Wmysa College Recruitment Guide Page 18
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19Financial Aid
A lot of people seem to think that financial aid is a government entitlement program. The reality
is that a college education is not an entitlement. Rather its purpose is to help students afford to go
to a college that you might not have been able to pay for on your own.
In order to provide financial assistance the government uses a formula to calculate each person’s
Expected Family Contribution (EFC). To calculate this number they look at both the parents and
students income and assets. What they don’t account for is any debt they may have. One of the
reasons for this is that it’s extremely difficult and costly for them to try and discern whether the
debt is equated to a particular lifestyle or other issues such as health and medical bills. Since its
to hard to determine they simply don't use it.
Once this EFC is determined, most colleges will use this number to determine eligibility for both
federal direct subsidized and unsubsidized loans. Both loans have a six month grace period after
graduating before loan repayments must begin. The difference is the subsidized loans do not
begin to accrue interest until you graduate while the unsubsidized loans do. There is also strict
dollar limits on both the subsidized and unsubsidized loans which differ from year to year.
To apply for financial aid you must complete the Free Application for Federal Student Aid
(FAFSA). This must be done annually and can be submitted as early as January each year. A
benefit of the FAFSA is it allows for schools to know if you qualify for a Federal Pell Grant. The
Federal Pell Grant Program provides need-based grants to low-income undergraduate and certain
post baccalaureate students to promote access to postsecondary education. The maximum annual
Pell Grant for 2015 was $5,730. However, it’s important to remember this is a needs based grant
that is calculated based off of your EFC.
Also important to note, Federal aid is limited and much of it is offered on a first-come, first-
served basis, so the earlier you file the better your chances of accessing the most financial aid
possible. Missing deadlines can ruin your opportunity for financial aid. Therefore, you should
check with your colleges’ financial aid administrators to learn each college’s exact FAFSA
deadline. Filing as close to January 1 as possible is highly recommended.
To learn more about
FAFSA just click on this
link.
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