you submitted your Free Application for Federal Student Aid (FAFSA), you listed
one or more college codes that represent the schools that interest you. Once your FAFSA’s been processed, you may begin
to receive financial aid offers from these schools sent electronically or via
the US Postal Service. It’s important to read each offer carefully, as they
describe the types and amounts of financial aid a college or career technology
center can provide to help you pay for one year of higher education.
your financial aid offer you’ll see:
total Cost of Attendance (COA) – An estimate of what it costs to go to that
school for one year
Family Contribution (EFC) – A number calculated from your FAFSA that’s used by
the school to determine how much financial aid you’re eligible to receive (most
likely not the amount you’ll be expected to pay)
and amounts of aid the school can offer you; this list is often called a ‘financial
aid package’. Your offer may consist of:
– aid based on financial need that typically doesn’t have to be repaid
– gift aid awarded to you by colleges, state agencies, foundations, tribal and
work-study – an opportunity for you to work on or off campus to earn money for
student loans – funds awarded based on financial eligibility that must be
repaid, with interest
PLUS loan – a loan your parent(s) may borrow to help you pay for college; your
parent(s) are expected to repay the loan (credit check required)
subtract all of the financial aid shown on the offer from your Cost of Attendance.
This will determine your estimated Net Cost, which is the out-of-pocket amount
you’ll be expected to pay. If you should end up with a negative amount, the Net
Cost would be zero.
options are available to help you cover the Net Cost?
scholarships – You don’t have to be a straight A student or a sports star to
qualify for many different kinds of scholarships. OKcollegestart.org and UCanGo2.org are great places to
begin your scholarship search.
529 College Savings Plan – visit ok4saving.org for more information
benefits – visit military.com/education/gi-bill to learn more
monthly payment plan approved by your school
don’t have to accept all financial aid offered to you, especially when it comes
to borrowing student loans. Using a monthly payment plan while you’re in
college can be less expensive than a monthly loan payment with added interest
after you’ve graduated. If you’re unable to make a monthly payment to the
school, consider making smaller monthly interest payments on any unsubsidized
student loan(s). This will decrease your overall student loan debt once you
graduate or leave school.
attention to deadlines. Accept or decline your financial aid offer before the
you receive more than one financial aid offer, you may want to determine what
your net cost would be at each college. Ultimately, you’ll want to choose the
school that’s the best fit for you.
add more school codes to your FAFSA, log in as a returning user at studentaid.gov.
receive your financial aid offer from a college you may be interested in
attending, it’s quite possible that one or more student loans will be included
in the offer. If you need a student loan(s) to help cover the costs of college,
you’ll want to borrow smart from the very start of your college experience to
minimize your debt after graduation. Here are some things you need to know as
you consider student loans.
- Use ‘free money’ first. Take advantage of all the gift aid you’re
offered—grants and scholarships—before deciding how much you’ll need to borrow.
- You don’t have to accept student loans. You can decline any amount of
financial aid that is offered to you. If you must borrow to pay college costs,
only borrow what you’ll need to get you through one year of college. Review
your finances each semester, and keep that commitment to borrow only what you
need to cover school expenses.
- Do your research. Some experts recommend that your monthly
loan payment should be no more than 8-10% of the monthly income you expect to
earn during the first year after graduation. To estimate your loan payments,
try the Loan Calculator found at ReadySetRepay.org.
- Subsidized = less expensive. Interest won’t be added to a subsidized
federal student loan balance until after you graduate, withdraw or drop your
class load to less than half-time status.
- Make interest payments. Students who borrow federal unsubsidized
loans are responsible for all interest on the loan as soon as their
institutions receive the first disbursement. Student loan interest payments are
generally affordable, even on a college student’s budget. If possible, keep the
interest paid down while you’re in school and during your grace period. To help
you think it through, see how two students took different paths to repay their
- Keep in touch with your lender(s) and
loan servicer(s). Always
make sure you let them know your current address, and contact them if you’re
having trouble making your payments. You can find contact information for your
lenders/servicers at StudentAid.gov under Manage
Loans. Be sure to have
your FSA ID handy—it’s the username and password you created when you submitted
your FAFSA. You’ll need it to access your federal student loan information.
