Peterson’s How to Get Money for College 2014 About Peterson’s Peterson’s provides the accurate, dependable, high-quality education content and guidance you need to succeed No matter where you are on your academic or professional path, you can rely on Peterson’s print and digital publications for the most up-to-date education exploration data, expert test-prep tools, and top-notch career success resources—everything you need to achieve your goals Visit us online at www.petersonsbooks.com and let Peterson’s help you achieve your goals For more information, contact Peterson’s, Columbia Circle, Suite 205, Albany, NY 12203-5158; 800-338-3282 Ext 54229; or find us on the World Wide Web at www.petersonspublishing.com © 2013 Peterson’s, a Nelnet company Previous editions published as How to Get Money for College © 2009, 2010, 2011, 2012; Peterson’s College Money Handbook © 1983, 1984, 1985, 1986, 1987, 1988, 1989, 1990, 1991, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008; and as Paying Less for College © 1992, 1993, 1994, 1995, 1996 Bernadette Webster, Managing Editor; Jill C Schwartz, Editor; Ken Britschge, Research Project Manager; Nicole Gallo, Research Associate; Phyllis Johnson, Software Engineer; Ray Golaszewski, Publishing Operations Manager; Linda M Williams, Composition Manager Peterson’s makes reasonable efforts to obtain accurate, complete, and timely data from reliable sources Nevertheless, Peterson’s and the third-party data suppliers make no representation or warranty, either expressed or implied, as to the accuracy, timeliness, or completeness of the data or the results to be obtained from using the data, including, but not limited to, its quality, performance, merchantability, or fitness for a particular purpose, non-infringement or otherwise Neither Peterson’s nor the third-party data suppliers warrant, guarantee, or make any representations that the results from using the data will be successful or will satisfy users’ requirements The entire risk to the results and performance is assumed by the user ALL RIGHTS RESERVED No part of this work covered by the copyright herein may be reproduced or used in any form or by any means—graphic, electronic, or mechanical, including photocopying, recording, taping, Web distribution, or information storage and retrieval systems—without the prior written permission of the publisher For permission to use material from this text or product, complete the Permission Request Form at http://www.petersons.com/permissions e-ISBN: 978-0-7689-3827-2 Thirty-first Edition Contents A Note from the Peterson’s Editors THE ABC’S OF PAYING FOR COLLEGE A Guide to Financing Your Child’s College Education Federal Financial Aid Programs Inside the Federal Work-Study Program Analyzing Financial Aid Award Letters Online Filing of FAFSA and CSS/Financial Aid PROFILE® Applications Falsifying Information on Your FAFSA Could Bring Big Problems Middle-Income Families: Making the Financial Aid Process Work Parents’ and Students’ Common Questions Answered How to Use This Guide PROFILES OF COLLEGE FINANCIAL AID PROGRAMS Alphabetical Listing of College Financial Aid Programs APPENDIX State Scholarship and Grant Programs Alphabetical Listing of Programs INDEXES Non-Need Scholarships for Undergraduates Athletic Grants for Undergraduates Co-Op Programs ROTC Programs Tuition Waivers Tuition Payment Alternatives A Note from the Peterson’s Editors he news media seem to constantly remind us that a college education is expensive It certainly appears to be beyond the means of many Americans The sticker price for four years at state-supported colleges can be more than $45,000, and private colleges and universities can cost more than $150,000 And these numbers continue to rise But there is good news The system operates to provide the needed money so that most families and students are able to afford a college education while making only a reasonable financial sacrifice However, because the college financial aid system is complex, finding the money is often easier said than done That is why the process demands study, planning, calculation, flexibility, filling out forms, and meeting deadlines Fortunately, for most people, it can produce positive results There are many ways to manage college costs and many channels through which you can receive help Be sure to take full advantage of the opportunities that have been opened up to students and their families by the many organizations, foundations, and businesses that have organized to help you with the burden of college expenses For nearly forty years, Peterson’s has given students and parents the most comprehensive, up-to-date information on how to get their fair share of the financial aid pie Peterson’s How to Get Money for College is both a quick reference and a comprehensive resource that puts valuable information about college costs and financial aid opportunities at your fingertips • The ABCs of Paying for College provides insight into federal financial aid programs that are available, offers an overview of the financial aid landscape, walks you through the process of filing for aid, and provides proven tips on how to successfully navigate the financial aid process to obtain the federal, state, and institutional aid you deserve • T he Profiles of College Financial Aid Programs provide unbiased financial aid data for each of the more than 2,500 four-year institutions listed • T he Appendix lists the state scholarship and grant programs offered by all fifty states and the District of Columbia • The six Indexes included in the back of the book allow you to search for specific award programs based on a variety of criteria, including merit-based awards, athletic grants, ROTC programs, and much more Peterson’s publishes a full line of books—financial aid, education exploration, test prep, and career preparation Peterson’s publications can be found at high school guidance offices, college libraries and career centers, and your local bookstore and library Peterson’s books are now also available as eBooks and online at www.petersonsbooks.com We welcome any comments or suggestions you may have about this publication Your feedback will help us make educational dreams possible for you—and others like you The ABC's of Paying for College A Guide to Financing Your Child’s College Education Don Betterton iven the lifelong benefit of a college degree (college graduates are projected to earn in a lifetime $1 million more than those with only a high school diploma), higher education is a worthwhile investment However, it is also an expensive one made even more difficult to manage by cost increases that have outpaced both inflation and gains in