Happy Mother’s Day!  At Go Financial Aid, we are committed to sharing sound financial advice with college students and their families.  However, we do like to talk about college as a whole sometimes, and with today’s holiday, it seems like the perfect opportunity.  But where to start?  Well, it seems that all mothers have at least one thing in common: worry.  Our families do wonder about more than how to get FAFSA money, so let’s take a few minutes and talk about some of the things that moms worry about when they send their children to college.

The little things.

Students, when you head off to school, be it freshman year or senior year, mom is going to worry about whether you packed enough undies, if you’re eating enough and if you know how to find your classrooms.  She’s going to bite her nails over if you got enough sleep, and if not, whether you will sleep right through your alarm (Ok, moms…That one may happen a few times, but we really do try to avoid it!).  They will worry that if you get sick, who will be there to take care of you?  Moms, find some comfort in the fact that your child’s school has a health services office; which at the very least can dispense aspirin and cough syrup.  It’s not momma’s chicken soup, but it’ll do.

The big things.

Moms, you know a million things run through your mind when Sally or Tommy goes away to school.  Given the recent history of school tragedies, moms have legitimate concerns about campus safety and the well-being of their students.  These days, colleges have carefully implemented safety measures for the security of their students.  It’s very common to have text message alerts in case of campus-wide issues.  Just this spring, The University of Pittsburgh experienced a rash of bomb threats to several of its main academic halls.  Email and text message alerts were utilized very heavily and ensured that all students were aware of current concerns.  In the case of personal emergencies, college campuses also scatter emergency phones throughout the grounds, easily noticeable by their bright blue lights.  One touch of a button will dial 911.

Of course all moms worry about the D-word: drinking.  It happens at every university, and along with parties.  Unfortunately, there isn’t much to do about that when the student is at school and mom’s at home.  Schools have ways to deal with this, however.  If a drinking party is happening on-campus, university police officers are there to deal with underage violations and other emergent situations.  Many schools also require first-year students to attend a one-credit course designed to familiarize them with the college experience.  Such courses do in fact cover those hard subjects of drinking and legal/health repercussions of engaging in such activities.  Lower class students are usually assigned to dry housing, which allows no alcohol whatsoever, and universities offer counseling services for students who have developed dependency problems.

Academic performance.

Yes, students, mom wants you to keep your grades up.  Let’s face it, going off to college means having more freedom than ever before.  BUT that’s no reason to let performance suffer.  Most schools have academic support, which includes study advice as well as tutoring services in subjects like writing, math and science.  Perhaps, too, that students have legitimate reasons for low academic performance, such as a longer and more difficult struggle adjusting to college life.  This results in anxiety and depression, and counseling services are available for all.

College is a tough transition for all involved.  And as one mom put it, “I do feel sad when I walk by his empty room.”  But ultimately, amidst all the anxiety and worry that moms feel, a major realization that occurs to all of them: how happy they are to have their child, how their child is out bettering him/herself, and that in the long haul they will be just fine.

Happy Mother’s Day.  Check out our solutions center anytime for more college advice and financial aid help.

In light of this startling realization, it’s a good idea to get ahead of the game.  As one expert puts it, “Know what you owe.”  There are a few ways of figuring this out…

Before you leave school, head over to the financial aid office.  For a quick refresher of what loans (and in what amounts) you took out at the beginning of your education so many years ago, ask the college financial aid office for any information they can give you regarding this.  Talking to university financial aid personnel can give a student all the info they need in one stop—including how much total loan debt they have.

Keep an eye out for loan exit interview notifications.  When you took out each education loan, you (or your parents, on your behalf) filled out lengthy applications which informed you of your responsibilities regarding the money that you were borrowing.  The exit interview is a sort of survey or test that each borrower is required to complete to ensure that they still understand the responsibilities they have in paying the money back.  As graduation approaches, or soon after, your lending organization will get in touch with you and prompt you to go to a website and complete this (for each loan).  Information included may be various scenarios in which a loan is forgiven (waived) and how long the loan’s grace period is (usually 6 months).  This will likely have a completion due date and will provide information on what you owe.

Check out the National Student Loan Data System .  You know how a dictionary has information on every word in the English language?  Well, the NSLDS is sort of like that, only it has loan info instead of definitions.  On this site, you can find out thorough information on each and every loan you have taken out for school.  Keep in mind that this applies only for federal loans, and any private loan information will need to be gathered and calculated by other means.  Each loan entry will tell you how much you borrowed, when you borrowed it, what kind of loan it is (subsidized/unsubsidized), how much you owe on the loan (principal), how much is owed in interest, and much more helpful information.

Compare your records.  Make sure you have an accurate picture of what you will need to repay by comparing the information you got from school, mailed notifications and the online system.  Any discrepancies you find will have to be taken up with the corresponding offices/information sources, and maybe even the Department of Education.

Once you feel that you have a good idea of the loan debt you have, keep the information together and organized.  You don’t want to be caught off guard upon forgetting about a loan, suddenly needing to scrape money together before your first payment is due. With each payment you make, keep a record of it—either written down or in the form of a payment receipt from the loan organization.  If needed, make copies of canceled check records from your bank so that you know that payments were received and cashed, in case someone claims that a payment was not received.

The underlying messages here are simple: when it comes to students loans be in-the-know and be organized.  Such habits will make this daunting new responsibility easier to bear.  Go Financial Aid is always here to help, so if you have a question or just want some more information, check out our solutions center or contact us.

Change is on the horizon, and it has some folks concerned.  In July of this year, federal financial aid is getting a facelift.  What’s scary for some is that the rules are changing, which is an effort to reduce government spending.

