The Road To A College Education
Without a doubt, funding a college education is a major undertaking. But, it’s an investment that will repay itself many times over throughout your lifetime. Univest can help you, your children or grandchildren with a variety of education planning solutions including college savings plans and a variety of loan solutions.
Regardless of your financial situation, the majority of college students receive some sort of financial aid. So, it is worth your while to navigate the financial aid application process, especially if you have more than one child in college.
The cost of college has out-paced inflation to the point that even upper middle class families can qualify for some need-based financial aid. Student financial aid comes primarily from three sources: the federal government, state government, and the college or university.
Know Your High School Guidance Counselor
Your guidance counselor can be instrumental in helping you understand the financial aid process, and filing applications. The guidance counselor has a wealth of resources to assist you in searching for various scholarships that exist. They can provide you with a list of financial aid events that are planned for juniors or seniors and their families.
It is recommended that you schedule an appointment to meet with your guidance counselor during the spring semester of your junior year in high school, and several times during the fall semester of your senior year.
The College’s and University’s Financial Aid Administrator
When you have selected schools that interest you, speak with a financial aid administrator or counselor. They can give you detailed information on different types of financial aid available from their school, required applications, and most importantly the deadlines for filing. They can also be a great resource for answering questions you may have regarding particular financial aid packages.
AES (American Education Service)/PHEAA (Pennsylvania Higher Education Assistance Agency)
They have a student aid hotline at 1.800.692.7392, which provides information regarding federal student financial aid programs. They can also answer questions about filling out the Free Application for Federal Student Aid form, which is on their web site at www.PHEAA.org.
Tidbits
- Prepare file folders for your financial aid materials.
- Set-up one folder for FAFSA and supporting documents.
- Set-up one folder for the Financial Aid profile.
- Set-up one folder for information from each school.
- Write important phone numbers and deadline dates on the front of each file folder.
- Keep a photocopy of each document you submit.
- Keep copies of application materials in the event they are lost in the mail or by the school.
- Keep copies of tax returns, W2’s, 1099’s and other statements.
- Send information by certified mail with a return receipt requested.
- Be prompt in sending requested information and don’t miss the deadline.
Moving Forward
There are several financial aid options.
- Scholarships – They are allocated to students that demonstrate the potential for high achievement in areas such as academics, athletics, art, music or other fields. These awards are not required to be paid back.
- Grants – Monies that are awarded to students based on a financial need, and do not have to be paid back.
- Loans – Monies borrowed by a student or parent that must be paid back with a specified interest rate and repayment schedule.
- Work-Study Awards – Income earned by students that work on or off campus to help pay college costs.
The major sources of financial aid include the following:
- Federal and State Government
- Banks, (such as Univest National Bank & Trust Co.)
- Institutions of Higher Education
- Private Sponsors of Scholarships and Fellowships
While many of these sources have their own application process and requirements the most important form you must complete is the Free Application for Federal Student Aid (FAFSA). This form is available via paper or the Internet. This form can be obtained from your guidance counselor, the financial aid office at the college or university and the local library. You may also call the U.S. Department of Education toll-free at 800-4-FED-AID. You can also apply at www.fafsa.ed.gov.
The information completed on the FAFSA will be shared with the federal government, AES/PHEAA, and the school(s) you plan to attend. In certain cases, some schools may require you to submit an additional application, such as a Financial Aid Profile. The schools use this additional information to determine how much aid you will receive from the institution, and provide you with the most complete financial aid package based on your financial need.
Approximately one month after you apply, the federal government will send you a Student Aid Report (SAR) that outlines and informs you and the school that you are applying to your Expected Family Contribution (EFC). The analysis that is completed to determine your EFC is used to calculate your need, and give a reasonable estimate of the amount of money your family can afford to contribute to your education. To determine the “Financial Need” the EFC is subtracted from the cost to attend the school.
A federal processor uses all the information provided on the FAFSA to determine your eligibility for federal student aid. The state agency will use the same information to determine your eligibility for state grants and loans. These sources will form the core of your financial aid package for your higher education.
Each school will use its own formula to determine your financial need relating to their specific institution. The calculation that is used may be the same as the federal assessment or it may be different. However, if the school’s formula indicates that you have more need than is actually covered by the federal and state sources of aid, then the school will use its own funds to cover the difference. In certain cases, due to a limited budget for financial aid, the school may not have the ability to cover all of your need, leaving a gap.
