College Financial Aid Resource Center

College Financial Aid FAQ

Below are answers to some of the most frequently asked questions we get here at College Financing Group. If you have a question that is not answered below, please contact College Financing Group today.

What is financial aid and am I eligible for it?
Financial aid comes in two forms: need-based and merit-based.

Need-based aid comes in the form of loans, grants that do not have to be paid back, and self-help aid, such as work-study programs. There is no specific income level that indicates whether a family is eligible for need-based aid. The formulas used to determine the amount of need-based aid take into consideration many factors, including family size, income, assets, and outside resources.

Merit-based financial aid comes in the form of scholarships or grants that do not need to be paid back. Colleges typically use this type of financial aid to entice desirable students to attend their college.

If I am concerned about the cost of college, should I only apply to state schools?
Due to the complexity of the financial aid system and the increasing use of merit-based aid to attract desirable students, the cost of a private college may end up being close to the cost of a public college. Therefore, it is best to apply to a mix of both state and private schools.

Do I need to be admitted before I can apply for financial aid at a particular school?
No. You can apply for federal financial aid any time after January 1^st. To actually receive the funds, though, you must be admitted and enrolled at the school.  In addition, each college has its own recommended filing deadline.  Sometimes this date falls before a student learns about their admission status.  Make sure to check each of your college choices specific filing deadlines. Always file your federal financial aid application as early as you can after January 1^st.

Do I have to fill out more than just the FAFSA form?
All U.S. colleges require completion of the FAFSA form. However, many schools now also require you to fill out the College Board CSS Profile form. Additionally, certain schools may have their own forms you must complete as well.  Check each college for the recommended filing deadline for each required form. Each state may also have their own application. In New York State, it is the Tuition Assistance Program (TAP).

Is it worth it to fill out the financial aid form even if I don’t think I will qualify?
Yes. Often parents or students think they don't qualify for aid when they really do. In addition, while most financial aid is awarded based on financial need, some grants, loans, and scholarships are available regardless of need.

Does my family need to have completed their tax returns before we can file?
No.  Many times a college’s recommended filing deadlines are prior to when the tax returns are completed.  It is better to file prior to the deadline using estimated income than to miss the deadline to use exact figures.

College Financial Aid Glossary

Award Letter
Consolidation Loan
Cost of Attendance (COA)
CSS Profile
Deferment
Expected Family Contribution (EFC)
FAFSA
Federal Direct / Stafford Loans
Federal Grad PLUS Loan
Federal Methodology
Federal Parent Loan (PLUS)
Federal Pell Grant
Federal Perkins Loan
Federal PIN Number
Federal Work-Study (FWS)
Forbearance
Grant
Institutional Financial Aid
Need
Need Analysis
Private Loans
Self Help Aid
Student Aid Report (SAR)
Tuition Assistance Program (TAP)
Verification

Award Letter
A means of notifying students about the financial aid being offered by a college. The award letter provides a listing of award names and amounts. Colleges may require a student to accept or decline each award by a certain date.

Consolidation Loan
Borrower may be able to combine existing Federal education loans into one new loan.  Borrower will have one lender - the U.S. Department of Education - and one monthly payment.

Cost of Attendance (COA)
The total amount it should cost the student to attend school, including tuition and fees, room and board, books and supplies, transportation, and personal and incidental expenses for one academic year.

CSS Profile
The College Scholarship Service (CSS) Profile financial aid form is an application distributed by the College Board allowing college students to apply for financial aid. It is primarily designed to give private member institutions of the College Board a closer look into the finances of a student and family. The form is much more detailed than the FAFSA.

Deferment
A student loan deferment allows the borrower to temporarily postpone their monthly payments under certain circumstances, such as enrollment in-school, unemployment, economic hardship, and military deployment.

Expected Family Contribution (EFC)
The amount of money that the family is expected to contribute to the student's education, as determined by the Federal Methodology need analysis formula approved by Congress.  This figure is used by colleges to determine eligibility for financial aid.

FAFSA
FAFSA, or Free Application for Federal Student Aid, is a form that the federal government uses to calculate need-based financial aid.  The FAFSA collects income and asset data on the student and the parent(s).  The FAFSA is used to determine the expected family contribution (EFC).

Federal Direct / Stafford Loans
Federal student loans come in two forms, subsidized and unsubsidized. Subsidized loans are based on need; unsubsidized loans are not. For both subsidized and unsubsidized loan borrowers need to be enrolled at least half time. The interest on the subsidized Direct / Stafford Loan is paid by the federal government while the student is in school and during the six-month grace period. The interest on an unsubsidized Direct / Stafford Loan is the responsibility of the student and accrues while the student is in school and during the grace period.

