances and will then provide a supplemental suggestion as to how much money you will receive.

Helpful Information

WhatifIdon’tgtnoughFinancialAid?

Manyfamiliesfindthattheydonotqualifyforallofthefunds theyneedforschool.Let’sexplorewhatotheroptionsare available.

OutidScholarhip

BecauseIhavebeenanIndependentEducationalConsultant formorethan10years,I’vehadtheopportunitytowatch manystudentspayfortheircollegeeducationcompletely debtfree.Isiteasy?Notformost.Isitpossible?Yes, absolutely! Infact,I’vebuiltadatabaseofover$10Billion Dollarsinscholarshipsandaresourceswiththestepbystep processofhowtohelpyoudothesame. Youcanlearnmore aboutthosehere.

Imagine More

IMAINE SCHOLARSHIPS DATABASE

"I know many students who have paid for their entire education through scholarships. There are scholarships for everyone. For a list of scholarships that have been filtered and organized just for you, check out Imagine Scholarships."

What They Look For

HOW SCHOOLS MAKE DECISIONS ON HOW TO AWARD THE FUNDS

Each university in the nation has a different process by which funds are distributed. You will usually get the information by email or by letter between December and April of the next year. The complicated part is that there is no uniform way that these decisions are made, so the amount you are offered will vary with each school and each situation Don’t be discouraged! You can always appeal the offer if you don’t feel that it is correct

You can appeal your financial aid award if desired.

If you feel that you have circumstances that have occurred since the FAFSA was filled out, you should contact them and provide needed documentation for them to reevaluate your financial aid package

What Other Options are Available For Me?

With University-based aid, it is important to find out if you qualify for tuition-free admittance. Some schools such as Dartmouth guarantee free tuition if you make under $100,000 per year. Harvard does the same if you make under $65,000 per year, while families who make more than $150,000 per year can still qualify for financial aid In fact, for more than 90% of families, Harvard costs less than a public university Not only Dartmouth and Harvard offer these options, there are many other schools who have similar programs:

• Stanford University

• Yale University

• Princeton University

• Columbia University

• Cornell University

• University of Pennsylvania

• Duke University

• Brown University

• North Carolina at Chapel Hill

• Vanderbilt University

• College of the Ozarks

The list goes on and there are too many to mention here. Be sure to ask upfront if your school of interest offers a program like this.

What They Look For

NEED AWARE ADMISSION / NEED BLIND ADMISSION

It is worth mentioning that schools are often looking at students in two different categories and yet others use a blend of both

Need Blind Schools don’t look at the student's financial situation to determine admissions. This benefits those students whose income is less and whose families can’t afford to pay full price for this particular school While this prevents students and families from being unfairly judged, it also often creates conflict when the student is accepted into a school that they cannot afford

Need Aware Schools do look at the financial picture of the student/family applying for admission. This can result in better financial aid packages but sadly also can result in wealthier families taking the limited spots over students/ families who cannot afford the price.

GRANTS

• Federal Pell Grants

• Federal Supplemental Educational Opportunity Grants (FSEOG)

• Iraq and Afghanistan Service Grants

• Teacher Education Assistance for College and Higher Education (TEACH) Grants

Loans

When you apply for financial aid, you will likely be offered loans as a part of your financial aid package. There are essentially four types of loans you’ll be offered through your FAFSA application.

Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.

Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need.

Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid Eligibility is not based on financial need, but a credit check is required Borrowers who have an adverse credit history must meet additional requirements to qualify.

Direct Consolidation Loans allow you to combine all of your eligible federal student loans into a single loan with a single loan servicer.

What They Look For

OVERNMENT LOANS

Here is an excellent guide from FAFSA that gives you an overview of loans offered by the government.

In addition to government loans, you can apply for private student loans. Here is a list of loans that my students and families have used in the past:

Union Federal Student Loans

Sallie Mae

CURevl Student Loans

PNC Student Loans

College Ave Student Loans

U-Fi from Nelnet Student Loans

SixUp Student Loans

Thrivent Credit Union

Having a student loan is a great option when other options are not available I do not have affiliation with any of the companies above but have heard of good experiences for my families who have used these options

In addition, it is worth noting that some states offer interest free loans to their residents and most states have specific loan options available.

PELL GRANTS

You may have heard of Pell Grants but have no idea what they are. A Pell Grant is FREE money that is usually awarded to low-income undergraduate students. You can use this money for any educational expenses you’d like.

For more information on Pell Grants, check out this chart on how decisions are made on who gets a Pell Grant

At this time, the maximum that a student can receive from a Pell Grant is a little over $6,300/yr

Learn More about Pell Grants

TUITIONCOSTCALCULATOR

Iwanttoalertyoutoaveryhelpful resource.

Itisacollegecostcalculator.Thisisjust anestimate,butitisaveryhelpful startingpointwhenwantingtoknowthe potentialcostsyouarefacingforyour education Tousethiscollegecalculator, you’llneedafewthings:

•Yourfamily'stotalincomebeforetaxes •Thecurrentmarketvalueofyourhome •Thebalanceowedonyourhome •Thebalanceofyourparents’checking andsavingsaccounts

•Thevalueofyourparents’retirement andpensionplans•Thevalueofyour parents’non-retirementinvestments Overall,therearemanyoptionsonhow topayforschool Thereareotheroptions thatIcoveronmyblogthatinclude companieswhowillpayyoutogoto school,companieswhowillpayforyour entireschool,gettingcollegecreditfor workexperience,specialprograms/ scholarshipsforsingleparentsandmany othertopics.Checkouttheblogtoday,it isupdatedoftenandfilledwithvaluable information.