Let’s get a breakdown of major changes…

• Education level and financial aid

Right now, students who did not graduate from high school or obtain a GED are able to move on to college level courses of study via specialized exams.  Alternatively, they may take 6 college credits to be deemed ready for full college study and receive financial aid.  Come July, all federal financial aid recipients MUST hold a high school diploma or GED.

• Automatic Zero Expected Family Contribution (EFC)

Your EFC is what your family is responsible for paying out of all of your college costs, and it is based on your financial stability.  The lower your EFC (money out of YOUR pocket), the higher your financial aid eligibility (what you can receive from the government).  Previously, families with $32,000 or less in annual income were eligible to have their personal college costs waived.  With the change in July, this income limit takes a nosedive down to $23,000.  For the 2012-2013 academic year and beyond, students whose families earn less than $23,000 may have their EFC total zeroed, where those in the $32,000 camp will now find themselves owing more for school.

• Length of time students will remain eligible for federal aid

As it stands currently, the maximum amount of time individual students have to complete a degree with the assistance of federal financial aid is 9 years.  New regulations will decrease this time to 6 years.  You will remain eligible for financial aid for 6 years, or 12 semesters, of full-time enrollment.  The previous standard allowed 9 years, or 18 semesters.  While some may wonder why it would ever take this long for someone to graduate, different life circumstances as well as academic performance must be taken into account (i.e. time off due to a death in the family, or your grades weren’t exactly stellar).  If a student is only part-time (less than 12 credits per semester), the limit changes to 12 years (student is only exhausting half of their potential aid).

• Graduate student loan eligibility

Grad school is tough…and expensive.  Just like undergrads, these students rely heavily on loans to finance their education.  You may already know that loans, such as the Stafford, come in two forms: subsidized and unsubsidized.  Subsidized loans are need-based, and are a little less intimidating, given that the government handles  interest payments during school.  When you have a subsidized loan, the interest doesn’t grow while you’re in school.  Unsubsidized loans are helpful, though the interest that gathers over the years becomes money that you owe later (on top of your existing loan).  The change that is arriving for next year is that graduate and professional students will not be able to obtain subsidized loans from the government.

• Subsidized Stafford Loan interest

One major change that has politicians, school officials and students in an uproar is the interest rate increase for this loan.  Currently capped at 3.4% interest when students go to repay it later, the subsidized Stafford loan will rapidly ascend to twice that—6.8%!  According to a law enacted by Bush in 2007, the initial rate was 6.8 and dropped, scheduled to return to normal for the next year.  Students at colleges like Stony Brook are pleading to the government, fearing the financial impact on their families.

There you have it.  Change is gonna come, and its coming soon.  Be sure to familiarize yourself with the full list of new rules for federal financial aid on the federal student aid site, and visit our solutions center for help with your financial aid needs!

Ah, Spring is in full swing, and summer will be here before you know it.  High school seniors can almost hear the sound of  “Pomp and Circumstance” already…For now, though, many students are preoccupied with college decision-making.  It’s about that time of the year when mailboxes are flooded with envelopes from universities, hopefully containing the phrase, “Congratulations!  You’ve been accepted to [insert school name here]!”  Once you’ve gotten all of your acceptances, the hard part starts: picking ONE school.  These days, this decision is based heavily on finances.  Which school will leave the smallest dent in your bank account?  Luckily, a new financial aid comparison tool has just been released to help take some of the guess work out of that mystery.

The Consumer Financial Protection Bureau just launched a new comparison tool, which, upon entering your financial aid award offers from each school offering you acceptance, should present an accurate side-by-side look at the impact each institution will have one your wallet (and future education debt).  At the most basic level, students can simply enter college names (up to 3 at a time) to see estimated costs (tuition, room & board, etc.), the average amount of gift aid received (grants and scholarships), the total amount of debt to expect and how much this debt amounts to in monthly payments post-college.

It’s after the individualized information is entered that this new tool really shines.  Inputting info from the letters each school sent, including expected family contribution (EFC), gives a broader picture.  Comparing the schools will give you the “sticker price,” but it will also take into account the estimated aid you have been offered, so a $50,000 a year college becomes a $30,000 a year school.  Looking more in-depth at each institution also gives students an idea of the schools overall–say, what the graduation rate is, for instance.  So it helps you peek ahead into how successful you think you can be at a school.

The information you get here is reputable, too.  The tool uses only info from government statistics, and it covers more than 7,500 colleges (university and community college) and 2-year vocational schools.  It’s worth a shot to take this new financial aid comparison tool for a spin, as it offers a more individualized look at paying for college than does your average financial aid calculator.

As you prepare to make an important education decision, consider giving this a try.  If nothing else, it helps you learn more about the colleges you’re interested in.  And for more advice on college financial aid, head on over to our solutions center!

A common line of thinking questions the very nature of financial aid itself.  As this idea goes, essentially it is copious amounts of financial aid that most students receive that makes college costs go up (and up and up…).  This perception has actually been around for quite a while, and has a name: the Bennett Hypothesis (after William Bennett, President Reagan’s secretary of education).  It came about in the 1980s and has been considered by many ever since.

According to Bennett, who in his capacity as Secretary of Education visited many colleges and spoke to administrators, colleges have the tendency (and ability) to gradually increase tuition because the financial aid that students receive to pay for school allows them to do it.  Essentially, the more school costs, the more financial aid students will receive to offset the increasing price tag.  The problem this created is twofold: more students need aid due to higher tuition AND student loan debt to get students through school makes it more expensive in the end.

A new paper, by economists at Harvard and George Washington University, examined the effects of financial aid.  For a cleaner comparison, the study looks at for-profit schools—i.e. University of Phoenix, Devry, and the like.  Colleges like these have their choice: accept financial aid or don’t.  So the researchers compared schools allowing financial assistance with those that do not, and found that upon looking at over 2,650 academic programs in three different states, schools that get federal aid have tuition rates that are 75% higher than those who don’t!  Such facts support the notion that tuition increases purely to maximize student aid.

