So now most of you are getting your acceptance letters and your financial aid award letters. Hopefully, it is good news all around. However, if you have questions about financial aid and how you are going to pay that hefty tuition bill, here are some resources:
Let us know if you find other useful websites...
For most families, the act of opening the financial aid offer letter is a harrowing one. In just a few short sentences they will see how much a college or university is willing to offer in the way of student loans and scholarships. But what happens when that figure is too low?
Believe it or not, a student aid package that offered less than expected does not necessarily mean the end of the road. In some cases, a borrower can appeal to the school for more money. So how can this be done?
For starters, strike the word “negotiate” from your vocabulary. If you call a financial aid office and tell them you want to negotiate your student loan package, it will be a very short phone call. You are not negotiating. You are “appealing.” There is a difference. The first step is to call the financial aid office and inquire about the process of submitting an appeal. Most likely, you will be asked to write a letter explaining, in detail, why you feel the aid package should be reconsidered.
Your appeal letter will explain, in brief, the grounds on which you are appealing the financial aid offer. You should decide early on whether this an appeal for need or for merit, or for both. If it is an appeal for need, you must demonstrate to the school that your federal aid package simply isn’t enough for you to afford attending the school. More than likely, a successful appeal based on need will cover a recent change in your financial situation, such as a series of expensive medical bills or a parent losing his or her job. You will need evidence to back up your claim, including copies of bills and pay stubs.
You may also appeal on the grounds of merit. An exceptional student may be eligible for various scholarships or grants. Look into the criteria for these awards. The best evidence to appeal on these grounds is a stronger scholarship offer from a similar school.
So, now that you know when you can appeal, another critical aspect is how. Writing your appeal letter can (in some cases) make or break your appeal. It’s important to remember that whoever reads your letter is a real person, and you should write for them, respectfully. So here are some tips to help you craft an excellent appeal letter.
Address it to the right person- Starting a letter “To whom it may concern” may be practical (as you might not always know who’s reading your letter), however, when possible, find a name to address it to. Typically, A financial aid officer will sign a student’s award letter, so this would be the name to use. If you can’t find a name here, check the school’s website. Adding a personal greeting might seem small, but personal touches go a long way.Get your facts straight- Before asking for more aid, it’s important to understand why you received the amount you did. Familiarize yourself with the school’s financial aid policy so that you do not seem uninformed, or worse, accusatory. For example, federal award standards are often different from an individual school’s. Before accusing the office of awarding an incorrect amount of money, make sure your calculations are based on the same information.Don’t be rude- This falls in line with what I said in tip one, but it’s important nonetheless. So let’s jump back to high school English class for a second and talk about tone. The tone in which you write your letter is very important, as it conveys the message you are trying to send. Do not write as if the school owes you something- because they don’t. Instead, respectfully ask that your case be reviewed based on reasons x,y, and z. Having someone else read over the letter before you send it can also really help if you are unsure of how it comes across to others. And remember, you are not negotiating- be polite!If you keep these tips in mind while drafting your letter, then hopefully your appeal process will go off without a hitch. Just remember, a school cannot grant appeals in every case, and there is a limit to how much an institution can help. If after going through the process you still come up short, you should consider taking out a private student loan.
I just want to take a minute to thank all of the student’s who took our recent poll! Based on the results, it seems that only a mere 23% of you were satisfied with the amount of financial aid you received. This means a whopping 77% of students who replied did not get enough financial aid to pay for college! Considering the cost of college, this is no surprise, but now the question is what to do next.
In some special cases, students can appeal their financial aid award in order to prove that they need more money for school. Appeals will be most successful if students can show that their family contribution is less than indicated on the FAFSA due to outside issues such as medical bills or mortgage payments. By proving your family cannot afford to contribute substantially to your education, financial aid offices will be more lenient when distributing aid. Read more about how to do this in Appealing a Financial Aid Offer.
If you’re at the point where getting more money from your school is not an option, then your next step is to look into getting a private student loan. Private loans are available through a number of different lenders, so students are able to compare loans, and choose the right option for their situation. As with any loan, before signing, make sure you’re well aware of the conditions of the loan, especially repayment terms. Private loans are a great way to supplement federal aid, plus, they can often be consolidated once you graduate.
>>Apply for a Private Student Loan!
Guys, I’m sure most of you are well aware of the option to register for Selective Service (yup, the draft) once you turn 18, but did you know that it could have severe financial repercussions if you don’t? Unfortunately, many students either do not sign up on purpose or simply forget to, however this can affect how much money you get for school!
There is a federal rule that states that “Any man required to register with Selective Service at any time must have done so to receive aid.” If you’re 25 or younger, make sure to register because after this age, it is impossible to register and you will be unable to receive federal aid from that point forward (or at least until the law changes).
Even if you’re not planning to go to school right now, still register! You may want to go back for your degree later in life.Don’t assume you’ve automatically registered when you register to vote, not all states do this!Double check that you are registered and get paper confirmation! Government offices do make mistakes, don’t allow yourself to fall through the cracks. You can go to the selective service website to find your name on the list of registered males, and while you’re there, print off a copy to have on hand.You’ll have to prove that your lack of registration was not knowing and willful. This means providing as much information as possible as to why you did not register. For example, if you were living abroad at the time, this would be a legitimate reason why you may have forgotten to register. In order to go through with this process, you should contact your financial aid office.
If you are still unable to get federal aid for school, private student loans can be another good way pay for school.
For more information on these Selective Service rules, read this publication from the Department of Education.
