Get more out of your financial aid award

If you will be paying for college using financial aid, now is the time to begin. In fact, most college students rely on financial aid. College tuition and expenses are rising, so you need to be able to get the most you can from your financial award package. Virtually every college gives out a financial aid package based on your FAFSA, so it is important to fill that out correctly. Here are some tips for maximizing your financial aid.

File your FAFSA early. You can start filling it out online January 1st. Quite a few colleges have deadlines, many as early as February. There is a limited amount of money that colleges have to give out. First come, first served is common. If you have not filed your income tax, or your parents, you can still fill out the FAFSA and use estimates. Bottom line, file your FAFSA early!

Even if you don't have a clue as to if or what you will qualify, fill your FAFSA out anyway. There is other money aid from colleges available, as well as federal student loans, that require a FAFSA to be filled out.

Be sure and fill the form out correctly and completely. Any errors or blanks will cause delays. All lines need to be filled out, even with zeros. If you fill it out online, the process should guide you on every line that must be filled in. Filling it out online is much easier anyway.

A college student is expected to contribute to their education. Your bank accounts and your parent's, will be counted. If you have money in a savings account, you might want to transfer it to a 529 savings plan. If you have a lot of money saved, use it all in your freshman year. That way, your future financial aid award will not be affected. Your parents can put money into an IRA or 401(k) that won't be counted as well.

One thing about your FAFSA to remember. Be sure and not lie or fudge figures. If you are found out, you could be declared ineligible for any financial aid. Be open and honest.

A little know aspect of getting more financial aid is to tell your college of your financial situation if it matters. You can talk to the financial aid officer, or write a letter, stating financial hardships that you and your family are going through. This could get you more aid. Also, if you get different financial aid awards from different colleges, you can use that as leverage for the school you want. Ask them if they will match a better offer. If the college wants you, they may do that.

Financial aid is not just grants and loans. You may need to work in the work-study program. The school also might give scholarships to eligible students who maintain good grades.

The bottom line is to get your FAFSA in now!

What to do if you are short on financial aid

So you've applied to college, been accepted, and gotten a look at your financial aid package. You do the math and realize you are short of paying for everything. What are you going to do?

Well, you can ask the financial aid office for another look, maybe a better offer. Click here for tips on getting more financial aid.

After that, there are a few things the college student can do to make the bottom line look better.

First thing is to be first in line. Apply early. Colleges have a more limited supply of funds to give out and may run out if you delay.

Think about changing schools, if it's not too late. Many colleges are offering out of state students money as an incentive to come to their college. Some large private colleges actually have more money to give out. So even though the cost is higher, it will be cheaper for you in the long run.

Don't overlook the scholarship search. It may take some of your time, but working on finding scholarships in this economy is worth it. And there are many scholarships that go overlooked. You can do a free college scholarship search here, or learn ways of finding scholarships here.

Colleges have what they call merit scholarships to current students who have high GPAs. So, pump up your studying and get good grades.

And the easiest way to make up a shortage of college money. Spend less. This means everything from transportation, to books, and dorms to food. Read 30 ways to cut college costs.

The bottom line, is that your bottom line may look deep, but with a little extra work, you can make up for a college cash crunch.

An expensive college can be quite affordable!

Private colleges and universities are generally much more expensive than their public counterparts. But don't let the overall price of attendance scare you off. Many large private institutions have huge endowments. These endowments allow them to award quite a bit of financial aid, especially to those students who are tops in the country. Getting a top student helps the college's ratings.

So, if you are a top student, chances are your overall out of pocket costs can be quite low. The college wants you there. Many colleges will offer you more than others just to have you attend. In fact, you should let colleges compete for you and see who can come up with the best financial aid package.

This means you should and must apply to many schools.

Because of the generous awards from some schools, your overall cost can be lower than a cheaper college. Let's say college A charges $30,000 overall for tuition, room, and board. After the normal financial aid award, lets say that leaves you with about $15,000 left. The college may offer you $10,000 of that in scholarships, grants, and other discounts. Leaving $5,000 left out of pocket. Compare that to college B that costs $15,000. Your financial aid may be $10,000, but the college offers nothing more. That means your out of pocket expenses are again $5,000. This means both colleges will cost you the same. Financial aid is awarded on the total cost of attending college. The more expensive the college, the more aid there is that might be available to you.

Never let the high price of education scare you off.

The bottom line is to apply to many colleges and universities, both public and private. Then compare the different financial aid packages they offer. Decide which one leaves less for you to pay. Many colleges guarantee enough aid for all accepted students.


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3 Basic Ways of Getting Financial Aid

College students looking for money are most often concerned with financial aid. Financial aid is what the college you are attending awards you. It is calculated by your and your families financial situation. Once this is looked at, the college will tell you what financial aid they will award you.

To get any financial aid, you must fill out a FAFSA.

Grants
Grants are like gifts. They never have to be repaid. All college students can apply for a Pell Grant awarded by the federal government. The amount you get varies, up to a maximum of over $5,000. This grant is based on need. Many states, Like California, award their own grants as well. Virtually all state grants as well are awarded on financial need. There are other various grants for certain types of degrees and careers you choose. Your financial aid office will know which ones you can get.

