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!

Financial Aid Letters

Look close at your financial award letter that spells out what you will get as far as a financial aid award.

Many times, the letter will not give the whole picture as to the cost of a college education at that school.

The biggest shock comes to students when they read their expected contribution. At first glance, it looks like an award. But in reality, it is the amount that is expected to come from you and your family. Many times this number will make it look like all your expenses are covered, when in reality you must make up quite a difference.

The best thing on this financial aid letter will be free money that does not have to be paid back. Like grants and scholarships. The more of these, the better.

Student loans can be a killer in the future. All loans need to be repaid. Federal student loans are cheaper than private ones. If you get private loans, beware of this fact. The less loans, the better. Many students do not think about payback. They only look at the upfront cash.

The bottom line is the cost of attendance at this college. Many colleges do not give this figure, leaving you what may be a huge out of pocket expense. This figure includes all fees that are normally paid by undergrads. From lab fees, to dorm and food, and all fees in between. You may need to rethink attending a college that is really more expensive than one you can afford. Sometimes it's the opposite. An expensive college can actually give more financial aid, making it cheaper.

Once you get your letter, you may contact the financial aid office for more explanations, and certainly ask for more aid if possible. If you are applying to more than one school, and are accepted to many, use the letters as leverage to get a better award. Many times colleges will "find" money for students they want.

>>Tips for More Financial Aid

>>Financial Aid Secrets

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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.

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.

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