A parent's guide to financial aid

Campus visits. SATs. Applications. Transcripts. As the parent of a student who’s applying for college, you may be a bit overwhelmed by all the things you need to take care of before your child even steps on to campus. Add, “How am I going to pay for it?” into the equation, and it might seem downright daunting! But with planning and organization, navigating the financial aid process from start to finish can be quite simple.

Start early
Your family should not only start researching prospective schools during your child’s junior year, but also should start thinking about financial aid at that time as well. Visit the financial aid office during campus visits to ask about the school’s financial aid offers. Also request a calendar of important deadlines for financial aid applications. Encourage your teen to look for scholarships and other forms of gift aid immediately.
Fill out the Free Application for Federal Student Aid to be considered for federal financial aid, as well as most state and college aid programs, your family must submit a Free Application for Federal Student Aid (FAFSA). You should submit the FAFSA after Jan. 1 of your child’s senior year of high school. Paper applications are available at any college financial aid office or through your child’s high school guidance counselor. You can also fill out the FAFSA online at www.fafsa.ed.gov.
Filling out the FAFSA is a lot like filling out your income taxes. (In fact, you should complete your income taxes before you complete the FAFSA if possible.) To complete the FAFSA, you’ll need the following:
*Income tax return or as close an estimate as possible
*W-2 forms and other records of money earned
*Records of untaxed income *Current bank statements
*Current mortgage information
*Business records
*Records of investments
*Your child’s driver’s license and social security card

 The information you supply on the FAFSA will be used to calculate your expected family contribution (EFC). The difference between the cost of attendance (which includes tuition and fees, books and supplies, housing, meals, transportation and personal expenses) and your EFC is your family’s financial need.
Once you have completed the FAFSA, a Student Aid Report (SAR) will be sent to you and the schools your student listed on the FAFSA. The financial aid offices at those schools will use the SAR when they are preparing an award package for your family.

Review all sources of aid
After you’ve submitted the FAFSA, consult high school guidance counselors, college financial aid advisors, books, friends and the Internet to identify other kinds of aid for which your family might be eligible. Remember that loans must be repaid with interest, so take advantage of scholarships, grants and work-study opportunities before your family decides to borrow. Carefully review all financial aid award letters
After you’ve completed the FAFSA, keep an eye on the mail for award letters from each school your child listed on the FAFSA. These letters will indicate the type and amount of financial aid for which your child qualifies. Before accepting any financial aid package, make sure you understand it completely. Ask the following: *Is this aid for one year only, or is it renewable?
*If aid is renewable, what requirements must your child meet to ensure the award is continued?
*How many hours are required for work-study jobs?
*What is the interest rate on any loans included in your child’s award package? *Can interest on loans be deferred while your child is enrolled in school?
*What are the repayment terms for the loans?

If your child is looking at multiple colleges, the award package could be a deciding factor. So review letters carefully and accept an aid package only when you are satisfied with the answers.

Always borrow conservatively
If your child needs additional funds for school, you may want to consider a private lender that offers loans specifically for students. Some lenders offer repayment discounts for paying on time, consolidation options and special repayment plans, so research various lenders and weigh your choices carefully.
Always remember that loans are legal obligations that must be repaid. Never borrow before exhausting all other sources of aid, and if you do borrow, borrow only what you need.

Audrey Rutherford is the marketing communications specialist for Education First, the exclusive marketing representative for deferral education loans made by JPMorgan Chase Bank.

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