Whether you'r enrolling in college for the first time or returning to school after a period of time off, you should apply for federal student aid.
Federal students aid from the U.S. Department of Education is the largest source of aid in America, providing over $150 billion in grants, work-study, and federal loans for students attending four-year colleges or universities, community colleges, and career schools.
Tip: Start researching scholarship and grant opportunities during your junior year of high school. Pay special attention to application deadlines. Talk to your school counselor and check your high school website to search for local scholarship and/or grant opportunities.
Student Aid Deadlines: Parents and students, complete your income tax forms as soon as possible. You will need those figures to fill out the FAFSA. Complete and return your FAFSA as quickly as possible after October 1. Check to make sure your colleges or state does not require any other financial aid forms. If they do, contact the college's financial aid office.
Pay attention to deadlines! There are federal and state deadlines, and your colleges may also have a deadline.
Go to www.fafsa.ed.gov to find out more about the states and schools that you are applying to check out their deadlines. Enter your state of legal residence and the school year for which you are applying for student aid. Then click Deadlines.
WHO GETS AID
Student Aid Eligibility Eligibility for federal student aid is based on financial need and on several other factors. The financial aid administrator at the college or career school you plan to attend will determine your eligibility.
To receive aid programs, you must:
Demonstrate financial need (except for certain loans)
Have a high school diploma or a General Education Development (GED) certificate, pass an ability-to-benefit (ATB) test approved by the U.S. Department of Education, meet other standards your state establishes that the Department approves, complete a high school education in a home school setting that is treated as such under the state law, or have satisfactorily completed six credit hours or the equivalent course work toward a degree or certificate.
Be enrolled or accepted for enrollment as a regular student working toward a degree or certificate in an eligible program. Note: You might be able to receive aid for distance education courses as long as they are part of a recognized certificate or degree program.
Be a U.S. citizen or eligible noncitizen.
Regiser with the Selective Service if required. You can use the paper or electronic FAFSA to register, you can register at www.sss.gov, or you can call 1-847-688-6888. (TTY users can call 1-847-688-2567).
Maintain satisfactory academic progress once in school.
Certify that you are not in default on a federal student loan and do not owe money on a federal student grant.
Certify that you will use federal student aid only for educational purposes.
The Higher Education Act of 1965 as amended (HEA) suspends aid eligibility for students who have been convicted under federal or state law of the sale or possession of drugs, if the offense occurred during a period of enrollment for which the student was receiving federal student aid (grants, loans, and/or work-study). If you have a conviction(s) for these offenses, call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) or complete the "Student Aid Eligibility Worksheet" to find out how this law applies to you.
If you have lost federal student aid eligibility due to a drug conviction, you can regain eligibility if you pass two unannounced drug tests conducted by a drug rehabilitation program that complies with criteria established by the U.S. Department of Education.
Civil Commitment for Sexual Offenses - A student subject to an involuntary civil commitment after completing a period of incarceration for a forcible or nonforcible sexual offense is ineligible to receive a Federal Pell grant.
Even if you are ineligible for federal aid, you should complete the FAFSA because you may be eligible for nonfederal aid from states and private institutions. If you regain eligibility during the award year, notify your financial aid administrator immediately. If you are convicted of a drug-related offense after you submit the FAFSA, you might lose eligibility for federal student aid, and you might be liable for returning any financial aid you received during a period of ineligibility.
If you have a question about your citizenship status, contact the financial aid office at the college or career school you plan to attend.
Intellectual Disabilities Students with intellectual disabilities can receive federal student aid under the Federal Pell Grant Program, FSEOG Program and Federal Work-Study Program. To be eligible, you must
be enrolled or accepted for enrollment at an institution of higher education in a comprehensive transition and postsecondary (CTP) program for students with intellectual disabilities that the U.S. Department of Education has determined to be eligible for Title IV aid
be maintaining satisfactory progress; and
meet the other student eligibility criteria.
