Twitter Question: “@uheaa -Have 2 teens headed to college. Any links you suggest for aid if can’t qual for Gov’t help?”

UHEAA Outreach Reply: “Bryan from the Utah Higher Education Assistance Authority here.  Thank you so much for reaching out to us.  Paying for college, especially when you don’t qualify for federal aid, can be a challenging road to navigate.  The good news is, there are many great resources out there to help guide you and your college bound students along the way.

The first resource to point out would be the ‘Free Application for Federal Student Aid’ or ‘FAFSA.’  Don’t let the issue that you don’t qualify for Federal Aid fool you;  The FAFSA is the gateway to all things financial aid, not just federal student loans and Pell grants.  In order to be eligible for most school based grants and scholarships and also most general scholarships or grant programs, you must fill out and file the FAFSA.  So, if you have not already, I strongly recommend that you file the FAFSA for both of your children.

The official FAFSA website received a makeover over the past year resulting in a much easier and quicker filing process.  There are many fraudulent FAFSA imitation websites on the net, so be sure that you use the official site to file.

For an explanation of what exactly goes on after you file the FAFSA, take a look at this blog article: “What Happens After the FAFSA?”

Once the FAFSA is filed and processed, the doors of financial aid are wide open for exploration.  Now, where to go to conduct this exploring?

For Utah students, the best place to search for scholarships and aid is UtahFutures.org.  If your children are enrolled in a Utah High School, chances are they already have a profile on UtahFutures.  If not, go ahead and set up a free account to start utilizing the site’s abundance of resources on planning, preparing and paying for college.

• Quick Link (must have/set up UtahFutures account to access): UtahFutures Scholarship Search
• Another good place to look for aid is at the colleges or universities that your children are enrolled in or accepted to.  It is best to call the school’s financial aid office to ask about what sort of school based grants and scholarships are available.
• Fastweb – Fastweb members are matched to relevant scholarship opportunities completely free of charge. With roughly 1.5 million scholarships worth over $3.4 billion, there are scholarships for every student’s educational goals, activities and interests.

In addition to these resources, another place to learn more about paying and preparing for college is at Spring College Fairs.  Our organization is administering six college fairs throughout all of Utah that are completely free of charge to attend (and hey, they’re really fun!).  You can find more info and register for any of our college fairs here.

I hope this information was of assistance to you.  Please let us know if you have any other questions!

Best,
Bryan Lee
Utah Higher Education Assistance Authority – Outreach”

The same goes for you!  If you don’t qualify for federal student aid and have questions, please leave us a comment and we’ll reply quickly.

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After you get the FAFSA filed (and any other forms your school requires!), you’ll receive notification about your financial aid awards. In an award…letter? Well, not always. More often than not, this notification now comes in the form of an email, which prompts you to log into your school’s website to view your actual awards. And there are a few things you should know before you start to comparison shop.

1.       The number that is most important to you is the out of pocket expense. To find that number, you need to locate the total cost of attendance (which is MORE than just tuition!) at your school, then subtract the financial aid your school is offering. You can find the cost of attendance on UtahFutures if you need to compare several schools at once.

2.       Know your financial aid types. Gift aid doesn’t have to be repaid—it’s free money. Grants and scholarships are gift aid. Work-study aid is basically self-help aid, where you have an on-campus job to help offset the cost of college. And student loans are, well, loans. PLEASE don’t forget this! You will have to repay the money, plus interest, that you borrow in student loans. And even though having an extra $3,000 seems awesome…that money is going to garner you an extra $677 in interest* over the life of the loan. If you borrowed an extra $3,000 in interest every year you’re in school, by the time you graduate with a bachelor’s degree, that’s an extra $12,000 in loans plus $4,572 in interest*. Yikes.

3.       Organization is helpful. If you have applied to several schools, it’s a good idea to have a spreadsheet or at least a piece of paper where you can keep track of a few key numbers. For each school, make sure you know what the cost of attendance is, the gift aid (grants + scholarships offered), the self-help aid (student loans + work-study), and the total out of pocket expenses. Once it’s all laid out in front of you, it’s easy to see which school is the best value for your family.

