Affordable by yangxichun


									                             Making College

A Workbook on Financial Aid, Loans, and Scholarships
for College-Bound Students and Their Families
     Making College Affordable
      The cost of college may seem scary to you and your family at first, but even though the price
      may seem high, college can be affordable, no matter how much you earn. TERI believes that
      a college education is the best investment you’ll ever make.
      This	guide	explains	the	many	different	kinds	of	scholarships,	grants,	and	loans	available	from	a	variety	of	sources	to		
      help	you	pay	for	your	education.		Scholarships	and	grants	can	help	reduce	the	cost	of	college.	Federal	work-study	may	
      be	available	to	assist	you	in	paying	for	your	living	expenses.	Loans	may	allow	you	to	spread	out	the	cost	of	college	over	
      a	longer	period	of	time.		Making College Affordable	will	help	you	find	the	ways	to	pay	for	college	that	work	best	for	
      you	and	your	family.		

               Making College Affordable features:
      	        	        •	An	overview	of	the	types	of	federal	financial	aid	and	how	to	apply

      	        	        •	Resources	to	help	you	budget	your	money	wisely	in	order	to	afford	college

      	        	        •	A	glossary	with	definitions	of	financial	aid	terms

                        •		 ebsites	and	college	access	centers	where	you	can	receive	additional	help	or		
                          information	relating	to	financial	aid

      We	at	TERI	hope	you	find	this	booklet	helpful	and	informative.		If	you	need	further	assistance,	visit	us	at	one		
      of	the	many	TERI	College	Access	Centers	located	in	Boston,	Brockton,	or	Chelsea;	find	us	at;	or	call	us	toll-free	in	Massachusetts	at	1-877-ED-AID-4-U (1-877-332-4348).

      Best	wishes	for	your	continued	success!

      —The    Staff at TERI

	                                                                                            M a k i n g	 C o l l d 	Wo o r d o o e
                                                                                         TERI 	Financial 	Aei g e	 A f f r k b a b l k
              About TERI (The Education Resources Institute)

                                    TERI	(The	Education	Resources	Institute)	promotes	access	to	education	
                                    for	students	of	all	ages	and	backgrounds.	TERI	is	a	national	leader	in	
                                    helping	low-income	individuals	and	those	who	are	the	first	generation	
                                    in	their	families	to	attend	college,	realize	their	college	dreams	through	
                                    direct	service	programs	and	policy	initiatives.	TERI	is	also	one	of	the	
                                    most	experienced	and	largest	nonprofit	guarantors	of	private	loans	for	
                                    education,	which	enables	TERI	to	support	its	college	access	initiatives	
                                    locally,	regionally,	and	nationally.	

I n tr o d u ction 		   	   	   	      	        	        	        	         	   	       	       	                
     Table of Contents
     A College Education—the Best
     Investment You’ll Ever Make ........................................................ 5

     Financial Aid and Federal Student Aid Overview	.............6
     What	Is	Financial	Aid?	..........................................................................6	    	
     Federal	Student	Aid	Overview.............................................................7
     	 •	Grants	..........................................................................................7
     	 •	Federal	Work-Study	.....................................................................7
     	 •	Federal	Student	Loans	..................................................................7
     Eligibility	for	Federal	Student	Aid	........................................................9
     Tax	Benefits	for	Higher	Education	.....................................................10

     Applying for Scholarships	.......................................................1
     What	Are	Scholarships?	.....................................................................1
     	 •	Your	Scholarship	Resources	 .......................................................1
     	 •	How	Do	I	Find	Scholarships?		.....................................................14
     	 •	How	Do	I	Apply	for	Scholarships?	..............................................15

     How to Apply for Financial Aid	.............................................16
     Submit	the	FAFSA..............................................................................16
     What	Happens	After	I	Submit	the	FAFSA?	.........................................18
     Other	Financial	Aid	Applications	 .......................................................19
     				•	Additional	Forms	 .......................................................................19
     				•	Filling	out	the	CSS	Profile®	.........................................................19
     Comparing	Award	Packages	..............................................................19

     Debt Management and Loan Repayment	........................0
     Good	Debt	vs.	Bad	Debt	...................................................................0
     Credit	Reports	and	Credit	Bureaus—Navigating	the	System	.............1
     Repayment	Options	for	Student	Loans	..............................................
     Default	Prevention	............................................................................
     The	Importance	of	Budgeting	............................................................