It’s been this way with college as a whole since the ‘80s, folks.  Throughout the 1970s, tuition actually went down.  But in the ‘80s, college education gained importance, Congress called for government assistance for education and such aid forms as the Pell Grant and Perkins Loan were born in the eras of Carter and Reagan.

You might wonder how much tuition is impacted by financial aid, however.  Well, in a 1998 book, The Student Aid Game by economists Michael S. McPherson and Morton Owen Schapiro, the estimate is that public colleges hike up tuition $50 for every $100 given in aid. The match is even tighter with private institutions, as demonstrated in a 2007 study by Larry Singell and Joe Stone: tuition increases match dollar-for-dollar that of distributed aid.

Given all of this, a few ideas have been proposed to remedy to tuition-aid problem, one of which is put forward by President Obama.  In this plan, the goal is to tie financial aid to tuition, motivating schools to keep their tuition rates down to receive federal funding.  Another is the Bennett Hypothesis 2.0, by economist Andrew Gillen, who says aid should only go to those truly in need of it and in the amount they need.  Richard Vedder has seconded Gillen’s plan, adding that (much like performance-based scholarships) aid should be revoked from poorly-performing students.  Still others blame state governments for educational woes, claiming that the gradual loss of state support has left more financial burden on students—though this doesn’t account for private university cost increases.

This plethora of information and debate on the college cost crisis certainly gets your wheels turning, making you wonder what’s really going on in colleges across the country.   Indeed, it might not paint financial aid in the best light, either.  But here’s the thing: it’s the schools themselves that are called into question about tuition here, not just financial aid.  Federal financial aid for students enables them to gain a solid education.  And in terms of loans, they can be tricky little buggers.  When you apply for aid, make sure you understand the terms of the loans and the responsibilities that come along with them.  Plan accordingly in selecting financial aid, and always maximize gift aid—grants and scholarships, as they lesson the cost burden.  And as always, Go Financial Aid will gladly provide solutions to meet your needs.

In a time when finances are up in the air and the economy is less than desirable, students and their families are feeling nervous about college.  And, while some schools are certainly doing their part to ease the financial burden caused by tuition hikes with better financial aid programs, the situation is still not perfect.

The fact of the matter is that funding an education is simply harder these days, and state governments are feeling the heat too.  One such situation has recently been brought to light in the state of Illinois, where students are for the first time in a long time being turned away for grant money.  This is because the highly-sought Monetary Award Program (MAP) pot has run dry.

Thousands of students have recently filed their FAFSA, which, as many know, awards financial aid on a first-come basis.  The MAP grant is dispersed along with other FAFSA-related aid (i.e. federal loans), and as such, it too is given to early applicants.  By mid-March, Illinois saw 140,000+ FAFSAs submitted, forcing the usual end-of-month deadline for the MAP to spring up abruptly (March 13^th, to be precise).

The problem facing Illinois this year was a limited budget, combined with 40,000 more students applying for financial aid than last year.  And, while the aforementioned 140,000 college hopefuls will receive the MAP grant (valued at $4,968), that many (if not more) will be denied.  The state is already doling out a large chunk—$387 million—for this grant program, and to accommodate each student would require that total to reach $1 billion.  Still, it is Governor Quinn’s hope to raise $50 million to at least provide 35,000 more students with aid money.

Thankfully for these students, all is not lost.  While the MAP grant is out of reach for the 2012-2013 academic year, other financial aid is still available via filing the FAFSA.  As we all know, financial aid in any amount can be a huge help to families.

Entering college today means learning some hard lessons, including that of being mindful (or better yet ahead) of financial aid deadlines, and the tough reality that some aid is limited.  What this does encourage, however, is looking at college financing from all angles—including looking near and far for financial aid options.  Scholarships, loans, sponsored grants, and everything in between—you don’t know what kind of help you can receive unless you try!  And there are experts who want to help you in your search, too.  Give our solutions center a look, and see how Go Financial Aid can assist you.

It seems a necessary evil that colleges are increasing their tuition these days.  The economy is lean, costs of operating large institutions are up, etc.  So it’s no wonder that each year we see a percentage hike in college costs.  However, some universities have been creative in their methods of counterbalancing the increase.

Some schools, such as Dartmouth, for example, have upped the income level required of student’s families to receive certain financial aid.  In recent weeks, Dartmouth announced a change in its “no-loan financial aid threshold.”  At present, the school does not give loans to families who have an annual income of $75,000 or less.  The new rate, to go into effect in the 2012-2013 school year, will increase this limit to $100,000 per year of income or less.  This is actually a good thing, as it aims to reduce the total amount paid for schooling (i.e. loan interest) and loan debt that students incur upon completion of 4 years of college education.

The change comes on the heels of a nearly 5% increase in annual tuition, which went from $41,736 to $43,782 (total cost of attendance including room, board, etc. amounts to $57,998).  In addition to loan elimination, the college also aims to cover the above tuition amount for students in that $100,000 or less income bracket.  You read that right: tuition itself will be free.  If you take the total COA ($57,998) and subtract tuition ($43,782), these families will only have to pay $14,216 per year in fees.  That’s less than some public universities (and we’re talking Ivy League, here).

This is just one other way that colleges are attempting to help you get through college.  We mentioned last month that other universities are locking their tuition rates, rather than increasing them (the rate you start with as a freshman is the one you keep through senior year—i.e. the University of Colorado Boulder and Augusta State University) and still others are providing assistance on different fronts, such as housing aid (scholarships put toward room and board—i.e. Cleveland State University).

