Tips for Applying for Financial Aid
Students planning to attend college in the fall should get started now applying for federal aid, said Ann Carrns in The New York Times. On Jan. 1, the latest Free Application for Federal Student Aid, or FAFSA, became available online. It’s the starting point for new and current college students seeking billions of dollars in scholarships, grants, work-study awards and loans, and it must be completed each year. The deadline for completing the form isn’t until the end of June, but filing as soon as possible “increases applicants’ chances of getting the best financial aid packages.” That’s because many states and colleges that rely on FAFSA information dish out aid on a first-come, first-served basis; some aid programs have deadlines as early as February. Experts say filing a FAFSA by the end of March can earn a student twice the grant money as that for those who file later.
If any state schools are on your radar, list them first when asked which schools should receive your financial information, said Reyna Gobel in Forbes.com. Otherwise, “you could miss out on state aid such as grants.” And don’t wait until you or your parents receive a W-2 to complete the form. Just estimate that information based on last year’s return or a recent pay stub. You can always update it once you’ve filed a tax return for 2014.
Failing to file a FAFSA because you think your parents’ income is too high is like “leaving money on the table,” said Abigail Seldin in HuffingtonPost .com. “Many middle- and even upper-middleincome families qualify for financial aid,” especially since factors like the number of household members currently attending college are considered. And if your Estimated Family Contribution (EFC) for tuition generated by the form seems too high to afford, don’t worry: “The EFC is only an index number used by schools to calculate how much financial aid you are eligible to receive.” Sites like CollegeAbacus.org can help you figure out the net price of each school you’re considering.
The good news is that more and more schools are earmarking aid for middle-class students, said Melissa Korn in The Wall Street Journal. California has launched a scholarship program to help students whose families earn as much as $150,000 a year, and Minnesota provides up to $5,000 to students whose families earn up to $120,000. It’s another reminder that even if you don’t come from a poor family, “can’t necessarily maintain a 4.0 GPA, or hit a three-pointer at the buzzer,” it pays to explore all of your options for aid.
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