Table Of ContentFinancial Aid
for College
Second Edition
by David Rye, M.B.A.
A member of Penguin Group (USA) Inc.
Financial Aid
for College
Second Edition
by David Rye, M.B.A.
A member of Penguin Group (USA) Inc.
To my best friend and wife, Marcia, who made sure I was fed and watered while I wrote this book. You
dealt with my episodes of stress and frustration throughout the process and I love you more than ever for
all the support you gave me.
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ISBN: 1-4362-1223-5
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Contents at a Glance
Part 1: The Lowdown on Financial Aid 1
1 What’s Financial Aid All About? 3
Find out what financial aid is and learn about the differ
ent types of aid you can apply for on behalf of your kids.
2 Staking Out Your Financial Aid Claim 15
Find out how to quickly determine whether you’re eligible
for financial aid, and learn the basics of how to apply for it.
3 Answers to All Your Financial Aid Questions 27
Get the scoop on the important stuff you’ll need to know
when you apply for financial aid.
Part 2: Planning Is Everything 39
4 So, Kid, You Want to Go to College? 41
Discover the steps you should take to plan for your kid’s
college education.
5 Where Do You Want to Go, Kid? 55
Learn how to select the college or university that is right
for both your kid and your pocketbook.
6 Take the Tests 67
Learn what admission tests are all about, why you must
take them, and what you can do to prepare for them.
7 College Costs and Financial Planning 83
Find out how much it will cost to send your kids to the
colleges of their choice, or your choice when reality sets in.
8 Develop a College Savings Plan 101
Create a financial plan that will help you determine how
much money you’ll need to fund your kid’s college educa
tion.
Part 3: Seek and You Shall Find—Money 115
9 Grant Me a Grant 117
Know how to seek out and find your best options among
grants, scholarships, low-interest loans, and work-study
programs.
iv The Complete Idiot’s Guide to Financial Aid for College, Second Edition
10 State Aid Programs 131
Get an overview of state aid programs and learn how
to find hidden state aid funds that a lot of parents don’t
know about.
11 Playing the Scholarship Game 139
Uncover great scholarship programs and learn what you
can do to improve your chances of winning scholarships.
12 Military and Veteran Scholarship Programs 149
Survey the outstanding scholarship and financial aid pro
grams that are available to veterans, military personnel,
and their dependents.
13 Minority and Other Special Programs 161
Get an overview of programs for minority, women, handi
capped, and nontraditional students and information on
where to find special student aid.
14 Adult, Graduate, and International Programs 173
Discover adult financial aid options, opportunities for
graduate students, and unique programs for study abroad.
15 The Inside Scoop on Student Loans 185
Learn what it takes to apply and qualify for a low-interest
student loan.
16 Tax-Saving Strategies 201
Discover several options for saving tax money using funds
earmarked for your kids’ education.
17 Financial Aid Consulting Services 213
Learn what financial aid consultants have to offer so that
you can make an informed decision about whether you
need one.
Part 4: From Applications to Offers 221
18 What’s Inside a Financial Aid Package? 223
Get an overview of what’s in the financial aid package
you’ll receive, with emphasis on the important parts.
19 Decoding the Forms 233
Learn everything you need to know about the forms you’ll
be required to fill out when you apply for financial aid.
20 What Does an Offer Look Like? 239
Know what to look for in an offer so that you’ll be in a
position to determine whether it’s a good one.
Contents at a Glance v
21 Negotiating a Better Offer 247
Discover why you may want to negotiate a better offer
after we show you how initial offers are created.
Part 5: Okay, You’re Accepted and You Have Aid: Now What? 259
22 Opportunities Are Everywhere 261
See how applying for additional financial aid and contests
can be fun, rewarding, and educational for your entire
family.
23 Cost-Cutting Strategies 275
Learn what you can do to dramatically reduce your college
expenses so you’ll have more money in your pocket.
