Paying For College:
Understanding Financial Aid, Part 2

By Gordon Peck, Former Associate Dean of Admissions and Financial Aid, Davidson College

Courtesy of www.thesportsource.com.

Revisit part one here.

Non-Need Based Assistance

In spite of our encouragement and your family's best efforts, the need analysis system may determine that you are not eligible for need-based financial aid, or perhaps your parents feel they cannot come up with all of the family contribution calculated by your top choice colleges. What then? There may still be hope in the form of grants-in-aid, merit scholarships, payment plans, alternative loan programs, and other creative financing options.

Grants and merit scholarships--As discussed earlier, many need-based financial aid packages will include grants or scholarships. Many colleges also offer gift aid (grants and scholarships) without regard to financial need to recognize outstanding accomplishments and potential in academics, performing arts, athletics, and other special talents. These special awards may be offered to no more than ten percent of the students at a particular college and may range in value from a hundred dollars to full cost.

Competition for these college-sponsored scholarships is keen and frequently requires a separate application. You should ask each college you are considering about the requirements and procedures that apply to merit scholarships at that institution. You should explore the possibility of scholarships and grants from private organizations. Your parents' employers, professional organizations, service organizations, churches, local PTA groups, veterans' organizations, charitable societies, and many other groups frequently provide aid for college-bound students. Begin your search for these private scholarships in your school's guidance library. Also check with the public library for such guides as "The College Blue Book: Scholarships, Fellowships, Grants and Loans or Financial Aid for Higher Education," Oreon Keesler, Editor.

Again, you might turn to individual college financial aid offices about outside sources of scholarships that have been used by their students in the past.

Alternative loan program--The loans referred to in our earlier discussion of packaging are subsidized student loans, available only to students who demonstrate need. These need-based loans are provided through the Perkins or Stafford loan programs, and they are generally included within a student's need-based package. In this section, we want to make you aware of educational loan options available to parents and students who may not qualify for need-based aid or who may need assistance meeting the family contribution expected by the financial aid office.

At the federal level, Congress has authorized two programs: Parent Loans for Undergraduate Students (PLUS) and Supplemental Loans for Students (SLS). PLUS loans are available for parents of dependent students, and SLS loans are for independent students. Unlike the Perkins and Stafford loan programs, there is no in-school interest subsidy and very limited opportunity to postpone payments until after college. However, the programs offer interest rates and repayment advantages over most consumer loans.

Several alternative loan programs have been developed in the private sector over the past few years. Some are supported by nonprofit organizations such as The Education Resources Institute (TERI) in Boston, and Concern: Loans for Education in Washington, D.C. These loans offer high annual limits (as much as $25,000 annually) to credit-worthy families, plus options for postponing principal repayment while the student remains in school. Banks and other for-profit organizations also sponsor loan programs. Some of these arrangements establish a line of credit which families may draw against as needed for educational costs. Other loan plans may be tied to tuition payment plans.

Tuition payment plans--Some colleges, plus a number of private financial institutions provide payment plans which allow families to spread the cost of attending college over the entire school year. Such plans provide a budget-wise option to the traditional lump sum payment at the beginning of each semester. Generally, the only charge for such programs is an application fee, unless the program is combined with an educational loan. Organizations such as Academic Management Services of Pawtucket, RI and the Knight Tuition Payment Plan of Boston work closely with several colleges in arranging individual payment plans for families.

Other options--A number of other creative options are being developed to help families better plan and manage the costs of higher education. Federal agencies, state governments, colleges, financial institutions, and various consortia are involved in the creation of savings plans, prepayment plans, tuition guarantee plans, and other alternatives too numerous to mention here. Our advice is to gather all the facts you can through your guidance office from publications such as "The College Cost Book" published by The College Board and Peterson's, "The College Money Handbook," and especially from the financial aid offices at the colleges you are considering.

Schedule for Financial Aid Applicants

Junior Year

Senior Year

September - get a copy of "Meeting College Costs," a publication of the College Scholarship Service, available in most guidance offices. Use the charts in this handy guide to estimate your family contribution and financial needs.

December - get/apply for the FAFSA (Free Application for Federal Student Aid), the SAAC (Student Aid Application for California) or the FFS (Family Financial Statement) from the guidance office. The form may not be submitted before January 1, but you should familiarize yourself with requested information and begin to gather the financial records you will need to complete the form.

January / February - complete and submit the FAF (or SAAC or FFS). Make a copy for your records before sending them. Complete other financial aid application materials and send them to the colleges to which you are applying. Make one last check for forms you may also need to submit to be considered for private scholarship programs or other outside aid. If you anticipate that you may not be eligible or receive enough need-based aid, you should complete your investigation of alternative loan programs and other sources of non-need based aid. Be sure to include college financial aid officers as you seek advice on these matters.