4.       An apple isn’t always an apple. You know the phrase, “an apples-to-apples comparison?” Sometimes a financial aid “apple” doesn’t always look like the “apples” on other financial aid award letters. For example, if Captain UHEAA applies to three colleges (A, B, and C), he’ll get an award letter from each school. He might be offered a Direct Stafford Loan from all three schools, but A University might label it “Direct Stafford Loan,” B College might call it “Drct Stffrd Ln,” and School of C might say it’s just a “Ln.” The bottom line is, if you aren’t sure about what you’re looking at on the letter, either go in for a visit to the school or give them a call BEFORE you make any decisions.

5.       Accept your awards. After you know what everything on your award letter really is, it’s time to accept the awards you want (like grants and scholarships, because they don’t have to be repaid!), and notify the school. You can always ask for a reduced amount, too. If you are eligible for $3,000 in student loans but you only need $2,000, you can write that into your acceptance form!

If you have more questions, check out this blog by Lynn O’Shaughnessy. She does a great job of explaining how to evaluate your financial aid letters!

*with an interest rate of 6.8% and a standard 10-year repayment plan

Please let us know of any questions or comments you have in the comment area below.

But you don’t have to mortgage the house and send the kids into servitude in order to secure a good college education, according to a story in Tuesday’s Christian Science Monitor, which offers six tips courtesy of a senior art-history major at the University of Massachusetts, Amherst, who is graduating debt-free.

Zac Bissonnette, that senior, wrote “Debt-Free U: How I Paid for an Outstanding College Education Without Loans, Scholarships or Mooching Off My Parents.”

He’s not the only optimist out there.

There are, in fact, a number of tools available to help parents and students get a handle on college costs and debt, starting with this primer, offered by MSN.com

And colleges and universities are concerned about student debt and the ability of students, especially those who are low-income, to access a quality college education. The Institute for College Access and Success, which sponsors the Project on Student Debt(

projectonstudentdebt.org/pc_institution.php), offers some information on both what colleges and universities have tried to do to help and what the financial debt load has been for students at different institutions.

To read the rest of this article from the Deseret News, click here.

Be sure to also visit UESP to learn about saving for college and UHEAA for more on paying for college.

Click here to read this article.

As many of you have experienced, this transfer resulted in what we call a split borrower — not that we think you’ve been split in any way, mind you — but your loans were.  Many borrowers had loans that were moved to FedLoan Servicing, and many already had loans that were located with one of the other four government servicing agencies — namely, Nelnet, ACS, Great Lakes Educational Loan Services, and Sallie Mae.

This resulted in separate federal payments to separate federal servicing agencies (for example, some of you ended up with loans that were with Sallie Mae and FedLoan Servicing).  It required some juggling on your part, with maintaining multiple payments to multiple sources, as well as applying for alternate repayment options multiple times.

Good news! Soon, you “split borrowers” will once again be a little bit more whole: due to a transfer initiative, the federal government is making efforts to transfer all students’ federally-serviced loans so that they are with one federal servicer.  One payment.  One due date.  One servicer.

This recent change will not impact loans that are currently held at UHEAA.  Those loans are not owned by the government and will remain as they are.  None of your loan terms will change on the loans UHEAA holds — your interest rates, your current loan status, and your repayment terms will all remain the same.

WHAT THIS MEANS: You need to watch your mail.  Once more, with feeling: You need to watch your mail! Once your federally-owned loans have been transferred so they are all with the same place, you will be notified by mail.  Regular mail.  Snail mail, if you will.  This mail will come from the federal servicer to which all your loans have been transferred.

It is anticipated that the greater bulk of this transfer will be complete by the end of December.  Seven to ten business days after your loans are transferred, you will also see the changes reflected on the National Student Loan Data System.

Did I mention that you should watch your mail?

(Please feel free to post questions or add to the conversation!)

