What is Financial Aid?

Financial Aid is the means by which many students today help pay for their college education. Financing a post secondary education is an investment in the future. It is a shared responsibility between the student (from savings, summer employment, loans, or working during the academic year), the parents (from their assets and income), and the post-secondary institution or scholarship agency (from financial aid offered to the student).

Most students will need financial aid to attend the college of their choice. There are several ways for you to receive such assistance. Aid comes in the form of loans, grants, scholarships, and jobs.

• Loans: Amounts of money that must be repaid by the students or her/his parent(s). Many loans have a very low interest rate (5-8%), and repayment usually does not begin until several months after the student leaves school.
  
• Grants: Money that does not have to be repaid by the student. Grants are almost always based upon need; usually no other qualifications are necessary.
  
• Scholarships: Funds that do not have to be repaid by the student. These may be based upon need or upon some special skill, talent, or academic achievement.
  
• Jobs: Payments of cash given to the student who has a job that has been arranged by
  the college financial aid office, utilizing the funds from the work-study program.
  

Financial Aid that is awarded by the post-secondary school is entitled a Financial Aid Package. It usually includes a combination of the aforementioned funds. Some aid is given based upon need; some is awarded because of special talents or achievement.


How do I apply?

Parents/Guardians have an obligation to finance the education of their children to the extent that they are able. The determination of a family's ability to pay is determined by the submission of the Free Application for Federal Student Aid (FAFSA). The FAFSA may be obtained from the Counseling & Career Center in late November. Complete the form and mail it as soon as possible after January 1 of your senior year at high school.

Many colleges have a very early deadline for financial aid. After six to eight weeks you will receive a Student Aid Report (SAR) in the mail. Remember there are many other kinds of aid available. Keep a copy of your Financial Aid Application in case you need to make corrections or refer to it later!


How is my financial aid eligibility determined?

Most financial aid is awarded on the basis of "financial need." Your financial need is determined by complex calculations based on information provided by you and your parents in the FAFSA you fill out. Based on these calculations, the college you attend will offer a "financial aid package" for you, consisting of different types of aid which are available. A package could include Pell Grant, Work Study, Tuition Waiver, or Student Loans. Student loans should be offered and accepted only as a last resort, as these must be repaid when you finish your schooling.

• Pell Grant: Is a federal grant program which provides money to help undergraduates pay for their education after high school. This is the largest federal student grant program. Eligibility is determined according to a form developed by the U.S. Department of Education. The dollar amount you receive is determined from the Student Aid Report you receive after mailing away your financial aid application form for processing.
  
• Supplemental Educational Opportunity Grant (SEOG): This campus-based award is designed to assist students who demonstrate the greatest financial need. Grants can range up to $4,000 a year, depending on availability of funds and the amount of other aid you are receiving.
  
• Parent Loan: This low-interest loan (5%) program for students allows up to $4,500 if the student has completed fewer than two years of undergraduate study or is enrolled in a vocational program. Third-year students see the maximum raised to $9,000, and graduate students can qualify for up to $18,000. The award depends upon the amount of money available at the school, and the amount of other aid the student is receiving.
  
• Federal and State Work Study Program: This program gives the student the opportunity to earn money to offset educational expenses. The school, upon determining eligibility, will help locate a job on campus or with an outside public or private non-profit organization. Pay ranges from minimum wage to salary reflecting the student's qualifications to do sophisticated work.
  
• Stafford Loan (formerly GSL): This is another loan program, based upon need (as determined by the financial aid office). Undergraduates may borrow up to $2,625 for each of their first two years, $4,000 during their third and fourth years. Additional funds are available for graduate students. The interest rate is 8%, which the student begins paying back 6 months after leaving school or becoming less than a half-time student.
  
• Parent Loans for Undergraduate Students (PLUS) & Supplemental Loans for Students (SLS): PLUS loans are available to parents of dependent undergraduate or graduate students enrolled at least half-time at a participating school. The interest rate is 12% and repayment begins immediately. SLS's are the same funds, issued to independent students. The annual loan limit is $4,000, with a cumulative limit of $20,000.
  