Some students are lucky enough to have money of their own to contribute to college tuition, and even luckier if they can get help from their parents and grandparents as well. There are a number of ways that grandparents can put away some money toward helping their children’s children pay for college. You might have heard of trust funds, and 529 plans, but one of the best options is quite a bit simpler than that: a CD. No, not a “compact disc” but a “certificate of deposit.” A CD account is essentially a savings account with a fixed term and a fixed interest rate. If you are lucky enough to have grandparents who are willing to help you pay for college, a CD can be one of the best options because these accounts are almost risk-free. In addition, if the account is in the grandparent’s name, it does not need to be included on the FAFSA! One of our new forum members shared his experience on the Financial Aid Forums this week.
We discuss topics like this and other financial aid secrets on FAFSA Online.
Source: FAFSA blog
As we approach the end of calendar year 2010, it’s a good idea to turn our eyes to the future and start thinking about our 2008 financial aid efforts. Here are 5 strategies to help you make the most of the waning days of 2010 with payoffs in the year to come.
1. See an expert. Most community banks and credit unions offer access to a certified financial planner for little or no charge, making them a great, hidden resource for figuring out your finances. Take the opportunity and an hour or two on a weeknight or weekend to see one and review your personal finances. Get a sense for where you are and how your finances are currently set up.
2. Start writing scholarship essays. Scholarship season really starts in earnest in January of each year, and the sooner you can get your applications in to a scholarship foundation, the sooner you can move onto the next application. Do your research for which scholarships would be appropriate to apply to, and download their applications. The most time consuming part of the scholarship search is the essay, so start writing now!
3. Do your budget. January is often thought of as the time to embark on resolutions, but now is the time to plan for those resolutions so you can hit the ground running after the champagne’s gone.
4. Set goals. Set measurable, achievable goals for yourself in 2011, like a scholarship application a weekend. Be sure to have a calendar set up so you don’t miss any deadlines.
5. Get ready to file your FAFSA. The FAFSA process kicks off on January 1, but having your IRS 1040 mostly done will speed up the process, as will doing the FAFSA worksheets. Run through our FAFSA tutorials here on FAFSAonline.com and make notes of where you have questions – then contact your financial aid officer or attend a College Goal Sunday event to get those questions answered!
The FAFSA blog is sponsored in part by: Five most recent FAFSA form help blog posts:
Applying for and receiving financial aid can be a long and confusing process, but don’t fret, we’re here to help! We’ve compiled information on all of the steps necessary for receiving financial aid to help answer your most common questions. The financial aid roadmap outlines all of the steps you should take, from how to fill out your FAFSA to tips on comparing financial aid packages.
So, what are the steps?
Prepare for, and fill out your FAFSA formReview your Student Aid Report (SAR)Compare your award letters and financial aid packagesReview your federal loan options and applyApply for additional aid to cover your full cost of tuitionNow that you have the entire process at your fingertips, make sure to start early! It’s important to file your FAFSA as soon as possible so that you can receive maximum aid and be on your way to that college degree.
Applying for and receiving financial aid can be a long and confusing process, but don’t fret, we’re here to help! We’ve compiled information on all of the steps necessary for receiving financial aid to help answer your most common questions. The financial aid roadmap outlines all of the steps you should take, from how to fill out your FAFSA to tips on comparing financial aid packages.
So, what are the steps?
Prepare for, and fill out your FAFSA formReview your Student Aid Report (SAR)Compare your award letters and financial aid packagesReview your federal loan options and applyApply for additional aid to cover your full cost of tuitionNow that you have the entire process at your fingertips, make sure to start early! It’s important to file your FAFSA as soon as possible so that you can receive maximum aid and be on your way to that college degree.
Comparing financial aid award packages is not always as easy as it seems. Most students will just look at which school offered the most money, but not necessarily the stipulations that go along with it. For example, the college admission letter one school sent may have offered you a good amount of work-study award money, but if that requires you to work too many hours, it may not be worth it.
When evaluating your award offers, make sure you not only factor in aid put towards tuition, but also add in any extra expenses associated with that school. Will you need to pay for a flight to and from school? Or, maybe buy a car to drive to classes? Extra expenses add up quickly, so factor in any commuting you may have to do, the supplies your major may demand, and calculate these costs into your decision from the beginning to ensure that you can afford to go!
If you have your heart set on a college but it’s out of your price range, don’t lose hope; there are still a few options available for students who come up short on financial aid. To find out your next steps, read the article Not Enough Aid: What to do Next. For those of you still in the college search, search for the school on HowToGetIn and see what types of federal aid programs they participate in, and you can call the financial aid office (number is on the college’s page on HowToGetIn.com under General Information) and ask the tough questions to a financial aid officer. For example, ask if they offer both merit aid and need based in their financial aid award packages.
When you determine which school’s offer to accept, it’s time to send in your deposit (yikes!). Most schools require a tuition deposit by May 1st, giving students roughly one month to decide where to go. Exact tuition deposit amounts vary widely by school, but most fall somewhere between $200 and $500. Keep in mind, this is a deposit to hold your place for enrollment purposes and is separate from any housing deposit you may have to pay.
As my last tip, I should stress that whatever aid you receive this year may differ from next year. Just because you can pay for freshman year, this doesn’t mean you should stop searching for scholarships. There are scholarships for every grade level, so if you continue to apply throughout your freshman year, it’s that much more you won’t have to pay out of pocket.
I hope these tips help those of you struggling with the financial aspects of choosing a college. For those of you making the decision this year, choose wisely and remember to take some time to enjoy the last months of senior year!
