The College Handbook 1992/The College Handbook 1992 CD-ROM Edition - Nimbus.ISO/ceintro4.txt

Text File | 1992-01-28 | 12.8 KB | 282 lines

PAYING FOR COLLEGE

The Handbook descriptions include a section on annual expenses in which
the typical expenses for undergraduate students living on campus are
shown for a nine-month academic year. Keep in mind that college costs,
like most other costs, are rising. All expenses are likely to be
somewhat higher by the time you enter college and they will continue to
rise while you attend. Be sure to verify current costs with the
institution.

ACTIVITY #1: Copy the worksheet below and use it to compare
             college costs.

                            STUDENT EXPENSE BUDGET

                       College 1      College 2      College 3

     College name:  ______________ ______________ _______________

 Tuition and fees:  ______________ ______________ _______________

      Room/board*:  ______________ ______________ _______________

 Books & supplies:  ______________ ______________ _______________

 Other expenses**:  ______________ ______________ _______________

Transportation***:  ______________ ______________ _______________

     TOTAL BUDGET:  ______________ ______________ _______________

  * You should consider these as expenses to your family if you live
    at home.
 ** Such as cost of child care, expenses because of handicap, etc.
*** You should add your own estimate of the round trips you will make
    to your home.  Students living at home should figure the costs of
    daily transportation to the college.  College estimates of
    transportation costs are listed in The College Cost Book, 1992.

The cost of going to college is something that you and your parents
should think about early in the college selection process. You must have
a clear idea of the costs at an institution in order to know whether you
will need financial assistance to pay the bill.

Costs differ from one college to another, so you should make an estimate
for each college you are considering. There are two categories of
college expenses to think about--direct educational costs and living
costs.

DIRECT EDUCATIONAL COSTS  +  LIVING COSTS      =     TOTAL COSTS
-Tuition and fees            -Room and board
-Books and supplies          -Personal expenses
                              (clothing, laundry,
                               entertainment)
                             -Transportation


FINANCIAL AID

Millions of students receive financial aid to help them continue their
education. You do not have to be poor to qualify for financial aid,
because aid is based on what you and your family are able to pay. Even
students from families with high incomes are often eligible for aid,
especially at higher cost colleges.

DEMONSTRATED NEED

Colleges, state scholarship programs, and other organizations award
financial aid on the basis of demonstrated need. They believe that you
and your parents have a responsibility to pay as much as you can toward
your educational costs. Demonstrated need is the difference between what
it costs to attend a college and how much your family can reasonably be
expected to contribute.

Total                      Family                 Demonstrated
college expense     -      contribution     =     need

Usually you are eligible for financial aid equal to the amount of your
demonstrated financial need. Since what you can afford to pay stays the
same whether college costs are high or low, you may be eligible for
different amounts of aid at different institutions. Don't rule out
applying to any college that interests you on the basis of its costs
alone.


TYPES OF AID AVAILABLE

Grants or scholarships. These are types of aid that do not have to be
repaid (sometimes called gift aid).

Loans. These usually have low interest rates and must be repaid, but
generally only after you have graduated or left college.

Student employment. This can be a job that the college finds for you or
work you find on your own that is funded through a financial aid
program.


SOURCES OF FINANCIAL AID

Financial aid can come from several different sources: the federal
government, state government, colleges themselves, and a wide variety of
private organizations and scholarship programs. The major financial aid
programs are described here:

Institutional funds. Most colleges have their own scholarships or grants
as well as loan and work programs funded from endowments and operational
budgets.

Federal programs. Campus-based aid. There are three major federal
programs that are campus-based--that is, directly administered by
colleges. Most colleges participate in these programs.

Supplemental Educational Opportunity Grant Program (SEOG) provides
grants of up to $4,000 for students with financial need.

The Perkins Loan Program, formerly the National Direct Student Loan
Program, provides loans for students with demonstrated need. No interest
is paid while you are enrolled in college. When you leave college, you
must repay with 5 percent interest.

College Work-Study Program (CWSP) provides jobs for students with
demonstrated need.

Colleges may also administer other federal programs, including ones to
assist students who enter nursing and other health programs.

Pell (Basic) Grants. The federal government also sponsors the Pell Grant
program. At press time, the maximum Pell Grant for the 1991-92 academic
year was not certain, though it will probably not exceed $2,400. The
grants are based on your family's financial circumstances and may be
used at the college of your choice.

Stafford Loan. The federally sponsored Stafford Loan Program (formerly
the Guaranteed Student Loan Program) is an important source of loan
funds. These loans are made primarily by banks, savings and loan
associations, and credit unions, but some colleges are also lenders.
Loans are based on demonstrated need.

The federal government pays the full interest on these loans (currently
8 percent for the first four years of repayment and 10 percent
thereafter) while you are enrolled in college. When you graduate or
leave a college, you must begin repaying the loan with interest.

