How to Obtain Financial Aid in 2010
Most of us know that April 15 is an important date when it comes to declaring taxes. For families that plan on applying for financial aid for college, there is another important date to remember. January is the month in which the FAFSA application to receive federal financial aid becomes available. You can request this form online or by mail.
The federal government uses the FAFSA form to calculate the minimum amount that a family can contribute towards a student’s college expenses as well as to determine if the family qualifies to receive financial aid. You will have to provide information about your income, property, and other financial details. In order to apply for federal financial aid, you must have a Social Security number or permanent resident card.
The current financial crisis has affected families on all economic levels. However, “it is likely that those families whose income and property value is over $80,000 will receive more loans than grants, since their expected contribution is higher,” says Glenda Barahona from the Hispanic Scholarship Fund, one of the many organizations that assist families in the financial aid application process.
Nevertheless, families should not discard the possibility of attending a prestigious university simply because it is not in their budget. “If the school considers your child an asset, they will find the money,” says Ron Diaz, director of student grants at Stanford University in California, where the average grant for low-income students is $30,000.
A university can provide a combination of scholarships, grants, loans, and work-study programs. Grants do not have to be paid back. Choose federal loans over private loans, since the interest rates and payment conditions are much better. Work-study programs allow students to balance work and school as well as provide a way to pay for college expenses. A college degree means that you can earn about $50,000 more than those who only have a high school diploma.
Savings are another alternative. As parents often do, by setting aside $100 a month for 18 years, you can save $21,600 by the time your child is legally an adult. There are other less-renowned sources. A 529 college savings fund, for example, allows you to set funds aside tax-free and prepay future college tuition at the current cost. To find out more about these plans, contact a financial entity. It is also possible to receive tax benefits and credit for college expenses when you declare your taxes.
Applying for scholarships is a competitive process. Many organizations seek to help those students with merits and financial need. There are other companies and foundations that grant scholarships to students with different qualities such as a certain study field or if their parents are veterans of war. It is possible for a Latino student who is catholic, excels in math, and wants to become an engineer to find an organization that grants scholarships for one of these qualities.
Loans are a great responsibility. However, the benefits are worth the investment. According to the College Board, the average annual income for families in which at least one of the parents has a college degree is about $50,000 more than those who only have a high school diploma.
Undoubtedly, scholarship applications are very demanding, which is why students should begin searching for them as soon as possible. Be careful with companies that charge to help you find financial aid. Submitting the FAFSA application is free of charge and there are many organizations that provide assistance throughout the entire application process.
The College Board’s Scholarship Handbook provides an updated list of more than 2,000 public and private scholarships for undergraduate students. For more information, visit www.collegeboard.com or call 1-800-323-7155. You can also find this handbook at your local library or bookstore.
Student financial aid resources:
College Board: www.collegeboard.com/padres
Mexican American Legal Defense and Education Fund: www.maldef.org
Hispanic College Fund: www.hispanicfund.org
Hispanic Scholarship Fund: www.hsf.net
Latino College Dollars: www.Latinocollegedollars.org
Center for Student Opportunity: www.csocollegecenter.org
Questions regarding FAFSA:
The application form is available on January 1st, 2010
800-433-3243
www.fafsa.ed.gov
www.federalstudentaid.ed.gov
This post is also available in: Spanish