Colleges want to provide access to outstanding academic programs, and they want to help you to succeed.  Keep your eyes and ears open for the ways that schools are making this happen.  And as always, Go Financial Aid is here to answer your questions on all things college—be it preparing to enter college or figuring out the financial end of the spectrum.  Visit our solutions center for more valuable help.

At Harvard, financial aid opportunities have been a huge draw for college athletes.  Over 60% of Harvard students receive generous financial aid awards.  Not only this, but much of this money comes in the form of grants, making loan funds obsolete.  Need-based grants have been increased for all students—low and middle-income alike—in recent years. This fact presents a great advantage to athletes, given that a top-notch education as well as great opportunity to play football, basketball, etc. is available without worry over post-graduation debt.  Coaches say that this is major when it comes to recruiting college athletes.

The thing about Ivy League sports and financial aid is that athletic scholarships are virtually outlawed at schools like Harvard and Stanford.  This puts athletes on a more even “playing field” with fellow non-athlete students.   The grant money is what makes up for this.

Quality academics and athletics are important to these students, though given the choice between a school that will give the chance to play but carry a large debt in its wake versus little to no financial burden later tends to be a no-brainer among students.  Harvard basketball forward Kyle Casey explained it this way: “’If I can go to a pretty good school and go for free, I’d rather do that than go to a very good school, and have to pay and put that burden on my parents.”

It couldn’t be put any better than that.  Finding a balance between cost and academics is important to students, and these factors will continue to be key in college selection and in attracting students to Ivy League schools like Harvard.

Whether you’re an athlete or just a student looking to get the best education possible with minimal financial burden, answers are available for you. Talk to Go Financial Aid today for more solutions to your college and financial aid inquiries.

Financial aid workshops are reasonably brief (a few hours at most) lessons for parents and families on the ins and outs of financial aid for college.  These classes come in a few forms: virtual workshop and standard sit-in sessions.

The Virtual Workshop

Attending a financial aid class in a virtual setting essentially means that you will be at your own personal computer, chatting online with a financial aid expert about the finer points of financial aid.  Go Financial Aid has an excellent virtual workshop service conducted by qualified financial aid consultants.  For specific information, fill out our contact form and we’ll keep you posted on the next session.

The Sit-in Workshop

As you may have guessed by the name, this is a class that participants physically go to, and hear firsthand the information they need to accurately apply for financial aid.  Many colleges hold such programs to assist families during the application process.  A few upcoming classes include the following:

• University of Texas at El Paso-February 14, February 21, February 28
• Gannon University (Erie, PA)- February 16
• Walla Walla University (held at Upper Columbia Academy, WA)- February 18
• Berkeley City College (Berkeley, CA)- February 22 and March 6

Now that you know where to find these financial workshops, take a look at what you can learn from them…

Basic financial aid types

• Loans- Federal vs. private
• Grants- Federal vs. organization-sponsored
• Scholarships- Academic, athletic, sponsored, essay-based, etc
• Work study- How to get involved and eligibility

Application completion

• Information to help you understand the FAFSA– What it is, why it’s important, etc.
• Where to find and complete the FAFSA –web-based vs. paper application
• Necessary info for the application–Personal and financial information to include
• Deadlines–FAFSA start date, FAFSA end date, individual university deadlines
• Mistakes to avoid

What you pay for college

• Cost of attendance vs. Expected Family Contribution
• How your family’s financial situation impacts financial aid amounts

Attending a financial aid workshop can be extremely beneficial, not only to the family members in charge of funding college education, but definitely for the students themselves in terms of becoming educated about their responsibilities during (i.e. maintaining grade levels to receive grants and scholarships) and after school (i.e. loan repayment).  It is important to realize that help in wading the financial aid waters is readily available, and that schools want to see you succeed!  Take these tips and check with your school about financial aid help, and visit Go Financial Aid’s solutions center for more helpful information.

Hey, guys!  We've discussed it before, and if you take a spin around Google, you will see that the talk around the internet focuses on the best ways to obtain college money.  There's good reason for this, you know.  For one, we are smack in the middle of financial aid season, which means that money is on the brains of everyone concerned about college.  More importantly, perhaps, is the fact that higher education is hard on the wallet--higher tuition, cuts in some aid programs; these all affect what students become responsible for in funding their education.

Back in December we talked about how some schools are decreasing the amount of money that families must contribute to university.  The great news is that even more initiatives have been brought to public attention, and should greatly help students and their families in attaining or saving college money.

1.  Guaranteed Tuition.

Maybe you've already been in school a few years, and have seen your college costs fluctuate.  It's true--tuition is mostly on the rise.  The idea behind guaranteed tuition is to eliminate this increase, and to make things easier for students.  Such new programs are promising students that the tuition they start with in year 1 will be the very same amount until the day they grab that diploma (Note: typically applies to standard 4-year course of study).  Schools that have adopted such a policy include:

• Eastern Illinois University
• University of Texas at Dallas & UT-Austin
• University of Colorado Boulder
• Augusta State University

Remember that in some cases, locked tuition rates apply only to in-state residents, however schools like University of Colorado Boulder have designated their program specifically to help the out-of-staters.  Other bonuses exist with programs such as that for Texas, which bills for up to 15 credits only and gives any additional (say you're taking an 18-credit semester) for free.

Housing Discounts.

In either case, be it on-campus living or off-campus apartments, living near school has become more affordable to students.  Many  apartment complexes offer student discounts, such as those near Macon State College in Georgia.  For discount consideration, students need only to present a college ID.