     Glossary 	........................................................................................4	

     Resources	.....................................................................................6
     Budget	Worksheet	 ............................................................................6
     Your	Student	Resources	....................................................................8
     Financial	Aid	Award	Comparison	Chart	.............................................9
     Internet	Resources	............................................................................0
     Private	Loan	Alternatives	 ..................................................................1

     TERI College Access Centers and
     Educational Opportunity Centers .................. inside back	cover

4	                                                                                                              M a k i n g	 C o l l e g e	 A f f o r d a b l e
           A College Education—the Best
           Investment You’ll Ever Make
                                Investing in college pays off! You will have the opportunity to earn back the
                                money you pay toward your education many times over throughout your
                                lifetime—both in dollars and cents and through your life experiences.

                                A college education will give you:

                                       •		 	better	understanding	of	the	world	around	you.		A	college	degree	can	supply	
                                         you	with	the	skills	you	need	to	be	a	successful	worker.		When	you	continue	your	education,	
                                         you	will	learn	how	to	make	better	decisions	for	yourself,	your	family,	and	your	future.

                                       •		 ore	earning	power.		In	general,	people	with	college	degrees	earn	more	money	than	
                                         people	without	college	degrees	(although	there	are	some	exceptions).		With	a	college	
                                         degree,	you	may	be	able	to	better	support	yourself	and	your	family,	and	make	more	
                                         informed	decisions	about	how	to	wisely	spend	the	money	you	earn.		The	graph	below	
                                         shows	the	typical	yearly	earnings	of	people	who	have	graduated	from	college.		

            The More You Learn, the More You Earn!

                            Average Yearly Salary of People with College Degrees

                                                                                                  Source: Bureau of Labor Statistics, 2006

I n tr o d u ction 		   	       	      	       	         	        	        	         	        	           	                                  5
     Financial Aid and Federal
     Student Aid Overview
     What Is Financial Aid?                                         Average Tuition and Fees for 2006–07 Academic Year
     Financial aid is any type of assistance that you
     receive to help pay for college. The two main
     kinds of financial aid are need-based aid and                   2-year public colleges      $,7
     merit-based aid. Need-based aid is money                        4-year public colleges      $5,86
     that you receive based on the determination                     4-year private colleges     $,18
     that you may have difficulty paying for college.
     Merit-based aid is money that you receive                      Source: The College Board, 2006
                                                                    Note: Costs are subject to change each year.
     based on the determination that you have
     worked hard or excelled in some way.

     Types of financial aid that often are
     need-based include:
         •		 ederal,	state,	or	school	grants—awards	that	you	
           do	not	have	to	repay
         •		 ederal	work-study—money	you	can	earn	by	
           working	part-time	
         •		 ederal	loans—money	that	you	must	pay	back,	
           usually	after	you	graduate	or	leave	school

     A type of financial aid that often is merit-based is:
         •		 cholarship	aid—money	that	you	do	not	have	to	
           repay	that	has	been	awarded	to	you	for	a	special	
           reason.	This	aid	usually	is	awarded	through	your	
           college	or	university,	a	business,	a	community	
           organization,	or	an	individual.

     Students	receive	financial	aid	from	many	different	sources.	
     Some	private	organizations	award	scholarships	to	students	
     through	competition.		In	some	circumstances,	students	
     receive	awards	in	exchange	for	community	service	from	
     organizations	like	AmeriCorps,	or	in	exchange	for	military	
     service	in	the	armed	forces.		

     Many	colleges	and	universities	offer	both	need-based	and	
     merit-based	grants	and	scholarships	to	their	accepted	
     students.		Students	also	may	receive	need-based	grants	or	
     loans	from	their	state	governments.		The	largest	amount	
     of	financial	assistance	comes	from	the	federal	government	
     in	the	form	of	federal	student	aid.		

