ERIC ED439634: Funding Your Education, 2000-2001.

22 Pages·2000·0.53 MB·English

by  ERIC

DOCUMENT RESUME
HE 032 653
ED 439 634
Funding Your Education, 2000-2001.
TITLE
Department of Education, Washington, DC.
INSTITUTION
PUB DATE 2000-00-00
NOTE
21p.
U.S. Department of Education, Federal Student Aid
AVAILABLE FROM
Information Center, P.O. Box 84, Washington, DC 20044-0084.
Tel: [phone] (Toll Free); Web site:
http://www.ed.gov/prog_info/SFA/FYE.
Non-Classroom (055)
PUB TYPE Guides
MF01/PC01 Plus Postage.
EDRS PRICE
College Bound Students; *Educational Finance; *Federal Aid;
DESCRIPTORS
Federal Government; Federal Programs; Financial Aid
Applicants; Financial Support; Higher Education; Parents;
*Paying for College; *Student Financial Aid; Student Loan
Programs; *Tuition Grants
Direct Lending; Parent Loans for Undergraduate Students
IDENTIFIERS
Program; Pell Grant Program; Stafford Student Loan Program
ABSTRACT
This publication describes student financial assistance
programs available through the U.S. Department of Education's student
financial aid programs. Thirteen sections focus on: "Education after High
School"; "Paying Tuition and Other Costs"; "Applying for Financial Aid";
"Eligibility Criteria"; "Important Deadlines"; "Federal Pell Grants";
"Campus-Based Aid Programs"; "Federal & Direct Stafford Loans"; "PLUS Loans
(Parent Loans)"; "Stafford & Plus Loan Questions"; "Contacting Us"; "Reducing
the Cost of School"; and "Taking the Next Step." The publication also
includes a list of frequently requested telephone numbers related to applying
for student financial aid; a list of frequently requested Web sites related
to applying for student financial aid; and a list of state agency telephone
numbers.
(SM)
Reproductions supplied by EDRS are the best that can be made
from the original document.
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U S DEPARTMENT OF EDUCATION
Office of Educational Research and Improvement
BESTCOPY AVAILABLE
--
EDUCATIONAL RESOURCES INFORMATION
CENTER (ERIC)
X) This document has been reproduced as
received from the person or organization
originating it
Minor changes have been made to
improve reproduction quality
Points of view or opinions stated in this
document do not necessarily represent
official OERI position or policy
/4
24
WORMY REQUESTED TELEPHOHE NUMBERS
General information about the federal Student Financial Assistance Programs,
assistance in completing the Free Application for Federal Student Aid (FAFSA),
to obtain federal student aid publications
1-800/4-FED-MD
(1-800/433-3243)*
TTY number for hearing-impaired individuals to call with any
federal student aid questions
1-800/730-8913
To order FAFSA Express on diskette
,1- 800/801 -0576
To report fraud, waste, or abuse involving federal
student aid funds
1-800/MIS-USED
(1-800/647-8733)
FAFSA on the Web (general information and
technical assistance)
1-800/801-0576
On pages 14 and 15 you will find additional information on the services
the Federal Student Aid Information Center provides.
FRIEQUENTLY XEQUESTED WEB SITES
Student Aid Home Page
www.ed.gov/studentaid
Funding Your Education
www.ed.gov/prog_info/SFA/FYE
The Student Guide
www.ed.gov/prog_info/SFA/StudentGuide
FAFSA on the Web
www.fafsa.ed.gov
FAFSA Express
www.ed.gov/offices/OPE/express.html
Help in completing the FAFSA
www.ed.gov/prog_info/SFA/FAFSA
Federal school codes
www.ed.gov/offices/OSFAP/Students/apply/search.html
(used to complete the FAFSA)
3
CON'
EDUCATION AFTER, HIGH SCKOOL
T
1
Well, what questions should I ask a school?
PAYING TUITION AND OTHER COSTS
3
So, how can the Department of Education help me pay for school?
3
Who are these scholarship search services that contact me?
3
APPLYING FOR FINANCIAL AID
3
But I hate filling out a bunch of forms.
3
Doesn't anyone use paper anymore?
3
4
Okay. When can I apply?
4
Anything I should know before I get started?
What kind of stuff does the application ask for?
