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What is Financial Aid?
Financial aid consists of funds from federal, state, college or university,
and private organization sources. These funds come in the form of grants,
scholarships, loans, and part-time employment.
Grants and scholarships are often referred to as "gift aid" because
they typically do not have to be repaid, as long as all eligibility and use
agreements are kept.
Loans do have to be repaid, though there may be "forgiveness" opportunities
for some loans, and many loans can be deferred, so repayment would not start
until one leaves school. Student loans are at very favorable interest rates
compared to other loans.
Part-time employment may be funded through state or federal work-study programs.
(Of course a student can find his or her own employment without these programs.)
Studies have shown that students who work part-time (under 20 hours a week)
tend to do better academically than students who do not work.
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Managing Student Debt
By maximizing "gift aid" (grants and scholarships)
and income from part-time work, students can reduce the amount of money they
need to borrow
(loans) and thereby be in a better position financially when they leave school.
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Apply Each Year
Students apply for financial aid funds each year using the
Free Application For Federal Student Aid (FAFSA). The application asks about
income assets and
other information to determine eligibility for funds. Most funds are based
on financial need, and are offered on a first come first serve basis. Students
are encouraged to file these forms starting January 1 for the Fall term at
the college they are interested in. Late applicants may lose the chance to
receive certain funds.
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Satisfactory Academic Progress
The student must meet all the academic standards
for the college being attended, and must meet the detailed Satisfactory Academic
Progress requirements published
by the financial aid office of the institution.
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Communication
Close communication between the student and the financial aid
office is very important so that financial aid administrators become aware
of any changes
to the student's academic plans, and so that students are apprised of all requirements.
Communication is also necessary to make sure forms and documentation are complete
and received on time. Financial aid administrators usually cannot process applications
that are incomplete.
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