Financial Aid Overview

• REMEMBER - Grant money is FREE college education money, but only so much is awarded each institution of higher learning- the SOONER you file the FAFSA the better!!!!

• Students get financial aid from different places.  You can apply for assistance from the federal or state government, local banks or credit unions, civic or church groups, your parents' employer, and from the college or university itself.

• You should begin asking about financial aid, especially at specific colleges or universities by the spring and summer of you junior year of high school. Your best source of information (including application deadlines, especially for scholarships and financial aid) is the financial aid officer at the college or university you want to attend.

• Local Scholarship Information  (Citizen's Bank, Lion's Club, Rusk Alumni Assocciation, etc) will be available in Mrs. Cockrum's office and on the library computers.  Mrs. Cockrum will meet with the seniors in late January during school to explain the process for completing local scholarships that accept the RHS Scholarship Application.  All other scholarships are announced and information is posted.  The student is responsible for obtaining those applications and completing them by the deadline applicable.

• When you ask for catalogues from colleges and universities, also ask for financial aid applications and related instructions.  Apply even if you think you won't qualify.  Be sure to meet due dates and complete all forms completely. College and university funds are limited, and you can lose your chance to get some types of aid if you do not meet deadlines.  THIS IS WHY IT IS IMPORTANT TO HAVE CHOSEN AT LEAST THREE COLLEGES OR UNIVERSITIES AND APPLY EARLY!!!!

• TYPES OF STUDENT AID

• GRANTS AND SCHOLARSHIPS :  gifts of money that do not have to be paid back.  Scholarships are usually awarded based on grades, test (ACT/SAT) scores, some special talent; grants are awarded based on financial need.

• LOANS:  borrowed funds that usually must be paid back with interest.

• FORGIVENESS LOANS:  borrowed funds that usually must be repaid by performing some type of service

• WORK STUDY:  part-time jobs provided by colleges and universities so students can work and earn money.

• TUITION/FEE EXEMPTIONS: programs that decrease the tuition and/or fee charges for eligible students attending public colleges or universities.

• LOAN REPAYMENT PROGRAMS:  programs that make payments against outstanding student loans in repayment for services provided by the borrower.

• WAIVERS:  programs that allow some non-resident students to attend Texas public colleges or universities and pay the lower resident tuition rates.
• Student who receive financial aid are offered an "aid package" by the college or university (high school can only offer information - only the college can award the assistance)  The package often includes more than one type of aid.  The total amount of aid in the package depends on your financial need.  Most federal and state aid is awarded  based on financial need rather than academic merit (grades).  Your financial need is determined by the information you report on your FREE  APPLICATION FOR THE FEDERAL STUDENT AID FAFSA.
• You cannot file a FAFSA until your most recent federal income tax return has been filed.
• TEXAS GRANT - All Texas residents who complete the Recommended or the Distinguished Achievement Plan of Graduation , submit the FAFSA (Free Applicatiooon for Federal STudent Aid , and apply and are accepted to a non-profit Texas college or university, enroll at least 3/4 time in an undergraduate degree or certificate program within 16 months of high school graduation and have not been convicted of a felony or crime involving acontrolled substance can you may be elgible to receive up to $1,344 per semester at a public or private university, $582 at a community college, $861 at a public technical school.  This must be re-applied for every year.  The university to which you apply is responsible for informing you of your elgibility status once the FAFSA has been filed.

• APPLYING FOR FINANCIAL AID

• All colleges and universities will ask you to file a FAFSA if you are applying for financial aid.

• You must complete a FAFSA, either on paper or on the Web, to apply for state and federal aid.  The information contained in this application is used to calculate your need for financial aid.  High School counselors and college and university counselors will have copies of the form available for the next school year after January 1.  The Web version if located at  www.fafsa.ed.gov.  Follow the instructions on the for or Web site to submit your completed form. 

• If you want to apply for aid for a fall term, complete and submit your FAFSA as soon as possible after you and your family complete your federal income tax return for the prior year, or by the college's or university's financial aid deadline-whichever comes first.

• Upon receiving your completed FAFSA, the processor will review it and calculate your Expected Family Contribution (EFC) --the amount you and your family will be expected to pay toward college costs.  The calculation takes a lot of different things into consideration---your parent's income, your earnings, your family's assets, the size of your family, and the number of people attending college at the same time.  It also takes into account family expenses.  These include income taxes paid, housing, clothing and food costs, and your parents' need to save for retirement.

• Within four to six weeks of submitting your FAFSA (two to four if you complete the FAFSA on the WEB), you will receive a Student Aid Report (SAR).  Read the report carefully.  If corrections are needed, you must follow directions for making them.  The SAR will indicate your family contribution (what they calculate YOU can contribute toward paying for your education) and report if you are eligible for a federal Pell Grant.  If you are not eligible for a Pell Grant, don't worry!  you might still qualify for other types of aid.  The Pell Grant is targeted towards the students with the greatest financial need.  Many students who do not get the Pell Grant receive other types of awards.