Another way of reducing housing costs has been implemented at Cleveland State University.  Here, the school is essentially providing scholarship money to be applied toward housing.  They call it their Freshman Scholars Program, and students maintaining 3.0+ GPAs who live on campus are eligible to receive up to $5,100 (approximately what one would spend annually on housing anyway).

We know that families are constantly on the hunt for better ways to deal with financing college.  The natural starting point is to look for various loans and grants, and sometimes scholarships.  But isn't it a comfort to know that there is more out there?  College teaches you to think outside of the box--so why not do that when you think of funding such an education?

Go Financial Aid is always here to help you in your search for financial aid.  Stop by our solutions center to learn how we can best serve you.

Happy new year to you all!  Now that 2012 is upon us, it means something else major is too: financial aid season.  Given all of this, now is definitely the time to increase your awareness of the financial aid process.  As a starter, let’s kick things off with a few important reminders.

1).  File your taxes.

Yeah, a new year means tax season, and everyone’s gotta do it.   Taxes are ESPECIALLY important to get a jump on when considering financial aid for college.  In order to complete the ever-important FAFSA, students and families must have an accurate picture of their finances to report to the government on the application.  The sooner you have your taxes and other important documents filed, the sooner you can apply for federal financial aid!

2).  File your FAFSA.

January 1^st marked Day # 1 for this application.  If you’re a veteran college student or the parent of one, you know that the old cliché, “The early bird gets the worm” really does apply here.  Applying for aid early means a few things: you’re at the top of the list for maximum financial aid amounts (more grant and loan money), and, of course, it takes a load off your shoulders!  Consider speaking with a financial aid consultant for assistance with the paperwork.

3).  Know your deadlines.

We already know the significance of January 1^st, and that’s behind us, so let’s move forward with a few more things to bear in mind.  While it’s early to be concerned about the end of FAFSA season, it’s also important to remember when that is: June 30^th.  Students must have their federal paperwork submitted by this date, according to FAFSA standards.  HOWEVER, think of this as the general baseline for everyone.  This is because individual colleges and universities have their own preferences and deadlines for financial documentation.  Your school could perhaps require that the FAFSA be completed by April 30^th, for example.  Just as families must keep on top of financial aid planning, schools do too, and schedules vary.  You’ll want to abide by such deadlines, as your school will be distributing your financial aid (Reminder: FAFSA only estimates the amount, colleges allot it to students).  Other deadlines, such as for the CSS Profile, as also imperative.

The year is still young, and there is a significant amount of time for you to get your colleges concerns in order.  But do make it a priority—the only person it will benefit is YOU!  Stop by Go Financial Aid’s solutions page for more college guidance.

View of UC Berkeley

In a time when pennies are still being pinched and education costs are high, many wonder how they are going to afford college.  The good news is, several schools recognize this great concern, and they are responding with plans to help you.  New college financial aid programs are being developed to assist students and their families afford education at particular universities.  Two "big buck" schools take center stage as the most recent examples: University of California, Berkeley and Harvard College.

UC Berkeley Financial Aid

Just weeks ago, this major university announced a "groundbreaking middle-class financial plan."  The new program aims to make it easier for middle class families whose income ranges from $80,000 to $140,000 annually to afford an undergraduate education at Berkeley.  A major advantage that this sets in place is that the maximum amount parents will contribute to total school costs (tuition, room & board, etc.) is 15% of their yearly earnings.

The Berkeley MCAP (Middle Class Action Plan), as it is known, is the first public university initiative to extend financial aid, and is a response to California's cost of living and recent tuition increases.  University Chancellor Robert Birgeneau notes that, "We see early signs that middle-income families who cannot access existing assistance programs are straining to meet college costs...This plan is part of our commitment to ensuring that financial challenges do not prevent qualified students from attending one of the preeminent public universities in the nation."

The new program is set to begin in the 2012-2013 academic year and will assist domestic undergrads in the established income range (approximately 6,000 of 26,000 students).  The Berkeley MCAP financial aid program will be most beneficial to California residents, however out-of-state students will be eligible for some benefits (not including out-of-state tuition).  As of yet, international students are not included. Given current yearly costs of $32,634 for California students (and even more for out-of-state), the new initiative will be a major advantage.

Harvard College Financial Aid

In a similar effort, Harvard announced this fall that financial aid for lower income families would increase in 2012-2013.  The school is upping it's financial aid funding by $10 million, bringing Harvard financial aid assistance to a whopping $166 million in need-based scholarships for undergrads.  In the next school year, the college plans to raise the income level that qualifies parents to make zero monetary contribution.

As an added help, Harvard set up its own net price calculator online, which allows families to enter their personal financial data in order to estimate the amount they may be expected to pay per year for college.

“Access and affordability, enabled by generous financial aid, are fundamental to Harvard’s identity and excellence,” notes  Harvard President Drew Faust.  Previously, the family income for zero-cost was $60,000 and below.  In fall of 2012 this number climbs to $65,000 and below.  Using the aforementioned price calculator, students are expected to find that families income ranges $65,000 to $150,000 will pay 0-10 percent of family income for education at Harvard, while those in higher income brackets will pay just over 10 percent.

These are just a few examples of what individual schools are doing to make new college financial aid programs.  Schools, as well as the government, are consistently working to make higher education more affordable for this generation of students.  Don't be afraid to ask your university about financial aid offerings and new initiatives.

Questions?  Comments?  Just need some general financial aid help?  Visit our solutions center to see what Go Financial Aid can do for you!

Ho-ho-hope Santa was good to all of you a few days ago!  With the holidays coming to a close and all of the generosity winding down, some of you are probably thinking about money and finances more.  Perhaps unfortunately, you are now concerned about school finances as well–FAFSA time is just around the corner after all.  Rest assured that there is always a way to increase financial aid–for you or your child.