Parent Loan Program. The federally sponsored Parent Loans for
Undergraduate Students (PLUS) allows parents to borrow money to help
with their children's college costs. The interest rate is variable, tied
to the treasury or T-bill rate plus 3.25 percentage points, to a maximum
of 12 percent. Repayment begins 60 days after the loan is disbursed.

State funds. All states have scholarship or grant programs to help you
attend the college of your choice. The regulations and application
procedures for these programs vary from state to state. Ask your
guidance counselor for information about your state's program or write
to the state department of higher education in your state capital.

Community funds and other sources. Financial aid is also provided by
community agencies, foundations, corporations, unions, religious
organizations, clubs, and civic, cultural, and fraternal groups. Need is
usually considered, but other factors may be taken into account in
determining eligibility. Check with your counselor for information on
local aid sources.


COMPARING FINANCIAL AID

You should compare the types of aid offered by the colleges you are
considering. Remember that the percentages listed under grants, loans,
and jobs in the Handbook are for the total financial aid dollars
distributed by each college in the 1990-91 academic year (or the most
recent year for which information was available). If you are eligible
for financial aid, you probably will get a combination of gift aid and
self-help aid (loans and jobs). This combination is called a financial
aid package.


FINANCIAL AID CHECKLIST

If you think you need aid to continue your education, your chances of
getting it are best if you apply in the right way at the right time.

Begin at least a year before you expect to enter college.

- Ask for information about financial aid opportunities and application
procedures when writing to the admissions office of each college on your
list.

- Search for special sources of aid. Your guidance counselor, high
school library, and public library will often have this type of
information. You may qualify for a private scholarship, grant, or loan
program based on academic achievement, religious affiliation, ethnic or
racial heritage, community activities, hobbies or special interests,
organizational membership, artistic talents, athletic abilities, other
special skills, career plans, or proposed field of study. Since many
private grant and scholarship programs have earlier deadlines than most
colleges and government programs, start this search early.

- Ask for information on federal student aid programs from you high
school counselor.

- Ask about student aid available to residents of your state and how to
apply for it.

- Make a financial aid calendar for yourself. Include (1) the name of
each program for which you may be eligible, (2) the deadline for
applying to the program, and (3) an earlier deadline for yourself--a
date by which you must have received and completed the application form
and any other requirements in time to file your application by the
program deadline.

- Make certain you know what need analysis form to file for federal
student aid programs. The most commonly used form is the Financial Aid
Form (FAF) of the College Scholarship Service. File the form required or
preferred by the colleges to which you are applying for admission; you
can get them from your high school guidance office or a college
financial aid office. The forms are generally available in November or
December, but they should not be filed until after January 1. You can
use the FAF and other approved forms to apply for federal programs
simply by checking the appropriate box on the form. There is no extra
fee for this service.

- Plan a time when you can spend several hours on your applications. If
you are a dependent of your parents, you should plan the time when they
can work with you. Your parent(s) should have a draft or complete
version of their federal income tax return for the year immediately
preceding your enrollment (e.g., 1991 tax return if you will start
college in fall 1992). Your parents need not actually have filed their
return, but they should at least have worked through it because
questions on the need analysis form are cross-referenced to questions on
the tax form.

- Carefully follow the instructions for filling out your need analysis
form. Make sure your answers are complete, correct, and legible.

- Apply for a state scholarship or grant. In many states your need
analysis form can also be used to apply for state aid. Your guidance
counselor should know whether you must fill out additional application
forms for state aid.

- Mail your completed need analysis form as soon as possible after
January 1. Send the form for processing at least four weeks before the
earliest financial aid deadline set by the colleges, state scholarship
programs, or other grant programs for which you may be eligible (but not
before January 1).

- Review the Student Aid Report (SAR) and any other acknowledgment you
receive after submitting your need analysis form. Respond promptly to
any request for additional information.

- Check to see if other financial aid applications are required by the
colleges to which you are applying. Complete and return the forms as
early as possible.

- If you think you may be eligible for aid through the Veterans
Administration or a vocational rehabilitation or other social service
agency, contact the nearest office for information.

- Determine how payments from each aid source will be made to you.
Generally, payment of financial aid is made at the time you enroll. Find
out if there are additional procedures or forms to file in order to
receive the aid.

- Pay close attention to award letters. Notify the college whose offer
you are accepting, and inform the other colleges of your decision so
that the financial aid reserved for you can be freed for other
applicants. If you also receive aid notices from the state or federal
programs, read them carefully and be sure to follow any directions they
contain so that you can be certain of getting your aid.

- Explore alternatives. If the college of your choice cannot provide you
with enough aid to meet your full financial need or if your family
cannot contribute what is expected, you may want to consider borrowing.
Learn about loans--the interest rates, repayment schedules, and other
terms and conditions--before you apply. Government-sponsored loans, such
as the Stafford Loan Program, usually have the lowest interest rates and
the most flexible repayment arrangements. If you do apply for a Stafford
Loan, give yourself enough time (at least six weeks) to have the loan
papers processed.