6	                                                                                                   M a k i n g	 C o l l e g e	 A f f o r d a b l e
      Federal Student Aid Overview

   The government offers federal student                             Federal Student Loans
   aid to help U.S. residents and eligible non-                      Student	loans	are	another	type	of	federal	assistance.		They	may	be	subsidized	
   residents pay for college. When you apply                         or	unsubsidized.		On	subsidized	loans,	the	federal	government	pays	the	
   for federal student aid, you may receive                          interest	that	accrues	while	you	attend	school,	so	the	amount	you	owe	when	
   some combinatation of these three types of                        you	graduate	or	leave	school	is	the	same	as	the	amount	that	you	borrowed.		
   assistance to pay for your college education:                     For	unsubsidized	loans, you	are	responsible	for	paying	the	interest	that	accrues	
   grants, loans, and federal work-study.                            while	you	attend	school.		You	may	choose	to	defer	these	interest	payments	
                                                                     while	you	are	in	school,	which	means	the	amount	you	owe	when	you	graduate	
   Grants                                                            or	leave	school	will	be	greater	than	the	amount	you	originally	borrowed.		No	
   A	grant	is	the	best	kind	of	federal	aid	to	receive,	              matter	what	type	of	loan	you	have,	or	whether	or	not	you	graduate	from	
   because,	like	a	scholarship,	you	do	not	have	to	pay	back	         college,	keep	in	mind	that	you	will	have	to	pay	back	the	money	that	you	
   this	money.		The	types	of	federal	grants	you	may	be	              borrow.
   eligible	to	receive	include	the	Federal	Pell	Grant,	the	
   Federal	Supplementary	Educational	Opportunity	Grant	              You	may	be	eligible	for	federal	loans,	which	include	Federal	Perkins	or	Federal	
   (FSEOG),	the	Federal	Academic	Competitiveness	Grant	              Stafford	Loans.	Parents	of	undergraduate	students	and	graduate	students	also	
   (ACG),	and	the	National	SMART	Grant.                              may	be	eligible	for	PLUS	loans.		

   Federal Work-Study                                                Federal Stafford Loan and Direct Loan Borrowing Limits
   Under	the	Federal	Work-Study	program,	you	can	earn	               Maximum Amounts Undergraduate Students May Borrow in Both Federal
   money	toward	your	living	expenses	by	working	while	               Subsidized and Unsubsidized Loans
   you	attend	school.		Most	work-study	jobs	are	on-                  	          	          	        				
   campus	or	at	local	community	organizations,	and	are	                                        Dependent       Independent Student
   usually	not	more	than	10	to	15	hours	a	week.		
                                                                         1st year              $3,500          $7,500 (maximum of $3,500 subsidized)
                                                                         2nd year              $4,500          $8,500 (maximum of $4,500 subsidized)
   It	is	important	to	remember	that	you	must	earn	work-
   study	money	during the course of your college attendance.		           3rd – 5th years       $5,500          $10,500 (maximum of $5,500 subsidized)
   You	will	receive	these	funds	as	you	earn	them.		They	will	            Cumulative Limit      $23,000         $46,000
   not	be	applied	automatically	to	the	cost	of	your	college	
   tuition	at	the	beginning	of	each	semester.		                                                                       Source: U.S. Department of Education

F i n a n c i a l	Aid 	 and 	Federal 	 Student	 Aid	 Overv i e w 	        	         	          	           	      	                                     7
Financial Aid And Federal Student Aid Overview
Types of Federal Financial Aid Available to Students

    Type of Aid                       Description1

    Pell Grant                        This is money that the federal government gives to undergraduate students who may have difficulty paying for
                                      college. The amount you receive depends on your need. Awards for 2007–2008 may range from $400 to $4,050. This money does
                                      not have to be repaid.

    Academic                          The ACG is intended for students who demonstrate financial need and are strong academic students. Students can receive $750
    Competitiveness Grant             for the first academic year of study and $1,300 for the second academic year. To be eligible, a student must be enrolled full time at a
    (ACG) Program                     competitive secondary school program. First-year students must not have been previously enrolled in an undergraduate program;
                                      second-year students must have at least a cumulative 3.0 grade point average on a 4.0 scale. The student must be a U.S. citizen and
                                      Federal Pell Grant recipient.