There are the classic aid sources–loans, scholarships, grants.  Closely related to the latter two are school endowments.  Let’s talk about that for a moment.  Endowments are monies donated to individual universities by distinguished community members, philanthropists, and quite often by university alumni wishing to give back to their alma mater.  Many schools have these, including the following:

• KIPP at Duke: Created just this month, this brand-new endowment to Duke University has been gifted by Bruce and Martha Karsh.  Of his 50-million-dollar endowment Karsh says, “It makes a crucial difference to the individual recipients and enhances the intellectual and cultural diversity of the university community.”  The Knowledge is Power Program (KIPP) is a network of college-prep high schools across the nation, headed by the Karshes, and this endowment will provide tuition assistance for KIPP graduate now attending Duke.  The funds are split between various areas, including the couple’s already-established scholarship fund, and provide $30 million for U.S. students and $20 million for international students.
• Yasuko Hino Grate Endowment: Launched in the summer of 2011, this endowment to Seattle Pacific University by Yasuko Grate is aimed at providing funds to international students at SPU holding an F-1 student visa and maintaining a 3.0 GPA.
• Endowments for Excellence at Notre Dame: Various endowments have been made to this larger program at Notre Dame University, including the Lucille and Paul O’Brien Endowment for Excellence in Environmental Sciences, endowments for Excellence in support of Campus Ministry and for international study programs.  These endowments are designated to  specific academic “schools,” departments, or a particular area of the University.  Individual endowment amounts range from $100,000 to $5,000,000.

Something to remember about this type of fund source is that it is often designed to be self-generating after the initial investment.  Once a donor gives their financial gift to a school, the monies are split up amongst various areas (scholarships, academic departments, professors) and remaining funds are reinvested so that the fund is replenished for future use.  This form of financial is especially important in the current economy, where schools are reliant on gifts to increase financial aid and continue operating at their best.

Many colleges and universities have endowments.  The best way to find out more about your specific institution is to do your homework.  Not everyone likes to run to an office to ask such things, so take a look around the school website in order to see what funds are available.  Those of you who prefer to have the one-on-one discussion, or even someone who would like clarification, you are encouraged to speak with university financial advisers or even fundraising/university gift personnel.

More questions?  Have a different financial aid concern?  Get in touch with a financial aid consultant today for great solutions!

There are options to finance your living expenses.

• Check bulletin boards for part time jobs. A lot of employers are willing to work with your schooling.
• Check out the possibility of a work study job that can help aid with your living expenses.
• Taking out a loan or a loan online. You can take out of student loan to help pay for living expenses. Beware that you will graduate with extra debt. But think about it! Your education may just be worth it!
• Check out your college’s financial aid office. You may qualify for grants that offer living stipends to those who attend college full time.
• Government assistance. The government may have a program to help aid you with the cost of your living expenses.

We’ve reached that time of year, when students hit overwhelm mode during their search for the perfect college.  Choosing where to go to college is a big decision, and likely also one of the first major independent decisions a young person makes in life.  Go Financial Aid recognizes the magnitude of this choice, and we realize that aspects like finances, your parents’ alma mater and other things certainly come into play during the decision-making process.  But ultimately, your college of choice depends on what feels right for you.

Actually settling on a school is about the last step in the college preparation process.  What follows is some simple advice for choosing where to go to college.  Each aspect is important, so consider them all.

1.  What do you want to study, and how do schools measure up?  If you are lucky enough to already know the answer to this question (and there is no shame if you don’t—lots of students start off undecided), be sure to take into account the quality of your academic program at different schools (if undecided, think about the quality of schools in general).  Do you live in PA and want to pursue a degree in education?  Slippery Rock is well-known for their superb education program.

2. What do you prefer—a large or small campus?  Rural or urban?  Figure out what setting suits your personality, or what will be most comfortable for you.  If, for example, you value one-on-one attention and easier accessibility to professors, consider a smaller, rural campus.  Class sizes tend to be smaller, and professors have more open office hours to discuss course work and extra help opportunities.

3.  Make a list of schools that fit you criteria, in the state or region you wish to study in.  This writer, 6 years ago when deciding on where to apply (whoa, feeling kind of old now), started with a list of 100 schools!  Truth be told, the search range in this case spanned from Pennsylvania to California, as Theater was the original major of choice (two majors later, Communications ended up winning out!).  Realistically, let’s aim for 10 schools to initially consider.  When you have those 10 (or fewer, if you have a clear idea of what you want), see how they each measure up to what you are looking for in a school.  When all is said and done, hopefully you end up with a list of 3-5, which will be the schools you apply to.

4.  Be Realistic.  This is where you have to consider yourself and your performance level.  No one ever really wants to rate themselves, but odds are that if you consider yourself to be an average student, Harvard or Yale shouldn’t be on your list.  Think about your grades throughout high school, your standardized test scores, and whether you put your best foot forward throughout school so far (if not, this likely has reflected in your grades).  The schools that appear on the aforementioned list should be in line with what you believe you are capable of.  But, if there is a school you believe you have a borderline chance with—go for it.  It’s quite common for students to have at least one “reach school”—the one they hope for but recognize the gamble they are taking—and it shows confidence when you take that plunge.

College is both difficult and rewarding.  If you want to get the most out of the experience academically and otherwise, seriously think about the above points when making you college selection.  Questions?  Check out the solutions center for help from the experts!

THE CSS PROFILE DEADLINE IS APPROACHING!  Well, at least for those of you who opted to pursue Early Decision/Early Action for you college applications.  We recently talked about Early Decision/Action applications coming due, and now that November 1^st has passed, students who chose that path have other documents to put on their to-do lists.  Next on the list is the CSS profile, which is due for Early Decision/Action students on November 15^th.

