Understanding financial aid in general can seem like an overwhelming task; there are assortments of scholarships and financial aid packages that are made available to students. Since financial aid can be administered for diverse reasons and come from a range of sources (governmental, academic institution, private organization), it's essential for an applicant to identify and understand what their specific aid entails.This includes factors such as how the aid is obtained, how it works and other conditions and rules that apply to it.
The first guideline when it comes to financial aid is determining your eligibility. Regardless of the specific aid or scholarship that's being sought, the Free Application for Federal Student Aid (FAFSA) must be submitted. The FAFSA for the 2009--2010 academic years is made available on the first of January. The FAFSA should be filled out and sent in shortly after it's available because it determines a student's eligibility for financial aid, grants and scholarships that are administered via the government. Most schools require their students to submit the form, regardless of whether or not they are seeking such aid.
Once the FAFSA has been filed, a Student Aid Report (SAR) is sent to the student or an Institutional Student Information Record (ISIR) is passed on to the school that a student is looking to attend. The function of both the SAR and ISIR is to inform the student as to their eligibility for need-based state and federal financial aid (which are contingent upon the student's income and financial circumstances). Such awards include the Federal Subsidized Stafford Loans, Federal Pell Grants, Perkins Loans, Federal Supplemental Educational Opportunity Grants and the Federal Work Study.
Other scholarships and financial aid may be based on other factors such as a student's academic achievements, extracurricular activities, athletics, community involvement and the major that they intend to pursue. In such cases, students can be required to submit supplementary materials and forms (such as an essay or project) to determine their eligibility since it's not based on their financial need or standing. The next guideline in the financial aid process is determining the type of award you will be receiving, as it can come in the form of a scholarship, grant, or loan. It's vital to understand the type of financial aid because it dictates factors such as the amount of money (if any) that you are obligated to pay back or whether your enrollment status plays a role. Some forms of financial aid require students to maintain a full time student and take a minimum amount of credits each semester. It also dictates the duration of the financial aid package, how it is maintained (it may require a student to keep a certain grade point average) and whether or not it will change or interfere with any of the other aids that have been awarded. The answers to such factors can have a significant role in your final decision.
Other important guidelines surrounding financial aid are organization and preparation. Prior to embarking on the financial aid mission, it's a great idea to create a personal outline or plan that takes into account, your budget (including the out of pocket expenses that you'll be able to cover), your goals and any questions that you have about the process or the particular awards. Coming up with a list of questions to ask someone in the financial aid department are key and can help you understand all of the different options that are available. Some questions that will help you understand and benefit the most from financial aid include: Have I completed all of the necessary applications? When and how do I receive my Financial Aid? Is there a certain amount of money that I'm I responsible to pay back (and if so what is the time frame)? When and how do I receive my Financial Aid? What semesters is my aid applicable towards? When does it expire? What do I need to do to keep it up or renew it? Can I receive financial aid from more than one source? Additionally, it's wise to ask questions that are specifically geared towards the institution you are seeking to attend. Such questions may include: What are the different financial aid packages the school has available and how do they measure up to those at other schools? What is covered or included in the award (tuition, housing, books, transportation)? Are there any other awards that I am eligible to receive? In most cases, the best financial aid is one that minimizes a student's out of pocket expenses. A number of tools such as tuition calculators can be a great resource when it comes to figuring out the above (see Resources).