(READ FIRST: In order to successfully apply for any federal student aid, it is imperative that you first fill out the Free Application For Federal Student Aid [FAFSA] which you can find at fafsa.ed.gov.  After the FAFSA is complete, you will be supplied with your Student Aid Report [SAR] and from there you will be able to search for any federal student aid that you are eligible for!)

…And The Different Types Are:

1. Subsidized Federal Direct Stafford Loan:  This is the most common type of student aid available.  Most likely attributed to the fact that the interest rates are very low and the federal government even pays that interest while you are continuously enrolled in school at least half time, during your grace period or during periods of authorized deferment.  Eligibility for the subsidized Stafford loan is based on financial which is determined upon completion of the FAFSA.  This loan is not based on a credit check or credit score, making it a feasible option for students without credit history.  For both dependent and independent students there are maximum amounts of subsidized loans you can receive per school year:

• Freshman: $3,500 per year
• Sophomore: $4,500 per year
• Junior: $5,500 per year
• Senior and 5th year: $5,500 per year

2. Unsubsidized Federal Direct Stafford Loan: With the unsubsidized Stafford loan, eligibility is not based on financial need but your personal/family financial information from the FAFSA is still considered.  The difference between these two Stafford loans is that when a loan is unsubsidized, interest begins to accrue as soon as the loan is disbursed.  It is an option (and a wise idea to avoid capitalization of interest) to pay the interest as it accrues.  The other option is to defer the interest as you are enrolled at least half time, it is during your grace period, or during periods of authorized deferment.  Dependent students, regardless of how long they have attended college, are eligible to receive a maximum of $2,000 additional unsubsidized aid per school year.  For independent students, the amount of additional aid they can receive through unsubsidized loans depends on how long the student has been attending college:

• Freshmen: $6,000 per year
• Sophomore: $6,000 per year
• Junior: $7,000 per year
• Senior and 5th year: $7,000 per year

3. Federal Direct PLUS Loan: A “non-need-based” loan available to graduate and professional students and to parents with a dependent undergraduate student(s).  So essentially, this opens access to additional resources beyond what a student is normally eligible to receive.  You can borrow up to the Cost of Attendance (COA) minus any other aid received and with a PLUS loan you’re responsible for paying all interest which begins to accrue as soon as the loan is disbursed at a rate of 7.9% fixed.  To be eligible for the Federal Direct PLUS loan, you must not have a negative credit history. For graduate and professional students, the principal may be deferred as long as you are in school.  For parent borrowers, the first payment is generally due within 60 days after the loan is fully disbursed.

4. Federal Perkins Loan: The Perkins program is administered by your school’s financial aid and/or business office and provides student aid funds at a fixed 5% interest rate.  Eligibility is based on financial need and the loans must be repaid to your school after you have completed the 9 month grace period.  One important thing to note is that not all schools participate in the Perkins program.  If you want to find out if your school participates in the Federal Perkins Loan Program, leave us a comment here, message/comment on our Facebook page, or with Twitter you can tweet with “@uheaa” in the body and we’ll find out for you right away!  (Perkins loans also have some forgiveness options, depending on what career you choose to pursue after college.  Get more information here.)

5. Private or “Alternative” Loan:  This type of loan is usually administered by a bank or credit union and eligibility requirements are determined by each private loan provider/lender individually.  With this method, it is highly recommended that aid should only be borrowed if you have absolutely no federal aid eligibility or other options.  You can always check with your financial aid office to see if they have recommendations to providers/lenders with low interest rates or do some research to find the best option for your situation.

(Need a little more help with higher education lingo?  Check out our “Higher Ed Dictionary”)

I hope this entry was helpful to you!  Of course, if you still have any questions on anything like financial aid, scholarships, higher education, or anything on how to plan, prepare and pay for college, you can always refer to any of our informative blogs, uheaa.org, the UHEAA Facebook & Twitter pages, or just leave us a comment right here and we’ll get you an answer for you!