family income The reality of higher education economics is that paying for a child’s college education is an issue that shows no sign of getting easier Because of the high cost involved (even the most inexpensive four-year education at a public institution costs about $10,000 a year), good information about college budgets and strategies for reducing the ‘‘sticker price’’ is essential You have made a good start by taking the time to read Peterson’s How to Get Money for College In the pages that follow, you will find valuable information about the four main sources of aid—federal, state, institutional, and private Before you learn about the various programs, however, it will be helpful if you have an overview of how the college financial aid system operates and what long-range financing strategies are available FINANCIAL AID Financial aid refers to money that is awarded to a student, usually in a ‘‘package’’ that consists of gift aid (commonly called a scholarship or grant), a student loan, and/or a campus job COLLEGE COSTS The starting point for organizing a plan to pay for your child’s college education is to make a good estimate of the yearly cost of attendance You can use the College Cost Worksheet on the next page to this To estimate your college costs for 2014–15, refer to the tuition and fees and room and board figures shown in the College Costs At-a-Glance chart If your child will commute from your home, use $2,500 instead of the college’s room and board charges and $900 for transportation We have used $800 for books and $1,500 for personal expenses Finally, estimate the cost of two round trips if your home is more than a few hundred miles from the college Add the items to calculate the total budget You should now have a reasonably good estimate of college costs for 2014–15 (To determine the costs for later years, adding percent per year will probably give you a fairly accurate estimate.) DO YOU QUALIFY FOR NEED-BASED AID? The next step is to evaluate whether or not you are likely to qualify for financial aid based on need This step is critical, since more than 90 percent of the yearly total of $128 billion in student aid is awarded only after a determination is made that the family lacks sufficient financial resources to pay the full cost of college on its own To judge your chance of receiving need-based aid, it is necessary to estimate an Expected Family Contribution (EFC) according to a government formula known as the Federal Methodology (FM) The official Federal Student Aid Website provides a FAFSA4caster tool (similar to an EFC calculator) that helps you get a head start on the financial aid process, including getting an early estimate of your eligibility for federal aid The tool will also allow you to transfer the information provided into the actual Free Application for Federal Student Aid (FAFSA) form when you are ready to complete it You can find the tool at http://www.fafsa4caster.ed.gov/F4CApp/index/index.jsf APPLYING FOR NEED-BASED AID Because the federal government provides about 67 percent of all aid awarded, the application, FAFSA, and need evaluation process is controlled by the U.S Department of Education In addition, nearly every state that offers student assistance uses the federal government’s system to award its own aid Furthermore, in addition to arranging for the payment of federal and state aid, many colleges use the FAFSA to award their own funds to eligible students (Note: In addition to the FAFSA, some colleges also ask the family to complete the CSS/Financial Aid PROFILE® application.) The FAFSA is your ‘‘passport’’ to receiving your share of the billions of dollars awarded annually in need-based aid Even if you’re uncertain as to whether or not you qualify for need-based aid, everyone who might need assistance in financing an education should pick up a FAFSA from the high school guidance office after midNovember 2013 This form will ask for 2013 financial data, and it should be filed after January 1, 2014, in time to meet the earliest college or state scholarship deadline Within two to four weeks after you submit the form, you will receive a summary of the FAFSA information, called the Student Aid Report, or SAR The SAR will give you the EFC and also allow you to make corrections to the data you submitted You can also apply for federal student aid via the Internet using FAFSA on the Web FAFSA on the Web can be accessed at www.fafsa.ed.gov Both the student and at least one parent should apply for a federal PIN number at www.pin.ed.gov The PIN number serves as your electronic signature when applying for aid on the Web (Note: Many colleges provide the option to apply for early decision or early action admission If you apply for this before January 1, 2014, which is prior to when the FAFSA can be used, follow the college’s instructions Many colleges use either PROFILE or their own application form for early admission candidates.) AWARDING AID About the same time you receive the SAR, the colleges you list will receive your FAFSA information so they can calculate a financial aid award in a package that typically includes aid from at least one of the major sources— federal, state, college, or private In addition, the award will probably consist of a combination of a scholarship, grant, loan, or campus job These last two pieces—loan and job—are called self-help aid because they require effort on your child’s part (that is, the aid must be either earned through work or paid back later) Scholarships or grants are outright gifts that have no such obligation It is important that you understand each part of the package You’ll want to know, for example, how much aid is a gift, the interest rate and repayment terms of the student loan, or how many hours per week the campus job requires There should be an enclosure with the award letter that answers these questions If not, make a list of your questions and call or visit the financial aid office Once you understand the terms of each item in the award letter, you should turn your attention to the ‘‘bottom line’’—how much you will have to pay at each college where your child is accepted In addition to understanding the aid award, this means having a good estimate of the college budget so you can accurately calculate how much you and your child will have to contribute (Often, an aid package does not cover the entire need.) Colleges differ in how much detail they include in their award notifications Many colleges provide full information— types and amounts of aid, yearly costs, and the EFC for the parent and student shares If these important items are missing or incomplete, you can the work on your own (See the Comparing Financial