Some Financial Aid Basics

EVERYONE SHOULD APPLY
No matter your financial situation, you should always apply for financial aid. Nearly every U.S. citizen is eligible for some form of financial aid including, subsidized-interest federal student loans, regardless of income. Additionally, all families should file for federal financial aid because some colleges and universities will not consider a student for institutional aid unless a federal application form is on file.

ATTENDING AN EXPENSIVE SCHOOL
Attending an expensive school might actually mean that a family will qualify for more aid than if the student attended a lower-cost institution. That is why it is important to choose a college based on academic interest and ability, and not on finances.

TYPES OF FINANCIAL AID
There are two basic types of financial aid; gift aid and self-help aid. Gift aid includes grants, which are determined by your financial need and scholarships, which are usually based on academic performance. For graduate students, there are fellowships, which are based on merit. Self-help aid includes subsidized interest loans, which must be repaid, and government work-study programs.

GETTING STARTED
The first step in getting financial aid is to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA will help determine the amount of federal aid for which you may be eligible. You can find out more about the FAFSA, as well as download or fill out the form online at www.fafsa.ed.gov. Note that eligibility for the federal Parent Loan for Undergraduate Students (PLUS) loan program is not determined with this application.

TWO OR MORE IN COLLEGE
The federal assessment of aid eligibility is based on an "expected family contribution"--- the amount of money that parents are expected to shell out, based on their financial picture. That expected outlay stays the same no matter how many kids you have in college at the same time. So if you have two or more children attending college, your expected contribution is split among them. You are likely to qualify for more aid when you have multiple children in college at once.

Complied by NICCP