How will I know what I'm eligible for? The information you reported on your FAFSA is used to determine your Expected Family Contribution (EFC), which is calculated by a formula established by law. The EFC is not the amount of money that your family must provide. Rather, you should think of the EFC as an index that colleges use to determine how much financial aid (grants, loans or work-study) you would receive if you were to attend their school. If your EFC is below a certain number, you’ll be eligible for a Federal Pell Grant assuming you meet all other eligibility requirements.
You can get worksheets that show how the EFC is calculated by downloading them from www.studentaid.ed.gov/pubs. Click on the award year appropriate to you under "EFC Formula."
The amount of your Pell Grant depends on your EFC, your cost of attendance (which the financial aid administrator at your college or career school will figure out), and your enrollment status (full time, three-quarter time, half time, or less than half time).
For other aid programs, the financial aid administrator at your college or career school takes your cost of attendance and then subtracts your EFC, the amount of a Federal Pell Grant you are eligible for, and aid you will get from other sources. The result is your remaining financial need:
Cost of Attendance - EFC - Federal Pell Grant Eligibility - Aid From Other Sources = Remaining Financial Need
If you're attending at least half time, your cost of attendance is the sum of
your actual tuition and fees (or the school's average tuition and fees)
the cost of room and board (or living expenses for students who do not contract with the school for room and board)
the cost of books, supplies, transportation, loan fees, and miscellaneous expenses (including a reasonable amount for the documented cost of a personal computer)
an allowance for dependent care
costs related to a disability
reasonable costs for eligible study-abroad programs.
Costs unrelated to the completion of a student's course of study are not included in calculating that student's cost of attendance.
A financial aid administrator can consider special or unusual circumstances such as unusual medical expenses, tuition expenses, or unemployment and can adjust your cost of attendance or some of the information used to calculate your EFC. The financial aid administrator at your college or career school also can change your status from dependent to independent but only under specific circumstances the aid administrator will explain. You'll have to provide your college or career school with documentation to justify any change. The decision to change or not to change your dependency status is based on the aid administrator's judgment, and it's final. It can't be appealed to the U.S. Department of Education.
How to Apply for Aid Applying for federal student aid is quicker and easier than ever. You can complete the Free Application for Federal Student Aid (FAFSA) at www.fafsa.gov. The FAFSA is used to apply for federal financial aid (grants, work-study, and loans). Also, many colleges, universities, and career schools use your FAFSA information to award state and college aid.
The process is free. Never pay to apply for federal financial aid.
Follow these easy steps to simplify the process of applying for federal student aid. 1. Gather the documents needed to apply. For example, you'll need
Income tax returns (yours and most likely your parents), W-2 forms, and other records of income, and
2. You'll need a PIN to "sign" your online FAFSA, make corrections to the application, and more. If you are a dependent student, your parent will need one too. You can get your PIN before you begin or as you complete the FAFSA — it's up to you. Get your PIN now! Go to www.pin.ed.gov.
3. Complete a FAFSA Note: Complete the FAFSA each year, starting on October 1. Be sure you meet application deadlines. For deadlines, visit www.fafsa.ed.gov.
FILING OPTIONS You may choose any of these three methods to file a Free Application for Federal Student Aid (FAFSA):
Apply online (Recommended) or
Complete a PDF FAFSA. The PDF FAFSA is available for you to print and fill out manually or is screen-fillable. Screen-fillable means you can enter your data on the screen before printing. Please note that if you choose this option you will not be able to save your data to your PC. (Note: PDF FAFSAs must be mailed for processing) or
Request a paper FAFSA by calling 1-800-4-FED-AID (1-800-433-3243) or 319-337-5665.
After You Submit the FAFSA Your FAFSA is processed and the results are sent electronically to the schools you listed on your application, and you are sent a Student Aid Report (SAR).
The Student Aid Report (SAR) Your SAR summarizes all the information you provided on your FAFSA. It must be correct before you can receive federal aid. Read the information below to find out how and when you will receive your SAR, and what to do with it once you receive it.
