How can I qualify for government-sponsored financial aid?
Posted by: Financial Planner on 6 Oct, 2011
While it is incredibly important to save as much as possible for a college education, the truth of the matter is that some families are able to put aside more than others. As such, some families have their tuition covered, partially or fully, by financial aid.
Families must fill out a FAFSA (Free Application for Federal Student Aid) in order for the government to decide who will receive what. Aid-granting institutions often focus mostly on those with greatest need, leaving middle and upper-middle class families struggling. To see where you fall, take the “five percent test.”
Here is how you do it – first, add 5% of your total family assets to your adjusted gross income on last year’s tax return. Now divide that by how much you think one year of college will cost. If the answer is six or less, you may be eligible for financial aid. If the answer is higher, it is likely that you aren’t.
No matter what, it is worth the time it takes to apply, as many factors can feed into the outcome. And even if you are rejected, you still have options, especially considering the programs offered by the U.S. government. These include Pell Grants, Federal Perkins Loans, Federal Work-Study Programs, Direct Stafford Loans and other options. The information in your FAFSA can help the federal government determine need, which will in turn determine eligibility for such programs.
Learn more about college savings plans by calling at (877) 9721-3262 now.