Paying for College Way to Pay for Collg

IMAINE

SCHOLARSHIPS

One of my favorite topics is helping students find outside scholarships. Over the years, I've guided many students, including one who received $280k! She wasn't just a superstar; she worked hard, had dyslexia, and maintained a great attitude. Her dedication paid off immensely.

Previously, my scholarship strategy was effective but overwhelming, involving sifting through thousands of scholarships. To solve this, I developed a scholarship app to streamline the process, saving time and making it more effective The scholarships you receive are directly related to the effort you invest.

Where do you find scholarships? Visit imaginescholarships.online.

How do you organize them? Our site lets you apply directly or save interesting ones to apply later.

What do you need before applying? Many scholarships are easy to apply for, but some require an essay, transcript, letters of recommendation, or a resume highlighting your achievements, community service, and work experience.

How do you make yourself competitive? Start early! Scholarships are available from middle school through adulthood The key is to put effort into your application and stand out from the competition. Accurately portray your strengths and achievements.

Way to Pay for Collg Paying for College

SCHOOL FUNDIN

Universitieswithlargeendowmentfundsoftenoffergenerous scholarships.

Herearesomekeytypes:

1. DepartmentalScholarships: Universitydepartmentshavetheirownbudgets andcanawardscholarshipstoattractdesiredstudents.

MeritScholarships: ForstudentswithhighGPAs,top10%classranks,and excellenttestscores Ifthisisn’tyou,don’tworry thereareoptionsforeveryone

2. FineArtsandAthleticScholarships: Forstudentswithexceptionaltalentsor skills,thesescholarshipsareavailable.Startpursuingthemearlyinhighschool.

4

3. FirstGenerationStudents: Manyschoolsofferfinancialawardsandexcellent supportprogramsforstudentswhoseparentsdidnotgraduatefromcollege.

FAQs

HowdoIgetafullridetocollege? Fullridesarerarebutpossible Toincreaseyour chances,makeyourselfstandoutfromthecompetition. HowcanIpayforaprivateschool? Privateschoolsoftenoffersignificantfinancial aid,whichcanbenegotiable.Theymayendupbeingcheaperthanpublicschools. DoIhavetobeanexcellentstudenttogetmoneyfromacollege? No,colleges valuevariousqualitieslikecommunityservice,workethic,skills,talents,andfamily legacy.Differentschoolsprioritizedifferentthings.

Way to Pay for Collg Paying for College

Loans for school can be complicated. I’d like to give you some options for you to consider as well as some ideas to help you through the process.

Subsidized Loans- Subsidized Loans are loans for undergraduate students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships). Subsidized Loans do not accrue interest while you are in school at least half-time or during deferment periods.

An unsubsidized loan is a federal loan for undergraduate college students who are still in school, and need for help to pay for tuition and related expenses. To qualify for an unsubsidized loan, or direct unsubsidized loan, you first need to visit and complete the Free Application for Federal Student Aid (FAFSA)

There are many options when considering loans for school. Believe it or not, many loans are at 0% interest, allowing you to earn interest on your money while using money that is loaned to you, often paying it back a small amount at a time.

One of my favorite loan options for Texas is a 0% loan, paid back at $50 per month. It opens each year on November 1st. You can find it here : https://comptroller.texas.gov/programs/education/msp/funding/aid/schola rship/scaasf.php

Paying for College

Way to Pay for Collg

WORK / STUDY

OPTIONS

Work-study is a way for students to earn money to pay for school through part-time on (and sometimes off) campus jobs. Work-study gives students an opportunity to gain valuable work experience while pursuing a college degree. However, not every school participates in the Federal Work-Study Program.

A few important things to know:

If you are awarded “work study” through your financial aid, it is still your responsibility to go find that opportunity on your campus.

You do not have to qualify to apply for work on your campus.

Work Study funds are not applied directly to your tuition. You are paid a wage and you can use it as you wish.

Work study jobs are not guaranteed year to year.

Having a work study job allows you to begin building a resume and gives you valuable work experience.

Work Study earnings are removed from your FAFSA calculations the following year. I think the work study programs are an excellent idea and one that many students will benefit from as well as enjoy!

Paying for College

Way to Pay for Collg

OTHER REAT OPTIONS

THERE ARE MANY GREAT WAYS TO PAY FOR SCHOOL

Some schools offer school credit for work experience If you are considering going back to school after working for many years, this may be a great option to consider

You can get college credit from other places that are very inexpensive and transfer them to the school of your choice Please keep in mind that not all school accepts all transfer hours so make sure you have a master plan before getting started Here are a few really great option for getting hours for very little money

https://wwwstraighterlinecom/ - This is one of my favorite options Courses usually run about $59-79 dollars per month and a monthly fee of $99 This is all self paced so you could easily finish a course in a week for about $159 dollars

This option is hard to beat as long as the school you want to transfer the hours to accepts ithttps://studycom/

https://trainingfemagov/is/ceusaspx - Some schools will allow you to transfer up to 30 hours of FEMA credit FEMA courses are FREE! That is 30 free hours of college credit though sometimes there is small a fee to transfer the credits

There are many companies who will pay you to work while they are paying for you to go to school. There is more about that here: Imagine Blog

Each state has many opportunities for their residents Many hours can also be earned through dual credit during high school or while homeschooling.

CLEP TESTING is another great option if you are skilled in a particular subject, you can get college credit by taking a test in that subject SUBJECT TESTS are another similar option.

Hey, You Did It!

Let’s Imagine