Financial Aid

Winning application strategies

Posted on Updated on

We’re hitting deadline season for college and scholarship applications, but you don’t need to panic. Here are some quick tips:

close up of male hands with laptop computer

Apply to more than one school. Yes, you should have a “safety school,” but also try for a “stretch school.” Some students are surprised when they’re accepted at a school they thought was out of their reach. You can’t truly compare costs of different schools until you have award letters from those schools in hand. An expensive school might end up being the most affordable option if it offers a generous financial aid package.

Apply for more than one scholarship. You can improve your odds by expanding your search. Some scholarships actually have trouble giving away all their available money because they don’t get enough applicants. Talk to counselors, teachers, coaches and mentors about scholarship possibilities.

Put some effort into your essays. These are a chance to distinguish yourself, so take your time. Make sure your essay relates to the question, and back up what you say with specific examples. Don’t just list your accomplishments. Show that you’re capable of growing and learning from challenges. Proofread at least twice, then ask someone else to read behind you.

Sell your actual strengths. Don’t exaggerate or lie. Think about the things that you truly do well, and focus on those. Having trouble identifying your best areas? Ask an adult close to you, “What makes you proud of me?”

Be sure to submit. You should see a confirmation screen or receive a confirmation email when you’re done.

Advertisements

Finished FAFSA? Here’s What to Expect Next

Posted on Updated on

By now, students and families with an eye toward college, or any kind of education beyond high school, should have a pretty good understanding of just how important the Free Application for Federal Student Aid (FAFSA) is to helping them achieve their goals. If not, here’s a good place to get started with the FAFSA.

Coins in jar with college fund label

Filing the FAFSA is crucial to getting money for school. But what happens after submitting the FAFSA? Here are some things for families to look out for, as well as some things to remember when dealing with information

Student Aid Report
After completing the FAFSA, the U.S. Department of Education will process the data and compile the Student Aid Report (SAR). The SAR will be sent to families and the colleges selected during the FAFSA. If an email address was provided during the application, instructions to access an online copy of the SAR will be emailed; otherwise it will arrive snail mail.

Typically, applicants can access their SAR within three to five days if the FAFSA was filed electronically (approximately three weeks if filed by paper). The SAR contains the Expected Family Contribution (EFC) as well as initial information about Pell Grant eligibility. Colleges and universities use the EFC to determine student eligibility for federal grants, loans, work-study and other financial aid programs.

How is the Expected Family Contribution Calculated?
Variables that determine a student’s EFC include income and net worth for the student and parents, family size, age of older parent, state and federal taxes and number of family members attending college. As a result, the EFC might change from year to year when the FAFSA is refiled.

Understanding Financial Need vs. College Costs
Each college or university listed on a student’s FAFSA application that accepts that student will determine financial need and present the applicant with an award letter describing the aid offered. “Financial Need” is determined by calculating the Cost of Attendance (COA) minus the EFC determined through the FAFSA.

The EFC will remain the same in a given year (unless an unusual family situation arises) regardless of which college or university the student attends. The amount of aid received cannot exceed the total cost of attendance at a college or university.

Award Letters
Each award letter will include federal, state and college-specific financial aid programs. It is likely that a student’s award letter will include one or more types of loans. These letters often don’t cleanly show which funds offered are scholarship or grant aid (free money) and which are loans (money which must be repaid). To get some tips on understanding award letters, check out our video series here and here.

Have You Been Selected for FAFSA Verification? Here’s What to Do!

Posted on Updated on

Verification is the process by which colleges review student financial aid applications for accuracy where the U.S. Department of Education identifies some FAFSA applications for colleges to review.  In addition, colleges may review additional applications based on answers provided to certain FAFSA questions.

Roughly one-third of all FAFSAs filed are selected for verification and the process must be completed before financial aid can be awarded. If you are selected for verification, you can expect the following:

  1. When you receive your Student Aid Report (SAR) after completing the FAFSA, you will see a comment stating “Your FAFSA has been selected for a review process called verification. Your school has the authority to collect certain financial documents from you”.
  2. Your college’s financial aid office will contact you and inform you of documents you need to submit and any additional forms you need to complete.
  3. Your college may be required to verify the following data elements:
    • Adjusted gross income
    • Taxes  paid
    • Income earned from work (for non-tax-filers)
    • Untaxed portions of IRA distributions or pensions
    • IRA deductions and payments
    • Tax exempt interest income
    • Education credits
    • Household size
    • Number in college
    • Receipt of food stamps/SNAP benefit
    • Child support paid
    • High school completion status
    • Any other inconsistent or conflicting information.
  4. To verify the elements above, the college may ask for documents which may include, but are not limited to:
    • Signed copies of the prior year tax transcripts for parent and student (if the student is dependent) or Federal IRS Data Retrieval.
    • W-2s showing wages, 1099s and supporting schedules.
    • Statement of child support paid, documentation that child support payments were made, and/or copy of the separation agreement or divorce decree that shows the amount of child support to be provided.
    • Verification of net worth.
    • Documentation of food stamps/SNAP benefit.
    • Copy of the applicant’s high school diploma, final official high school transcript that shows the date when the diploma was awarded, GED certificate/transcript, state certificate or transcript received after passing a state-authorized exam (HiSET, TASC or other state-authorized exam) or a copy of the “secondary school leaving certificate” (or other similar document) for students who completed high school in a foreign country.

