The College Admissions Scoop: It's FAFSA Time!

It is time to file the Free Application for Federal Student Aid (FAFSA). The FAFSA, is available online at www.fafsa.ed.gov or via hard copy by request only. Filing online is highly recommended for both speed of transmission and accuracy of information.

There is no automatic income cut-off level for financial eligibility, so I recommend that you apply even if you think you will not qualify. The only sure way to determine your eligibility for need-based financial aid is to file the FAFSA. The likelihood of being eligible for some form of financial aid may be better than you think.

Some common financial aid myths include:

• Only students with high GPA's get all the aid
• If your older son or daughter did not qualify for aid, then neither will your other children
• Only extremely needy students can receive financial aid, so if your family income is high, then don't bother to apply

The primary responsibility for paying for a student's education rests with the student and his family. Financial aid programs are only intended to assist students and families with their college costs.

WSJ/Unigo Webcast - Paying for College

The WSJ On Campus/Unigo invites you to join them on Tuesday, April 6th at 7 p.m. EDT for an exclusive, live and interactive webcast covering everything you need to know about paying for college. Topics may include:

How can you take advantage of new government student aid programs?
What's the best way to win college scholarships?
What are student loan forgiveness programs?
How can you get the best interest rates and benefits?
How do the FAFSA and CSS work?
What are 529 plans, Stafford loans, Pell Grants, and PLUS loans?

The panel of experts:

Martha Holler, Vice President, Sallie Mae
Mark Kantrowitz, Publisher, Fastweb.com
James Boyle, President, College Parents of America
Randy Deike, Vice President of Enrollment Management, New York University
Jennifer Garratt Lawton, Director of Financial Aid, Wesleyan University
Melissa Kunes, Senior Director, Office of Student Aid, Pennsylvania State University

What Families Need to Know About Financial Aid Award Letters

Question: How and when can I expect to hear if my child has been awarded financial aid?

Answer: Financial aid award letters, as they are called, are typically sent out between mid-March and mid-April each year. Families have until May 1st to evaluate their offered aid packages and commit to a school by sending in a deposit. Don't assume that the school with the lowest tuition or the one offering the most grant money is the most affordable. The real measure of an aid package is how much you end up paying in the end.

Question: How do I determine which college is the most financially viable for my child?

Answer: First determine what the major costs are to attend each school. It is imperative that all directly and indirectly billed expenses (travel, books, meals, etc.) are included whether or not they are reflected in the financial aid award letter. Then group the major aid components together and compare them. Aid comes in three forms, loans which have to be repaid with or without interest, gift aid which consists of grants and merit aid which do not have to be repaid and work-study where a student is paid to work part time either on or off campus. In the latter case, the award letter doesn't typically indicate what the work will be. Comparing components is sometimes easier said than done. There is no standard form of financial aid letter. Schools can have cryptic acronyms to identify components without indicating which are grants and which are loans.

Once you know what your costs are and how much, and in what form of aid your child will be receiving, you can determine what your out-of-pocket costs will be. The difference between the cost of attendance and the amount of grant money and work study that your child is offered is ultimately what the family will owe. Offered loans may defer some the cost initially, but will have to be repaid with or without interest, depending upon the type of loan it is. Interest on some loans have to be repaid during the course of undergraduate studies. Others defer repayment until after graduation. Typically loans carry interest charges and fees which should be included in your calculations.

Question: Is help available to compare financial aid awards?

Answer: There are websites, some of which are more reliable than others, to assist families in comparing award packages. They also require a certain level of understanding the financial aid process. The college's financial aid office is always a resource to be called upon to clarify and explain inconsistencies or ambiguities. Also, be aware that aid packages aren't necessarily automatically renewable from year to year. Educate yourself early about the process so you will be in a position to evaluate financial aid letters in a timely fashion.

Carolyn Cohen, Esq. Educational Consultant at College Planning Services, Inc.