When this scenario arises your financial aid package might consist of federal and state student aid (grants, loans, work-study programs), including institutional aid from the school (scholarships, grants, loans, and student employment). Furthermore, your family will have to find funds to pay for any remaining costs. This may require taking out additional loans, such as the Federal Stafford Loans and Federal Plus Loans to pay for the cost of your education.On Course
During the Spring of your Junior year, be sure to make an appointment to meet with your guidance counselor. Talk to your guidance counselor about the schools that interest you and the costs associated with attending those particular schools. Explore all of your options.
Take time to spend at a library to look through scholarship books or databases. Compile a list of scholarship programs that you are eligible for, and write to obtain current information and application materials.
Early in the Fall, during your Senior year visit or call the Financial Aid Offices at the schools you have an interest in. Ask them to send you information on required application forms for admissions and financial aid.
During the Fall semester, take time to visit the particular schools that interest you, to help you decide which set of schools you will apply to. Include in you list of schools the following:
After you have decided which schools you will apply to, begin working on your application essays, and ask your teacher to write letters of recommendation on your behalf. When you ask teachers to write letters of recommendation, ask them to write a strong letter of recommendation. If they comply with your request provide them with a stamped enveloped addressed to the school with any required recommendation forms, a short written resume of your activities and any honors and awards. If they cannot comply with your request ask them to recommend another teacher who may be more appropriate.
Do not take this task lightly. This is a big project so, give it the appropriate time. Remember to allow yourself enough time based on the deadlines you need to meet. Failing to meet any deadline can be fatal.
After the completion of your Junior year, if you have not taken the SAT or ACT exams then during the Fall semester of your Senior year take the SAT or ACT. Prepare properly for these exams, since they have a substantial impact on your admission to schools your select. However, while you prepare for these exams do not neglect your regular courses.
Begin sending in your admissions applications. If your intention is to apply for early action or early decision then be extremely careful not to miss any deadlines. Prior to sending in the applications, make sure a teacher, family member or friend proof read your essay and offer constructive criticism. Allow them to make corrections with regard to grammar and spelling but do not let them remove the substance and the passion of the essay.
On January 1, fill out and submit the Free Application for Federal Student Aid (FAFSA). Submitting the application before January 1 will cause it to be rejected. However, the FAFSA must be submitted by March 15 at the latest to be eligible for state aid, despite the federal deadline being later. Some schools require the form by February 15. Since it is important to submit the FAFSA as early as possible after January 1, and it requires information from your tax returns, you may use estimated income information. Do not delay filling out the FAFSA if your parent’s taxes are not complete. Also, make sure to list the schools you are applying to, so they will receive a copy of your Student Aid Report (SAR).
Heading Down the Road to College
Approximately four to six weeks after you have filed the FAFSA, you will receive your Student Aid Report. The report will list your Expected Family Contribution, and indicate your eligibility for a Pell grant. However, if you do not receive the Student Aid Report within a timely fashion, you should call the Federal Processor at 1.800.433.3243. Investigate the status of your application and request a duplicate Student Aid Report if necessary. Check your Student Aid Report or required information for any errors so, you can correct them and mail it back immediately. Any delay can cause a delay in you receiving your financial aid package from the school.
In the event there are any unusual financial circumstances that affect your family’s ability to pay for your education, especially if these occur after you submit your FAFSA, contact the financial aid administrator at each school. Circumstances such as, unemployment, death of a parent, disability or natural disasters that damage your home or other assets “might” alter your financial package to give you greater assistance.
After you have started receiving offers of admission, you should also begin receiving award letters from the financial aid offices at the schools. Take time to sit down with your family and compare the offers formed on the bottom line cost to you of attending each school. After reviewing each offer closely if there is a significant discrepancy between one offer and the rest, call the schools to inquire about it. Usually discrepancies of that nature result from one school providing information to one school that you did not provide to the other. In certain cases, schools will reevaluate your aid application, pending additional information.
After you have decided upon a school and accept their offer of admission send in a copy of the award letter (accepting or rejecting each component of the financial aid package). Submit a letter to each of the other schools, politely turning down their offers of admission.
Remember to send a copy of your high school transcript to the school you plan to attend, and if you have attended any institution of higher education, have them send a Financial Aid Transcript to that school. This must be done whether you receive any financial aid.
If you need to apply for student loans, apply for them immediately.