Resources

Step 1: Estimate Your Educational Expenses.

Higher education is one of the most expensive investments we make during our lifetime.  So how much money will you need?  You should start the process by first researching the school itself and finding out as much information as you can about not only its financial aid program, but also its accreditation, licensing, security, job placement rates, and graduation statistics to ensure that it is the right fit for you and your child.  You then need to estimate how much it will cost to attend the school you have chosen.  While tuition and room and board are considered the primary expenses, there are many other items to consider —including books, supplies, special equipment, transportation, meal plans, health insurance, and fees.  Costs can also vary based on such variables as living on-campus, attending community versus private institutions, and being an in-state or out-of-state student.  You should also research the school itself - find out as much information as you can before you enroll.

There are countless financial aid options out there for students to apply for and take advantage of.  Applying to any type of higher education institution can be confusing and frustrating and that includes finding and deciding what types of financial aid are available and applicable to you.  Thus, it is important to educate yourself about financial aid options.
Typically, there are three types of financial aid:
1. Scholarships and Grants - financial aid that doesn't have to be repaid
2. Loans - allows you to borrow money for your education and re-pay it at a later date (usually with accrued interest)
3. Work Study- allows you to earn money for your education by working on-campus

Most financial aid packages consist of a combination of all three of these.  Familiarize yourself with federal and state financial aid programs, as well as alternative financing.  Alternative financing typically refers to payment plans and alternative loan programs which allow families to borrow up to the full cost of attendance less other financial aid received toward college expenses. You can also use the FAFSA4caster, which is an online tool to help students and families prepare financially for college before officially applying for federal student aid.  It provides an estimate of federal student aid eligibility by instantly calculating an estimated Expected Family Contribution*- the indicator used to estimate a family's or a student's ability to contribute toward the cost of an education after high school.  FAFSA4caster determines what type of federal aid(grants, work study, and/or loans) the student is eligible to receive and provides an estimated award for each. 

To apply for financial aid you must first complete a federally required form called the Free Application for Federal Student Aid(FAFSA).  It is used to determine federal student aid, such as Pell Grants, federal student loans, and work study.  Once you have your PIN and Federal School Codes, you're ready to apply.  You may file the FAFSA online or you may request a paper version from your high school's guidance office or local library.  Online applications automatically check for most errors and speed up the processing time.  Most states and many colleges also use information from the FAFSA to award their own financial aid.  The FAFSA lets you list those schools in which you are interested.  Once it is completed and submitted, the FAFSA generates a Student Aid Report(SAR).  A copy of the SAR is automatically sent to each of the Financial Aid Offices of the colleges you requested.  The SAR shows your family's Expected Family Contribution(EFC), which is the amount of money the government determines your family will be expected to contribute towards your education or your child's.  It will also assist the Financial Aid office in determining your Financial Aid award.  It is also important to check with your school's Financial Aid office to see if they require any other paperwork in addition to the FAFSA(i.e. PROFILE).  PROFILE is a service of the College Board and many colleges, universities, professional schools, and scholarship programs use College Board PROFILE to help them award private grant and scholarship funds.  Some schools may require that a PROFILE form needs to be completed for institutional aid in addition to the FAFSA.  The list of colleges, universities, and scholarship programs that use PROFILE can be found online at the PROFILE site accessible through www.collegeboard.com.  If you are required to file the CSS PROFILE, it must be filed online.  Before you begin filing, you must register to become a PROFILE member.  All students are charged a $25 fee (as of 2008) for the initial application, which covers creating your profile and the first school report.  You will be charged $16 for any additional college or program you want the PROFILE information sent.

Once you receive and clearly understand the award letters from all the colleges you are still considering, you can weigh all the factors - a college's reputation, programs offered, location, financial aid award, etc. - and make your decision on which one to attend.  Most colleges give you until May 1 to decide(but check with each institution for a specific date).
Once you have made a final decision, you should:
1. Notify the admission office of the college you will attend.
2. Notify the financial aid office that you wish to accept their aid award.
3. Notify all other colleges you were considering that you are withdrawing your application.