What the heck is the CSS profile?  You could be thinking that right now.  Well, if your Early Decision school is a private college (The Profile is most frequently used by them) you will need to know.  In the most basic terms, the Profile is an addendum to the FAFSA form you will be completing in January.  The CSS Profile is considered to be a supplement form to determine what you and your family should pay towards your education (This is your EFC.  Click the link to learn more about it!).  In turn, this will help figure out how much financial aid you should get.

What’s different about the CSS Profile compared to the FAFSA is what aspects of your finances are considered.  Both forms will look at student’s annual income, family income, taxes, etc.  The CSS Profile, however, will go a step further and take a look at various assets you have, such as home equity.  Getting a clear image of what you have financially helps your school and the government to determine what you can afford to pay for college.  The less you can put towards schooling, the more government loans and grants you will probably receive, and vice-versa.

As a reminder for financial aid forms, be sure to have the following information handy:

• W-2 Forms for the last year
• Tax Returns from the last year
• Records of investments
• Recent bank statements

And, as a change of pace from the typical financial paperwork, the CSS profile also consider if there is a family member already in college, or who has recently graduated.  If someone is already paying for college in your home, this may very likely affect how much can be put towards another education!

So, you’ve got some information to chew on.  Take a look at some of the provided links to learn more specific details regarding the CSS Profile and CSS Profile November 15^th Early Decision/Early Action deadline.  Can’t get enough of us?  Need a little more financial aid help?  Contact Go Financial Aid today for all the best in financial aid solutions!

We’re reaching the middle of the school year, and for students, that means a few things: midterms, finals, winter break…and some important dates!  We’ve covered early decision, and now it’s time for FAFSA.  For those new to the financial aid game (and for those who need a refresher!), financial aid season starts at the beginning of the calendar year.  This means the mad dash to submit the Free Application for Federal Student Aid (FAFSA) is on, beginning January 1^st, 2012.

While FAFSA application season spans several months (January to the end of June), it is SO important to get in gear early.  Federal aid tends to run on a first-come basis, so the earlier you apply, the better your financial aid award could be.  Even though it takes about a month to figure out an estimate, and students don’t receive their actual aid money until the next school year, the financial aid pot starts out fuller and there’s more in grants and loans to offer early applicants.

With all this in mind, consider getting your materials together now (even though you have two months).  For you new kids, these items include the following: tax returns from 2010, parents’ income information, personal income information (student income), etc.  A good way to ensure that you are ready for the big show to is practice the FAFSA before that January 1^st application start date.  Practice forms can be found in various locations online, or a more accurate option is to print a paper copy of the FAFSA itself.

For even more FAFSA tips and tricks, get in touch with a Go Financial Aid Consultant.  Financial Aid consultants live and breathe FAFSA, and can make sure not only that you get your application together for January 1^st, but will also help you fill out the FAFSA and check its accuracy.  These steps put you “on the ball” and avoid some costly mistakes (incorrect information robs you of valuable aid funds!).

Think you’re ready?  Awesome!  Be sure that you are thorough and have all of that info!  Do yourself a favor and check out some of those links above, and visit our solutions center for additional assistance.  FAFSA—it’s on.

Deadlines, deadlines!  The college application and financial aid process are chock-full of them—FAFSA, CSS Profile, etc—and one is fast approaching.  The most immediate deadline concerns your choice of college—Early Decision/Early Action.  This comes in right around the corner on November 1^st.

So far all you know if that this has to do with colleges applications.  Well, let’s get a better picture.  Early Decision and Early Action are college application options that over 400 schools have adopted, allowing students to apply to school earlier (in November) than they normally would.  The most important factor here is that not only do you apply earlier, but you hear back from a school faster, too.

Typically students find out which of the schools they’ve applied to have accepted them sometime in March or April of their senior year of high school.  The benefit to Early Decision/Action is that you know who’s banging down your door (hopefully college choice #1) by the wintertime.  Actually, applying early sometimes ups your chance for college acceptance (“Early bird” and all that), so it’s worth it to consider.

Now these two options, Early Decision and Early Action, are often lumped together due to similarities.  However, it is important to note some key differences between the two application routes.

• Early Decision.  Think of this as a contract—binding.  You decide to “sign with” a particular school early on in the application/admission process.  You can only apply to one school this way (better make it your top choice!), and if they accept you and offer good financial aid, you are contracted to attend.  While you’re in the “waiting stage” for this, you are permitted to apply to other schools and wait the standard time for admission decisions, but acceptance to the early decision school requires withdrawal of all other applications later.

• Early Action.  Going this route means that you’re not committing yourself to one school right away.  It’s not binding, and one way to look at it is that it’s like being an “at-will” employee.  When you are “at-will,” you can leave your job without giving standard 2-week notice, you haven’t signed a paper indicating you will work for Company X for a set time, etc.  The bottom line with early action is that if you get accepted, you can still take some time to weigh school options, rather than having an obligation to attend automatically (you can make your choice as late as springtime).   Another perk is that you can apply to more than one school this way!

Even if you’re heart is set on a specific school and you wish to apply early, definitely keep your options open.  There’s a whole world of education, after all!  Most college applicants have at least 5 schools that they are reaching out to.  With all of this in mind, use every opportunity you can to get into a good school, and don’t forget your deadlines!  The Early Decisions/Early Action deadline for college applications is November 1^st!

Questions?  Visit our solutions center and contact a Go Financial Aid Consultant today for all of your financial aid/college inquiries!

