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These FAFSA Tips Will Help Save Time, Avoid Mistakes

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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.

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FAFSA: The Most Important Tool for Financial Aid

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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.

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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

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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.

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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

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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.

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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.

Career-Based Loan Forgiveness Programs Can Help With Student Debt

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For most students graduating from college, financial aid debt is reality that can impact everything from buying a house to starting a family. Fortunately, there are a number of loan repayment and forgiveness programs that help those graduates in certain fields help pay down their student loan debt in return for their work.

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Programs are available on both the federal level and in the state of Iowa for those in the education, public service, healthcare and legal professions. However, the qualifications for these programs are often specific or require that the employee work in a specific geographical or subject area in order to obtain the award. Here are some loan forgiveness and repayment programs open to Iowa graduates:

Education

  • The Teach Iowa Scholar (TIS) Program provides qualified Iowa teachers with awards of up to $4,000 a year, for a maximum of five years, for teaching in Iowa schools in designated shortage areas. Qualified teachers are those currently teaching in designated shortage areas who meet all eligibility criteria. Find out more here.
  • The federal Teacher Loan Forgiveness Program offers forgiveness of a combined total of $17,500 from direct subsidized and unsubsidized loans in return for teaching full-time for five complete and consecutive academic years in certain elementary and secondary schools and educational service agencies that serve low-income families. Criteria and details can be found here.

Healthcare

  • The Iowa Registered Nurse & Nurse Educator Loan Forgiveness Program offers qualified applicants an annual award of up to 20% of  their total eligible federal student loan balance. Applicants must be registered nurses employed in Iowa or nurse educators teaching at eligible Iowa colleges and universities. Details here.
  • The NURSE Corps Loan Repayment Program is a national program that supports registered nurses (RNs), advanced practice registered nurses (APRNs), and nurse faculty by paying up to 85% of their unpaid nursing education debt. Qualification criteria and details here

Public Service

  • The John R. Justice Student Loan Repayment Program is federally-funded program provides loan repayment awards to public prosecutors and defenders employed in the state of Iowa who agree to remain in their positions for 3 years. Details here.
  • The Public Service Loan Forgiveness (PSLF) Program forgives the remaining balance on Direct Loans after making 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying government or non-profit organization. Details and qualifying employer types can be found here.

Attorneys

  • Lawyers working with the federal Department of Justice can have up to $6,000 of student debt forgiven per year as part of the agency’s Attorney Student Loan Repayment Program. Details and qualifying criteria can be found here.

 

Use Summer to Your Advantage to Save on College Costs

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The snow coats are finally put away in place of the short-sleeve shirts. Spring is here, with summer right behind. For high school seniors, the end of years of hard work are within your grasp with the goal of a college education just beyond it. But rather than coasting to the finish line, students looking to save money and hit the ground running once they get to college will find the next few months important.

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“Summer melt” is the term used in higher education to describe students that intend to go to college after high school graduation, but never make it to college in the fall. Their college plans have dripped away like an ice cream cone in the July heat. Here are some tips to stay on track and keep those college plans firm this summer, and even saving a few dollars once you get there:

  1. Don’t fall victim to “senioritis.” The end of high school is certainly in reach, but that doesn’t mean students should take their foot off the pedal when it comes to school. Completing AP or dual enrollment courses in high school can reduce the number of credits that need to be taken in college. Think of it as getting free classes that would otherwise be part of tuition costs.
  2. Plan ahead to avoid changing majors. It’s not out of the ordinary for students to get to college not knowing exactly what they want to do. But changing majors, even once, can add a year or more to a student’s time in college. Use this summer to explore areas of career interest as a volunteer or intern to get a taste of what the day-to-day life in a particular job will be like. It might lead to reconsidering a college major before too much time and money is committed.
  3. Consider summer courses. Just like taking the AP, any courses that can be taken before college will help later. General education, or underclass, units can be taken at local community colleges, often with smaller class sizes and for less money than when a student gets to a college or university. Math is math, no matter where you take it. Why not get a head start now?
  4. Take a part-time job. Working during college can help reduce the amount of money that needs to be borrowed, in addition to providing valuable job experience. Use the summer to help build a nest egg for college expenses.
  5. Research textbook and supply rentals. Course books can be one of the biggest expenses for students once they get to college. While many colleges allow students to rent textbooks instead of buying them, online sites such as chegg.com, eFollett.com, textbooks.com and others can provide other options and the opportunity to compare prices. Getting to know the options ahead of time in school can lead to saving hundreds of dollars come fall.

