Financial Aid: Paying for

College
because its really
expensive.

So You Got Jokes

Why I Went
to Colleg
e- Music C
lip

Financial Aid
Financial Aid is anything that helps you
pay for college.
There are four main types:
Scholarships
Need-based aid
Work-study programs
Student loans

Some types save you money (the college bill

ends up being less), and others give/lend
you money (so you can pay the bill).

Scholarships
Scholarships are basically gifts (of money)
that you use to pay for college.
From people, organizations, school groups, etc.
DONT HAVE TO PAY IT BACK!

How do you get them?

By doing impressive things
Sports, academics, music, personal
accomplishment, etc.

Your high school guidance counselor can help.

CAUTION: Some only last for 1 year!

Get new scholarships each year.

FAFSA & Need-Based Aid

The Free Application for Federal Student
Aid is where you need to start for
all other forms of student aid.
www.fafsa.gov (NOT .com)

The government might give

you money to help you pay.
Called a Pell Grant
Based upon you & your parents level of
need.
Income, # of siblings, cost of enrollment, etc.

DONT HAVE TO PAY IT BACK!

FAFSA Pointers
Have your tax return handy
The application requires current tax infohave your
parents get it done before you start

Do it ASAP
Dont wait until the deadlinemillions apply, so do it
early!

You have to do it EACH YEAR

Annoying, but truethe government will only give you
money for 1 yearthen you have to do it again

Dont assume anything

Even if youre rich, still do FAFSAyou might be
surprised!

How FAFSA Works

If you qualify for Federal Aid, your college
will be given money on your behalf
It will pay some of your bill automatically
Again, it will probably be called a Pell Grant

The amount can get will change each year

There are caps: (09/10: $5,350) (10/11:
$5,550)
You will get what the government thinks you
need
Can change from year-to-year, based upon
your life

Work-Study Programs
The government has other ways to
help you pay (non-gifts)
How a work-study program works
You get a job (usually at the college)
The government pays your college
Your college pays you (using the
government money)

Just like a normal job, you have

to be a good employee, you get a
paycheck, and you should still
make studying your first priority.
NOTE: You must fill out your FAFSA
in order to get a work-study job.

Student Loans
Because scholarships, Pell Grants, and
work-study programs usually dont
cover ALL the costs, many students
take out loans
The government helps with this too!
Perkins Loans
Stafford Loans

You need to do FAFSA for these too!

Perkins Loans
Low interest rate (5%)
Provided for you through the schools financial
aid office (you dont have to search for them!)
You will have the option to accept or decline the loan

Government (gives $) School (lends $) You

You will have to pay back your school

Maximum of $5,500/year; $27,500 total.

Your amount depends on: When you apply, your
level of need, and the schools policy
You have 9 months after finishing school before
you have to start repaying.

Stafford Loans
Similar to Perkins
Low interest rate (3.5%-6%--changes annually)
Provided for you through the schools financial aid
office (you dont have to search for them!)
You will have the option to accept or decline the loan

Government (lends $) You [No middle man]

Maximum amount changes yearly:
[$3,500 = Fresh.][$4,500 = Soph.][$5,500 = Jr. & Sr.]
You can borrow more (+$2,000) each year, but it costs
more
You have to pay interest on it during college (no grace period).

You have 6 months before you have to pay

Accepting Financial Aid

After you get into a college and complete your FAFSA,
the college will send you an Aid Package
Its a list of all the financial aid you are eligible to receive
Scholarships, Work-studies, Grants, and Perkins/Stafford
loans

You pick which aids you want to accept, and send the
information back to themtheyll get it squared away
OBVIOUSLY, accept the free ones, but apply to all
you can-- some written versions NEVER get awarded
Youll probably have to do this each semester

Non-Government Loans
If all these types of financial aid still arent
enough
Banks and other businesses provide student loans
Similar to other loans (mortgages, auto loans, etc.)

Significant drawbacks:
Higher interest rates
You usually have to pay while in college
You have to find them yourself

Try to avoid theseonly get them if you must

Other Useful Information

The government offers loan forgiveness for
certain types of service (on Perkins/Stafford):
http://www.finaid.org/loans/forgiveness.phtml

CLC (and other community colleges)

are a good way to save money
Get your Gen. Ed. classes out of the way, and
then transfer into a real university

All in all, do your best to avoid huge debt

from college loans ($10-20k is normal; $5080k is NOT)
Apply for scholarships & grants, work a parttime job, start saving money right now

DONT BE AFRAID!
It can be done!!!