How and when you will receive your SAR Generally, it takes less time to process and send the SAR to you when you submit the FAFSA online and provide a valid e-mail address. If you have a valid e-mail address, you'll get your SAR e-mail in three to five days. This e-mail contains a secure link to your SAR online. If you don't provide a valid e-mail address, it takes about seven to 10 days before you'll receive your SAR by postal mail.
If you submit a paper FAFSA, you'll receive your SAR by e-mail within 2 weeks, or 3 weeks if you do not provide an e-mail address.
Note: If you have a PIN and your FAFSA has been processed, you can login at www.fafsa.gov to view SAR information regardless of whether you filed the online or paper FAFSA or provided an e-mail address or not.
What to do with your SAR When you get your SAR, review it for accuracy.
check with your school; the school might be able to make them for you electronically.
If you received a paper SAR, make any necessary corrections on that SAR and mail it to the address on the form for processing.
Your Financial Aid Make sure the financial aid office at each school you're interested in has all the information needed to determine your eligibility. Follow all directions on any communications from the school or from the U.S. Department of Education, and respond by any deadlines. If you don't, you might not receive federal student aid.
THE FINANCIAL AID AWARD If you listed a school on your FAFSA and have been offered admission by that school, the financial aid office at the school will send you an award letter (most likely electronically). The award letter includes the types and amounts of financial aid you may receive from federal, state, and school sources. This combination of aid is your financial aid package.
Review each award letter carefully and compare how much aid you can receive at each school. Pay attention to letters or e-mail from schools, follow all directions, and contact the financial aid office if you do not understand what the school is offering you. Again, if you don't, you might not receive federal student aid.
Borrowing Responsibly Your financial aid package may include federal student loans. In the case of loans, keep in mind that whatever amount you borrow must be paid back with interest. While loans can be a good investment in your future, taking out a federal student loan is a serious obligation.
Receiving the Money Schools must pay you at least once per term (semester, trimester, or quarter). If your school doesn't use formally defined, traditional terms, then they must pay you at least twice per academic year. Your school will
credit your grant funds to your school account,
pay you directly (usually by check),
combine these methods, or with your permission,
credit your bank account.
TYPES OF AID
Federal Student Aid Programs The following types of aid are available to help you pay for your education after high school.
Grantsare student aid funds that do not have to be repaid (other conditions apply).
There are a variety of federal grants to students attending four-year colleges or universities, community colleges, and career schools. Grants, unlike loans, are financial aid that does not have to be repaid.
You must submit a FAFSA to apply for federal grants. Eligibility for federal student aid is based on financial need and on several other factors.
Federal Pell Grant You must be an undergraduate student who does not have a bachelor's or a professional degree. If you are enrolled in a post baccalaureate teaching certificate program, you also may receive a Pell grant.
Current Year Award Amount: The maximum award is $5,550.
Note: If you are eligible for a Pell Grant and your parent or guardian was a member of the U.S. Armed forces and died as a result of military service in Iraq or Afghanistan after Sept.11, 2001, you will receive the maximum Pell for the award year.
Current Year Award Amount: Between $100 and $4,000 depending on when you apply and other factors.
Iraq & Afghanistan Service Grant For students who are not eligible for a Pell Grant only because of that program's need requirements and whose parent or guardian died as a result of military service in Iraq or Afghanistan after Sept. 11, 2001 (additional conditions apply). Current Year Award Amount: The current maximum is $5,500, but cannot exceed the cost of attendance for that award year.
NOTE: The Academic Competitiveness Grant and the National Science and Mathematics Access to Retain Talent (SMART) Grant are no longer available as of July 1, 2011.
The Monetary Award Program (MAP) Grant MAP, a Grant Program funded by the state of Illinois and administered by the Illinois Student Assistance Commission (ISAC), provides grant assistance to eligible students demonstrating financial need. Each year the amount of a student's award depends on a number of factors, including program funding levels, which are determined by state legislators and the governor when they approve the annual state budget.
