‘Tis the season to complete the Free Application for Federal Student Aid (FASFA) for the next school year. And considering that the price of a 4-year college education has increased more than 15% since 2008, students and their families are looking for every available source for funding. As you begin the process, use these tips to get the most financial aid coming to you.
Find out the deadlines —Each college and university has its own deadlines for various types of financial aid. Make sure to find out what those are so that you don’t miss your chance to apply for scholarships, grants, fellowships and the like. Also be aware of different dates for filing the FASFA at your college.
File early —Even if you or your parents need to estimate taxed earnings, it’s a good idea to get the FASFA in as early as possible. Many schools are moving to a “first come, first served” policy for financial aid, so the sooner you can get the FASFA filed, the better. If necessary, you can always make changes to it later once your taxes are completed.
Change your FASFA —If your family’s financial situation changes during the year, you can modify your FASFA to reflect those. Many families don’t do this because the loss of a job or a divorce is embarrassing. But if it makes a difference between having student loans or not it is worth the awkwardness.
Spend down your savings —If you or your parents have large savings accounts, it is wise to spend some of it before filing the FASFA. Since savings account figures are considered assets, these numbers must be disclosed. If your family has been planning to make a large purchase anyway, take advantage of lowering your bottom line by buying it now.
Bargain for better aid— If your first-choice school doesn’t offer you what you need to accept their offer to attend there, and especially if other schools have offered you a much larger financial aid package, talk to your assigned financial aid administrator at your first-choice college. You may be able to get more aid if they know that the cash on the table is a deal-breaker.
Be honest —It’s smart to take advantage of strategies to improve your financial situation on paper, but it is dumb to lie on the FASFA. This holds stiff penalties. And you don’t want to start your life off with a huge lie hanging over your head.
Apply for scholarships — Scholarships are easier than ever to locate with the use of the Internet. There are all types of scholarships out there for students of different descents, hobbies and skills. There are several trustworthy sites that outline scholarships that individual students are qualified for, and they will even email you when a new one has been added. Many scholarships get very few applications, so it is a great idea to increase your chances by applying for as many as possible.
Ask Gramps to open a 529 —Since savings plans for parents and students will usually be included as assets on the FASFA, ask your grandparents to open a 529 College Savings Plan for you. Then, when holidays and birthdays come around, ask that family and friends donate the bucks they would normally spend on a present to the 529. There is no better gift than getting an education without a mountain of debt at the end of it.
Take advantage of Federal Work Study (FWS) —Many college students find that their grades are higher when they work part-time as well as go to school. This is because they must manage their time better and there is less down time to spend money. It’s also harder to spend cash frivolously when you have worked hard for it. Check out the choices of jobs you can apply for if FWS is an option for you. You may be able to find one that is related to the degree program that you are in, which is another plus.
Comparison shop —If you must take out a private loan to fill in the financial gaps to pay for tuition, books and housing, keep in mind that not all private loans are the same. There are always a few companies targeting the college market by offering lower interest rates and varying repayment options. Look at many different banks and other lending institutions before deciding on which to apply for. If you have a student account with a bank, check with them to see if they have offers for long-time customers. Many colleges have comparison charts on their financial aid website to assist students and parents find the best deal for them.