HIGHER EDUCATION
COLLEGE MONEY GUIDE Senior countdown
HOW ARE YOU GOING TO PAY FOR COLLEGE? n 2010, researchers at Georgetown University’s Center on Education and the Workforce forecasted that by 2018, 63 percent of all jobs will require at least some college and that there will be a shortfall of 300,000 college graduates each year through 2018. In order for America to reach the national goal of having the highest proportion of college graduates in the world by 2020, every American needs to complete at least one year of education beyond high school. In today’s economy, having just a high school diploma will not secure your future. Whether you plan to complete a certificate, an associate’s degree or a bachelor’s degree, the following information includes a checklist that will help you get ready for college and information to help you find ways to fund your education beyond high school.
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WINTER SENIOR YEAR • Contact the admissions and financial aid offices of the vocational, community colleges or universities you plan to attend to ensure you are aware of all deadlines and requirements. • Apply for scholarships. Your goal is minimizing the amount of loan funds you may need to borrow. • Go to www.fsaid.ed.gov to apply for an FSA ID—one for you and one for your parent. You will each need your own email address and FSA ID to e-sign the Free Application for Federal student aid (FAFSA). • As soon as possible after Jan. 1, complete and submit your FAFSA along with any other financial aid applications required by your school of choice. You can complete the FAFSA online by going to www.fafsa.ed.gov.
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• If you still need assistance, attend one of Arizona’s statewide College Goal FAF$A events for free help. Visit www.collegegoal. az.gov/college-goal-fafsa to find a location near you. • Use FAFSA4caster at www. fafsa4caster.ed.gov to estimate how much federal student aid you might receive. This information will help you and your parents plan ahead. Compare the results in the FAFSA4caster to the actual costs at the colleges to which you have applied. SPRING SENIOR YEAR • Continue to stay focused in school. Second semester grades can affect scholarship eligibility. • Stay involved in school- or community-based activities that interest you or let you explore career interests. Consider working or volunteering. Remember it’s quality, (not quantity) that counts. • Complete any last scholarship applications. • Review your college acceptance letters and the financial aid awards you have received. For each school you are considering, what will be your family’s remaining expenses after financial aid is credited? Compare this remaining “expense” as an evaluation factor between colleges. • When you decide which vocational, community college or university you want to attend, notify that school of your commitment and submit any required financial deposit. Many schools require this notification and deposit by May 1. HOW TO PAY FOR COLLEGE When planning how to pay for college, families should view the following resources as pieces of a pie that fit together to make a whole plan. 1. Federal student aid 2. Scholarships 3. Savings FEDERAL STUDENT AID The first step to paying for
college each year is to apply for federal student aid. Most colleges, universities, and scholarship foundations require students to complete the Free Application for Federal student aid (FAFSA) in order to be considered for any state, institutional or private grants or scholarships. This free application will also determine if you qualify for any federal financial aid programs. You should never pay to complete a Federal Aid application! The U.S. Department of Education awards about $150 billion each year in grants, work-study funds and loans with favorable repayment terms to more than 15 million students. Federal student aid can be used to pay for education related expenses, such as tuition and fees; room and board; books and supplies; a computer; and transportation. TYPES OF FEDERAL STUDENT AID There are three main types of federal student aid: Grants: A grant is free money that does not have to be repaid. Eligibility for federal grants is based on financial need and a minimum grade point average (GPA). Work Study: This is a work program through which students with financial need can earn federal aid money to help pay for school. The program encourages community service work or work related to the student’s course of study. Jobs can be located on or off-campus, however students are not allowed to work more than 20 hours per week during school. While workstudy income is reported as taxable income when completing the FAFSA each year, it is also reported as financial aid income and is excluded from the financial needs calculation for the following year. Student Loans: A student loan is money borrowed from the federal government to help pay for education that must be repaid with interest. Students may borrow money for vocational, community college, university or career school. Student loans offered by the federal government usually offer borrowers lower interest rates and have more flexible repayment options than loans from private
Higher Education Special Section
banks. The current interest rate for undergraduate federal student loans is 4.29 percent. Other benefits of federal student loans are: • no collateral is required and they do not require a credit check, • loan amount eligibility each year is based on grade level • all borrowers get a sixth-month grace period before beginning repayment, • repayment follows a standard 10year plan, but you could sign up for an income-driven repayment plan, • interest paid on federal student loans can be tax deductible, • certain types of teaching or public service may qualify for loan forgiveness, • loans may be discharged if you become totally and permanently disabled. The best resource for more information about federal student aid programs is www.studentaid. ed.gov. You can visit the website to see what questions are trending and learn about any new changes to the application process each year. Apply for federal student aid any time after Jan. 1 during your high school senior year. You should apply no later than Feb. 14 to ensure you meet most college and university priority filing deadlines of March 1. If you are unsure of the priority financial aid and scholarship filing deadlines at the schools you are interested in attending, contact the admissions or financial aid office right away to find out. Go to www.fafsa.ed.gov to complete the FAFSA online. It takes about 26 minutes on average to complete the application online. If you have any questions while filling out the application, call 1-800-4-FED-AID (1-800-4333243). If you would like free in-person assistance to complete the FAFSA, the Arizona Commission for Postsecondary Education is coordinating Arizona’s statewide College Goal FAFSA events. Visit www.collegegoal.az.gov/collegegoal-fafsa to find a location near you. SCHOLARSHIPS Everyone wants free money to help them attend college.
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