Financial Aid - What is it?
Key Terms
- FAFSA - Free Application for Federal Student Aid. This form is what
the federal government uses to determine how much and what types of aid a
student is eligible for. The form is completed using the student and the parent
tax information, if the student is dependent. The form includes assets such
as real estate, investments, business equity, etc. The amount of aid and types
of aid will be determined using this information. The student should see their
individual College/University about priority dates and dead lines.
- Pell Grant - The Pell Grant is a federally controlled grant. The
grant is issued from the federal government to eligible students from the
information given on their FAFSA. The Pell grant is a grant that you do not
have to pay back and do not pay for. If a student is eligible for the grant
- the grant is given. The Pell grant does not run out and is not a scholarship
that has to be won.
- Federal Stafford Loans - These loans are guaranteed student loans
from the government. This money must be paid back. However, the student loan
does not go into repayment until 6 months after the student graduates or drops
below half time. (For UCCS half time is 6 hours). There are two types of Stafford
loans one is Subsidized - the government picks up the interest until the student
graduates. The other is Unsubsidized. The interest begins to accrue immediately.
The student does have the option to pay the interest or let it capitalize.
The students should see their individual College/University about amounts.
- Federal PLUS Loans - These loans are specifically set up to help
the parents of dependant students. (The FAFSA has specific criteria for dependency
status). The loan goes into repayment immediately, once the money has been
disbursed. See your individual College/University about the details of the
loan application process.
- Scholarships - Scholarships are free money. You do not pay for them
or have to pay them back. There are millions of types of scholarships and
several different scholarship services. When applying for a scholarship -
a student or parent should not be afraid to ask about the scholarship. If
a parent or student is asked to pay for a scholarship - they are being scammed.
Again - see any local college/university financial aid office when researching
scholarships. Most colleges/universities have a scholarship coordinator that
will have information on scholarship searches.
Sources
WEB Sites:
Most universities will have a link to their financial aid office from the
main home page.
What to look for.
Key phrases and words to look out for as a parent/student looking for outside
resources for Financial Aid.
"You can't get this information anywhere else"
Wrong! Even specific scholarship information can be found somewhere
else.
"This scholarship will still cost you some money"
Wrong! No financial aid costs the student/parent anything.
"We need money to hold onto your Pell Grant"
Wrong! The Pell grant is free federal grant money specifically set
as side to help students with post-secondary education.
When in doubt - call and ask any local College/University financial Aid
office before trusting anyone with your child's future.
Consumer help Line 1-877-382-4357
Contact the Better Business Bureau and/or the Attorney Generals Office to inquire
about any for profit organization that offers to assist with college tuition
services.
Most organizations for financial aid services are NON-PROFIT! No one should
pay money for these services.
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