Finding Free Money for College: A High-Paying Part-Time Job

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There’s no way around it: getting the degree or certificate that will connect you with your future costs money. No matter the type of education students pursue after high school, cost will often play a factor in not only determining where students go to school, but, in many cases, impact whether or not they complete their degree and find the career they’ve long sought.

Many students and families rely on private student loans which come with interest rates that can feel daunting not only during school but in the years after. However, thanks to the Free Application for Federal Student Aid (FAFSA), students are discovering many roads to free money that can help reduce their student debt and help them succeed.

Completing the FAFSA arms students with a tool, a baseline of financial information and need for aid that can be used for a variety of state and federal grants, as well as private scholarships. There are many ways for students to find free money that require nothing more than the time to research and apply in order to receive some financial help for their education. Here are few places to start:

State Grants and Scholarships

The state of Iowa provides funding for grant programs to help with higher education costs. Students who receive Iowa-funded grants and scholarships must be Iowa residents, attend an eligible Iowa college or university and meet other criteria specific to each program. Scholarships and grants do not have to be repaid and can significantly reduce college expenses. The chart below provides an overview of the application requirements for each scholarship and grant administered by Iowa College Aid. For specific criteria, go to IowaCollegeAid.gov.

Private Scholarships

Every year, MILLIONS of dollars in private scholarships go unclaimed; not because no qualified candidates applied, but because no candidates applied at all.

Scholarships are available from private sources including businesses, foundations, religious organizations, community groups and fraternal organizations. High school counselors are excellent resources for scholarship information, as are libraries and college financial aid administrators.

Web searches also allow students and families to explore scholarship possibilities. Reputable organizations will NOT charge fees for scholarship searches.

Think of finding scholarships like a part-time job. If you spend 5 hours researching and applying for scholarships that lead to a $1,000 scholarship, you’ve just made $200 per hour. That’s pretty good money for working part-time! Here are some ways to track down private scholarship opportunities:

  • Work: Have your parents ask whether their employers offer college scholarships to children of employees.
  • School networks: Many high schools offer scholarships for graduating students. Also check with the area alumni association of your college.
  • Community organizations: Many community organizations sponsor local scholarships. Check your city’s website or call your local community center for lists of organizations in your area.
  • Religious organizations: Find out if your place of worship offers scholarships. If not, it might partner with other organizations.
  • Field of study: Your college might offer scholarships specific to your major. Contact your program department.

College and University Scholarships

Your college or university might provide scholarships or financial awards from its institutional funds. Often, institutional scholarships go to recipients who meet specific requirements related to particular areas of study, academic achievements, outstanding talent, leadership, athletic ability or other criteria. Contact the financial aid office and ask about institutional programs available through the college or through on-campus organizations.

Federal Grants

Federal grants are awarded to both Iowa resident and non-resident students. Eligible students can receive these federal grants for attendance at any postsecondary education institution participating in the program. Federal grants include:

  • Pell Grants
    Pell Grants are funded by the federal government to assist the neediest undergraduate students. The maximum award is $5,920 for the 2017-18 award year.
  • Supplemental Educational Opportunity Grants
    Federal Supplemental Educational Opportunity Grants (SEOG) are based on financial need. Eligible recipients receive between $100 and $4,000 per year. Not all colleges participate.
  • Teacher Education Assistance for College and Higher Education Grants (TEACH Grants)
    The Teacher Education Assistance for College and Higher Education (TEACH) Grant program helps students in teaching preparation programs. In exchange for a TEACH Grant, recipients agree to serve as full-time teachers in high-need fields in public or private non-profit elementary or secondary schools that serve low-income students. These grants are available to eligible undergraduate, post-baccalaureate and graduate students for a maximum amount of $4,000 per year. Students must meet academic standards.

Taking the time to track down free money for school now may seem like hard work, but the impact it will make in saving students from debt as they start their careers will be an even greater reward as they start their careers.