ABCs of financial aid

38 Pages·1991·1.7 MB·English

by  Montana Guaranteed Student Loan Program

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ABCs of financial
aid
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The ABCs
of Financial Aid
MAY
. 7992
Produced and Distributed by
Montana Guaranteed Student Loan Program
Helena, Montana
MONTANASTATELIBRARY
ASB3C7s8.o3f05fiMna3n5ciAaBlCaid1.991-R378.3MONTANAc
3 0864 00077133
MONTANA GUARANTEED STUDENT LOAN PROGRAM
The Montana Guaranteed Student Loan Program (MGSLP) adminis-
ters the federal student loan program in Montana. MGSLP works
directly with 190 lenders and 40 schools in Montana to provide low-
interest loans to students and their parents. The agency's goal is to
make postsecondary education available to every Montana student
whodesiresit.Todate, MGSLPhas guaranteedmorethan$250million
in loans. For more information, contact Customer Assistance at the
Montana Guaranteed Student Loan Program,' Helena, Montana, at
[phone] if calling from Helena, or 1-80Q-537-7508.
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ACKNOWLEDGMENTS
Many <pebple contributed time and energy to make this publication
possible. Their efforts are greatly appreciated.
Much of the material in this document originally appeared in the
Montana Financial Aid Handbook, published jointly by the Montana
Career Information System and the Montana Guaranteed Student
Loan Program. This material was copyrighted in 1991 by the Univer-
sity of Oregon for the Career Information System.
ABCs OF FINANCIAL AID
TABLE OFCONTENTS
INTRODUCTION
Questions To AskThe Financial Aid Counselor 3
THE ABC* OFAPPLYING FOR FINANCIALAID
Plan Ahead 4
Compile Needed Information 4
Prepare and Submit Your Application 5
College Costs Worksheet 7
Application FormsAndDeadlinesForMontanaSchools 8
RECEIVING FINANCIALAID AWARDS
Why FinancialAid Award Amounts Differ Among Schools 11
SampleFinancialAidAwards 11
Changes To Your Financial Aid Package 12
If You Are Denied Financial Aid 12
Transfer Of Financial Aid 12
If The Financial Aid Award Is Not Enough 12
FINANCIALAID PROGRAMS—GRANTS, LOANS, SCHOLARSHIPS
General Information 13
Pell Grant 14
Supplemental Educational Opportunity Grant (SEOG) 15
Other Grants 16
College Work-Study (CWS) 16
Perkins Loan 17
Stafford Loan 19
Parent Loans for Undergraduate Students (PLUS) 20
Supplemental Loans for Students (SLS) 22
Other Loans 23
Montana Army National Guard Education Assistance Programs 24
Scholarships 24
Special Aid Programs 26
Montana Social ServiceAid Programs 26
Other Montana Aid Programs 27
LIST OFTRIBALEDUCATION SPECIALISTS 27
COMMON QUESTIONS ABOUT FINANCIALAID 28
STUDENT RIGHTS AND RESPONSIBILITIES 30
BIBLIOGRAPHY
31
GLOSSARY 32
LIST OF ACRONYMS 33
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ABCs OF FINANCIAL AID
Avarietyoffinancial aid programs are available to helpyou meet the INTRODUCTION
costs of education after high school. Grants, loans, scholarships,
work-studyjobs, and special aid programs all provide moneyto help
cover tuition, fees, room and board, books, and supplies. Many
students could not afford to continue their education without finan-
cial aid, and most students relyon acombination ofaid and personal
income and savings.
Totakefull advantage oftheseaid programs, andtoreapthe benefits
of college and vocational training, you need to understand how the
financial aid process works. The purpose of this handbookis to help
you apply for financial aid. This handbook describes:
+ step by step how to apply for financial aid
+ how to estimate and compare the costs of tuition, fees, room and
board, books, and supplies at accredited colleges, universities,
and vocational and proprietary schools in Montana
+ how to estimate the amount of financial aid you will need
+ types of federal and state loans and grants and their eligibility
requirements
+ how financial aid is awarded
*
his handbookalso includes alist offinancial aid counselors at each
accredited school in Montana; a list of publications about financial
aid; and information about aid programs providing special services.
