Financial Aid

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Financial Aid

	1. Financial aid is money for education that comes from sources other than the family. It is meant to supplement what the family can contribute to the total costs involved in attending post-secondary education.
	2. The primary responsibility for paying a student's educational expenses belongs to the family. However, the choice of school should not be determined by family finances alone. A student and family should choose a school based not only on finances but also the student's desire and ability to attend that school. A financial aid partnership of parents, student, government, and school often can become a reality.
	3. The FAF (Financial Aid Form) and the FAFSA (Free Application for Federal Student Aid) are used to analyze the family's financial standing in order to determine the amount that the student's family will be expected to contribute toward school costs. The family is to fill out either the FAF or FAFSA as soon after January 1st in the senior year as possible.
	4. Financial aid is usually offered in a "package," which may consist of scholarships, grants, student employment, and/or loans.

Grants

Grants are gift money from the state or federal government that does not have to be repaid.

	1. Federal Pell Grant -- A federal grant program that can be requested by all students who wish financial aid. These awards are based on need and are applied for by marking the proper boxes on the FAF or FAFSA forms.
	2. Federal Supplemental Educational Opportunity Grant (SEOG) – The application process is identical to the Federal Pell Grant, however, it is awarded on a first-come, first-serve basis to students who show significant financial need.
	3. State Education Incentive Grant (SEIG) – Funds are available to students who show significant financial need. Both the FAFSA and SEIG application are used by the State of Alaska to determine eligibility.
	4. Bureau of Indian Affairs (BIA) – Grants are available to eligible American Indians and Alaska Natives. If you are one-quarter native or more, you are eligible to receive financial assistance from the Bureau of Indian Affairs. Applications are available through regional corporation offices.

Loans

This financial aid source must be repaid with interest. Specific grace periods, repayment, and deferment options differ per program. Read each application carefully before applying. The most commonly used loans are:

1. Alaska State Student Loan Program – The State of Alaska acts as a lending institution. Students must be a one-year resident of Alaska, have a high school diploma or equivalent, and be officially admitted in a degree/certificate program.
2. Federal Stafford Loan Program – Students borrow directly from a private lending institution. Eligibility is originally determined by the FAFSA. Amounts will differ by loan type, enrollment status, and class standing.
3. Parent Loan Program (PLUS) – This is a federal loan that allows parents of dependent students to borrow up to the full cost of the students’ education minus financial aid received. Credit-worthy parents are eligible to borrow a PLUS loan for students regardless of family income. When choosing a lender, students and their parents should look for a lender that offers borrower discounts.
4. Federal Perkins Loan Program – A Federal Perkins Loan is a low-interest (5%) loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school’s financial aid office.

Student Employment

The Federal Work-Study Program provides jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. Students may apply if they are enrolled at least halftime. Most work-study jobs are on campus, and students may work up to 20 hours per week. Your Federal Work-Study wages will be at least the current federal minimum wage, but it may be higher, depending on the type of work you do and the skills required.

Veteran's Benefits

Monthly educational benefits exist for qualifying veterans and their dependents. Contact your local Veterans Administration Office for more information.

Helpful Hints on Financial Aid

1. Apply early, as soon as possible after January 1st, however, do not sign, date, or send your application before January 1st.

2. Be thorough. Have all of the information you will need at your fingertips before you begin to fill out the applications. Necessary information includes student income tax returns, parents' income tax returns, W-2 forms, current bank statement, and records of any stocks, bonds, or other investments/assets.

3. Write legibly; fill in answers to ALL questions- put "O" or "NA" in the answer blanks that do not apply to you. In other words, leave nothing blank.

4. Keep all your financial paperwork together in a folder.

5. Make copies of all paperwork before sending it.

6. A student must be admitted to a school before a financial aid "package" will be offered from that particular school.

7. Simply applying for admission is not the same as applying for financial aid. To receive aid, you must apply for aid by completing a financial aid form-FAF or FAFSA- in addition to an application for admission at the school(s) of your choice. A school may also have its own financial aid form for you to complete. Request the necessary forms from the school's financial aid office.

8. If you have properly filled out the financial aid forms, you will receive a Student Aid Report (SAR) in approximately six to eight weeks. It will give your eligibility index for federal and state aid. You will be asked to sign an acceptance of the amount received, and the money will be sent to the school.

9. Parents and students need not automatically accept a financial aid package from a school. Many schools are demonstrating a newfound willingness to bargain to attract the most qualified applicants. Call the schools financial aid director and ask about additional monies or sources of financial aid.

10. Adhere to all deadlines. Missing a deadline is one of the biggest reasons for losing financial aid. The same deadlines apply, whether you are applying via paper method or electronically (refer to "FAFSA on the Web.")