Please be aware that MAP funds for 2012/2013 will be in short supply. It is imperative to apply for FAFSA as early as possible this year as funding allocations will be gone by early March. If you need to, complete and submit this year’s FAFSA using 2010 tax information. This is especially true if you will not have your taxes completed early. You will then need to update your FAFSA with this year’s completed 2011 tax information.
Illinois MAP 2+2
The Illinois MAP 2+2 pilot program is designed to complement the 2+2 programs that many schools already offer. Students would be admitted to a baccalaureate degree program but attend a community college that has an articulation agreement with the bachelor's degree-granting school and then transfer to the baccalaureate degree-granting institution to complete their degrees. Since the dollar amounts of students’ MAP grants are smaller for attendance at a community college, students are allowed to carry forward the difference between the amount that their MAP grant would have been at their bachelor’s degree institution of choice and their community college MAP award. The difference in the award amount for each of the freshman and sophomore years is saved and added to the student’s MAP grant for his/her junior and senior years. To be eligible for MAP 2+2, a student must:
have been accepted at the baccalaureate degree-granting institution of their choice.
be MAP eligible and their applications must not be in a suspended status.
be enrolled in sufficient hours to graduate in four years.
not have initially accrued more than 15 MAP Paid Credit Hours (MPCH).
continue enrollment with the two schools originally chosen and cannot receive the benefit of the “saved” MAP if he/she attends a baccalaureate degree granting school that was not part of the original agreement after completing the first two years.
Other non-federal grants Some schools provide institutional grants to help with education expenses that cannot be met through income, savings, loans, and student earnings. Merit awards or merit scholarships, are awarded on the basis of academic achievement. Some grants come with special privileges or obligations. You'll want to find out about the types of grants awarded by each college you are considering
Campus-Based Aid The Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Work-Study (FWS), and Federal Perkins Loan programs are called campus-based programs because they're administered directly by the financial aid office at each participating school. Not all schools participate in all three programs. Check with your school's financial aid office to find out which programs they participate in.
How much aid you receive from each of these programs depends on your financial need, on the amount of other aid you receive, and on the availability of funds at your college or career school. Unlike the Federal Pell Grant Program, which provides funds to every eligible student, the campus-based programs provide a certain amount of funds for each participating school to administer each year. When the money for a program is gone, no more awards can be made from that program for that year. So, make sure you apply for federal student aid as early as you can. Each school sets its own deadlines for campus-based funds, and those deadlines are usually earlier than the Department of Education's deadline for filing a FAFSA.
Federal Work-Study (FWS) provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the recipient's course of study.
You'll be paid by the hour if you're an undergraduate. No FWS student may be paid by commission or fee. Your school must pay you directly (unless you direct otherwise) and at least monthly. Wages for the program must equal at least the current federal minimum wage but might be higher, depending on the type of work you do and the skills required. The amount you earn can't exceed your total FWS award. When assigning work hours, your employer or financial aid administrator will consider your award amount, your class schedule, and your academic progress.
If you work on campus, you'll usually work for your school. If you work off campus, your employer will usually be a private nonprofit organization or a public agency, and the work performed must be in the public interest.
Your school might have agreements with private for-profit employers for Federal Work-Study jobs. This type of job must be relevant to your course of study (to the maximum extent possible). If you attend a career school, there might be further restrictions on the jobs you can be assigned.
Federal Perkins Loans A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school's financial aid office. Your school is your lender, and the loan is made with government funds. You must repay this loan to your school.
Your school will either pay you directly (usually by check) or apply your loan to your school charges. You'll receive the loan in at least two payments during the academic year.
How much can I borrow? You can borrow up to $5,500 for each year of undergraduate study (the total you can borrow as an undergraduate is $27,500). For graduate studies, you can borrow up to $8,000 per year (the total you can borrow as a graduate is $60,000 which includes amounts borrowed as an undergraduate). The amount you receive depends on when you apply your financial need, and the funding level at the school.
Other than interest, is there a charge for this loan? No, there are no other charges. However, if you skip a payment, if it's late, or if you make less than a full payment, you might have to pay a late charge plus any collection costs.
