Completing the FAFSA is a Family’s First
Step to Managing College Costs
NEWTON, Mass. (Business Wire EON/PRWEB ) February 11, 2008 --
Completion of the Free Application for
Federal Student Aid (FAFSA) is a key step families should take when
preparing to pay for college. This application helps to determine the
amount of federal and college aid a student may receive and allows them
to apply for federal student loans. Federal loans have favorable
repayment terms when compared to private loans and experts recommend
maxing out on federal loans first.
“While many high school seniors are engrossed
in completing college applications, it’s also
important for them and their parents to be thinking about paying for
school. Many will need multiple loans to cover the burgeoning costs of
college,” says Kevin Walker, cofounder and CEO
of SimpleTuition, Inc., a
company that helps students and parents make sense of education
financing options. “Only after the FAFSA is
completed can students access the best borrowing programs available.”
Average tuition and fees at four-year public colleges rose 6.6 percent
this year, again outstripping increases in financial aid and pushing
students into more borrowing, according to the College Board. With the
cost of college continuing to skyrocket, thousands of families
nationwide will require multiple loans each year to cover tuition and
fees. One of the reasons families tap multiple loans, is that federal
student loans, available in limited amounts, ARE worth the trouble of
including in the package. The FAFSA is a necessary step toward accessing
these loans.
Walker advises parents and students to consider the following:
Federal Stafford Loans are Available, Regardless of Need, but You
Must Complete the FAFSA
Many families assume they won’t be eligible
for the financial aid programs governed by the FAFSA process. However,
the federal Stafford loan – the most common
student loan – is available to almost any
student, regardless of need. To qualify for Stafford, you need to
complete the FAFSA form. If the family is deemed ‘needy’
enough, the student may be able to borrow through the subsidized
Stafford program, where no interest accrues during enrollment. If the
student is going to borrow at all, don’t
leave this best-in-class loan on the table.
Do it Yourself and Do it Sooner than Later
The FAFSA form is not complicated. Just visit the U.S. Department of
Education website to link to the online FAFSA. The sooner you complete
the form, the more time you have to prepare for the tuition bill. Some
even say that applying early gets you in queue for some school aid that
may be available on a first-come, first-served base.
Be Prepared
Have the following information handy: federal tax return for parent and
student (if you haven’t filed your tax
returns and don’t have exact numbers for your
2007 income-and-tax situation, simply estimate your 2007 income);
information on assets and other untaxed information; and the U.S.
Department of Education PIN number assigned to you.
Advocate for Yourself and Ask Questions
If your circumstances change (change of assets, change of financial
need, dependency status, job loss, etc.) contact your school’s
financial aid office as your expected contribution could decrease based
on these factors. Don’t hesitate to stand up
for yourself if you think your “need”
has increased.
For more information visit www.simpletuition.com
and check out these articles on financial aid:
Understanding
the Financial Aid Process
Tips
on Filling out the FAFSA
About SimpleTuition, Inc.
Founded in 2005, SimpleTuition is dedicated to helping students and
parents make sense of education financing options. SimpleTuition offers
the leading independent and interactive solution for researching and
comparing over 100 private, PLUS, Stafford, GradPLUS and Federal
Consolidation loans from more than 45 lenders. The site has been
recently featured on Kiplinger’s Best
List as the best financial services web site for student loans and as
one of Fast Company’s Top Web 2.0
sites. The company also holds awards for exceptional website development
from the Interactive Media Council, Web Marketing Association and the
International Academy of Visual Arts. SimpleTuition is headquartered in
Newton, Massachusetts and is funded by Atlas Venture, IDG Ventures
Boston and North Hill Ventures. For more information, visit www.SimpleTuition.com.
See the original story at: http://eon.businesswire.com/releases/fafsa/student/prweb690654.htm
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