11. Direct any questions to your school's Financial Aid Officer.

FAFSA on the Web

FAFSA on the Web allows students to complete their FAFSA applications faster and easier than any other application method. This Internet application allows students to submit their FAFSA information directly to the Department of Education's Central Processing System (CPS). The CPS determines eligibility for financial aid and sends an Institutional Student Information Record (ISIR) to the listed schools within 72 hours after receiving a completed application. The address for FAFSA on the web is http://www.fafsa.ed.gov.

Note: To protect the student's private data, FAFSA on the Web requires the use of certain approved browsers; students can apply using any computer that supports an approved browser. The FAFSA on the Web site lists the currently approved browsers. Because many students and schools already have the appropriate browser, this method may be the easiest way for students to apply electronically.

For more information about FAFSA on the Web, or for technical assistance, students may call 1-800-801-0576. It is recommended that students save their application on a disk.

What is Financial "Need?"

Most types of financial aid are awarded on the basis of financial "need." Financial need is defined as the difference between the cost of education and the student’s available resources.

Students applying for federal financial aid must complete the FAFSA to have their Expected Family Contribution (EFC) calculated. The EFC is determined by the federal processor and represents the amount that the student’s family can reasonably be expected to contribute toward the student’s education cost. The amount remaining after the EFC is subtracted from the cost of education is called "need." The student may receive a financial aid package up to that amount.

COST +

RESOURCES =

NEED

(Standard Student Budget)

(EFC & other resources)

(financial aid eligibility)

Your student’s cost of attendance may include these expenses:

tuition and fees
room and board
books and supplies
transportation
personal/miscellaneous
extraordinary circumstances/emergencies

Your expected family contribution (EFC) is based upon several factors:

income
assets
expenses
size of family
age of parents
number of working parents
number of students in college
extraordinary circumstances

*From an article by Chuck Meyers - Knight Ridder/Tribune News Service

	1. Alaska State Student Loan Program – The State of Alaska acts as a lending institution. Students must be a one-year resident of Alaska, have a high school diploma or equivalent, and be officially admitted in a degree/certificate program.
	2. Federal Stafford Loan Program – Students borrow directly from a private lending institution. Eligibility is originally determined by the FAFSA. Amounts will differ by loan type, enrollment status, and class standing.
	3. Parent Loan Program (PLUS) – This is a federal loan that allows parents of dependent students to borrow up to the full cost of the students’ education minus financial aid received. Credit-worthy parents are eligible to borrow a PLUS loan for students regardless of family income. When choosing a lender, students and their parents should look for a lender that offers borrower discounts.
	4. Federal Perkins Loan Program – A Federal Perkins Loan is a low-interest (5%) loan for both undergraduate and graduate students with exceptional financial need. Federal Perkins Loans are made through a school’s financial aid office.

	1. Apply early, as soon as possible after January 1st, however, do not sign, date, or send your application before January 1st.
	2. Be thorough. Have all of the information you will need at your fingertips before you begin to fill out the applications. Necessary information includes student income tax returns, parents' income tax returns, W-2 forms, current bank statement, and records of any stocks, bonds, or other investments/assets.
	3. Write legibly; fill in answers to ALL questions- put "O" or "NA" in the answer blanks that do not apply to you. In other words, leave nothing blank.
	4. Keep all your financial paperwork together in a folder.
	5. Make copies of all paperwork before sending it.
	6. A student must be admitted to a school before a financial aid "package" will be offered from that particular school.
	7. Simply applying for admission is not the same as applying for financial aid. To receive aid, you must apply for aid by completing a financial aid form-FAF or FAFSA- in addition to an application for admission at the school(s) of your choice. A school may also have its own financial aid form for you to complete. Request the necessary forms from the school's financial aid office.
	8. If you have properly filled out the financial aid forms, you will receive a Student Aid Report (SAR) in approximately six to eight weeks. It will give your eligibility index for federal and state aid. You will be asked to sign an acceptance of the amount received, and the money will be sent to the school.
	9. Parents and students need not automatically accept a financial aid package from a school. Many schools are demonstrating a newfound willingness to bargain to attract the most qualified applicants. Call the schools financial aid director and ask about additional monies or sources of financial aid.
	10. Adhere to all deadlines. Missing a deadline is one of the biggest reasons for losing financial aid. The same deadlines apply, whether you are applying via paper method or electronically (refer to "FAFSA on the Web.")
	11. Direct any questions to your school's Financial Aid Officer.

COST +	RESOURCES =	NEED
(Standard Student Budget)	(EFC & other resources)	(financial aid eligibility)