The best action you can take to reduce the likelihood of being selected for verification is to use the IRS data retrieval tool to automatically populate your (and if you are a dependent student, your parents’) tax information directly from the IRS into your FAFSA. When you use the IRS data retrieval tool, the tax information is considered to be already verified so you will not have to submit documentation.

If you are selected for verification, ensure that you respond to all requests from your college or university. If you do not submit documentation on time your financial aid may arrive after late fees have already been accessed to your account.

These FAFSA Tips Will Help Save Time, Avoid Mistakes

Posted on Updated on

For the second year, October 1 marks the availability of the Free Application for Federal Student Aid (FAFSA) for the next academic year.  The FAFSA is a standardized application used to determine eligibility for federal grants, loans and work-study funds from the federal government.  Additionally, many colleges and states, including Iowa, use FAFSA information when determining eligibility for institutional and state financial aid programs. It’s kind of a big deal!

When it comes to the FAFSA, remember these tips:

File the FAFSA no matter your financial situation.  Even if you do not think you will qualify for need-based financial aid, you should still file the FAFSA.  Many colleges require that you file the FAFSA to be considered for institutional aid.  In addition, you are required to complete a FAFSA to be eligible for federal Stafford loans and completing the FAFSA does not obligate you to accept any of the aid offered.

Never pay to file the FAFSA.  You can file the FAFSA for free at http://www.fafsa.gov.  Reputable resources, including Iowa College Aid, are available to help for free.  In addition, more than 50 College Goal Sunday events will be held throughout Iowa to provide one-on-one assistance with FAFSA filing.

Electronically access the FAFSA. The FSA ID comprises of a username and password. Users who have not already done so, will be directed to a link to register for a new FSA ID upon arriving at the http://www.fafsa.gov website. The registration process should take less than seven minutes.

Meet state and college deadlines.  Many states, including Iowa, have FAFSA filing deadlines for state-funded scholarships, grants and work-study opportunities. Keep in mind most colleges and universities have their own FAFSA filing deadlines. You should check with your college of choice to determine its priority deadline for financial aid and if additional documentation is required.

Double check information to avoid delays. Review your FAFSA information before you submit it for processing.  Make sure your Social Security number and your parent’s Social Security number are typed in the correct spaces.  Mix-ups like these will cause processing delays.

It’s easier than ever with the data retrieval tool. The IRS Data Retrieval Tool allows students and parents to access their IRS federal tax return information from the IRS website and securely transfer the necessary data directly into their FAFSA. It is highly recommended that you use the data retrieval tool if you are eligible as it is the best way to ensure that your FAFSA has accurate tax information.  An added bonus is that IRS transferred information means that you won’t need to provide a copy of your or your parent’s tax return to your college. The tax data should be available within 1-2 weeks of electronically filing taxes and then the IRS Data Retrieval Tool can be used to make a FASFA correction, streamlining the completion of the FAFSA.

Iowa Residents: Don’t forget to complete the Iowa Financial Aid Application! Upon completion of the FAFSA, all Iowa resident applicants have the option to link to the Iowa Financial Aid Application directly from their FAFSA confirmation page. If eligible, you will have the ability to pre-populate most of your demographic data to the Iowa application in the process.  This not only streamlines the federal and state financial aid application process but also solidifies access to the Iowa application if you had not been informed of its availability.

FAFSA: The Most Important Tool for Financial Aid

Posted on Updated on

The Free Application for Federal Student Aid (FAFSA) is a key part of college financial aid. While many families might think that the FAFSA is only for lower-income households, the truth is that the application helps make federal, state and school funds available for all students, regardless of their family’s income.

computer-with-logo

Here are some reasons to complete the FAFSA:

  1. To qualify for a variety scholarships and grants. Many federal and state scholarships (including those in Iowa) require a completed FAFSA for consideration, even when those scholarships and grants do not consider family income. FAFSA information can also impact the financial aid offered by schools in terms of grants or other awards.
  2. Some financial aid opportunities are available on a limited basis. Completing the FAFSA as soon as possible gives students the best chance for receiving those aid amounts.
  3. Completing the FAFSA earlier gives students the time to focus on other parts of college preparation, such as completing college applications, focusing on coursework and applying for scholarships.
  4. When students have completed their FAFSA, schools can more easily provide estimated financial aid offers sooner. This makes comparing colleges much easier, as students will have a better idea of what their education will actually cost them at each school to which they are accepted.

