Paying for College - Paying for College

Paying for college can seem overwhelming. Please remember that we're here to help you. This helpful guide covers the following information.

Financial Aid is...

Gift aid (32%):
Scholarships
Grants

Self help aid (68%):
Loans (66%)
Employment opportunities (2%)

Financial Aid Can Be...

Need based:
Eligibility is based on the family's financial situation as determined by a federal formula from information provided on the financial aid application (FAFSA).

Merit based:
Eligibility is based on a specific attribute such as grades, artistic ability, athletic ability, etc.

Definition of Need

Cost of Attendance (school determines tuition and fees) - Expected Family Contribution (use figures from financial aid application) = Financial Need

Different School = Different Need

View Graph

What is the FAFSA?

FAFSA stands for Free Application for Federal Student Aid. It is available in paper form, typically sent to high schools, or in electronic form, which is preferred by ACC. The electronic version is quicker and more accurate, and can be signed electronically by parent and student with a PIN. You can access the electronic form at www.fafsa.ed.gov.

The information you provide in the application is used to determine your Expected Family Contribution. Please be aware of the deadlines to submit the application and beware of scams. The FAFSA is always FREE.

After the FAFSA

The college or university:

Sources of Aid

Major Federal Programs

Pell Grant

Federal Work-Study

Federal Perkins Loans

Federal Stafford Loan

Federal Family Educational Loan Program (FFELP) - funds provided by commercial lenders like banks, credit unions, and Nelnet
Ford Direct Loan Program (Direct Loans) - funds provided by the federal government
Loans may be subsidized (based on need) or unsubsidized (need not considered) or a combination
Yearly undergraduate loan limits
- $2625 1st year
- $3500 2nd year
- $5500 remaining years
Variable interest rate capped at 8.25%
- Currently 2.77% in school, 3.37% in repayment
Loan fees deducted from proceeds
- Up to 4% depending on lender
Six-month grace period
10 to 20 year repayment period
Deferment and cancellation provisions

PLUS Loans for Parents

Variable rate capped at 9%
- Currently 4.17%
Loan fees deducted from proceeds
- Up to 4% depending on lender
Credit based loan
Repayment usually begins 60 days after full disbursement

State Programs

Various state grant, scholarship, loan and work programs
High school counselors are best resource for information
Watch deadlines!

College and University Programs

Schools may offer grant, scholarship, loan and/or work programs.

Be informed:

Financial aid office
Admissions office
Publications
Web site

ACC priority deadline for fall semester is June 30th.

Private Sources

Scholarship search - start NOW!
- Internet: nelnet.net/collegeplanning
- Counselors
- Community people
Beware of scams
Watch deadlines!

Check List

Scholarship search
Complete the FAFSA
- Supply any requested info to college
Receive award letter
- Respond if required
Apply for PLUS Loan, if needed
Sign promissory notes, if required
Funds are disbursed by college

Other Financing Options

Credit cards
- Typically 9% or higher interest rate
Home equity loans
- 4 - 5% interest rate
Private (alternative) loans
- Variable interest rates (usually higher than PLUS Loan)
- Possible tax deductions

Common Questions

I know we don't qualify so why should we apply?
Everyone qualifies for something.

My parents are divorced so whose income do I report?
The one you lived with the most in the preceding year.

Can I exclude my stepparent's income?
No.

What if our income changes?
See the financial aid office at the college.

Why do I have to provide my parent's income information? Why am I considered dependent?
By law, you are considered a dependent until you: