FINANCIAL AID, PART 2

Part 1 was posted on January 26, 2007.

Three, grants and loans. If you are seeking a loan or a grant you must complete the FAFSA. Many state and federal grants exist, the PELL grant and State University Grant being the most commonly offered CSUF programs. Grant funds are “free” money, that is, money that has no repayment obligation. Only loans must be repaid. The Office of Financial Aid awards more than $40 million in grants every year (grants comprise just under half of all monies awarded). All grants have a need basis, which means the higher an applicant's financial need (usually, the lowest family income) the more likely he/she will receive funds, and funds sufficient to cover expenses. The Financial Aid website has materials that can help you figure out your expenses (link at bottom).

Some students may figure that their financial situation is such that they'll be ineligible for aid. Materials on the Financial Aid website can help you make that determination. However, one reason why you may want to complete the FAFSA anyway is loan availability.

Four, loans. A greater and greater percentage of financial aid is in the form of loans. Anyone (well, just about anyone) can get a student loan no matter one’s financial situation. Probably all you who apply for aid will at minimum be offered a loan (you don't have to accept it). Sometimes parents choose to accept a loan even though education affordability isn't an issue because the loan is interest-free, or low interest, and to assist in money management.

CSUF awards in excess of $50 million in loans each year.

Five, deadlines. DO NOT MISS THE MARCH 2 FAFSA DEADLINE. This deadline is a priority deadline, which means anyone who makes this deadline gets first priority in aid. The majority of grant funds will go to these applicants, though some funds are held back for the stragglers. To repeat, don't miss the March 2 deadline. If you do miss it, however, apply anyway for a small amount of funds are reserved for those who miss the deadline (banks are always willing to give out a loan!). The Office of Financial Aid begins packaging loans and grants in early April, so the goal is that those who meet the March 2 deadline will learn in April how much aid they can expect.

Lastly, some stats to ponder: 40% of CSUF students accept some form of aid (grants, loans, scholarships, workstudy). The other 60% may have not applied for aid or refused the aid offered (some applicants won’t accept loans). The average recipient receives in excess of $7,000. The good thing about that figure is that with annual tuition at $3000, most aid recipients have their CSUF tuition covered for the year. The downside is that this average student can't possibly pay for 9 months of rent, gasoline, and food with the remaining $4000. On the other hand, the typical aid package the Office of Financial Aid offers a student covers 75% of a student’s official need (read Part 1 on need).

I encourage you to explore the Financial Aid website. The site has many helpful resources (especially the FAQ and Publications sections) to assist in in applying for aid.

OFFICE OF FINANCIAL AID