    National SMART Grant              The National SMART Grant Program is intended for students who demonstrate financial need and are strong academic students
    Program                           with a particular interest in math and science. Students can receive $4,000 for each of the third and fourth academic years of study.
                                      To be eligible, a student must be enrolled full time at a competitive secondary school program. Students must have at least a
                                      cumulative 3.0 grade point average on a 4.0 scale and must major in physical, life, or computer science; engineering; mathematics;
                                      technology; or a foreign language critical to national security. The student must be a U.S. citizen and Federal Pell Grant recipient.

    Federal Supplemental              This is money that the federal government gives to undergraduate students who demonstrate high financial need. The amount
    Educational Opportunity           you receive depends on your need, the amount of other aid you receive, and the amount the college has available to distribute.
    Grant (FSEOG)                     Awards for 2007–2008 may range from $100 to $4,000. This money does not have to be repaid.

    Federal Work-Study                This is money that you can earn while you attend school by working on your college campus or at a non-profit organization nearby.
    Program                           This money will not go directly toward your college tuition, but your earnings can help pay for your living expenses or books. This
                                      money does not have to be repaid.

    Perkins Loan                      This is a low-interest (5% in 2007–2008) loan from your school. If you qualify for this loan, you will have to begin repaying this
                                      money once you are no longer a student.

    Subsidized Direct2 or             This is a low-interest loan (6.8% in 2007–2008) that can help you pay for your tuition or expenses while you attend school. You must
    FFELP Stafford Loan3              be at least a half-time student to qualify. This loan is cheaper than an unsubsidized loan, because the federal government pays your
                                      interest for you while you are in school. You will have to begin repaying this money once you are no longer a student.

    Unsubsidized Direct or            This is a low-interest loan (6.8% in 2007–2008) that can help you pay for your tuition or expenses while you attend school. You must
    FFELP Stafford Loan               be at least a half-time student. This loan will accrue interest while you are in school, so the amount you owe when you leave school
                                      will be more than the amount you borrowed. You will have to begin repaying this money once you are no longer a student.

    Direct or FFELP                   This low-interest loan (8.5% FFELP or 7.9% Direct in 2007–2008) is available to parents who have children who are at least half-time
    PLUS Loan                         students to help pay for their child’s college tuition or expenses. The maximum amount of this loan is the child’s cost of attendance
                                      minus any other financial aid the student receives. The parents are responsible for repayment of this loan.

    Check with your school’s financial aid office for applicable requirements or restrictions.
    Direct Loans: Eligible students are able to borrow directly from the U.S. Department of Education at participating schools through the William D. Ford
    Direct Loan Program.
    FFELP (Federal Family Education Loan Program) Stafford Loans: Private lenders provide funds that are guaranteed by the federal government.
    The student pays these loans to the private lenders that made the loan.

8	                                                                                                                                    M a k i n g	 C o l l e g e	 A f f o r d a b l e
                                                                                   Dependent vs. Independent Students
                                                                                   Significant	benefits	may	exist	to	filing	as	an	independent	
                                                                                   student,	such	as	a	more	significant	award	package	and	
                                                                                   an	easier	filing	process.	However,	most	students	under	
                                                                                   the	age	of	4	are	considered	dependent	by	the	federal	
                                                                                   government	and	must	have	their	parents	complete	the	
                                                                                   FAFSA.		Below	is	a	list	of	questions.	If	the	answer	is	“yes”	
                                                                                   to	any	of	these	questions,	you	can	file	as	independent.
                                                                                   •	Were	you	born	before	January	1,	1984?

                                                                                   •		 t	the	beginning	of	the	007–08	school	year,	will	you	
                                                                                     be	working	towards	a	master’s	or	doctorate	degree?

                                                                                   •	As	of	today,	are	you	married?

                                                                                   •		 o	you	have	children	who	receive	more	than	half	
                                                                                     their	support	from	you?

