Financial Aid Nightmares!

Careers and Colleges, Sept-Oct, 1999 by Nancy Fitzgerald

Rely on free information. Talk with your guidance counselor. Consult guidebooks in the library, and access up-to-date scholarship sources on the Web (www.finaid.com is a good place to begin). You don't have to pay for information you can easily get for free.

FINANCIAL AID IN A NUTSHELL

Here are the ABC's of the financial aid process. Remember, you have to complete this process every your you're in college.

Ask you parents to do their taxes as early as possible. They can estimate them if necessary. Do your taxes, too.

Be sure to fill out all financial aid forms. Send in the FAFSA as early as you can but not before January 1. Then find out if the colleges you're applying to require more paperwork, such as the College Scholarship Service's PROFILE or an institutional form. Send them in before their deadlines.

Check your SAR. After your FAFSA is processed, you'll receive a Student Aid Report (SAR). Based on a formula that takes into account your family's income, assets, and other information, the SAR tells you how much your family is expected to contribute to your college education next year. Check it carefully for accuracy. If your FAFSA was based on an estimated tax return, you'll be able to make any necessary corrections and inform the schools. Colleges may also request final copies of your tax returns. Send them immediately.

Don't worry. Wait for your award letters. If a college accepts you, it will send you a letter detailing your aid package. It will probably be a mix of government loans (Stafford and Perkins), institutional grants, and work-study employment. The letter may also offer loans provided by the college or suggest that your parents take out a PLUS loan. Study your award letter carefully. If it doesn't Come close the meeting your family's financial need, ask your parents to write a polite letter of appeal.

(*.)These are all real people, although the names have been changed.