FINANCIAL AID & SCHOLARSHIPS Be sure to attend the Financial Planning Seminar at Glenbard West Tuesday, November 15, 2011 at 7:00pm in the Library Information and Resources FAMILY RESOURCES There is no other way of saying it--attending college is an expensive proposition. The only sure bet in finding money to finance a college education is looking at the college savings plan(s) that your family has established. This is the only money that you can truly count on for paying for college costs. And colleges expect that you will contribute some of your own resources, hopefully from these established college savings plans, toward the cost of your education. Remember, the only free money that you might get, meaning money that you do not have to pay back, will come in the form of scholarships or grants. Scholarships are for the truly gifted. Grants are for the truly needy. If you fall somewhere in between, then your family savings will surely be a factor in financing a college education. To help families plan for meeting college costs, the Glenbard West Guidance Department sponsors a Financial Planning Seminar for parents each year in November. Check the Guidance Calendar for the exact date and time. For more general information about the financial aid process, call the Illinois Student Assistance Commission or ISAC at 1-800-899-4722 or connect to their website: CollegeZone.com UNIVERSITY FINANCIAL AID/SCHOLARSHIPS Once a student has narrowed down his/her college choices to those colleges to which the student will apply, it is time to contact the financial aid office of those colleges. Remember that the different types of aid that a student receives--scholarships, grants,loans, and/or work study--will be packaged and offered to you by the college you attend, regardless of how you applied for financial aid. When you call the college financial aid office the first question should be, "What forms do I need in order to apply for financial aid?" Nearly all colleges will want you to fill out the FAFSA, or Free Application For Student Aid. (View the FAFSA section later, or click here now): FAFSA Another form commonly used, usually by private colleges, is called the PROFILE. If a college wants the PROFILE, it will want to take a closer look at such items as home equity and retirement plans that the FAFSA does not consider. In addition, the college may have its own financial aid form. Only by filling out all required forms will you be eligible for financial aid, so it is indeed a worthwhile, although time consuming activity. Another request that you make when calling the college financial aid office is, "Please send me a list and description of all university scholarships for which I might be eligible." Nearly every department in the college offers several scholarships for students in their major. In addition, many colleges, particularly private colleges, have scholarships in the name of benefactors to the college. Some of these scholarships can be full ride scholarships , that is they cover all costs, including tuition and room and board. Don't overlook these valuable scholarships! Another good question for the financial aid office is, "If I show financial need, what percent of my demonstrated need will your school cover?" Some colleges will cover 100% of demonstrated need, while others might cover only 80%. If cost is a determining factor in choosing a college, this practice, called "gapping" could be the determining factor. For example, let's say that College A and College B each costs $10,000 and your demonstrated need is $6,000. If College A covers 100% of demonstrated need, you will receive $6,000 in financial aid. If College B practices "gapping" and will only cover 80% of need, you will receive only $4,800 in financial aid. To attend college B you might have to take out an additional loan to cover the unaccounted for $1,200. This leads to another important fact concerning the college financial aid office. While they might not admit it, many colleges will negotiate with you. In the above scenario, if College B is the school you like best, but financial aid is a major consideration, it is suggested that you negotiate with the financial aid office. Actually, some colleges might be offended if you use the word "negotiate" . Instead, present the financial aid officer at College B with the package received from College A, and ask them to "reevaluate" their financial aid package. You will have better luck with this "reevaluation"at small, private colleges. State schools probably will not reevaluate their financial aid packages and the Ivy League schools don't have to, since they have so many students who apply and will pay. However, go ahead and ask, all they can say is "no". FEDERAL AND STATE GRANTS, LOANS, AND WORK STUDY A variety of need-based grants, loans, and work study opportunities are administered through the federal and state governments. Students become eligible for these sources of aid by filing the FAFSA form after January 1 of their senior year. In Illinois, these programs are administered by the Illinois Student Aid Commission or ISAC. To learn more about these programs call ISAC at 1-800-899-4722 or connect to their website here: CollegeZone.com LOANS If, for some reason, you don't get a scholarship, don't give up. Nearly every college or vocational school has loan funds at its disposal. Many organizations also offer loans. Most loans provide for repayment following your graduation. Consider carefully your repayment responsibilities before you borrow. You're betting on yourself when you borrow to further your education. Before borrowing a penny, it is a good idea to call the financial aid office of your college to ask if the college participates in the Direct Student Loan Program. If they do, the college can set up your loan, rather than having to apply at a bank. If the school does not participate in this program, then you will have to apply for these lower interest loans through a bank. Most banks participate in the Stafford Loan program, so you might want to start with