Federal Grad PLUS Loan
Federal loan for graduate students who are attending school on at least a half - time basis.

Federal Methodology
The need analysis formula used to determine the Expected Family Contribution (EFC). This methodology takes family size, the number of family members in college, taxable and nontaxable income, and assets into account.

Federal Parent Loan (PLUS)
Federal loan for parents of college-bound dependent students who are attending school on at least a half -time basis.

Federal Pell Grant
A federal program where money is given to undergraduate students with the highest amount of financial need. Pell Grants do not have to be repaid.

Federal Perkins Loan
A low, fixed-interest federal loan available to both undergraduate and graduate level students demonstrating extreme financial need and enrolled at least half time. Check to verify if the college of your choice offers Perkins Loans.

Federal PIN Number
Needed each year to electronically apply for federal student aid and to access your Federal Student Aid records online.

Federal Work-Study (FWS)
A federally funded aid program that provides part-time employment for both undergraduate and graduate students. Eligibility is based on need.

Forbearance
A student loan forbearance allows the borrower to temporarily postpone your monthly payments under certain circumstances, such as unemployment , temporary financial hardship, natural disaster and military deployment.

Grant
A type of financial aid based on financial need that the student does not have to repay.

Institutional Financial Aid
Financial aid awarded using resources from a specific university or college.

Need
The difference between the Cost of Attendance (COA) and the Expected Family Contribution (EFC) is the student's financial need. In other words, need is the gap between the cost of attending the school and the family’s resources.  A college will attempt to meet this need using grants, loans, and work-study employment.

Need Analysis
The process of determining a student's financial need by analyzing the financial information provided by the student and his or her parents (and spouse, if any) on a financial aid form.

Private Loans
Also known as Alternative Education Loans, private loans help bridge the gap between the actual cost of your education and the amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete.

Self Help Aid
Financial aid that comes in the form of loans and student employment.

Student Aid Report (SAR)
The form a student receives from the U.S. Department of Education after filing a FAFSA application. The SAR notifies the student of his or her eligibility for the Federal Pell Grant.

Tuition Assistance Program (TAP)
A grant program available for both full-time undergraduate and graduate students who have been residents of New York State for at least 12 months.

Verification
A process used by institutions to verify the information provided by a family on the FAFSA. Verification usually requires providing copies of signed tax returns and other income documentation.

Useful Financial Aid Websites

• www.FinAid.org
  FinAid! provides free information on financial aid, loans, savings, military aid, and scholarships.
• www.Studentaid.ed.gov
  Student Aid on the Web offers financial aid information from the U.S. Department of Education.
• www.Students.gov
  Students.gov is the official U.S. government website designed for college students and their families.
• www.FAFSA.ed.gov
  Application and information about FAFSA (Free Application for Federal Student Aid).
• www.CollegeBoard.com
  College Board develops the CSS (College Scholarship Services) Profile form, which many schools require students to complete in order to apply for financial aid.
• www.Overview.com/colleges
  Overview.com searches for top campus colleges, including junior colleges, technical colleges and schools, vocational colleges, and business colleges.
• http://www.review.com/
  Review.com is the PrincetonReviewCollege Search engine.
• http://www.naia.org/
  Official site of the National Association of Intercollegiate Athletics.  NAIA seeks to fully integrate life, academics, sports, and fitness into the higher education environment.
• www.NCAAStudent.org
  This site is dedicated to helping students understand the balance between academics and sports required of every student-athlete for a successful life in and out of school.
• http://www.njcaa.org/
  NJCAA is an association of community college and junior college athletic departments.
• www.MappingYourFuture.biz
  Online Student Loan Counseling allows you to fulfill entrance and exit loan counseling.requirements.  The counseling sessions also help you understand your rights and responsibilities as a student loan borrower.
• http://www.pin.ed.gov/
  This Web site is your source of information for the Federal Student Aid PIN.
• http://www.upromise.com/
  Where your everyday spending can pay you back with money for college.
• www.ibrinfo.org                                                                                                   IBRinfo was created by the nonprofit, nonpartisan Project on Student Debt to help student loan borrowers learn about two new federal loan programs: Income Based Repayment (IBR) and Public Service Loan Forgiveness.
• http://www.treasurydirect.gov/                                                                            Treasury products are a convenient and secure way to save money and can be used to pay for college and associated educational expenses.