2012 college night volunteers - Tulare County Office of Education

TULARE COUNTY COLLEGE NIGHTwww.tcoe.org/collegenightA GUIDE TO FINANCIAL AID FOR COLLEGEPaying for college, or getting financial help to go to college used to be a fairly simple matter. Not anymore! Parentsand students who are trying to get financial help for attending the school of their choice are faced with a mysteriousnew world—the world of financial aid. Financial aid doesn’t have to stay a mystery! By asking the classic questionsused to unlock mysteries, “Who, What, Where, When and How,” you can begin to learn the in’s and out’s of thisbrave new world you are about to enter.What is Financial Aid?Colleges and the government assume that the primary responsibility for paying for college is with the family and student.Yet, many students need additional help beyond themselves and their families to meet college costs. Financialassistance given to a student to help with college costs is defined as “financial aid.”Who Gets Financial Aid?Most financial aid is based on “financial need.” Need is determined through two factors; the cost of attendance at thecollege of the student’s choice, and the amount of money the student and his/ her family is expected to contributetoward college expenses. This figure is known as the “Family Contribution” and is calculated using a formula setby Congress. The Federal “Family Contribu tion” is the same for each college the student plans to attend. A $3,000family contribution remains the same at a community college or a private college. The amount of financial aid astudent qualifies for is determined by the cost of the college he/she chooses. One college may determine you have $0financial need, another may determine your need is $17,000.How is Financial Need Determined?Financial need is figured by taking the difference between cost of attendance, expected family contribution and anyother assistance you may receive (i.e. scholarships).____________Cost of Education____________Family Contribution____________Other Non-Federal Assistance____________Financial NeedIf you end up with a positive number at the bottom of this equation, you are considered to have “need” at that particularschool. If your number at the bottom is a negative number, you are in a “non-need” situation at that particularschool. Remember, you can “need” financial aid at one school and not need it at another school. The CollegeBoard College Cost Book states, “In fact, if you get all the financial aid you are eligible for, you might pay the sameto go to a high-cost college as you would to go to a lower cost one.”If you are in a “non-need” situation, the type of financial aid most available to you usually is in the form of scholarshipsand other types of merit awards. (“Merit Awards” are awards and scholarships given for academic, athletic andachievement factors other than family income.)How is Financial Aid Given?Financial Aid comes in two forms: gift aid and self-help aid. Gift aid comes in the form of scholar ships and grants.It does not need to be repaid. Self-help aid comes in the form of loans and college work study. Loans are repaid,and work study is working to help pay the cost of college. Most colleges will offer financial aid “packages” which areusually a combination of several different sources, drawing from federal, state, campus and private resources. Moststudents are offered both gift aid and self-help aid.56