Making the Most of Student Financial Aid

As parents begin the process of completing financial aid applications for their children, it is important that they have some basic information about the process. The amount of financial aid received often influences
the decision as to where a child goes to college. The information contained in this article should help parents to maximize their child’s chances for receiving financial aid.

What is financial aid?

There are many types of financial assistance. Most types fall under the categories of scholarships and grants, educational loans and employment opportunities. Scholarships and grants are “gifts”. They are generally given to students on the basis of academic potential or financial need to help them meet educational costs. These kinds of awards do not have to be repaid by the student.

Educational loans include a number of different borrowing programs from various lending agencies. The student or parent must agree to repay the loan. Interest rates on educational loans are usually lower than those of regular consumer loans and the repayment periods are longer. With some loans, repayment begins while one is still attending school. Other loans defer repayment until after a student has completed their program.

Employment opportunities are another source of financial aid. The College work Study Program is a form of aid that allows a student to work on campus and earn a designated dollar amount per semester to be applied to his/her expenses. Educational loans and work-study are often referred to as “self help”.

Where does the money come from?

The federal government provides money for various grant, loan and work programs. These funds are allocated to students by their school on the basis of financial need. In addition, states like Pennsylvania provide eligible resident students with grant money.
The college/university you attend is also a source of financial aid. Funds can be awarded on the basis of academics, athletics, or financial need. Academic scholarships are normally offered to entering freshman through
the college’s office of admissions, often upon recommendation from their high school principal or counselor. Performance awards such as are given in music and art programs are based on an audition or presentation of a portfolio of the student’s artwork. Other major sources of funding are private organizations, professional associations, civic and community groups, churches and synagogues. Finding out about these programs involves research. Libraries are a good source of reference material. Another excellent source is your high school counselor. You can also go to one of the many College Access Centers around the city. These centers are affiliated with the School District of Philadelphia and offer an on-line scholarship service at no cost to the student. Also, don’t be afraid to make use of the financial aid professionals at the school you plan to attend. They are a storehouse for information and they are there to help.

How do I qualify for financial aid?

In most cases financial aid is awarded on the basis of financial need. Need is not simply determined by family income. It is dependent upon a number of factors such as the value of your assets and the number of children in college. Financial need is calculated using the information you supply on a Financial Aid Form or the Pennsylvania higher Education Assistance Agency’s combined state/federal application. The need-analysis process requires that each family supply information about its income, assets, expenses and liabilities, along with other data. The data is then reviewed in order to determine an accurate picture of the family’s financial situation. From the assessment of the parents’ ability to contribute to their child’s educational expenses, an expected parental contribution is derived. In addition, the student’s income and assets are also reviewed. From this information a student contribution is assessed. Generally, a higher percentage of the student’s income, and assets are calculated as available to be used for his/her educational expenses.

What can I do to improve my chances of getting financial aid?

Here are a few pointers to keep in mind when you begin the process for applying for assistance:

1. Apply on time! Make sure that your application is received before the school’s deadline. Late students receive consideration only if there are funds available after the “on time” applications are processed.

2. Check the school’s requirements. Make sure that you submit ALL the proper documents. An incomplete file will not be processed, thus delaying your ability to make a decision at a school.
3. Ask for an explanation of your financial aid “package”. Schools award dollars in varying fashions based on their individual “packaging philosophy”. This may mean that one school awards a
greater percentage of “self help” than scholarships or grants. Also, some schools factor a loan into your aid package whether or not you intend to actually borrow the money. Scholarships or grants awarded in your first year are not necessarily guaranteed to be given in the next. Find out how your aid was determined.

4. Check the financial aid data you submit before and after processing. Input errors are not uncommon and can result in an inaccurate assessment of need.

5. Document any additional costs you have incurred. Financial aid is distributed based on the information you provide. Higher than usual medical expenses or a loss of employment after an application has been filed may result in a recalculation of a student’s need.

6. Be assertive! After you receive your notification of aid, if it is not enough, file an appeal to the financial aid director/dean. Make an appointment to meet in person to discuss your situation. Don’t be afraid to ask questions. The financial aid office is there to serve you – make use of this service!

Benjamin Franklin once wrote, “an investment in knowledge pays the best interest.” Higher education has been shown to enhance an individual’s lifetime earnings greatly. Financial aid can help you to reach your goal, make sure that you go for every dollar that you can get to make the path to success a smoother one.