Aid Awards and Family Contribution Worksheet on this page.) For example, if the award letter only shows the college’s direct charges—tuition, room, and board— you need to estimate indirect costs such as books, personal expenses, and travel Then subtract the total aid awarded from the yearly cost to get the EFC A portion of that amount may be your child’s contribution (35 percent of student assets and 50 percent of student earnings over $2,200) and the remainder is the parental share If you can afford this amount at your child’s first-choice college, the financial aid system has worked well for you, and your child’s college enrollment plans can go forward But if you think your EFC is too high, you should contact the college’s financial aid office and ask whether additional aid is available Many private high-cost colleges are willing to work with families to help make attendance at their institutions possible Most colleges also allow applicants to appeal their financial aid awards, the budget used for you, or any of the elements used to determine the family contribution, especially if there are extenuating circumstances or if the information has changed since the application was submitted Some colleges may also reconsider an award based on a ‘‘competitive appeal,’’ the submission of a more favorable award letter from another college If your appeal is unsuccessful and there is still a gap between the expected family contribution and what you feel you can pay from income and savings, you are left with two choices One option is for your child to attend a college where paying your share of the bill will not be a problem (This assumes that an affordable option was included on your child’s original list of colleges, a wise admission application strategy.) The second is to look into alternate methods of financing At this stage, parental loans and tuition payment plans are the best financing options A parental loan can bring the yearly cost down to a manageable level by spreading payments over a number of years This is the type of financing that families use when purchasing a home or automobile A tuition payment plan is essentially a short-term loan and allows you to pay the costs over ten to twelve months It is an option for families who have the resources available but need help with managing their cash flow NON-NEED-BASED AID Regardless of whether you might qualify for a need-based award, it is always worthwhile to look into merit, or nonneed, scholarships from sources such as foundations, agencies, religious groups, and service organizations For a family that isn’t eligible for need-based aid, merit scholarships are the only form of gift aid available If your child later qualifies for a need-based award, a merit scholarship can be quite helpful in providing additional resources if the aid does not fully cover the costs Even if the college meets 100 percent of need, a merit scholarship reduces the self-help (loan and job) portion of an award In searching for merit-based scholarships, keep in mind that there are relatively few awards (compared to those that are need-based), and most of them are highly competitive Use the following checklist in your search • Take advantage of any scholarships for which your child is automatically eligible based on parents’ employer benefits, military service, association or church membership, other affiliations, or student or parent attributes (ethnic background, nationality, and so on) Company or union tuition remissions are the most common examples of these awards • Look for other awards for which your child might be eligible based on the previous characteristics and affiliations but where there is a selection process and an application is required Free computerized searches are available on the Internet (You should not pay a fee for a scholarship search.) Peterson’s free scholarship search can be accessed by logging on to www.petersons.com/finaid Scholarship directories, such as Peterson’s Scholarships, Grants & Prizes, which details more than 3,600 scholarship programs, and Peterson’s Best Scholarships for Best Students are useful resources and can be found in bookstores, high school guidance offices, or public libraries and are also available as eBooks • See if your state has a merit scholarship program • Look into national scholarship competitions High school guidance counselors usually know about these scholarships Examples of these awards are the National Meritt Scholarship Program, the Coca-Cola Scholarship, Gates Millennium Scholars, Intel Science Talent Search, and the U.S Senate Youth Program • ROTC (Reserve Officers’ Training Corps) scholarships are offered by the Army, Navy, Air Force, and Marine Corps A full ROTC scholarship covers tuition, fees, textbook costs and, in some cases, a stipend Acceptance of an ROTC scholarship entails a commitment to take military science courses and to serve for a specific number of years as an officer in the sponsoring branch of the service Competition is heavy, and preference may be given to students in certain fields of study, such as engineering, languages, science, and health professions Application procedures vary by service Contact an armed services recruiter or high school guidance counselor for further information • Investigate community scholarships High school guidance counselors usually have a list of these awards, and announcements are published in local newspapers Most common are awards given by service organizations like the American Legion, Rotary International, and the local women’s club • If your child is strong academically or is very talented in fields such as athletics or performing/creative arts, you may want to consider colleges that offer their own merit awards to gifted students they wish to enroll Refer to the Non-Need Scholarships for Undergraduates index In addition to merit scholarships, there are loan and job opportunities for students who not qualify for needbased aid Some of the organizations that sponsor scholarships—for example, the Air Force Aid Society—also provide loans ... Application for Federal Student Aid (FAFSA) for each school year that they wish to be considered for aid For more information about applying for federal student aid, call 800-4-FED -AID (800-433-3243)(toll-free)... including getting an early estimate of your eligibility for federal aid The tool will also allow you to transfer the information provided into the actual Free Application for Federal Student Aid (FAFSA)... Peterson’s How to Get Money for College is both a quick reference and a comprehensive resource that puts valuable information about college costs and financial aid opportunities at your fingertips