• CALCULATING FINANCIAL NEED

• Most state and federal aid only goes to students with financial need, and need equals:
•                                                                                                                        Cost of Attendance
•                                                                                                                        -Expected Family Contribution

                                                                                                                                 =NEED

• The Cost of Attendance includes tuition and fees, books and supplies, and living expenses.  Your financial need is the "gap" between this cost figure and the EFC (expected family contribution) the processor calculates your family can provide.

• Each financial aid program has its own set of eligibility requirements.  The information you give the aid office through your FAFSA and other forms they ask you to submit (if required) allows the aid office to determine which programs you can qualify for.

• After the aid office has the information from your SAR, it can calculate your need and decide which awards to offer you.  (you do not have to apply separately for each program.)  After these decisions are made, the aid office sends you an award letter, listing your aid package.  This letter is usually sent our by early summer.

• LOANS

• If you intend to borrow from a federal student loan program to help pay for your education, ask your college or university financial aid officer about the application process at their particular institution.  The college can also help you find a lender--an organization able to loan the funds to you.

• The least expensive educational loans are those targeted to financially needy students.  These loans Subsidized Federal Stafford Loans and Perkins Loans--require no interest or repayment while the borrower is enrolled on at least a half-time basis.

• Specialized, need-based loans are also available to students in medical and allied health professions.  Interest does accumulate while the student is in school; but no repayment is required until the student drops below half-time enrollment.

• Students who do not qualify for need-based aid also might be eligible to borrow money through the unsubsidized Federal Stafford Loan Program or the College Access Loan (CAL) Program.

• Parents my also borrow through the federal PLUS Loan Program and a variety of supplemental educational loan programs that your college financial aid office can tell you about.

• Forgiveness loan programs provide money to students who sign contracts or agreements to perform certain work or services after completing college.  If the student completes the services as agreed, no repayment is required.  If the student fails to perform the service, the money received as a forgiveness loan has to be repaid with interest.  Forgiveness loans are available to outstanding rural scholars, students in educator certifications programs, and child-care workers seeking advanced credentials.  All three programs require the student to work for one or more years in the professions for which the loan paid for education.

• THINGS TO REMEMBER

• The amount of financial aid you qualify for is based on your financial need.  Your EFC will remain the same from one college or university to another; your need may increase or decrease depending upon the costs of the college or university.
• Colleges and universities handle "outside scholarships" (scholarships you bring with you to their school-i.e. locally given) differently.  The college or university may reduce the amount of institutional grant aid you receive to reflect the amount of the outside scholarship.
• YOU MUST APPLY FOR AID EACH YEAR.  Your family's federal income tax return should be completed early, allowing you to complete your FAFSA accurately and on time.  Using estimated information on the FAFSA will mean you will have to make corrections later.
• Each college and university sets its own deadlines for applying for financial aid.  Contact all colleges in which you are interested to learn about financial aid deadlines.
• This is the most important investment you can make in your future.  Take time to learn about your options before you make any decisions.  Financial aid officers at your selected college or university can help you find ways to pay for your education.

• To learn more about FINANCIAL AID:

• Your BEST source of information is the financial aid office at the college you wish to attend.  A list of Texas non-profit colleges and universities, with contact information can be requested by calling 1-800-242-3062, ext. 6378.  Your student can also use a computer at home or the public library.  Students at Rusk High School are encouraged to use the computers in the library to search college web sites for financial aid information.  Mrs. Daniel is in the library every Tuesday and Thursday during second lunch (12:40-1:10).  Special appointments can also be arranged
• after school.  Parents are welcome to visit the college corner in the library which has been set up for seniors to have access to college/scholarship/financial aid information.

• The home pages of many of the Texas colleges and universities can be accessed through the Texas Higher Education Coordinating Board Web site at:  www.collegefortexans.com

• SALLIE MAE (nationwide college loan program) sponsors the website www.CollegeAnswer.com which provides valuable information about the college financial planning process.
  

•  FAFSA encourages all those wishing to apply to do so via the internet (www.fafsa.ed.gov)  At this website will be al list of all the documents you need to complete the form.  A PIN number is your key to completing the form easily and correctly online.  To apply for a PIN number is www.pin.ed.gov It is possible for a parent to have their own pin number to check the status of their student's FAFSA.

• Information provided by the Texas Higher Education Coordinating Board in conjunction with the Texas Financial Aid Information Center (1-877-782-7322) - toll-free- Monday-Thursday 7am-7pm, Friday 7am-5pm
• Career Development Resources (CDR) is making available at a very reduced price a booklet on financial aid, published by Thomas/Petersons'.  This is a great tool for students and parents when preparing to plan for the financial side of college.  The 200-page booklet entitled Get a Jump, Financial Aid Answer Book can be ordered directly from CDR for $2.00 each.  Visit www.cdr.state.tx.us and look for the pop-up window for ordering information.