April/May - carefully compare the bottom line costs to your family from each of the colleges offering you financial aid. As you inform your first choice of colleges of your decision to attend, respond also to school's offer of financial aid. Be sure to let the other colleges know of your decision to attend the first choice college.

May/June - by now your family should have submitted copies of its federal tax returns, promissory notes for student loans and other required documents to the appropriate financial aid office. If suggested by your college, the Stafford loan application should be submitted at that time.

Whom Can I Trust?

While your high school coach and the college athletic recruiter may be very helpful and eager to assist you in the college search, it is important that you and your family maintain direct contact with the college financial aid offices. Do not send your financial aid application materials through the coach and do not rely on his or her interpretation of your eligibility for financial aid. Too many lost documents, missed deadlines, and misinterpreted financial aid packages have been attributed to well-meaning but unnecessary intercession by athletic recruiters.

While some high school officers may not have as much time or good information as you would like, they are still the best place to start when seeking financial aid advice. At a minimum, they can put valuable material into your hands and guide you to other people who can help. Financial aid officers at the college you are considering are probably in the best position to analyze your circumstances and lead you to the best sources of need-based and non need-based financial assistance.

Editors note: Some of the publications referred to earlier can provide you with excellent guidance as you contemplate the serious matter of financing your education. We especially recommend: The College Cost Book, 13th Edition, New York: College Entrance Examination Board.

Foreign Students

The Sport Source has learned through its first ten years of publications that many student-athletes outside of the U.S. are using this College Guide. Because of this, we continue to include a brief outline of the steps necessary for international students to apply to schools in the U.S.

As an international applicant it is important to begin the process as early as possible. You should apply no later than 6 months prior to the semester in which you wish to begin your studies. You will need the extra time to obtain your official school records, arrange for the required examinations, forward bank verification of your financial resources, for your application to be reviewed, and to obtain your visa.

It is important to note that many U.S. colleges and universities require international students applying for undergraduate studies (bachelor's degree) to pay all expenses themselves. Many universities do not give scholarships or financial aid to international students seeking undergraduate studies.

Requirements

International students usually are required to be proficient in the English language, and good students in their own countries before they will be considered for admission into a college in the U.S. Students usually should have 12 years of study in their own country, beginning at age six. The last four or five years should include the study of English, history, mathematics and science. Although each university may be different, this is a basic overview of what many universities require for application from international students:

An Application Form: Answer every question. Your principal or headmaster may also be asked to answer questions on the form. There may or may not be an application fee. Financial Certification: The student or his/her parents must often submit proof that the family or sponsor can pay for the schooling. This amount can range anywhere from $14,000-$20,000 per year, including tuition, room, food, books, and other miscellaneous expenses. The university needs an official statement from a bank, employer, sponsor, or other official affidavit of support.

School Records: These are transcripts or certificates of satisfactory study. Records should include an English translation of the subjects the student has studied and grades the student has made in each subject. It is very important to explain the grading system of each school attended.

Test of English as a Foreign Language (TOEFL): This is usually required for all international students except those whose native language is English. Information about this test can be found at U.S. Embassies, Consulates, offices of the United States Information Services, or at schools in your home country.

Aptitude Tests (SAT/ACT): These tests, such as the Scholastic Aptitude Test (SAT) or American College Testing's (ACT) Assessment Program which measure verbal and mathematical ability are required for both international students and American students.

Visa:After you have been admitted and have submitted the financial certification information with bank statements, the university will send you a visa-qualifying document. In most cases, you will be sent an I-20 Form which is used to get an F-l student visa. To get the visa, you will need to go to your nearest American Embassy or Consulate and show the following three items:

Because you may be asked to prove your financial resources, you should retain certified copies of the original financial information that you are sending to U. S. colleges when applying.

If you already are in the United States, you will not need to get a new visa; you will receive a transfer, which will extend your time to the dates of the appropriate academic program. An I-20 will be sent for you to do your transfer.

If You Have More Time

If college is still several years away for you, your family has the advantage of planning and saving for your college education. Remember, colleges will consider the student and their family as the first and primary source of funds for education, and the bulk of financial aid awards will continue to be given on the basis of financial need. Therefore, it behooves you to do all you can in advance to painlessly provide the calculated family contribution when the time comes.

Educational financial planning can be complicated, but it is not as cumbersome as paying for college when there has been no planning at all. Start your savings plans knowing that college choices will be more numerous for those who have planned.

The Sport Source has a mission "to provide the perfect link between a student-athlete, a specialized sports program and a well-rounded college education." Since their inception, The Sport Source has developed numerous strategic alliances with high schools and national/international youth sports organizations that have encouraged them to introduce new services and continue to help improve college guidance and scholarship opportunities for students.