Understanding Financial Aid
Friday, August 31st, 2007STEP 1: Complete the FAFSA formsThe road to financial aid starts with the Free Application for Federal Student Aid (or FAFSA).The information you provide on this form will be used to determine how much aid—and what types of aid—you’ll be offered at each of the schools you’re considering. Some types of financial aid—like grants and scholarships—are made available on a first-come, first-served basis, so it’s important that you submit your FAFSA as early as possible after January 1. You won’t be able to receive any amount of federal aid (including loans) until your FAFSA has been processed. If you would like to get a jump start on the FAFSA process, try the FAFSA4caster offered by the U.S. Department of Education. This free online tool will help you to explore your financial aid options.
What You’ll Need
- Social Security Number
- Tax and income information
- Investment and mortgage information (if applicable)
- If you are claimed as a dependent for tax purposes, you will need to supply this information for your parents as well.
Quick Tips
- The FAFSA is required before you can receive financial aid and federal loans.
- Complete your FAFSA after January 1 and no later than June 30.
- You may need your parents help to complete the form.
- Save time and complete your FAFSA online at www.fafsa.ed.gov
STEP 2: REVIEW YOUR STUDENT AID REPORT (SAR)
Four to six weeks after you submit your FAFSA, you will receive a Student Aid Report (SAR) in the mail. This report details your Expected Family Contribution (EFC), which is the amount your family will be asked to contribute toward your education. The schools you specified on your FAFSA will also receive a copy of your SAR so that they can customize a financial aid package for you. These financial aid packages may include offers of grants, scholarships, Federal Work-Study, and/or loans. It is important that you review your SAR carefully to ensure that everything is correct and matches the information you provided on your FAFSA.
Quick Tips
- Your Student Aid Report (SAR) will arrive four to six weeks after your FAFSA is processed.
- Schools will use your SAR to decide what aid you’re eligible for.
- Look closely for errors and make corrections if necessary
STEP 3: COMPARE FINANCIAL AID PACKAGES
Each of the schools you listed on your FAFSA will send you an award letter if you have been accepted to enroll. These award letters will outline the total cost of attendance at each school, your Expected Family Contribution, and a financial aid package. Look closely at the types of financial aid you are being offered at each school. The aid package will usually contain a combination of aid that doesn’t have to be repaid (such as grants, scholarships, and work-study) and aid that must be repaid (loans).It’s your choice whether you accept all, some, or none of the aid being offered. To accept a specific financial aid offer, complete, sign, and return the forms that come with the award letter. Also, pay careful attention to the individual deadlines listed on each award letter. Missing a deadline can mean losing all of the aid being offered.Quick Tips
- You may receive award letters from several schools.
- Compare the aid being offered to the total cost of attendance at each school.
- Don’t be put off by high tuition costs, private schools sometimes offer better aid packages.
- Make sure you respond by the deadline listed on your award letter.
STEP 4: CHOOSE YOUR LENDER
If you decide to accept a Federal Stafford Loan or Federal PLUS Loan as part of your financial aid package, be sure to choose Student Loan Service Center Education Finance as your lender. Although the Stafford Loan is a federal program, it’s often made available through private lenders like Student Loan Service Center. If Student Loan Service Center isn’t included on your school’s list of preferred lenders, talk to your financial aid advisor and request us as your lender. When you choose Student Loan Service Center, you’ll have access to top-rated customer service and fast online applications that allow you to receive funds quickly. And better yet, we offer reward programs that can save you money on your loan.
Quick Tips
- Stafford and PLUS loans are available through Student Loan Service Center.
- Federal loans from Student Loan Service Center come with money-saving reward programs.
- You can receive funds quickly with our fast and easy online applications.
STEP 5: CONSIDER OTHER SOURCES OF AID
Normally, your financial aid package and your Expected Family Contribution will not completely cover your cost of attendance. Even with a Federal Stafford Loan, it’s likely that you’ll have additional expenses. At Student Loan Service Center, we offer a complete range of loan options that can cover 100 percent of your education costs. Federal Stafford Loan for Students
With this popular loan for undergraduate and graduate students, no credit check is required and no payments are required until 6 months after you leave school.
Federal PLUS Loan for Parents
With this low-cost loan, parents can cover up to 100 percent of your education costs minus the other aid you’ve received. There are no income or asset restrictions, so parents at all income levels are welcome to apply. Federal PLUS Loan for Graduate Students
This federal loan allows graduate and professional students to cover up to 100 percent of their own education costs minus the other aid received.Private Education Loan
With a private loan, qualifying undergraduates and graduate students can receive up to the total cost of attendance, less other aid received. You can apply alone or with a co-borrower and funds can be used to cover past-due balances. When accepting education loans, remember to take full advantage of low-cost federal loans before considering a private loan.
