The Financial Aid Roadmap

THE FINANCIAL O AID ROADMAP It's a scary and sometimes lonely journey trying to finance your (or your children's) college education. To help you navigate, we've created this roadmap to guide you through your many financial aid options. YOUR FINANCIAL AID Before you begin your financial aid planning, make things easier by becoming familiar with the more common forms of financial aid. TYPES OF FINANCIAL AID SCHOLARSHIPS FEDERAL LOANS PRIVATE LOANS GENERAL WORK STUDY GRANTS SCHOLARSHIPS FEDERAL SAVINGS JOB SCHOLARSHIPS INSTITUTIONAL Programs that help students earn financial funding through a part-time work program. Includes jobs during high school and college. Includes Perkins, Stafford (Sub and Unsub), and Parent PLUS. Any private loans offered to a student Includes Scholarships offered directly from a university or institution. Scholarships from corporations, contests, or private organizations. Includes Pell and institutional Any federal scholarships parents' savings and 529 plans. issued separately from an institution. through a bank or lending institution. grants. GET YOUR TIMING RIGHT Beginning to save or researching financial aid at the right time is key to hitting important deadlines. Follow this timeline to know when to start each financial aid process. Students, teachers and parents all get involved in the financial aid process to different degrees along the way. This chart shows when you need to step up – or step back. THE FINANCIAL AID TIMELINE LEVEL OF INVOLVEMENT EDUCATOR/ COUNSELORS BEGIN PARENTS STUDENT DON'T WAIT TOO LONG DAY I Begin saving For many families, putting a child through college could run in excess of $100,000 or more. Now multiply that by the number of children you have. Whether it is a 529 Plan or another form of savings, it's important to start early and invest often. Parents should meet with financial advisors in preparation. SEP Start working Student becomes involved by researching possible colleges and their Total Cost of Attendance (TCOA). Meet with guidance counselors to discuss possible aid and scholarships. JUN JUL Begin research Prepare any extra materials needed for special institutional scholarships (e.g art portfolios) Guidance counselor or educator will help student with requirements for scholarships. DEC Automatic with college application JUN Research & apply for general scholarships online Parents may decide to meet with financial advisors to SEP SEP prepare or fill out FAFSA. Research & apply Institutional DEC grants automatic with college application Request FAFSA PIN & fill out FAFSA worksheet Students receive Student Aid Report (SAR), begin looking for additional funding. JAN JAN JAN File your FAFSA Pell grant eligibility determined scholarship when FAFSA with FAFSÀ filed Apply for a Federal MAR online Awards application letter informs of eligibility APR Educator's/guidance counselor's role in financial aid comes to a close. Accept Stafford loan award, apply for Parent PLUS loan if needed MAY Research & apply for private student loans JUN Research available jobs SEP SEP Student signs MPN for loan Receive disbursment job and start working JAN JAN Renew with FAFSA for following year Renew FAFSA Students begin to take over role of mitigating college JUL Re-apply finances. JAN JAN Renew FAFSA Renew JUL Re-apply JAN JAN Renew Renew FAFSA GRADUATION REPAYMENT BEGINS After a series of consecutive payments, parents may be released as cosigners from private loans. POST-GRADUATION JOB CONSOLIDATE YOUR LOANS REPAYING THOSE STUDENT LOANS SEP It is critically important for students coming out of college to consolidate their loans and seek exit counseling. However, even before you graduate you should keep in mind that your student loan payments are due as early as three to six months after graduation. Devise a repayment strategy. Depending on the type of loan, the grace period for loan repayment will come due as early as September. GRAD SCHOOL IS IT WORTH THE EFFORT? Seeking certain forms of financial aid can produce better results than others. As a general rule, seek aid through federal means before you look for private loans. Ideally, you will be eligible for and get enough scholarships to fill in any gaps from federal financial aid. DIAMETER INDICATES PERCENTAGE OF PEOPLE WHO USE THIS FORM OF FINANCIAL AID SAVINGS WORK STUDY GRANTS SCHOLARSHIPS FEDERAL LOANS PRIVATE LOANS LIKELIHOOD OF GETTING AID VS. EFFORT NEEDED TO APPLY FOR AID 28% 7% 4 54% 46% 14% 23% 3 4 LITTLE EFFORT GREAT AMOUNT OF EFFORT EFFORT REQUIRED Percentage of students as reported in "How America Pays for College" (2009) by Sallie Mae SOURCES: FINAID.ORG I FAFSA.ED.GOV I SALLIEMAE.COM | EDVISORS.COM POSTCOLLEGE COLLEGE CHANCE OF SUCCESS FILL THE GAP HIGH SCHOOL CHILDHOOD UNLIKELY CHANCE OF GETTING AID SENIOR YEAR JUNIOR YEAR | SOPHOMORE YEAR FRESHMAN YEAR SENIOR YEAR GREAT CHANCE OF GETTING AID JUNIOR YEAR SOPHOMORE YEAR FRESHMAN YEAR