Financial Aid Basics

In the rush to send college applications, it can be easy to overlook important financial aid paperwork and deadlines. Each year, I hear from students who managed to get their applications in on time, but then somehow neglected to file the financial aid application before a college's deadline. Don't let this be you! A little prep work now can save you aggravation and lost financial aid opportunities later.

If you haven't already done so, take an hour or so to create a financial aid checklist for each and everyone of the colleges on your list. Include both the forms you need to complete and the deadlines for filing each one. Mark the key deadlines on your calendar, and get up to speed now about the intricacies of completing each piece of paperwork.

To help you do so, here is a list of what I consider some of the most important and useful financial aid information sites on the Internet. Start digesting the information on these sites now, and you'll be ready to roll come January.

The first place to start is the U.S. department of education’s financial aid portal. Here, you’ll find links to everything you need to know about federal financial aid programs, and links to other helpful sites and publications. In particular, download a copy of Funding Education Beyond High School: The Guide to Federal Student Aid 2006-2007 , which takes an close-up look at the process of applying for federal student aid.

I also recommend watching the U.S.Department of Education's excellent online video, Start Here, Go Further With Federal Student Aid The video provides students and parents application process information including: What is federal student aid and who can get it? What's the purpose of a U.S. Department of Education PIN? How do you fill out the FAFSA online? What happens after the FAFSA is submitted?

Next, head over to FAFSA on the Web, the main site for the Free Application for Federal Student Aid (FAFSA), the form you will need to complete for every school in order to get any federal loans or grants. This is also where you get your PIN. Although you can't file the FAFSA until January, it's not a bad idea to apply for and get your PIN now.

After you've learned the basics of Federal financial aid, the College Board's financial aid siteshould be your next stop. The site has excellent information on calculating your family’s estimated contribution, applying for financial aid, and meeting deadlines. Of particular importance, however, is that the College Board administers the CSS PROFILE, the extra application required by many schools that weights assets and income a little more closely than the FAFSA. You can find details on which schools use the PROFILE here. I highly recommend the College Board’s book Meeting College Costs (2006 edition). For $13.95 plus shipping this is the easiest to understand and comprehensive introduction to how financial aid works, and how to fill out the various required forms. It is available under the publications section of the College Board site. (Amazon.com also sells and edition of this book, but NOT the 2006 edition).

Most folks equate "government money for college" with the Federal government, yet state financial aid is also available to many students. Although it varies from state to state and may have restrictions, such as in-state attendance, every college hunter should investigate this source of funding. How do you track it down? A good place to start is this searchable State Financial Aid database.

A useful site for gaining an understanding of how various financial aid decisions may affect your future is Mapping Your Future. In particular, look at the Loan/Salary calculators in the left hand column – they will help you calculate how much taking different amounts of student loans will mean in terms of payments after you graduate, and the salary you will need in order to afford those loans.

The Massachusetts Educational Financing Authority (MEFA) Counselor is a safe and credible web site, that has been carefully designed as a one-stop resource that provides all the major online links necessary to navigate the entire financial aid application process. MEFA has a very useful glossary of financial aid terms that can help you decode financial aid lingo.

FinAid is jammed packed with useful articles that describe every aspect of financial aid and merit scholarships. There are also several good financial aid calculators here, as well as links to FastWeb, a database that lets you search for private merit scholarships. Two caveats to be aware of: FastWeb, which runs this site, may sell your contact information when you register, so be prepared for spam. And, always remember that the BEST source of merit scholarships and financial aid are colleges themselves. Still, since, outside scholarships can be useful and worthwhile.