5
So, how do I sign an electronic application?
5
Not everyone has a printer.
5
Well, what happens if I forget to mail the signature page?
5
6
And how will I know you got my application?
6
ELIGIBILITY CRITERIA
6
How will I know what I'm eligible for?
7
What is a cost of attendance?
7
Are my family's special circumstances considered?
IMPORTANT DEADLINES
7
I'm sure there must be some deadlines I have to meet.
7
8
Verification? What is that?
FEDERAL PEEL GRANTS
8
8
How much is a Pell Grant?
8
If I'm eligible, how will I get the Pell Grant money?
8
CAMPUS-BASED AID PROGRAMS
Let's start with Federal Supplemental Educational
Opportunity Grants. What are they?
9
9
And what is Federal Work-Study?
get paid in the same way I would for any other job?
9
Will
4
What kinds of jobs are there in FWS?
9
What about Federal Perkins Loans?
9
How much can I borrow?
9
Other than interest, is there a charge for this loan?
9
So, when do I pay it back?
9
What if I have trouble repaying the loan?
9
FEDERAL & DIRECT STAFFORD LOANS
10
How do I get a Stafford Loan?
10
So, how will I get the loan money?
10
How much can I borrow?
11
Okay. What's the interest rate?
11
+4.
And when do I pay back the loan?
11
PLUS LOANS (PARENT LOANS)
11
How do my parents get a loan?
11
How much can my parents borrow?
11
Who gets my parents' loan money?
11
What's the interest rate?
12
And when do my parents begin repaying the loan?
12
STAFFORD & PLUS LOAN QUESTOONS
12
Other than interest, is there a charge for loans?
12
How are loans repaid?
12
What if someone has trouble repaying?
12
CONTACTONG US
13
What kind of help is on your web site?
13
What if I have questions and want to speak to a live person?
13
What kind of help can I get by calling the information center?
13
Is there a number for hearing-impaired students?
13
REIDUCONG THE COST OF SCHOOL
13
Will the government give me a tax break?
13
What about lower cost schools?
13
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has many books that provide information about
Are you considering attending a college or
colleges and career schools.
career school? Which one to attend is one of
the most important decisions you need to make.
You can also find much information on the
Another is how you're going to pay for your edu-
Internet. Many colleges and career schools have
cation.To help you and other students, the U.S.
web sites. If you know someone who attends or
Department of Education offers a variety of stu-
attended a school you're considering, ask that per-
dent financial aid programs.You can find out
son his or her opinion of the school.
about many sources of student financial aid for
free.This publication describes our student finan-
You should get a copy of the documents describ-
cial assistance programs.
ing the school's accreditation and licensing.
The accrediting and licensing agencies have
Education after high school costs you time,
evaluated the school and found it meets
money, and effort. It's a big investment, and you
certain minimum requirements that the
should carefully evaluate the school you're con-
agencies have set.
sidering. Just because a school participates in the
You should find out the school's loan
federal student financial aid programs does not
default rate (the percentage of students
mean we have endorsed the quality of the educa-
who attended the school, took out federal
tion the school offers. We do not approve a
student loans, and later failed to repay their
school's curriculum, policies, or administrative
practices, except as they relate to how the school
loans on time).
You may not be able to get aid from some
operates the federal student financial aid pro-
grams. It's up to you to check out the school. of our programs at a school that has a high
default rate.
You should get a copy of the school's cam-
Well, what questions should II ask a sch-11?
Some of the basic questions you should ask when
pus security report.
considering a college or career school are
The campus security report provides infor-
1=1 Does the school offer the courses and type
mation on the school's campus security
of program I want?
policies and campus crime statistics.
Do I meet the admissions requirements?
Schools must p'ublish a campus security
Does the school offer a quality education at
report every year and distribute it to all cur-
rent students and employees of the school.
a reasonable price?
Does the school offer services I need and
In addition, if you contact a school and ask
for admissions information, the school must
activities I'm interested in?
inform you that its campus security report
is available, provide you with a summary of
Most of this information is covered in the school's
the report, and let you know how you may
catalog or in its introductory brochures. Make
get a copy. If you have evidence that any
sure you get these from schools you're interested
information provided in a school's campus
in.Also, the reference section of your local library
6
1
security report is inaccurate, contact the
depends, in part, on whether you make satis-
Federal Student Aid Information Center at
factory academic progress
1-800-4-FED-AID (1-800-433-3243).