Appendixes
A Glossary of Financial Aid Terms 287
B Directory of General Financial Aid Resources 303
C State Department of Education Directory 335
Index 343
Contents
Part 1: The Lowdown on Financial Aid 1
1 What’s Financial Aid All About? 3
Where’s the Money Coming From? ............................................. 4
Uncle Sam’s Contribution ............................................................. 4
The Federal Aid Umbrella ............................................................ 4
State Coffers................................................................................. 5
Hidden College Funds ................................................................... 5
Private Sources ............................................................................. 5
Types of Financial Aid ................................................................... 6
Grants Are Great ......................................................................... 6
Scholarships Are Everywhere......................................................... 6
Athletic Scholarships...................................................................... 7
Merit Scholarships ........................................................................ 7
Low-Interest Loans........................................................................ 7
Federal Direct Loan Program ....................................................... 8
Family Education Loans................................................................ 8
Stafford Loans.............................................................................. 8
Parent Loans ................................................................................ 9
Perkins Loans ............................................................................... 9
Work-Study Programs.................................................................. 9
Service-Learning Programs .......................................................... 9
The Connection Between Community and College ....................... 10
Why Service Programs Are Important........................................ 10
Tips on Applying for Financial Aid ............................................ 10
The Federal Formula .................................................................. 11
Consider Using Your Home......................................................... 11
Watch Your Assets....................................................................... 11
Your Expected Contribution ........................................................ 12
Watch for Fraud ........................................................................... 12
2 Staking Out Your Financial Aid Claim 15
Eliminate Frustration: Do Your Research .................................. 16
Who Gets the Money? ................................................................ 17
Do You Need the Money? ........................................................... 17
What’s Considered Total Cost? .................................................... 18
More Expensive May Be Cheaper................................................ 18
Misconceptions About Need.......................................................... 18
viii The Complete Idiot’s Guide to Financial Aid for College, Second Edition
What You’re Expected to Pay...................................................... 19
Low-Income Families .................................................................. 19
Middle-Income Families.............................................................. 19
Wealthy Families ........................................................................ 20
Is Your Kid Eligible?.................................................................... 20
Stepping Into the Application Process ........................................ 21
Step 1: Complete the Application ................................................. 21
Step 2: Evaluate the Student Aid Report..................................... 22
Step 3: Receive and Consider Offers ............................................ 22
Dispelling Financial Aid Myths .................................................. 22
Do You Need Help? ..................................................................... 23
Other Sources of Money.............................................................. 24
Admissions Counselors ................................................................ 24
Special-Programs Operatives....................................................... 24
Financial Aid Officers ................................................................ 25
3 Answers to All Your Financial Aid Questions 27
Why Does College Cost So Much? ............................................ 28
How Much Money Goes into Financial Aid Annually?............. 28
If I Apply, Will Strangers Pry into My Personal Business? ....... 28
Isn’t Asking for Financial Aid the Same as Asking for
Welfare?...................................................................................... 29
Does Each College Have a Different Financial Aid System? .... 29
How Can I Get the Most out of the System? ............................. 29
How Do I Know If I’m Eligible for Financial Aid? ................... 30
Is My Kid Eligible for Special Aid?............................................. 30
Merit-Based Scholarship Myths .................................................. 30
Athletic Scholarships.................................................................... 31
Extracurricular Activities........................................................... 31
How to Be a Contender ............................................................... 31
Third-Party Organizations......................................................... 32
Corporations ............................................................................... 33
Service Organizations................................................................. 33
How Many Aid Sources Should I Explore? ................................ 33
When Should I Submit Applications? ......................................... 33
Where Can I Get More Information and Guidance? ................ 34
When Should I Begin Planning for My Kid’s Education?......... 35
How Can I Find Out If I Qualify for Assistance? ...................... 35
Is There an Income Cutoff for Federal Aid?................................. 35
Do I Need to Reduce My Asset Base to Qualify? .......................... 35
Isn’t the Federal Government Reducing Financial Assistance
Programs? ................................................................................ 36
