Q. What’s the difference between a Stafford loan and an alternative or private loan?
A. A Stafford loan is a federal educational loan with low interest rates and fees which requires no credit check. An alternative loan is a private loan made by a lender with higher interest and fees determined by the student (or co-borrower’s) credit history.
Q. How do I apply for financial aid?
A. The Free Application for Federal Student Aid, more commonly known as the FAFSA, is the single application needed to apply for all sources of federal aid. The FAFSA can be completed online at www.fafsa.ed.gov. It helps to complete the FAFSA with a PIN (electronic signature) to expedite the process. A PIN can be obtained by visiting www.pin.ed.gov.
Q. Where can I find tuition and fee information?
A. Students should contact the Admissions Office at the school to find out information regarding tuition and fees.
Q. What is financial aid?
A. Financial aid is the name used for federal, state and private resources that may help pay for college costs. Typically financial aid consists of grants, scholarships, loans and student employment. Grants and scholarships do not have to be repaid. Loans must be repaid with payments usually beginning after the student is no longer enrolled at least half time. Student employment consists of opportunities for students to earn money to pay for educational expenses. Financial Aid is available for those who qualify.
Q. When do I have to repay my loans?
A. Repayment on most loans will begin after the student is no longer enrolled at least half time. Some loans are interest free while the student is enrolled. Interest may accrue on other loans even while the student is enrolled. Check with the financial aid office, they can help explain the differences in the types of loans you have. In all cases, loans must be repaid regardless of whether you complete the program or are satisfied with your educational experience. Failure to repay your loans can result in serious consequences and negatively impact your ability to obtain credit in the future.
Q. Why do I have to provide parent information on my FAFSA?
A. Students are considered dependent or independent for financial aid purposes based on criteria established by Congress. For example, students who are under the age of 24, single, have no dependents and are not veterans are typically considered dependent for financial aid purposes. Dependent students are required to have parents provide financial information in order to determine eligibility for the various federal aid programs. Check with your financial aid office to determine your dependency status if you are unsure.
Q. Why should a parent borrow from a PLUS loan instead of co-signing on a private loan in the student’s name?
A. PLUS loans are federal loans with lower interest rates and fees than most alternative or private loans. Parents who co-sign an alternative loan are responsible for repaying the loan (usually at higher rates) if the student fails to make payments. In other words, whether the parent borrows from a PLUS loan or co-signs for a private loan, their financial responsibility is the same.
Q. How often do I have to reapply for aid?
A. Students must reapply for federal and state aid each year. Typically, students should reapply for aid as soon as possible after January 1st; however, check with your financial aid office to determine when you should reapply.
Q. What is a PIN?
A. A PIN is a Personal Identification Number that can be used as an electronic signature. It makes filing for aid quick and easy. PINs are private and should never be shared with anyone.
Q. What’s the difference between a grant and a loan?
A. A grant is money and does not have to be repaid. Loans must always be repaid regardless of whether you complete the program or are unsatisfied with your educational experience. Failure to repay your loans can result in serious consequences and negatively impact your ability to obtain credit in the future.
Q. What forms or other information do I need to apply for financial aid?
A. Students (and parents of dependent students) will need to refer to a copy of their most recent tax return (1040) when applying for financial aid. In addition, documentation on other sources of income including social security benefits, unemployment compensation, veteran’s benefits, etc., will also be needed. Information on the value of assets is also required. Examples of assets include checking and savings accounts, stocks, bonds, certificates of deposits, mutual funds, real estate (other than the family home), businesses and farms.
Q. My parents make too much money for me to receive financial aid. What options are available to me?
A. Regardless of how much money you or your parents make, you should still apply for federal aid. Some sources of federal aid are not need based which means you or your parents may qualify regardless of income.
Q. How can I apply for scholarships?
A. There are several free scholarship search websites. Researching and applying can be time consuming, but your effort may be worth your time, if you find extra funding. In any case, do not use agencies that charge fees to find scholarships. You can do this search on your own and free of charge. For a listing of scholarships websites, contact your financial aid office.
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