RefertotheGlossaryonpage32fordefinitions ofthemanywordsand
terms peculiar to the financial aid process.
+ Do I need to be accepted for admission before financial aid is Questions to Ask the
awarded?
Financial Aid
Counselor
+ What private grants and scholarships are available through the
school?
+ What should I do if my (my parents') financial situation changes?
+ When is the deadline for filing a financial aid application?
+ What if I (my parents) cannot pay the Family Contribution?
+ Whenwill theschool let meknowifI'm eligibleforfinancial aid and
how much may receive?
I
+ Who do I contact if I have questions later?
*+ Do I need to fill out any other forms?
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ABCs OF FINANCIAL AID
THE ABCs OF Applyingforfinancial aidmayseemtobeacomplicatedjourney,with
APPLYING FOR forms to fill out, deadlines to meet, and major decisions looming at
everyforkintheroad. Butyoucaneaseyourwaythroughtheprocess
FINANCIAL AID
by taking it step by step.
Plan Ahead
It's importanttogiveyourselfplentyoftimetocompletethe process,
so plan ahead and begin early. Whetheryou intend to start school in
the fall, winter, or summer, you should begin these steps at least six
to nine months ahead of time.
Register with the A. Registerwith theSelectiveService. Bylaw, men born afterDecem-
Selective Service ber31, 1959mustregisterwithSelectiveServicewhentheyturn 18.To
ensure compliance with this law, the federal government compares
lists offinancial aid applicantswithSelective Servicerecords. Failure
to register could jeopardize your eligibilityfor financial aid. Register
at any U.S. Post Office as soon as you turn 18. You can also register
simplybymarking the appropriate boxon yourfinancial aid applica-
tion.
Choose schools and B. Choose the schoolsyou wantto attendand request information on
request information admissions andfinancialaid. Askfor acurrent school catalog, admis-
about admissions and sions materials, and financial aid information and forms. Remember
financial aid that applying forfinancial aid is adifferent process than applying for
admission to a school. Each process requires a separate form.
No two schools have the same application process, so request spe-
cific information from each school you are considering. Your high
school guidance counselor also has information on schools in Mon-
tana.Ifyou plantoenrollinaschooloutofstate,askaboutthatstate's
residencyrequirements.Manyschoolschargeahighertuitionforout-
of-state students.
Get to know the people C. Getto knowthepeople in the financialaidoffice. Don'thesitate to
in the Financial Aid ask questions. Financial aid counselors can provide you with up-to-
Office date information and help you understand the financial aid process.
Ask about deadlines for D. Ask about deadlines forfiling applications. Know the exact dates
filing of deadlines foradmissions and financial aid applications. Be sure to
note the correct deadlines forthe academic term (fall, winter, spring,
orsummer)you plan tobeginschool. Rememberthat processingyour
financial aid application and award takes at least six weeks.
While most financial aid programs do set application deadlines, you
can apply forsometypes ofaid at any time during the academic year.
Askyourfinancial aid counselorabout youroptions. Ifa deadline has
been set, you will have a better chance of obtaining aid if you apply
early.
Compile Needed Information
Financing your higher education begins with estimating the costs a^
ABCs OF FINANCIAL AID
the schools you want to attend. Later in the process you'll want to
compare costs at various schools and also weigh the costs against
your income, savings and assets, and any financial aid you receive.
E. Estimate and compare the costs ofthe schools you have chosen Estimate and compare
using information found in the schoolcatalogs. Each catalog contains costs of schools
estimates for the costs of tuition, fees, room and board, and books.