your own bank. Since some of these federally subsidized loans have loan limits, you might not be able to borrow enough to cover all of your college costs. Never fear, another program, the PLUS loan, will allow your parents to borrow any remaining costs not covered by your financial aid package. For more information call ISAC at 1-800-899-4722 or connect to their website here: CollegeZone.com FAFSA or Free Application for Federal Student Aid What It Is The FAFSA or Free Application for Federal Student Aid is an application form used to determine a student's eligibility for state and federal need-based grants, loans, and work study programs. When To File The FAFSA cannot be filed until after January 1 of the year you intend to begin college, since the information required for the form is based on your previous year's tax information. Even though you might not have all of your tax information on January 1, you can still send in the FAFSA by supplying estimated information which you can correct later. However, waiting until you have received your tax information is the best way to complete the form. If you can send in the form by February 1, there will still be money available should you qualify for any of the programs. How It Works    * Apply online at FAFSA.ed.gov. A link to this site is found at the bottom of this page.    * The regional processor scans in your data and transmits it to the central processor system or CPS.    * The CPS matches your application information against several national databases to verify your eligibility for aid. For example, it checks your Selective Service status, your Social Security Number, and your citizenship status.    * The CPS checks your data for inconsistencies.    * The CPS evaluates your finances and calculates your Expected Family Contribution or EFC.    * The CPS incorporates your EFC into a multi-part eligibility document called a Student Aid Report (SAR).    * The CPS sends you a copy of your SAR. You check it over for accuracy and report any errors. This is the form you use if you originally sent in estimated data.    * The CPS transmits your data to all colleges you list on your FAFSA.    * The CPS transmits your data to your state higher education agency.    * Based on the information received through this process, your college sends you a financial aid award letter. Ways To File    * FAFSA on the Web will create an electronic record of your application and transmit it to the Department of Education over the Internet. To access FAFSA on the Web, click here now: FAFSA on the WEB The official FAFSA website is www.fafsa.ed.gov.  Do not be fooled by fafsa.com, which is a website that uses the FAFSA name to lure you to their site and then tries to get you pay for scholarship information. Glenbard West does NOT endorse fafsa.com. If you choose to file the FAFSA online, first you will need to get a PIN, or number that allows you to sign your FAFSA electronically. You can obain your PIN atwww.pin.ed.gov Determining Your Financial Need   1. Determining Your Estimated Family Contribution (EFC)   2. Determining Your Financial Need   3. Determining Your Financial Aid Package Determining Your Estimated Family Contribution Need analysis is a standardized process of evaluating financial ability to pay for a college education. If you are applying for any financial aid based on need, you submit need analysis information, usually through the FAFSA form, but some colleges use a form called PROFILE and some use their own form. Call the financial aid office of your college choice to find out which form(s) are used. The information is evaluated using a method approved by the U.S. Congress. The analysis results in an amount called the Expected Family Contribution or EFC. The EFC, then, is the amount of money a student and their family are expected to contribute to the costs of attending college. The colleges then use this EFC to determine the Financial Aid award they will offer. Many colleges will estimate your EFC if you call the financial office. This will give you a ballpark figure on which to base your college costs. Determining Your Financial Need Your financial aid administrator at the college calculates your cost of attendance and subtracts the amount you and your family are expected to contribute (EFC) toward that cost. If there is anything left, you are considered to have financial need. In other words the cost of attendance minus the Expected Family Contribution equals Financial Need.  Every school is required to have a Financial Aid Calculator of some kind on their website to help you calculate need.  See the schools you are interested in for specific information/details. Determining Your Financial Aid Package The college then decides how much of this need will be met by federal grants, scholarships, loans, and/or work study. Remember that each college puts together their own award package based on that particular college's financial structure. So even though all of the colleges receive the same information (EFC) from the FAFSA, they will package your financial aid award differently. That is why you are likely to receive a larger award package from a private college that has a large endowment and a smaller package from a state university that has little or no endowment funds. Links for Financial Aid Information FINANCIAL AID SITES Illinois Student Assistance Commission - ISAC U.S. Department of Education - Information about federal student aid FAFSA on the Web: Do not confuse this site with fafsa.com, which is a website that uses the FAFSA name to get you pay for scholarship information.     Federal Student Aid Information - Related to the above website Register for a PIN for filing the FAFSA electronically College Aid - Loan and scholarship search Wells Fargo Bank Educational Loans and Other Resources Lunch Money - Scholarship information, searches and other services Managing College Costs  - This educational website includes a 25 minute lesson for students and a video library of 30 seminars (each 3 to 10 minutes in length) for parents.