Learning a new language tends to be a daunting task, only made slightly easier when the language is actually jargon in English. As you navigate the world of higher education, you’ll run into many terms that you might not have heard before.

Academic Advising: a process to help you make choices about your education, such as what to major in or what classes to take to earn a certain degree or certificate. For example, “When I went to  Academic Advising, they helped me work out a plan so I can take all the right classes and graduate quickly.”

Accreditation: Accreditation in the United States is a voluntary, nongovernmental process, in which an institution and its programs are evaluated against standards for measuring quality. (from www.ed.gov). For example, “I looked into the school’s accreditation, and it all checks out!”

COA (Cost of Attendance): the total amount that attending a particular school will cost you, including tuition, fees, books, room and board, transportation, dependent care, and other school-related expenses. This varies by institution, as well as whether or not you’re a dependent or independent student, if you live on or off campus, and a variety of other factors.

EFC (Estimated Family Contribution): the amount of money that you and your family are expected to pitch in towards one year of post-secondary education. For example, “After I filed the FAFSA, my EFC came back as $2,000.”

FAFSA (Free Application for Federal Student Aid): the FAFSA is a form that determines what kind and how much federal funding you can receive for post-secondary education. This includes Pell grants, Stafford loans, Perkins loans, etc. For example, “If you haven’t yet filed the FAFSA, the priority filing deadline is March 30.” (Priority filing deadlines vary by college, so make sure you check your school’s deadline!)

Financial Aid: in a nutshell, it’s any kind of money that helps you pay for school. Financial aid INCLUDES scholarships, grants, student loans, and work-study programs.

Financial Aid Office: your go-to place for any questions you have about paying for school.

Matriculation: being enrolled in a particular degree program at a school. For example, “When I was an undergraduate student, I matriculated in English and graduated with a bachelor of arts degree.”

MPN (Master Promissory Note): a document that is signed when you take out a federal student loan, stating the terms and conditions of repayment. Read this very carefully before signing! (Most students elect to sign the MPN electronically online, but you can still sign a hard copy and mail it in.)

Orientation: a required introduction to your college, usually during the summer between your high school graduation and the beginning of your college education. If you don’t complete orientation, you are usually not allowed to register for classes, which could be a big problem!

PIN (Personal Identification Number): there are probably many PINs already in your life, but this PIN is specifically for e-signing the FAFSA.

Priority Filing Deadline: a date that varies by school that colleges use to distribute limited amounts of financial aid. If you file the FAFSA before this date, you have a better chance of receiving financial aid that doesn’t have to be repaid, such as grants and scholarships.

Registrar: the person (or people) who can help you enroll in classes. Usually, any changes to class schedules are made through the Registrar’s Office–including dropping classes, adding classes, withdrawing from classes, etc. They often keep records about graduation eligibility, manage privacy requirements, and more.

Registration: the process of signing up for classes each semester or term. This is often done online, and popular classes fill up VERY quickly! Many colleges allow upperclassmen to register first, since they have less time left to finish required classes for their majors, and then open it up to freshmen and sophomores. Pay attention to the date you are allowed to sign up, and make sure to start the process early so you can get into the classes you need.

Student loan: the definition of student loans is simple enough–it’s money lent by a bank or the federal government to a student for the purposes of paying for education. The trick is to be able to discern different types of student loans. Federal student loans  (most commonly Stafford or Perkins) don’t require a credit check and typically come with a low interest rate and repayment terms favorable to the student borrower. There are also federal student loans provided to parents called PLUS (Parent Loan for Undergraduate Student) to help families pitch in towards the cost of college. Private student loans have a lot more variety, but they’ll come from banks or other lenders. Pay close attention to the interest rate, interest type (fixed or variable), and repayment term and options. These loans often have less favorable terms when compared to federal student loans, so be sure to read ALL the fine print–as with everything you sign!

If you have questions about other terms, we’ll try to provide answers for you! Just let us know in the comments section, or by posting a question for us on our Facebook page. And, if you’re a voracious reader of glossaries, you can check out this one on FinAid.org. Thanks for reading!