• Washington State Need Grant (SNG): This program assists financially disadvantaged students wishing to obtain a post-secondary education at a Washington college or public vocational-technical institute. Filing a FAFSA assures you of consideration for the grant. You must attend full-time.
  
• Washington State Tuition Waivers: State-supported two- and four-year colleges automatically
  consider students with substantial need for tuition waivers when they apply for financial aid.
  
• Private Resource Education Program (PREP): This loan program is not based upon need. No maximum limit exists; however, interest rates tend to reflect the current market level. For more information on loan terms and application forms, contact the financial aid officer at the school the student is planning to attend, or write to:

• Institutional Grants and Scholarships: Most colleges have a number of grants, scholarships, and other financial aid. Consult the financial aid office at the college to which you are applying.

NOTE: Information subject to change without notification. Consult institution for up-to-date information.
 
The Free Application For Federal Student Aid (FAFSA):

• Use information from the current year's income tax to fill out the FAFSA. If current year information (2000) is not available, estimates can be used but will have to be corrected at a later date.

• Parents should attempt to complete tax returns as early as possible.

• It is important that the FAFSA be complete and accurate. The post-secondary school will verify your information utilizing parent and student tax returns which they will require from you.

• Mail the completed and signed form, as soon after January 1 as possible, to the address on the front of the FAFSA. Be sure to include appropriate fees. Some fee waivers are available. See your counselor for additional information.
  
• Be sure to check "yes" for Pell Grant and for state agencies. These are lucrative sources for financial aid for families with demonstrated need.
  
• Complete the section indicating which schools you want the information sent to.
  
• Make a copy of your FAFSA before mailing. It sometimes gets lost in the mail!
  
  

NOTE: Write a letter to the schools you are seriously considering, and request information and applications regarding their financial aid programs. You will have to fill out their forms and mail them directly back to each of the schools in a timely fashion.

NOTE: Some colleges and universities require the "Profile" form and some require both the FAFSA and Profile forms. Check the college catalog or with the financial aid office to be sure which form(s) to file. The "Profile" form requires a two-step filing process and an earlier start date. Read the directions carefully.

NOTE: Even if you feel you may not qualify for significant financial aid, you should complete the FAFSA form. Many colleges make their decisions about their distribution of aid based upon the FAFSA form.

Student Success Strategies For Financial Aid:

1. Take responsibility for your money and your finances: learn the billing system and how your financial aid is applied to your charges; know the financial aid requirements, especially the school's Satisfactory Academic Progress policy which explains the required minimum credits you must register for and complete.

2. Plan Ahead: apply early; earn and save; try to keep your loan debt as low as possible; be frugal; use a personal planning calendar.

3. Organize your papers, lower your stress level: use file folders (they are useful and inexpensive gifts); keep copies of important papers, letters, and forms you submit.

4. Read the information: especially the Stafford loan information and all information explaining your finances and financial aid.

5. Expect a lengthy process: be patient, clear, persistent, and polite--you will then be helping staff to more effectively help you. Appointments with financial aid counselors are usually available through the financial aid office.

6. Ask for help: learn which office will be the most helpful for questions about:

. Bills and charges: usually the school's cashier and the office for student accounts.

. Financial Aid, scholarships, short-term emergency loans: the financial aid office.

Employment (for part-time employment on and off campus, and volunteer opportunities): most schools have a job board and/or center for coordinating employment listings.

. Stafford Loan disbursements: first contact your lender (the one to whom you gave your Stafford loan applications), as they determine when your loan funds will be sent to the school--allow about one week after their expected disbursement date for funds to be available.

7. Keep your address current with the school you will be attending (usually the office of the Registrar) have your mail forwarded with the U.S. Postal Service.

8. Have your own money for initial expenses, even if you will be receiving financial aid. Financial aid is not available until after academic term starts.

FINANCIAL AID: Assistance in the forms of Grants, Scholarships, Employment and Loans.