When do I pay it back? If you're attending school at least half time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment. This is called "grace period." If you're attending less than half time, check with your college or career school to find out how long your grace period will be.
Get free information and help from your school counselor, the financial aid office at the college, university, or career school you plan to attend, or the U.S. Department of Education at www.fafsa.gov (online chat is also available), or call 1-800-4-FED-AID (1-800-433-3243).
There are many more other sources of aid available for higher education.
There are other grants in addition to federal and state grants. Colleges provide institutional grants to help make up the difference between college costs and what a family can be expected to contribute through income, savings, loans, and student earnings. Institutional grants, known as merit awards or merit scholarships, are awarded on the basis of academic achievement. Some merit awards are offered only to students whose families demonstrate financial need; others are awarded without regard to a family's finances.
Some grants come with special privileges or obligations. You'll want to find out about the types of grants awarded by each college you are considering.
Reduce Education Costs Read IRS Publication 970, Tax Benefits for Education to see how you might benefit from federal income tax credits for education expenses.
You and your family can set up a tax-free Coverdell Education Savings Account—money from this account can be withdrawn without penalty. Learn about the tax advantages of state college savings plans and prepaid tuition plans at www.collegesavings.org
What is MyFSA? Student Aid on the Web is the U.S. Department of Education's site for free information on preparing for and funding education beyond high school. Go to www.studentaid.ed.gov to Access MyFSA and create your account. You will only have access to MyFSA if you create an account. The reason for this is the information you enter is highly confidential and must be password-protected. Once you create your account you will automatically have your own MyFSA account and anytime you return to this site you will be able to access it with your username and password.
The only way to access MyFSA is with your individual username and secret password. MyFSA is your personal portfolio. You can access your individual MyFSA account at anytime by simply logging on with your username and password.
To access MyFSA, you must first logon to the site. Once you logon, the different MyFSA sections will be visible to you in the left column of the screen. Any information you save in the site will be displayed in MyFSA. To go directly to a particular section of MyFSA, you may click on the corresponding link for that section.
What is in MyFSA? Once you begin an application, MyFSA will track where you stopped entering your information and will link you to all applications in progress. It will also provide the date and confirmation number of your submitted applications.
Any colleges you add to MyFSA will be stored in and accessed through this area. These colleges will automatically be used in worksheets and tables calling for colleges. You may add or delete colleges from this list at anytime.
The information you enter about yourself will be stored in your Profile. Make sure to keep your information as accurate and up-to-date as possible. The Profile will be used to fill in your college applications and FAFSA automatically, and search for potential scholarships that match your profile.
You may store and access any scholarships, loans, and cost of attendance information saved in the Financial Aid Wizard. You can even calculate an estimated family contribution (EFC). This section of MyFSA also uses the schools from the Colleges section above to calculate approximate costs. At your option, profile information can be used to pre-populate certain fields on the Free Application for Federal Student Aid (FAFSA) and electronic college admission applications.
You may access your personal or college events on a daily, weekly, or monthly basis.
Tips for Financial Aid
Learn all you can about the college financial aid process. Be sure to meet your aid administrator and establish a relationship.
Apply for aid as soon as possible after January 1. Do not wait until you’ve filed your taxes or been admitted. The early bird always gets the worm — and sometimes the scholarship!
Inform financial aid administrators about unusual or atypical expenses or financial circumstances. Certain adjustments may be made to assist you.
Take advantage of tuition prepayment discounts. Some colleges offer up to a 10% discount for early payment.
Money from grandparents should be paid in your name directly to the school. This avoids gift tax liability. But sometimes it is better for grandparents to wait until after you graduate to help you pay off your student loans, since money paid directly to the college may reduce your need-based aid eligibility.
Investigate company-sponsored tuition plans. Many employers will invest in the education of their employees.
Apply! You can’t win awards or receive funds for which you do not apply, so pay attention to deadlines.
Use free scholarship matching services like FastWeb at www.fastweb.com to help you find the private sector assistance you need!