Our Panel of Pros:
John Gredy, Vice President for Enrollment Management and Marketing, Indiana Wesleyan University—Marion, Indiana Bill Kellaris, Director of Financial Aid, Philadelphia Biblical University—Langhorne, Pennsylvania Wes Maggard, Director of Financial Aid, Northwest Nazarene University—Nampa, Idaho Dawn Weaver, Director of Financial Aid, Grace College—Winona Lake, Indiana Wondering how you're ever going to pay for college? Confused by all those financial aid applications and acronyms? Relax because we've found help! These four experts have a lot of good advice that will help you navigate the financial aid maze. Imagine that I'm in high school and want to go to a Christian college. When should I start thinking about financial aid? John: Start early. When you're thinking about applying for admission, think about financial aid. Begin to learn what kinds of aid opportunities are available and how students normally pay for a college degree. It's also important to take a self-inventory and think through your interests and abilities. If you have abilities in sports, you might begin to look at what kinds of sports scholarships are offered at the schools you're considering. If you're interested in drama, see if your top schools offer any drama scholarships. Dawn: The earlier, the better. Thinking about financial aid should really go hand in hand with visiting colleges. Looking for outside scholarships takes time, and some of those deadlines are early during your senior year. Bill: I would start thinking about financial aid in the summer between your junior and senior year of high school. Do an initial search of the kinds of financial aid that might be available to you based on your interests. Talk with the financial aid officers at the schools you're really interested in. Also talk with the folks in the department you're interested in. For example, if you've worked on the yearbook staff or the school newspaper, look into journalism scholarships. Do I have to be admitted to a college to apply for financial aid? Dawn: No, but being admitted is helpful, because we can actually process an application faster if we have the admissions information, too. There are times when students will say, "I don't know if I want to apply. Can I get an idea of what my aid might be?" Many colleges will estimate financial aid for those people. But you obviously have to be an admitted student to get financial aid. If I met with a financial aid officer, what would we talk about? Bill: Meeting with a financial aid officer does not include specific information, like the exact amount of aid you could receive. We generally talk about the timeline and go through a brochure that explains the types of financial aid our school offers. We also give a quick overview of the financial aid programs the government offers. What questions should I ask financial aid officers? Bill: Ask about the percentage of students who receive financial aid at that school and the types of aid you might expect to get. Some schools are heavier on self-help, which at most schools means loans. Others are more generous with gift aid—money that doesn't have to be paid back. Wes: You need to ask what the cost is and what kind of aid programs the school participates in. Find out about the different types of merit aid (aid based on performance) and need-based aid (aid based on your family's financial need). Ask them to help you understand all the new terms you need to know—it's a new language for most students and parents. John: It's also important to think about value. Find out where your money's going. If you're paying for room and board, ask what kind of meal plans the school has. Look at the residence halls. Are they air-conditioned? Are they carpeted? What is the student-to-faculty ratio? How many majors does the school have? You and your parents need to simply evaluate the cost next to what you'll get from a given school. What role should my family play in this process? Wes: Everyone—from your mom and dad to brother and sister—should be involved in the whole process. Even your grandma and grandpa may have set some money aside they're planning to give you for your education. Siblings need to be aware of the expense of college as well and know that they may be eating peanut butter and jelly sandwiches for a while! It's a family commitment. John: It's so important that you take as much responsibility as you can early on in learning about financial aid. Once you're in college, you'll need to make sure you complete the fafsa correctly and on time every year. So the first time, maybe you and your parents can jointly complete the FAFSA. After that you may be on your own. What is a "priority deadline," and how does it work? Wes: It's a deadline that will help you get as much financial help as possible. Our priority filing deadline is March 1, so we encourage everybody to finish their FAFSA applications by Valentine's Day if they're using "snail mail." They can also fill out forms online, which gives them a little more time. Students who miss that deadline are still considered for aid; it's just that the pocket of money has shrunk. So, in order to get as much free money as you can, you really need to apply by that priority deadline. OK, you mentioned FAFSA a few times now. What is it and and why is it so important? Bill: FAFSA stands for "Free Application for Federal Student Aid." It's a snapshot of your family's financial strength, based on income, taxes paid, size of your family, age of your parents and assets your parents may have other than your home. All of that information is used to evaluate your eligibility for various federal grants, loans and work-study opportunities, along with your eligibility for aid available from your home state and college. How do I know what aid I'm eligible for? John: The FAFSA helps to determine your Expected Family Contribution—what the government believes your family can contribute to the cost of your higher education. That number is electronically fed to the schools you want it sent to. That's why it's really critical to complete the FAFSA. What exactly are the different types of financial aid, and how do they work? Bill: Scholarships and grants are gifts and do not need to be repaid. A grant is typically based on a family's financial need. A scholarship is given in recognition of achievement, either for academics or particular abilities, such as talent in music, journalism, community service, ministry or athletics. Then there are loans—money loaned to the student that has to be paid back. Typically, money is advanced for college expenses year by year while you're in school. Repayment does not typically begin until after graduation. Wes: Another type of aid is work-study, a federal program that provides funds for on-campus jobs. Students work at places like the library, the bookstore and the campus fitness center. What are the common kinds of state or federal aid I might receive? Dawn: There's the basic federal Pell Grant, which is based on Expected Family Contribution. It's gift aid—money you don't have to pay back. Then there are federal loans, like