Othercosts should also be considered, such as transportation, child
care for students with young children, clothing, entertainment, and
incidentals. Simplytotal the costs given in each catalogand compare
them. Use the College Costs Worksheet on page 7. A list of Montana
schools with estimated costs follows the worksheet.
The amount of financial aid you are awarded will vary depending on
the costs at each school. Don't limit your choice of schools because
of cost.
Moststudentsrelyonsomeformoffinancialaidtohelpmeetthecosts
of higher education. But this assistance is intended to supplement,
not replace, money contributed bythe student and parents. Regard-
less ofyour oryour parents' financial position, you will be expected
to pay some portion of the cost ofyour education. This is called the
Family Contribution.
The amount of your Family Contribution is based on total family Family Contribution
income, expenses, debts, and accumulated assets. This information
•
goes intoyour financial aid application and is analyzed to determine
how much money you and your family can contribute. Your Family
Contribution remains the same regardless of the costs at the school
you select.
The following examples are for a family with a total income between
$25,000 and $40,000 and with $40,000 in assets. Let's assume you are
dependent on your parents, and that you are the onlyfamilymember
in college or vocational school.
+
family of three
Family Contribution between $1,700 and $5,000
+
family of four
Family Contribution between $1,100 and $4,000
+
family of five
Family Contribution between $600 and $3,100
Each student's situation is unique and these figures serve only as a
guide. In addition to the Family Contribution, students are expected
to contribute a minimum of $700 to $900 each year.
Prepare and Submit Your Application
•Each school in Montana prefers one or more ofthe following applica-
tion forms for financial aid.
ABCs OF FINANCIAL AID
Financial Aid Form (FAF)
College Scholarship Service
P.O. Box 6358
Princeton, NJ 08541
[phone] Eastern/Central time zones
[phone] Mountain/Pacific times zones
[phone] and [phone] for the hearing impaired
SingleFile Form (SFF)
United Student Aid Funds, Inc.
P.O. Box 6181
Indianapolis, IN 46206-6181
1-800-448-3530 (toll free)
Family Financial Statement (FFS)
ACT Student Financial Aid Services
P.O. Box 1000
Iowa City, IA 52243
(no phone number listed)
Application for Federal Student Aid (AFSA)
Federal Student Aid Programs
P.O. Box 6950
Princeton, NJ 08541
(no phone number listed)
Askthefinancialaidcounselorwhichformeachschoolprefers.Formsj
areavailablefromthefinancialaidofficeoryourhighschoolguidance
counselor. The information you supply on these forms is used to
calculate your Family Contribution and eligibility for a Pell Grant,
given—as your Pell Grant Index. You need to fill out only one of these
forms whicheverone is preferred bythe schoolyou plan to attend.
The school's financialaidcounselormayaskyou tofill outadditional
forms. Be sure to askwhich forms are required.
Compile information F. To complete the form, you andyourparents will need to compile
about family finances information about family finances. You will need your family's com-
pleted income tax returns from the preceding year, figures on your
family's non-taxable income, and alist of familyassets. When you sit
down to fill out the form, have on hand yourW-2 forms, current bank
statements, mortgage data if you own a home, and records of any
benefits you received from Social Security, the Department ofVeter-
ans'Affairs, and otheragencies. Savethese records forlateruse.You
may be asked to show them to your financial aid counselor to verify
your eligibility for aid.
Fill out and mail G. Fill out the application and mail it to the processing center.
the application Carefullyread and followthe instructions attached tothe form. Make
sureyourinformationisaccurate.AssoonafterJanuary1 aspossible,
mail your completed application to the processing center address
indicated on the form.
Attheprocessingcenter,yourform isevaluated byacomputer,whicr^
,
ABCs OF FINANCIAL AID
calculates your level of financial need. Before you mail your form,
make a photocopy of the application in case the original is lost or
damaged.
Some loans and grants require additional forms. See the section on
grants, loans, and scholarships beginning on page 13.