9 if you're offered a Federal Work-Study job,
what the job is, what hours you must work,
Find out the school's job placement rates (the
what your duties will be, what the rate of
percentage of students who are placed in jobs
pay will be, and how and when you'll be
relevant to their courses of study).
paid
If the school advertises its job placement
10 talk to high school counselors, local employ-
rates, it must also publish the most recent
ers, and the state higher education agency.
employment statistics, graduation statistics,
11 See if any complaints about the school have
and any other information necessary to back
been filed with the local Better Business
up its claims.This information must be avail-
Bureau or consumer protection division of
able at, or before, the time you apply for
the state attorney general's office. Contact
admission to the school.Also, check with
these organizations if you have a complaint
local employers to see if they have hired
about a school.
graduates from the school.
Find out the school's completion and transfer-out
Find out about the school's refund policy.
rates.
If you enroll but never begin classes, you
A school is required to disclose to current
should get most of your money back. If you
and prospective students the percentage of
begin attending classes but leave before
its students that complete the school's pro-
completing your coursework, you may be
grams and the percentage of students that
able to get part of your money back. NOTE:
transfer out of the school.
Even if you don't finish your coursework,
you'll have to repay the loan funds you
Get a copy of the school's "equity-in-athletics"
received, less any amount returned to your
report.
lender by the school.
Any coeducational school where you can
receive federal student aid and where there's
Find out about financial aid availability at the
an intercollegiate athletic program must pre-
school.
pare an equity-in-athletics report giving finan-
You have the right to receive the following
cial and statistical information for men's and
information from the school:
women's sports.This information makes stu-
the location, hours, and counseling proce-
dents aware of a school's commitment to
1
dures of the school's financial aid office
providing equitable athletic opportunities for
2 the financial assistance that is available,
its men and women students.
including information on all federal, state,
local, private, and institutional financial aid
You also might want to compare your expected
programs
debt for attending the school to the money you
3 the procedures and deadlines for submitting
expect to earn once you complete the educational
applications for each available financial aid
program. If you borrow money to pay for all or a
program
portion of your education, you'll need to earn or
4 how a school selects financial aid recipients
have access to enough money to repay your debt.
5 how the school determines your financial
Check the web or visit the library to learn more
need
about the careers you are interested in.The U.S.
6 how the school determines each type and
Department of Labor publishes the Dictionary of
amount of assistance in your financial aid
Occupational Titles, which includes a list of career
package
choices and has information on typical wages or
7 how and when you'll receive your aid
salaries for many occupations.The Labor
8 how the school determines whether you're
Department also publishes the Occupational
making satisfactory academic progress, and
Outlook Handbook, which gives job descriptions,
what happens if you're not. Whether you
including starting salaries and annual income aver-
continue to receive federal financial aid
ages.You can find the Dictionary of Occupational
2
Titles online at
APPLYIlkG FOR
http://www.oalj.dol.gov/libdot.htm
FEIKARCOAL ADD
You can find the Occupational Outlook Handbook
Applying for federal student aid is easy; you can
online at
even apply before you've been accepted to a
http: / /stats.bls.gov:80 /ocohome.htm
school.
You're paying for a quality education. Make sure
Dot l hate filling oat a hunch of forms.
you get it.
You don't have to fill out form after form; all you
have to do is complete a Free Application for
Federal Student Aid (FAFSA).You can apply
electronically from your home computer or from
TUDTOOK
a computer at a central location like your high
AHD OTHER COSTS
school, your local public library, or your local
dless
regarregardless of which college or career school
educational opportunity center using FAFSA on
choose, you'll probably need help paying
the Web. If you choose to use a paper FAFSA, just
for your tuition, fees, books, and living expenses.
mail it to the address indicated on the application.