                                                                                   •		 o	you	have	dependents	other	than	your	children/
                                                                                     spouse	who	live	with	you	and	who	receive	more	
                                                                                     than	half	of	their	support	from	you?

                                                                                   •		 re	a)	both	your	parents	deceased	or	b)	are	you	
                                                                                     (or	were	you	until	age	18)	a	ward/dependent	of	the	

                                                                                   •		 re	you	currently	serving	on	active	duty	in	the	U.S.	
                                                                                     Armed	Forces	for	purposes	other	than	training?

Eligibility for Federal Student Aid                                    	
                                                                                   •	Are	you	a	veteran	of	the	armed	services?
In	order	to	be	eligible	to	receive	federal	student	aid,	you	must	either	be	
a	U.S.	citizen	with	a	Social	Security	Number	or	an	eligible	non-citizen.		
If	you	are	a	male	age	18–5,	you	must	have	registered	for	the	selective	
                                                                                   Additional special circumstances may also allow you
service	(if	you	are	not	already	registered,	you	can	do	so	on	the	financial	
                                                                                   to file as an independent. Check with your financial
aid	application).		You	must	be	enrolled,	or	planning	to	enroll,	in	a	degree	
                                                                                   aid officer for answers to your questions.
program	of	organized	instruction	that	leads	to	an	academic,	professional,	
or	vocational	degree	or	certificate.

F i n a n c i a l	Aid 	 and 	Federal 	 Student	 Aid	 Overv i e w 	             	      	         	        	         	         	                     9
Financial Aid And Federal Student Aid Overview

       Tax Benefits for Higher Education
       While the cost of college can be expensive, there are specific tax benefits for higher
       education that may make the cost of attendance less prohibitive.

       Educational Tax Credits
       	 he	federal	government	offers	tax	credits	for	those	who	are	enrolled	in	postsecondary	education	programs.	
       Tax	credits	are	subtracted	directly	from	the	tax	amount	a	family	owes,	as	opposed	to	tax	deductions,	which	
       are	subtracted	from	a	families’	taxable	income.

                The HOPE Scholarship Tax Credit
          	     	 he	HOPE	Scholarship	is	a	tax	credit,	not	a	scholarship.	A	family	may	claim	a	tax	credit	up	to	$1,500	
                for	each	eligible	dependent—100%	on	the	first	$1,000	of	tuition	and	required	fees,	and	50%	on	the	
                second	$1,000,	for	a	total	credit	of	$1,500.	The	Hope	Scholarship	is	only	available	for	the	two	tax	
                years,	i.e.,	freshman	and	sophomore	years.

                Lifetime Learning Tax Credit
                	 s	part	of	the	Lifetime	Learning	Tax	Credit,	a	family	may	claim	a	tax	credit	of	up	to	$,000	per	year	
                (0%	of	the	first	$10,000	of	qualified	tuition)	for	the	taxpayer,	taxpayer’s	spouse,	or	any	eligible	
                dependents	for	an	unlimited	number	of	years.	This	cannot	be	used	in	the	same	year	as	a	HOPE	
                Scholarship	Tax	Credit.

                Tuition and Fees Tax Deduction
                	 he	Tuition	and	Fees	Tax	Deduction	can	reduce	taxable	income	by	as	much	as	$4,000	in	006.	This	
                deduction	is	taken	as	an	adjustment	to	income	and	may	benefit	taxpayers	who	do	not	qualify	for	
                either	the	Hope	or	Lifetime	Learning	tax	credits.	

                Student Loan Interest Tax Deduction
                	 tudents	and/or	their	families	may	be	eligible	to	take	a	tax	deduction	of	up	to	$,500	for	the	interest	
                paid	on	educational	loans.	This	deduction	is	available	for	all	educational	loans	including	student,	
                parent,	federal,	and	non-federal	loans.

                                                             The eligibility for tax credits and amount received for these tax credits
                                                             depend on income, the amount of qualified tuition and fees paid, and the
                                                             amount of certain scholarships and allowances subtracted from the cost of

                                                             Note: This overview of tax credits and deductions is provided as a guide only
                                                             and should not be used as tax advice. For more detailed information on
                                                             higher education tax benefits, visit and search for Publication
                                                             970, “Tax Benefits for Education.”