H. Take or mail the processing results to yourschool's financial aid Take or mail processing
office. TheprocessingcenterwillsendyouaStudentAid Report.This results to your school
report gives you the estimated amount of your Family Contribution financial aid office
and indicates your eligibility for the Pell Grant and other federal
financial aid.
The finanoial aid counselor at your school uses your Student Aid
Reporttodeterminehowmuchfinancialaidyouwillreceive.Itisyour
responsibilitytotakeormailtheStudentAid Reporttoyourfinancial
aid office as soon as possible. BE SURETO SIGNYOURSTUDENTAID
REPORTBEFOREYOUSUBMITIT. Usingthereport,theofficewill put
together a financial aid package foryou. This package is a combina-
tion ofyour Family Contribution, grants, and loans, and may include
scholarships.
The school may also request other information from you. Respond
promptlytotheserequests,andfollowanyinstructionscarefully.Ask
the financial aid counselor when you can expect to receive your
financial aid package.
I. Follow up on yourcase. If you haven't received your financial aid Follow up on your case
packagewithin twotofourweeks of the datethe school said itwould
arrive, callthefinancialaidoffice. Don'thesitatetoaskquestions and
follow up on the progress of your application.
J. Notifytheschoolofyourdecision. Ifyouare awarded financial aid Notify the school of your
sign and return the award letter indicating whether you want to decision
accept or decline all or part of the aid offered.
COLLEGE COSTS WORKSHEET
l 2 3
School Name
Application Fee $ $ $
Tuition & Fees
Room & Board
(dorm, apt)
Books & Supplies
Transportation
Personal Expenses
Estimated Total $ $ $
ABCs OF FINANCIAL AID
APPLICATION FORMS AND DEADLINES FOR MONTANA SCHOOLS
Vo-Techs, Colleges, and Universities
School Name
Street Address Tuition Books LivingCosts Form File date
City Telephone
BillingsVo-Tech Center
3803 Central Avenue $958 400 4,050 FAF March 1
Billings 59102 656-4445
Blackfeet Community College
Box819 $1,281 400 3,900 AFSA March 1
Browning 59417 338-5411
ButteVo-Tech Center
25 Basin Creek Road $958 450 3,000 AFSA April 1
Butte 59701 494-2894
Carroll College
North Benton Avenue $6,570 350 3,230 FAF March 1
Helena 59625 442-3450
College ofGreat Falls
1301 20th Street South $3,530 520 5,120 SFF April 1
Great Falls 59401 761-8210
Dawson CommunityCollege
300 College Drive $870 430 3,120 FAF March 1
Glendive 59330 365-3396
Dull Knife Memorial College
Lame Deer 59043 477-6215 $615 420 2,475 SFF No deadline
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Eastern Montana College
»
1500 N. 30th St. $2,000 550 3,410 All March 1
Billings 59101-0298 657-2188 priority deadline
Flathead ValleyCommunityCollege
777 Grandview Drive $936 450 3,825 AFSA, FAF March 1
Kalispell 59901 756-3822
Fort Belknap College
P.O. Box 547 $1,134 450 5,850 AFSA No deadline
Harlem 59526 353-2205
Fort Peck CommunityCollege
P.O. Box 398 $1,680 400 4,000 AFSA No deadline
Poplar 59255 768-5553
Great FallsVo-Tech Center
2100 16th Avenue S. $958 Varies 4,950 FFS No deadline
Great Falls 59401 771-7140
Helena Vo-Tech Center
1115 North Roberts $958 350 4,205 FFS No deadline
Helena 59601 444-6800
Little Big Horn College
P.O. Box 370 $25/Credit Varies 4,506 AFSA March 1
Crow Agency 59022 638-7211
Miles CommunityCollege
2715 Dickinson $900 500 3,750 FAFpreferred March 1
Miles City 59301 232-3031 acceptsallforms
Missoula Vo-Tech Center
909 South Avenue West $960 350 4,950 FFS May 1
Missoula 59801 542-6886
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