Here at Go Financial Aid, we usually talk about how to receive help in affording college.  Well, let’s switch gears a bit and just talk about paying for it, period.  Financial aid is a necessity for most of us in our college years, but it’s important to make sense of education costs in a general sense as well.  This leads us to the subject of college tuition.  Tuition is the money you pay to attend courses at an educational institution.  Translation: what you pay to sit in class and learn from Drs. W, X, Y and Z.  Speaking of that, did you know that each 50-minute class session is worth about $50?  That’s a personal tidbit from a college orientation lecture.  Given that fact, we definitely cannot emphasize enough how important it is not to skip class.

Moving on.  Generally speaking, college tuition simply covers those classes.  Living on campus, eating from a college cafeteria using a meal plan and some course lab fees are all separate.  These additional fees will usually add a sizable chunk of cash to your annual total, but financial aid covers tuition because it’s the biggie on the college bill.

By now you might be thinking, “Enough already; just tell me how much.”  Well, it’s not that simple.  For one thing, individual tuition rates are set by each college.  Your best friend might be going to a school that equals yours in every respect, but pays less.  It just depends on the institution.  The second thing is the type of university you’re attending.  In terms of 4-year schools, there are two types: public and private.  The two differ in how the institution is funded, and thus how much you will pay to attend.

• Public universities.  Examples: Pitt, Penn State, Slippery Rock.  Public schools get money from their local, state government to aid in operation.  These schools are paid for by state taxpayers.  Given that in-state students have already paid their taxes, tuition is usually lower for them at public universities, ranging between $5,000 and $10,000 per academic year.  You may wonder why it’s common to see out-of-state tuition rates differing so vastly from in-state costs.  Well, out-of-state students have not paid the aforementioned state taxes, so they can expect to pay $15,000 and $25,000 a year to cover their state residency while in school.  As unfair as it seems to all of us when we’re thinking about college choices, it does make sense.

• Private universities.  Examples: MIT, Notre Dame, Carnegie Mellon.  Now, everyone and their mother has heard that private colleges cost more money.  This is true.  Unlike public schools which thrive on tax dollars and government assistance, private learning institutions rely on direct contributions.  This funding comes from current students as well as alumni, in the form of grants and endowments.  Given all of this, students can expect to pay 9-10 times more money to attend a private school than they would at a public one.  Tuition is constant, however, regardless of your state of residence, and an individual student may pay $21,000-$40,000 per year of study.

In all seriousness, don’t let the price disparity discourage you from considering a private school, however.  True, you’ll pay more for tuition, but in most cases the higher tuition cost qualifies students for more financial aid.  In a sense, it balances out.

There’s a quick run-down for you.  When it comes to college tuition, it’s important to give consideration to the type of school and whether you’re a state resident.  But ultimately, college choice depends on personal preferences.  Questions?  Check our solutions page or send us a message.  Good luck!

Hey!  Tonight let’s continue our financial aid discussion with a talk about scholarships and grants.   These are absolutely awesome aid types because you don’t owe anything later.  We in the financial aid biz call this gift aid. All-aboard the free money train.

Some scholarships…

Scholarship money is provided by schools (ask your financial aid office) and organizations of all kinds.  Scholarships are very competitive because there are thousands of students grabbing for one scholarship check.  In all, there are countless scholarships to be won, but it’s a rat race and you have to shine your brightest when applying.  Highlight you best skills, achievements and traits to give yourself the best shot possible.

• Sallie Mae Scholarships.  Sallie Mae is government-affiliated funding.  Many scholarships are awarded, and winners are chosen at random.  Amounts range from the $100s to a full ride.  Recipients must be U.S. citizens attending undergraduate schools.
• The Christopher Reeve Award.  This scholarship, sponsored by the Heart of America Foundation promoting children’s literacy, awards outstanding youths.  Middle school and high school students who are active in community volunteerism and have proven compassion and courage are recognized for their selfless acts.  Each year one recipient is awarded $1,000 for their future college pursuits.
• WikiAnswers Scholarship.  Answers.com has launched its $20,000 Answers.com Scholarship Fund this year to provide funds to outstanding students.  With a grand total of $20,000, the site is now offering one $5,000 scholarship, two $2,500 scholarships and 10 $1,000 scholarships to Answers.com junkies who have responded to no less than 50 questions on its Wiki site.  Applicants must plan to attend an undergraduate program for the next academic year, and will be judged based on the accuracy and usefulness of solutions they provide to their selected 50 questions.

And grants…

Grants are applied for via FAFSA (federal grants) or are provided by outside organizations.

• Federal Pell Grant.  The requirements for the grant are pretty minimal and straightforward, one being that you must attend a participating university.  The Pell Grant is based mostly on your level of financial need.  Students are reminded to study diligently, though, because the grant can be revoked due to poor academic performance.  Funds are sent to either the school or directly to the student.  For a more in-depth look, take a look at Pell Grant Eligibility.
• Federal Supplemental Educational Opportunity Grant (FSEOG).  The same basic requirements factor into the FSEOG.  In contrast, however, this grant is reserved for students with exceptional financial need.  The FSEOG encourages lower income individuals to pursue college, providing funds to students with a low Expected Family Contribution (EFC).
• Office of Vocational Rehabilitation Grant (OVR).  Pittsburgh students may be able to take advantage of this opportunity with the help of their college.  OVR exists to help students and professionals find jobs and get educational assistance in college (i.e. special accommodations, extended and/or private test taking, etc.).  OVR helps college students who have legitimate medical or personal difficulties by supplying $2,000 per semester grants.

Free financial aid is probably the best kind.  Scholarships and grants leave need to worry about owing money later, just pure financial assistance.  Scholarships, while competitive, are available in every area imaginable and in varying amounts.  Grants are often thought of in terms of government aid, but are also sponsored by organizations.  You can’t go wrong.  If you had any worries about financial aid, hopefully we’ve offered some comfort.  If you’re still uneasy, check out our solutions for more help.