Financial aid is money awarded to a student to help pay educational costs.  The federal government, the state government and many private organizations provide financial aid to eligible students in the form of grants, scholarships, loans, service-cancelable loans, alternative loans, and employment.  In addition, most individual colleges offer their own scholarships, grants and other aid to students who attend.  Be sure to check with each school to see what is available.

Some financial aid is merit based, an academic scholarship is one example.  A great deal of aid is need based; all federal grants and some federal loans are awarded based on the financial need of the student and the student's family.

Another important distinction is that some aid is considered a gift, meaning that it does not have to be repaid.  Scholarships and grants are examples of gift aid.  Most forms of aid must be repaid.  Most loans must be repaid in cash.  Some loans, called service-cancelable loans, can be repaid in cash or by working in a certain job for a certain length of time.  Students can repay some financial aid by working at a part-time job while in school.

 

The federal PELL Grant is based on financial need; other grants are awarded to students simply because they fall into some special category.  GSFC's Tuition  Equalization Grant is awarded to any Georgia student who attends a private college in Georgia.  There is no academic requirement and no need requirement.  Another example is the HOPE Grant, which pays tuition and fees, plus a book allowance, to any Georgia resident enrolled in a diploma or certificate program at a HOPE-eligible college or technical college.  Again, there is no academic requirement and no need requirement.

Scholarships and grants do have one very important thing in common:  they are both considered "gift aid."  That is, students who receive grants or scholarships are not obligated to make any kind of repayment.

  This is the share of the total  cost of attending that the student and his or her family is expected to pay.  The EFC is calculated by whatever organization is awarding the financial aid - usually the federal government or the college the student will attend.  The family's assets, family size, number of family members currently attending college, and income (including any income the student may earn from part-time jobs), are some of the factors taken into account when calculating the EFC.

The first step in determining the EFC is for the student to complete the Free Application for Federal Student Financial Aid (FAFSA).  This should be done as early as possible in the year that the student plans to start college.  The form asks for a great deal of detailed information about the financial situation of the student's family.  It's a good idea for you and your parents to complete your income tax returns before filling out the FAFSA, as a lot of the same information is asked for on both forms.  Ask your parents to prepare their IRS forms as early as possible this year.  Follow the instructions on FAFSA carefully, fill out the information completely, and send in the form as soon as possible.  Based on the information on FAFSA, federal processors will determine your EFC.  The result will be sent to you and to all of the colleges that you listed on the FAFSA.

NOTE:  Most colleges use the EFC that is generated by the FAFSA form.  However, some schools use other means to determine EFC.  Be sure to look at each financial aid application packet provided by the colleges you are interested in, to determine what each school requires.

  Same answer, only now it should make more sense.  The total cost of attending a school minus the expected family contribution, equals your eligibility for need-based funds otherwise known as your financial need.

Once your college financial aid office has your ERC, it will prepare a proposed financial aid package.  Typically, this will be a combination of Stafford loans, PLUS loans, and perhaps student employment or work study opportunities.  The goal is to devise a package that equals your family's financial need.

  The answer to that question varies from college to college.  Contact the school's financial aid office.

  These programs encourage students to pursue an education, and eventually a career, in a particular "critical-need" field.  For example, it might be determined that a particular region of Georgia is experiencing a severe shortage of trained nurses.  That shortage, in that location, constitutes a critical need.  Students who receive service-cancelable loans have two repayment options:

They can repay the loan in cash, plus interest or

After satisfactory completion of their courses of study, they can cancel the loan debt by working in their critical need field, in an agreed-upon region of the state, for a certain number of years.  Of course, the borrower earns a regular salary at the same time they are canceling their loan debt through service.

In Georgia, some service-cancelable loans are funded by the federal government and some by the state government.  The GSFC is the only agency that offers service-cancelable loans in Georgia.  Call 1-800-505-GSFC for more information.

Note:  Many health care occupations have been identified as critical need fields in Georgia.

Two examples:

The Registered Nurse Service-Cancelable Loan Program, a state-funded program administered by GSFC.

GSFC offers federal Stafford loans with a service-cancellation option to students enrolled in programs of study relative to a wide variety of allied health professions including registered nursing, physical therapy, medical technology, radiology, dentistry, and more.

Earlier, you mentioned alternative loans ...

There are limits to how much can be borrowed under federal programs.  Alternative loans are an additional resource that students can use to meet financial need.  GSFC offers an alternative loan program; see the listing on pages 122-123.

1.  Deadlines.

2.  Deadlines.

3.  Deadlines.

Oh yes, also be sure to read financial aid packets and all forms carefully, and follow instructions.