the Perkins Loan, which are need-based. They have low interest rates, and you don't have to pay anything on the loan while you're in school. Stafford Loans are another type of aid. They can be "subsidized" or "unsubsidized." If your Stafford Loan is subsidized, you don't have to pay any interest on the loan while you are still in school. If it's unsubsidized you're required to pay interest while in school. Wes: A number of parents also take out a PLUS Loan, a federal loan that parents don't have to pay back right away. They pay over a 10-year period of time, so they can stretch payments, which can really be helpful for the family budget. Should I try my best to avoid taking out loans? Dawn: When needed, we recommend loans. The reality is, you almost have to consider loans with the cost of education. And while you're in school, paying the loans back is not a big concern, because usually your loan is not accruing interest. But the sooner you can pay the loans once you're paying interest, the better. John: I'm not opposed to loans. You're investing in your future life and your future earning power. Naturally, if you have saved money during your summers, or if you have other ways to reduce your loans, that's good. Bill: Most students at Philadelphia Biblical University are aiming toward people-helping professions that are not high paid, and student loan debt can be burdensome for students going into the mission field or Christian education. That's why I feel loans are a Plan "B." They are a way to help students meet their financial need, if they can't pay for college any other way. When can I expect to hear how much aid I'll receive? John: It depends on the college. Once the school receives the student's fafsa, you should know how much aid you'll be "awarded" in two to four weeks. Wes: We try to begin notifying students of their aid packages in March, but some go out as late as April. The earlier you get the information in to us, the more complete your package will be. Normally it takes about a month or so to put together the package. What do you mean by "the package"? Dawn: A package is your financial aid award notification. At our school, it's a two-page letter that includes the cost of attendance, the Expected Family Contribution and the student's financial need. It also describes the various types of financial aid the student is eligible for. Will my financial aid package be pretty much the same from year to year? John: Not necessarily. Let's say one of your parents becomes unemployed. That will increase your financial aid package. You should put any changes in family income in writing and give it to the financial aid office. They can do what's called a "professional judgment" and use current-year information to make alterations. Dawn: Your package may also be affected by an outside scholarship. If you receive a large scholarship during your college years, you'd need less loan "aid." So the amount of the scholarship would be subtracted from your package. Bill: An upperclassman's package could be affected by "endowments"—gifts that have been given to the college for student scholarships. Most of the time these are restricted endowments—which means the money is targeted for students in specific academic majors or with specific interests. What happens if I get the best financial aid package I could ever hope for, yet my family and I still can't scrape together the money? John: I would hope you would call your admissions officer, financial aid officer or both. Sometimes students and parents are reluctant to talk about financial aid issues, but it's important to be very up front. Say, "I really appreciate what you've done for me, but we're just finding it very difficult. Do you know of any other sources of financial aid?" Try not to get discouraged, and don't give up too soon. Please contact the school and express your concerns. What are some common financial aid pitfalls or problems you see? Wes: Be aware of scholarship scams. If you have to pay money for a scholarship search, you're putting that money down a dark hole. You can get those same resources free off the Internet. Dawn: Sometimes families get the idea that college isn't affordable because they're comparing their financial situations with other families. So based on these comparisons they may not even apply to a given college. I always advise families to go through the process, because we evaluate each family according to their unique circumstances. Comparing your family with other families is not a good thing to do. Bill: Families often say they thought financial aid would take care of everything. It doesn't work that way. A lot of times there is a gap between what financial aid can provide and the amount a family feels they need. I don't say this to discourage anyone, but to simply encourage students and their famlies to look at the package realistically. What are common errors I should avoid when filling out financial aid applications? Wes: When filling out the FAFSA or scholarship forms, you may not know your family's exact financial figures. It's OK to offer estimates, but just be sure your estimates are carefully considered. Also, make sure your forms are filled out legibly. If your forms aren't readable, then you may have to resubmit—which takes extra time you may not have. Dawn: Be careful when putting dollar amounts in. Make sure they're as accurate as possible. In fact, all information—including Social Security numbers and dates of birth—should be double checked for accuracy. Bill: Students and parents often do not think through all their sources of income. They just list their wages, and when it asks for untaxed income, they don't think about the housing allowance, especially for missionaries and pastors. Another common error is incomplete applications. Something as simple as forgetting a signature of a parent on the FAFSA can cause delay and dismay. Any final thoughts? Bill: Christian colleges have financial aid professionals who are interested in answering your questions and guiding your family through the application process. That's really the only reason we're here. So please don't be afraid to call us and make use of our services. Dawn: Don't rule out a school based on cost alone. Give the college a chance. It doesn't cost anything to go through the financial aid process to find out if the final cost is feasible. John: Christian colleges will bend over backward to help you. If you really want a private education, I believe you can afford it. The college you choose is an investment in your future. This investment includes the friends you'll make, the faculty who will mentor you, and the environment you'll live in. The cost may seem like a sacrifice for your family—and it probably is. But the cost will pay back in wonderful and lasting "dividends." Wes: I encourage you to follow your dreams. If you desire a Christian education, it's obtainable. Pray about it, and allow the Lord to open the right doors for you. Copyright © 2001 by the author or Christianity Today International/Campus Life magazine.
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