Find Your Major Without a Major Headache

Posted on

Attending college opens a student to a variety of new experiences and for many this includes new options of subjects to study. Many college students arrive at campus with an idea of what they want to study and consider for their career. But when facing new options, many students change their major at least once.

59596708_Student_College

Changing majors can lead to retaking classes, which means more time on campus and, often, more money needed in financial aid. While people are certainly prone to change and should be willing to consider which direction their life will take them, putting in some early thought to your major will make it more likely that you’ll find a major that is the right fit if you base your decision on your career planning and your experience. Here are some topics to consider:

Your Interests
Think about the types of things you enjoy. Do you prefer working alone or in groups? Do you like working with data, or would you rather work with people? Start exploring by taking classes related to your interests.

Your Abilities
What high school courses are your best subjects?  What are your strengths and weaknesses? Do you see a pattern?

Your Work Values
What is important to you? Examples of work values include helping others, contributing to your community, being creative, solving problems, producing results, making a difference, leading others, having a structured day and being recognized.

Taking the time to ask some questions (and find the answers) about your possible major can also go a long way to figuring out if your plans can offer the best future. Some things to consider about a major include:

Why do I want this major?
Are you really interested and excited about the subject matter, or are you choosing something based on what your friends or family want you to do?

What do I know about it?
Look at the requirements and course descriptions. Talk to people who are currently studying this subject, or to graduates in this field.

Which colleges are strong in this field?
Not all majors are equal on a college campus. Some colleges specialize in certain majors or are known for strong programs in particular fields.

What is the career outlook?
How many students in this major find employment in their field after they graduate? Is the demand for jobs stronger in certain parts of the country? If so, are you willing to move?

Answering these questions won’t necessarily guarantee that you’ll still consider changing majors in school. But by having a good sense of your educational goals, you’ll be more likely to find a major that sticks.

Your Course to College: Finding Funds for School

Posted on Updated on

For families and high school students, having a good gameplan for getting to, paying for and succeeding in college is valuable. That’s why we’re here to help.

Iowa College Aid’s annual “Your Course to College” guide will ship to schools and families later this month, but we’re taking the opportunity to preview some highlights and some of our favorite tips found in the guide. This week, tips to finding the best sources of funding for your college education. To find more previews and sign up to receive your copy of “Your Course to College” in print or download, visit our “Your Course to College” page at IowaCollegeAid.gov.

There are many ways to pay for a college education, and the financial aid process is not as complicated as most people think. Most students attending Iowa colleges and universities receive some form of financial assistance.

Coins in jar with college fund label

After you submit your college applications, complete these four steps:

1. Submit the FAFSA

To qualify for most financial aid, you must complete and submit the Free Application for Federal Student Aid (FAFSA). The fastest and most accurate way to apply is online at fafsa.gov. The FAFSA will gather information about your finances, your family’s finances and your college plans. You can complete the FAFSA for 2018-19 beginning October 1, 2017, using 2016 tax information.

2. Submit the Iowa Financial Aid Application

The Iowa Financial Aid Application allows you to apply for multiple state-administered aid programs with one application. Click the Iowa Financial Aid Application button at IowaCollegeAid.gov.

3. Decide on a College and Accept Aid

All colleges that you list on your FAFSA will send you a financial aid award letter if you are offered admission. Award letters will describe the financial aid package each college can offer. When comparing aid packages, consider how much assistance is from scholarships and grants (which do not have to be repaid) and how much is from loans (which must be repaid).

To accept the financial aid package offered by a college or university, follow all instructions. This might involve entering aid amounts you intend to accept in an online form or signing and returning a paper award letter by a specified deadline. Talk to the financial aid office at the college or university if an unusual circumstance delays your response.

To officially accept a college admissions offer and reserve your place, submit your deposit by the college’s reply date. May 1 is the date for most colleges.

4. Apply for Scholarships

Continue seeking and applying for outside scholarships. Think of it as a part-time job. If you spend 20 hours on scholarship applications and receive one worth $1,000, you just made $50 an hour for your efforts!

Reputable education organizations will NOT charge for scholarship searches.