You're probably wondering how you're going to
pay for these things.As we mentioned, the
FAFSA on the Web is an interactive web page
Department of Education offers a variety of student
where you can complete a FAFSA online and
financial aid programs.
submit your data over the Internet.All you need is
Netscape Navigator or Microsoft Internet Explorer
So, how can the Department of Education
running on the Macintosh, Windows, or Unix
help me pay for school?
operating system:
Federal student aid includes grants, work-study, and
www.fafsa.ed.gov
loans.You don't have to pay back grants.Work-
study allows you to earn money for your educa-
If you don't have web access but you have
tion, and loans allow you to borrow money for
computer with a modem and the Windows operat-
school.You'll have to repay any money you borrow.
ing system, you can complete the application arid
See pages 8-12 for more detailed information on
transmit it over a regular telephone line in just a
the federal student aid programs.
few easy steps using FAFSA Express.You can order
FAFSA Express disks by calling
You can learn about state programs by contacting
1-800/801-0576
your state department of education, and you can
learn about other programs by checking with your
You might also be able to apply for aid at the
high school counselor or the college or career
school you plan to attend. Contact the school to/
school you plan to attend.You also might want to
find out if you can apply electronically thiOugh-its
use a search engine on the web with the key
financial aid office. If the school has electronic
phrase "financial aid,""student aid," or "scholar-
FAFSA capability, just fill out a paper FAFSA and
ships." Or, check the reference section of your local
bring it to the school.The school will then enter
library under those same phrases.
your information into a computer and transmit-iv=
to us.
What are these scholarship search
services that contact me?
Doesn't anyone Erse paper anymore?
There are many private scholarship search services
You can get a paper FAFSA (or a Spanish version of
that provide lists of "sources" of financial assistance
the FAFSA) from your high school, the college or
you may apply for.You should be aware that we do
career school you plan to attend, or our Federal
not evaluate private scholarship search services. If
Student Aid Information Center:
you decide to use one of these services, you may
Federal Student Aid Information Center
check its reputation by contacting the Better Busi-
P.O. Box 84
ness Bureau or a State Attorney General's Office.
Washington, D.C. 20044
1-800/4-FED-AID (1-800/433-3243)
3
8
The college or career school you attend can give
enter one in FAFSA on the Web or FAFSA Express,
you any other forms you might need.Applying for
your application won't be processed. If you don't
all of our programs is free.You must apply using an
have an SSN yet, you should apply for one at your
original FAFSA. We will not accept photocopies of
local Social Security office.
FAFSAs, nor will we accept faxes of FAFSAs. For
more information on applying electronically, visit
Most students who, like you, are entering college or
http:// www.ed.gov /studentaid /apply.html
a career school straight from high school are con-
sidered dependent students. If you are dependent,
you have to report both your and your parents'
Okay. When can I apply?
For 2000-01, you should apply as soon after
financial information on the FAFSA.This informa-
January 1, 2000 as possible. You can't apply before
tion will be considered when your eligibility is
this date. Don't complete FAFSA on the Web or
determined.You are a dependent student if you do
FAFSA Express before January 1, 2000 (FAFSA on
not meet at least one of the following criteria:
the Web for 2000-01 will be available on January 3,
you were born before January 1, 1977,
2000). Don't transmit FAFSA Express data before
you're married,
January 1, 2000, and don't sign, date, or mail your
you're enrolled in a graduate or professional
paper FAFSA before January 1, 2000. If you do any
educational program,
of these things, your application will not be
you have legal dependents other than
processed, and you must reapply.
a spouse,
you're an orphan or ward of the court (or
Your eligibility is determined one award year at a
were a ward of the court until age 18), or
time.The results from your 2000-01 application are
you're a veteran of the U.S.Armed Forces.
good only for the 2000-01 award year (July 1,.2000
to June 30, 2001 and any summer terms that your
If you meet at least one of these criteria, you're
school considers part of that award year). Because
indep'endent and must report only your financial
your circumstances can change greatly from one
information (and your spouse's if you're married).
year to the next, you must complete an application
each award year.
In special or unusual circumstances, a college's or
career school's financial aid administrator may
After you've applied for the first time, you might
determine that an otherwise dependent student
be able to apply easier and faster in subsequent
should be considered independent. (A parent's
award years by completing a Renewal FAFSA. With
refusal to provide financial assistance or to provide
a Renewal FAFSA, you have to fill out only the
the required FAFSA information is not a valid
information that changed from the previous award
reason for such a determination.)
year.There is also a "renewal" version of FAFSA on
the Web.
