A junior’s guide to financial aid

You have one year to go! One year until you put on that cap and gown and get your high school diploma. One year until your college dreams become reality.

Right now, you’re probably thinking about where you want to go to college and concentrating on the grades that will get you into your dream school. But it’s also time to start thinking about how you plan to pay for college!

Even though you can’t apply for federal financial aid until January of your senior year, there’s plenty to do in the meantime to make sure you’ll be able to cover your college costs.

Talk to your parents about how you and your family are going to finance your education. In other words, what portion of expenses are they going to cover and what are you going to be responsible for? As you plan your college visits, also be aware of how much it will cost to attend each school. If you are going to have to shoulder some or all of your college costs, one way to get a jump on things is to work part time or line up a summer job.

Start searching for scholarships immediately. And even if you have already been looking throughout your freshman and sophomore years of high school, keep looking. Also called “gift aid,” a scholarship is free money that doesn’t need to be repaid after you graduate from college.

If you are seeking a military academy appointment, contact your senator or congressperson during your junior year to obtain application procedures for a nomination.

Familiarize yourself with the various federal financial aid programs available. It’s good to know your options before you begin to navigate the maze of college costs and financial aid. Here are some possibilities:

Pell grants: Grants of up to $3,000 per year that are given to students based on family financial need. This money does not have to be paid back.

Federal Supplemental Educational Opportunity Grant (FSEOG): Grants of up to $4,000 per year given to students with exceptional financial need. This money does not have to be paid back.

Federal work-study: Work-study is awarded to students who demonstrate need on their Free Application for Federal Student Aid (FAFSA), which you should submit in January of your senior year. You may work up to 20 hours per week at jobs available on or off campus.

Federal Stafford loans: Undergraduate students can borrow from $2,625 to $10,500 per year depending on their financial need and grade level. The interest rate on Stafford loans is capped at 8.25 percent, and students do not have to start making payments until six months after graduating from school or dropping below half-time enrollment.

Federal PLUS loans: PLUS loans are for the natural, adoptive or stepparents of dependent undergraduate students. Parents can borrow up to the cost of their child’s education minus other financial aid awarded. Borrowers must undergo a credit analysis, and repayment begins 60 days after the first disbursement. The interest rate on PLUS loans is capped at 9 percent.

Federal Perkins loans: Loans of up to $3,000 per year for students with exceptional need. These loans carry a fixed interest rate of 5 percent.

Attend financial aid nights and college fairs to learn about the types of aid available. Check with your high school guidance office or local college for upcoming events.

Audrey Rutherford is marketing communications manager for Chase Education First, exclusive marketing representative for federal education loans made by JPMorgan Chase Bank.

One Year to Go!
Put together a month-by-month calendar for the next 12 months that includes important admission and financial aid deadlines.

Prepare, prepare, prepare! Go to your local library or bookstore and grab a college prep guide. This will provide a good jumping-off point as you look for potential schools.

Start developing a list of your extracurricular activities. Think of it as a résumé of sorts that will show prospective colleges your passions.

Keep your grades up; your academic record is now more important than ever. The GPA you earn in May of your junior year is the one that will be included on college applications the fall of your senior year.

Consider taking college prep or Advanced Placement courses through which you can earn college credits.

Start planning your college visits.

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