Money for Graduates
YOU CAN AFFORD TO PAY FOR COLLEGE, and there is a good chance that you won't have to use your own money! The money you need to continue your education or get career training is out there! More than $135 billion to be exact. The FAFSA (Free Application for Federal Student Aid) is the KEY! A few different types of financial aid are available. Some of them you have to pay back, and some of them you don't. Either way, a FAFSA is required to get the process started. If you are graduating any time from May 2012 to December 2012, NOW is the time to complete your FAFSA to make sure you get your money to continue your education or training after high school! (Ask Steve or Lou for help starting your FAFSA today!)
There is a common misconception about financial aid. Many students and parents think it only involves money that they will have to payback, and this often prevents them from ever filing a FAFSA. The FAFSA is the KEY to opening the door to receiving funding for college or career training. The first and most important thing the FAFSA does is determine your eligiblity to receive a PELL Grant. The key word there is "grant", because grants do not have to be repaid. Once your FAFSA is complete, and you have electronically submitted it using your PIN, you will be given your estmated PELL Grant amount (maximum of $5,500 per year), as well as the maximum amount of loans you may also be elibigle for.
Many of your other options for financial aid also use the FAFSA information you provide to determine your eligiblity for scholarships and loans. Scholarships are about the same as grants but with varying amounts. They do not have to be paid back, but they have their own requirements such as completing an application process and meeting certain criteria such as keeping up your grades.
I saved the loans for last, as these are the ones you will have to pay back. Once you file your FAFSA, and the college or colleges you submit to receive your info, they put together your "financial aid package" which includes your PELL Grant and the amount of loans you are eligible for. Although loans do need to be repaid, you can always opt to not accept the loan if your PELL Grant provides enough money for you. If you do decide to accept some of the loan money, the Federal Loans are offered at a reduced interest rate and some do not require that you make payments until 6 months after you graduate. Talk with your college enrollment advisor or financial aid office for more information.
Ready to get started on your FAFSA? Your first step is for you (and your parent if you're not an Independent Student) to go to the Federal Student Aid PIN Web Site to apply for your PIN. The PIN is later used to gain access to and sign your application before submitting it. Once you have received your PIN, you are ready for the next step.
Next step is to begin filling out your application by going to the FAFSA On the Web site. You will need your income tax return and your parent's income tax return to enter the income information. Once you have completed the application and electronically submitted it, you will receive your report letting you know if you qualified for a PELL Grant and approximately how much to expect. The college or colleges you selected in the process will also receive your information, and then closer to the beginning of the school year you will begin receiving information from those colleges about completing the financial aid paperwork required for them so that you can make the money gets into your account in time to pay for classes. Good luck!