Starting out

Start to inquire about financial aid as early as you can. It is smart to start your junior year. Start reading the financial aid web sites of the schools you would like to attend and make a list of required forms and deadlines. Check to see what kinds of scholarships are available through the college and through outside organizations.

Financial aid forms

The financial aid form that most schools require is the Free Application for Federal Student Aid (FAFSA). This form is free to complete, and it is best to file online at www.fafsa.ed.gov.  Some schools also require the College Board’s PROFILE. Check each school’s web site to see if the FAFSA, PROFILE and/or an institutional financial aid form is required. The key in filing for financial aid is to file ON TIME and to make sure you complete all the paperwork for your application.

How aid is determined

You and your family will complete the FAFSA based on your prior, prior years taxes for the school year (example- if you will be attending college in Fall 2017 you will submit 2015 taxes). You may file the FAFSA any time after October 1. Based on the information you provide, the Department of Education calculates an Estimated Family Contribution (EFC) which is used to determine your financial aid.

COST OF ATTENDANCE

- EXPECTED FAMILY CONTRIBUTION (EFC)

=  NEED

The important thing to remember is that EVERY STUDENT SHOULD APPLY for financial aid, especially in your first year of school. There are many types of aid but you will not know if you qualify unless you apply.

Sources of information

Be creative about seeking sources for scholarships. As you are learning about financial aid and apply for aid and scholarships, please remember to consult your high school guidance counselor, your financial aid counselor at each school to which you apply, attend financial aid nights that are presented by the Hawaii Association for College Admission Counseling (HACAC) and Pacific Financial Aid Association (PACFAA). There are also a wealth of web sites available for information available to you for free! If you find a Web site or organization that asks you to pay for financial aid information, please call your guidance counselor, or the financial aid office to see if the organization is legitimate.

Merit aid

Financial aid was primarily utilized in the 1970’s and 1980’s as means of increasing access to college for those who could not afford to attend. While that is still the purpose of federal aid, the last decade has seen a sharp rise in the amount of merit aid awarded by private and public institutions. Merit aid is offered without regard to family financial need. Athletic, artistic, and academic scholarships are all technically forms of merit aid. Just as some schools have offered athletic scholarships to students who will improve their sports teams, some schools will offer academic merit scholarships to students whom they feel will increase the overall academic climate on campus. The overwhelming majority of extremely selective schools, on the other hand, will only award aid based on family financial need. While these nuances have led to sometimes vastly different financial aid packages from schools, the key components of all financial aid packages remain the same (as described below).

Pieces of the college-issued financial aid package

Category: Gift aid

Grants/Scholarships

The best part of any financial aid package, this is also known as “free money.” Most grants are renewable, but this is important to verify with your financial aid officer. Merit scholarships, if offered, will be included in this part of the package.

Category: Self-help aid

Loans

The federal government restricts the amount that students may borrow in their own name. Many schools also offer PLUS loans to parents to help fund their contribution.

Work-Study

Most colleges participate in the federal work study program, which offers campus jobs to students as untaxed earnings that may be applied to tuition or other college costs.

The student may decline or accept any part of an offered package, which allows parents the opportunity to seek out other loans or private funding if they so desire. Schools may adjust financial aid packages as the student earns outside scholarships, but most will reduce or eliminate the self-help portion (loans and work study) of the package first.