Student Loans
All students going to college will be eligible to apply and get a student loan. Your year in college will dictate how much you can borrow. It varies from freshman to graduate student. This is not based on need. If you are enrolled, mostly at least half time, you will get a student loan. All direct student loans are done through the federal government by first doing the paperwork at your college's financial aid office. They will set it up for you. There are also federal PLUS loans for parents. And the money they can borrow is only the amount you need to pay for school, not a penny more. Again, your financial aid office will have all paperwork. There are other private student loans. But you need good credit and the terms are not as good as the federal direct loan program.

Work-Study
Work-study is a program where your college gives you a job on campus to make up for the money you need to pay for college. The federal government normally subsidizes these jobs. But, they are only awarded on financial need. They are not very high paying and you may find a better job outside of the campus. However, they are on campus and are flexible. The earnings do not count toward your finances that the school looks at when getting more financial aid. The work-study program will not allow you to work for them more than 15 hours a week. This is to not interfere with your study time. This does not keep you from getting a job off campus and working more hours.

There you have the three types of financial aid that are awarded. Notice we did not mention scholarships. Scholarships are not financial aid. College scholarships are awarded by many companies and agencies, including your college. You should definitely look into these as well. Scholarships do not have to be paid back either.

>>Click here with free help in finding college scholarships.

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The hidden costs of college can make college very expensive

When college students think college expenses, they usually think tuition. Then maybe room and board. And they think that's it. Unfortunately, many students get whacked with fees and expenses that they did not think about. Or even know about. When calculating the true cost of college, you have got to factor in the "hidden" costs of college.

Textbooks: Of all the expenses of college, this one can jump up and bit you. Hard. If you take a full time schedule, math, science classes, chances are very good that you will pay over $100 for a textbook. Four classes it is not uncommon to spend $300 each term on textbooks. Maybe more. That alone could add $600-$1000 a year to the cost of college.

Fees: Many colleges charge a fee for all sorts of things. Health, student activities, lab fees, and materials fees. These are only a few. While some are known up front, you may not realize that lab class has an extra cost.

Transportation: Do you own a car and will be using it at college? You will need to pay for a parking pass. This could be as high as $40 a month. And you still have to pay for car insurance. Do you live off campus? How much is bus fare?

Food and drinks: You may think that you have a meal plan and that solves the food problem. Not really. Many times the cafeteria will be closed, or you will find yourself off campus and hungry. Purchasing extra food and drinks can add up fast. How many times do you think you will be eating fast food off campus? Or even on campus? If your meal plan is on a prepaid card, you need to watch how much you use it. If there is one expense you can't eliminate, it's food and drink.

The Dorm: You may think the dorm is done. But a dorm room is a sterile environment until you customize it. You will probably need a lot of personal items, like towels, sheets, pillows, and accessories to make it livable. Not to mention personal items like soap, shampoo, deodorant, make up, and more.

Remember, if you have never lived on your own, you have no idea how expensive it can be to maintain your lifestyle. So before heading off to college in the fall, factor in the hidden costs of college.

College Financial Aid Myths

Do you think college is expensive? It is! Do you think you can't afford it? You probably can! There are many myths and half-truths when it comes to going to college. It is true that college is not right for everyone and their situation. But if you really want to go to college, chances are, you can!

Here are a few financial aid myths.

My parents are just too rich. Totally false! There are financial aid programs from every college for everyone. It is true that some pay more, but the reality is, colleges work with you no matter how well off you might seem.

There's no money for financial aid anymore. Really false! It is true that some colleges and universities have cut the overall funds, but they have raised others! And the federal government has upped Pell Grants and student loans! Plus, you get a bigger tax deduction! There is money for financial aid!

Did you know that most financial aid comes from the government? Don't believe the hype of those scholarship searches who claim they will get you plenty.

I did not get good grades, so I can't get any award. Not true! Most financial aid is based on need, not grades. Yes, there are some merit scholarships, but the majority of money awarded is awarded on need!

I have to work, so I can't go to college. Actually, you are in a better situation! You have some income! Colleges are adding more weekend and night classes just for you! And you can still qualify for student loans and other financial aid awards!

I have to settle for a state college or university because private ones are just too expensive for my family. Nothing could be further from the truth! Overall, maybe, private institutions cost more, but guess what? They also have more money to give away! Many large private universities actually get everybody who is admitted the money to attend, one way or another!

I need to live at home and go to a local college. Except for moving expenses, your cost of living in a dorm will probably cost less than what your parents would shell out for you being at home. Don't forget those tax credits! They can still claim you! There is not much difference in staying at home and living in the dorm. Most parents just don't realize how much money you cost to have around the house!

Did you know that your parent's house is not included when figuring out financial aid?

Are you aware that colleges will take your financial situation into account when determining your financial aid award? You can explain any financial situations and hardships that you would like them to know about.

Be careful. Your friends and family will tell you different things. Talk to your high school counselor and the financial aid officer at the college. They have the real scoop!

If you really want to go to college, there is no need for you to sit on the sidelines! It takes you filling out applications and talking to the right people!