- Stay informed. Find more information and FAQs at ReadySetRepay.org and StudentAid.gov.
Happy Financial Aid
Awareness Month! February is the time to learn how you can fund your education
with various financial aid options. In order to receive federal financial aid,
you must submit a Free Application for Federal Student Aid, or FAFSA. Once your
FAFSA has been submitted, your school’s financial aid office will notify you of
your aid eligibility. Before you decide which options you’ll accept, take time
to learn about the different kinds of aid that are available to you. Since they’re
all beneficial, here’s an overview of each type of financial aid.
- Scholarships. Potentially the most significant type of financial aid available is a scholarship. It’s free money you can earn from your own hard work, financial need, merit, family history, skills, hobbies or athletics. The more scholarship applications you complete, the more likely you are to win an award. While you don’t have to submit a FAFSA to apply for a scholarship, some programs may request that you do. Scholarship applications could ask you to write an essay, submit a video, take a photograph or complete a service project. To make sure your application matches the scholarship requirements, read all directions carefully before you start the process. If you’re not sure where to look for scholarships, UCanGo2.org and OKcollegestart.org are great places to start your search. Remember that scholarships can be the additional assistance you need to help you reach your educational goals.
- Grants. Sometimes referred to as free money since they usually don’t have to be repaid, grants are given to those who demonstrate financial need. A common type of grant is the Pell Grant. The Federal Supplemental Educational Opportunity Grant, or FSEOG, is not as common since it is only given to students who show extreme financial need. For students interested in becoming teachers, there’s the Teacher Education Assistance for College and Higher Education Grant, or TEACH Grant. Students interested in the TEACH Grant should carefully read all guidelines. If the grant requirements are not met, the money could turn into a loan that must be repaid with interest. Additionally, there’s the Iraq and Afghanistan Service Grant for those who’ve lost a parent or guardian due to military service in Iraq or Afghanistan after 9/11. As with any type of financial aid, be sure to speak with your financial office if you have questions about grants.
- Work-study. Also called earned aid, work-study allows students to work and earn money for college expenses while they’re in school. Work-study positions are part-time jobs that can be on or off campus. The supervisors over these positions tend to recognize that school is a priority and are usually mindful of your class schedule. Take advantage of these positions because they can give you work experience and time to focus on your academic responsibilities. Each school will have different ways to apply for a work-study job, so talk with your school to learn more about the application process.
- Student Loans. While this type of aid is borrowed money that must be repaid with interest, student loans can help you bridge the gap between grants and scholarships. When it comes to borrowed money, it’s important that you borrow only the amount you need to pay school expenses! Federal loans can be beneficial due to their fixed interest rates (it will not change over time) and flexible repayment options. One type of federal student loan is the Direct Subsidized loan. This aid is for undergraduate students who demonstrate financial need. The government will pay the accruing interest on a subsidized loan while the student is enrolled in school at least half-time. Another federal loan, the Direct Unsubsidized student loan, is for students who do not show financial need. With this loan, the interest will always be accruing on the loan and students will be responsible for paying the interest. For those who need extra financial assistance there’s the Direct Parent Loan for Undergraduate Students or the Direct PLUS loan. Parents of dependent undergraduate students can apply for the PLUS loan to help cover additional college expenses for their child. In order to receive a Direct PLUS loan, parents must complete the loan application and meet certain credit requirements. Students will have six months from the time they graduate, drop below half-time enrollment or leave school to start repaying Direct Subsidized and Unsubsidized loans. Those who take out a PLUS loan will have to start repayment once funds have been disbursed.
that you know a little more about financial aid, use this month to decide which
options could be right for you. For more financial aid information, go to StudentAid.gov.