Fast Facts about Financial Aid

(The following content was previously available at guideforparents.com, developed and maintained by Jan A. Maas)

Going to college is costly. When you count up tuition, books, room and board, plus extra fees, attending even the least expensive school costs thousands of dollars a year. This is why you will need to look into all the forms of financial aid that are available to college students — and there are many. Students can get aid from the government, the colleges themselves, and private organizations. Take a look at each one in turn.

Government Aid

First, you should know that 70% of student financial aid comes from the U.S. government. This aid comes in the form of grants (that is, free money that students do not have to pay back) and loans (that is, money that must be payed back over a period of time). The most common form of grant is the Pell Grant, which is worth up to $4,000 this year. An example of a loan is the Stafford Loan, which allows an undergraduate student to borrow between $2,625 and $23,000 and repay it over many years at a fixed rate of interest.

To apply for this aid, all a family needs to do is fill out the Free Application for Federal Student Aid (FAFSA). You can get this form from high school counselors and at many public libraries. Or you can fill out your form online at FAFSA on the Web.

The FAFSA form is detailed, so plan to spend several days working with it. You will need to enter an income history and other data. You will need to go over it as a family. Parents or guardians should consult income tax returns from last year.

The FAFSA form is the key to most financial aid. From it, the government calculates your expected family contribution, and then subtracts that from the cost of attending the colleges your student plans to attend. The result is his or her financial need, and this determines the total of the grant or loan — the financial aid package. After a student sends the FAFSA, she or he will receive a Student Aid Report (SAR) that defines the package.

In addition to the federal government, states also give out aid. For example, in New York State, the Higher Education Services Corporation provides scholarships and awards for eligible state residents. Here, too, the FAFSA form is key, because the FAFSA data is reported to the state you live in. After filing the form, students will hear from their state about its financial aid resources. Go to the US Department of Education's Directory of State Grant Agencies to find the agency for your state.

College Scholarships

The next place to seek financial aid is at the college or university a student plans to attend. This is also called institutional aid. Each college has a financial aid office, which not only dispenses the government grants and loans, but may have college money available as well. Again, this comes in the form of grants or loans, and may involve work-study, in which the student holds a part-time campus job in return for a reduction in tuition. Colleges offer this aid to students who have outstanding academic records, or who are gifted and talented in fields such as science, music or sports. Or, the aid package may be for those who show significant financial need. Each college has its own unique resources for this financial aid, so investigate this as part of your research into potential colleges.

Scholarships from Private Organizations

Finally, look into the many other scholarships and grants that are offered by businesses and organizations throughout the country. Make this the last place you look, because the award may be only a few hundred dollars. (Although some reach the thousands). Organizations give these for academic excellence, or talent in specific fields. Unions and clubs (such as Rotary) also offer scholarships to students who have a family connection to the organization. Sometimes awards depend on a student's belonging to a special ethnic group. Each organization has its own application process, deadline and requirements (such as an essay).

Finding out about these scholarships requires diligent research. Information about them is available through public resources, such as directories at a public library, or Internet scholarship sites.

WARNING: Please be aware that certain companies may offer to find these scholarships for you, and charge you for the service. Remember, no one can guarantee anyone a scholarship, and information about scholarships is freely available. Before you sign on with a scholarship company, read the information at the Federal Trade Commission's $cholarship $cams Site.

In the end, your student's financial aid package may be like an apple pie, with federal aid as the crust and apples, college scholarships as the sugar, and other scholarships the cinnamon.

Getting financial aid, like getting to college, requires time, research and application, but the rewards are well worth the effort. Good hunting!