If you're dependent and your parents are divorced
or separated, you'll need to complete the FAFSA
There is no renewal version of FAFSA Express. If
using information about the parent you lived with
you've already applied for aid for one award year
more during the 12 months preceding the date of
and you want to use FAFSA Express in subsequent
application. If you did not live with either parent,
award years, you must obtain the updated software
or if you lived with each parent an equal number
each year and complete the entire program each
of days, use information about the parent who pro-
year (regardless of how you originally applied).
vided the greater amount of support during the 12
months preceding the date of application.
Anything I should know
before I get started?
If the parent you receive support from was a single
You'll need a valid Social Security Number (SSN) to
parent who is now married or if the parent you
apply for federal student aid.You have to put this
receive support from is divorced or widowed and
number on your FAFSA or enter the number in
has remarried, your stepparent's financial informa-
FAFSA on the Web or FAFSA Express. We use your
tion is required on the FAFSA.This does not mean
SSN to find your application in our records. If you
that your stepparent is obligated to give financial
don't put a valid SSN on your FAFSA or if you don't
assistance to you, but his or her income and assets
9
4
Regardless of how you apply, you will be requir-ed
represent significant information about the family's
to provide your signature. If you are dependent,
resources. Including this information on the FAFSA
you must also provide a parent's signature.
helps us form an accurate picture of your family's
total financial strength.
So, how do I sign an electronic
What kind of stuff does
application?
If you have a printer available, the computer you're
the application ask for?
using will print a signature page after you transmit
The FAFSA asks for your family's financial informa-
your FAFSA on the Web or FAFSA Express data.You
tion.When you complete the 2000-01 FAFSA,
must sign this page and, if you were required to
FAFSA on the Web, or FAFSA Express, you'll need
include your parents' financial information when
your parents' 1999 U.S. income tax return. If you
completing the application, you must have a par-
filed a return, you'll need yours too. Referring to
ent sign this page too.
the tax forms makes it easier to answer the FAFSA
questions. If you won't have your tax form in time
After all the required signatures are on the page,
to use it when filling out the FAFSA, you can esti-
you must mail it to the address that is preprinted
mate your answers and then correct them later.
on the envelope included with the FAFSA Express
Bank statements,W-2 forms, and business/farm
diskettes.The address will also print on the signa-
records might also be helpful.
ture page so that students who use FAFSA on the
Web or who download FAFSA Express from the
Save all of the forms you refer to when completing
web will be able to mail in their signature pages.
the FAFSA because you might need them later if
You'll receive a Student Aid Report (SAR) in the
your school asks you to show that the information
mail.
on your FAFSA is correct. If the information is
incorrect, you won't get any aid until you correct
it. It's a good idea to keep a photocopy of your
Not everyone has a printer.
completed FAFSA or a printout of your application
FAFSA on the Web and FAFSA
Express will ask you whether a
from FAFSA on the Web or FAFSA Express.
printer is available to you. If one
is not available, you should
On FAFSA on the Web, FAFSA Express, and -the
answer "no."Within a week of
FAFSA, you can list schools you're interested in
receiving the transmission of
attending, and those schools will get the results
your data, we will process your
of your application after it's been processed. Each
application immediately and
school that participates in at least one of our pro-
send you a SAR without an
grams has a Federal School Code.This code must
Expected Family
be listed in Step Five of the application so that
Contribution (EFC), which a
each school you are interested in can get your
financial aid office must have to award you federal
information.
student aid. You must sign the SAR and return it to
the address provided.
You can get Federal School Codes from a college or
career school financial aid office, your high school,
Schools listed on your application will receive your
or your local public library. FAFSA on the Web and
application data but will not receive your EFC until
FAFSA Express have built-in, searchable Federal
we receive your signed SAR. Once we receive the
School Code lists.You can also find a searchable list
signed SAR, we will reprocess your data and send
on our web site:
www.ed.gov/offices/OSFAP/Students/apply/
you the resulting SAR.We will also send your
search.html
selected schools revised application information
records indicating that you have provided the
required signatures.
You aren't required to list any schools on your
paper FAFSA, but if you do so, the school you
decide on can deliver your aid faster. If you're using
Well, what happens if I forget
FAFSA on the Web or FAFSA Express, you must list
to mail the signature page?
at least one school in Step Five of the application.
After receiving your data, we will wait 14 days for
5
10