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Are you afraid you may not quality for financial aid? Don’t be. Given the variety of financial aid available, every student can benefit from applying for financial aid. Whether you’re a brand new college student or returning to finish an undergrad degree, masters or PhD, you may qualify for subsidized and unsubsidized student loans, grants, scholarships and even work-study awards. However, you’ll never know unless you apply for financial aid.
When applying for financial aid, your first step is to find out what types of aid are available to you. Check with your school’s financial aid office to learn about school, local organization, and government-funded scholarships and grants. You may be asked to fill out the school’s financial aid application in order to be considered for any work-study award. You may qualify for scholarships and grants based on your talents, ethnic group or financial situation. You may qualify for a work-study award based on financial need.
The majority of students fund their college educations with financial aid in the form of education loans, many that are subsidized by the government. While all loans must be repaid, government education loans offer low interest rates, deferred payment and flexible payment plans. These features make them a stellar choice for any student needing to finance his or her education. Government education loans include the Stafford loan and Perkins loan for students, and PLUS loans for parents, professionals and graduate students.
In order to apply for a government education loan, you’ll need to fill out a Free Application for Federal Student Aid, also known as a FAFSA or federal financial aid form. You can actually submit the FAFSA online and receive your completed Student Aid Report (SAR) within a week.
Before filling out the FAFSA, you’ll need to gather documentation including your social security number, W-2 forms from the previous year, current pay stubs and records of any other income earned in the previous and current year. You will also need your previous year income tax return (and your spouse’s if married), your parent’s previous year income tax return (if you are still a dependent), your bank statements from the previous and current year, and records of any investments or business holdings.
If your parents intend to take out a PLUS loan on your behalf, they will need to submit a separate application. Some financial aid counselors recommend that they postpone this step until after you’ve received a financial aid package from your school so they will know exactly how much they need to apply for in order to cover the remainder of your education costs.
If you’re wondering how the school determines how much federal financial aid to award you, based on the information submitted on your FAFSA, the answer is the EFC number. Your EFC number (or Expected Family Contribution number) is the amount you and your family are expected to contribute to your education before any federal assistance. Once your school’s financial aid office has this number, they can put together a financial aid package to help you cover the difference.
Applying for financial aid can be a time-consuming process. It is best to submit your FAFSA as early as possible as the EFC number generated is essential to any federal financial aid award. Some schools may require you to fill out an additional state financial aid application. Still others may also require you to submit a CSS/Financial Aid Profile as well to determine any non-federal financial aid awards.
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