By Chris Domes
Special to the Herald
(From the issue of 3/10/05)

With the campus tours over and college applications in the mail, students and parents can sit back with a sigh of relief and wait for acceptance letters to roll in. But those who are willing to make a little more effort now can reap big rewards later. It’s time to explore your financial aid options.

A college education is one of the biggest and most important investments a family will ever make. No matter how much you have planned and saved, you would probably be glad to get some help with those tuition bills. Cost may even be a determining factor in which school your student ultimately attends.

The good news is that there is plenty of financial aid out there. Governor Mark Warner recently urged Virginians to become aware of the many aid options available to them, noting, "Too many potential students believe college is out of their reach when, in fact, they could obtain a college education through student financial aid."

For the uninitiated, the financial aid process may seem intimidating, but the following tips will help you get on course and meet those fast-approaching deadlines.

Financial aid is the total amount of funding a student receives from all sources—federal, state, and institutional. Aid takes many forms, including scholarships, grants, loans, and campus employment. Some financial aid is need-based; some is awarded irrespective of need. A financial aid officer at each college your student has selected will combine the various forms of aid for which he or she is eligible into a customized "package." Because funds are limited, the package may not cover a student’s full eligibility.

No matter what school your student is planning to attend, the FAFSA (Free Application for Federal Student Aid) is the first step in the financial aid process. This application, which can be downloaded from www.fafsa.edu.gov, is used to determine eligibility for federal student financial aid, including grants, loans, and work-study programs. In addition, most states and schools use information from the FAFSA as a basic guide in awarding non-federal aid.

Every family should apply to find out if they’re eligible for financial aid, regardless of their economic circumstances. Each situation is unique—income, family size, the number of children attending college, cost of the selected college, unusual medical expenses, and other factors all enter into the equation.

Many people look at the cost of a college education at a private university, think it’s beyond their means, and mistakenly conclude that state schools are the only affordable choice. The fact is that private universities offer scholarships, grants, loans, and work-study programs that can significantly reduce the sticker price. At Marymount University, for example, more than 80 percent of full-time, degree seeking undergraduates receive financial aid.

Because federal financial aid is available throughout the year, you can submit your 2005-06 FAFSA anytime between now and June 30, 2006. But don’t wait. You must submit the FAFSA early in order to be considered for many types of non-federal aid. Colleges and universities are reviewing financial aid requests for next fall now. If a student waits to apply for aid, the institution’s funds may be depleted. Many colleges have specific deadlines for financial aid applications—often as early as May—so check with the financial aid offices at the schools you’ve selected, to make sure you’re on track. This point can't be stressed enough; submit your FAFSA and your college financial aid applications as soon as possible! Schools need time to process your information and make decisions. Don't let the time or the money run out.

The best source of information is a college’s financial aid office. The staff there can tell your student about their own institution’s resources, as well as state and federal programs and private funding sources. Two reliable online information sources are www.studentaid.ed.gov and www.students.gov. A cautionary note–watch out for scams. Avoid Web sites and mailings that charge a fee for financial aid consultation. Applying for financial aid is free.

Grants and scholarships do not have to be paid back. Loans must be repaid, but the interest rate on federal loans is now at an all-time low. Virginians attending a private institution of higher education in the Commonwealth are entitled to a Tuition Assistance Grant (TAG), based solely on their status as Virginia residents. Generally, any aid that your student receives will be paid directly to the college to cover his or her educational expenses, including tuition, fees, and room and board. The one exception is the federal work-study program, which provides direct compensation to students.

Students with initiative and the time to surf the Internet can find many private funding sources. Investigate civic, religious, community, and special-interest groups that award scholarships based on essay competitions, volunteer service, membership in the group, or some other criteria. These awards may not represent huge amounts of money, but every little bit helps. A Web site to begin the private scholarship search is www.fastweb.com.

You need to reapply for financial aid each year. It’s a simple process the second time around. Fill out the RENEWAL FAFSA form, which can be downloaded from www.fafsa.ed.gov. Also, keep in mind that students must maintain satisfactory academic progress to retain financial aid eligibility. Standards differ from college to college, so check the definition of "satisfactory progress" with your specific school.

While the cost of tuition, room and board, and books can certainly add up, it’s important to remember that a college education is your best investment in the future. And despite all the hype about the high cost of college today, a quality higher education can be surprisingly affordable. It’s worth your time to explore all the financial aid options that may be available for your family. Remember, your student can’t afford NOT to get a great college education!