10	                                                                                                        M a k i n g	 C o l l e g e	 A f f o r d a b l e
                                            Am I an “eligible non-citizen”?

                                            You must be one of the following:
                                                   • A U.S. National (includes natives of American Samoa and Swain’s Island)
                                                   • A U.S. Permanent Resident who has an I-151, I-551, or I-551C (Permanent Resident
                                                    Card or “Green Card”)

                                            If none of those categories applies, you must have an Arrival-Departure Record (I-94) from
                                            U.S. citizenship and Immigration Services (USCIS) showing one of the following designations:
                                                   • “Refugee”
                                                   • “Asylum Granted”
                                                   • “Cuban-Haitian Entrant, Status Pending”
                                                   • “Conditional Entrant” (valid only if issued before April 1, 1980)
                                                   • “Parolee” (You must be paroled into the U.S. for at least one year, and you must be
                                                    able to provide evidence from the USCIS that you are in the U.S. for a purpose other
                                                    than a temporary one and that you intend to become a U.S. citizen or permanent

                                            If you have only a Notice of Approval to Apply for Permanent Residence (I-171 or I-464), you
                                            are not eligible for federal aid. If you are in the U.S. on certain visas, including an F1 or F2
                                            student visa, or a J1 or J2 exchange visitor visa, you are not eligible. People with G series visas
                                            are not eligible.

                                            Source: Funding Education Beyond High School, U.S. Dept. of Education (2006–2007).

F i n a n c i a l	Aid 	 and 	Federal 	 Student	 Aid	 Overv i e w 	          	         	         	          	                                      11
      Applying for Scholarships

      What Are Scholarships?
      A scholarship is an award from a private source that does not need to be paid back.
      Many private scholarships are merit-based, that is, awarded to students for outstanding
      achievements or talents. Some scholarships are limited to students with financial need.
      Private scholarships are sponsored by individuals, businesses, organizations, and groups with
      special interests, and may be awarded for:

         • A specific field of study or occupation

         • Race, ethnic group, or religious affiliation

         • Special skills, or talents

         • Community service or leadership

         • Outstanding achievements

         • Students who have overcome significant

      Organizations that may award
      scholarships include:

         • Businesses or corporations

         • Community service organizations

         • Industry associations

         • Cultural or religious organizations


1	                                                                                   M a k i n g	 C o l l e g e	 A f f o r d a b l e
      Scholarships—the Best Kind of Support to Pay for College

                                         Your Scholarship Resources
                                         The Web is the fastest and easiest way to locate private
                                         scholarships. There are over 50 online scholarship databases.
                                         Three to start with are:

                                          A database designed by TERI specifically for Massachusetts
                                          residents and students planning to attend Massachusetts



                                                                                                       See page 30 to find
                                                                                                       additional Internet
                                                                                                       resources on colleges,
                                                                                                       careers, scholarships,
                                                                                                       and various sources of
                                                                                                       financial aid.

A pp l y i n g 	for 	 Scholarships 	 	       	       	       	       	       	      	                                           1
Applying for Scholarships

         How Do I Find Scholarships?
           High School Counselors and College Advisors	
           Counselors	often	have	information	about	scholarships.	Ask	about	scholarships	that	other	students	have	
           received	and	whether	or	not	you	may	be	eligible	for	them.	Inquire	if	there	are	scholarships	for	which	they	
           can	recommend	you.

           	 ublic	libraries	and	college	libraries	have	books	listing	scholarships.	Many	libraries	also	maintain	files	of	
           newspaper	clippings	and	brochures	on	local	scholarships	not	listed	in	books	or	on	the	Web.

           Your Family
           	 amily	members	may	be	affiliated	with	groups	that	offer	scholarships.	Employers,	community	groups,	
           unions,	local	businesses,	civic	groups,	alumni	organizations,	veterans’	groups,	and	religious	organizations	
           are	examples.

           Chamber of Commerce
           	 our	local	Chamber	may	have	a	list	of	businesses	and	civic	organizations	that	award	scholarships	to	area	

           Community and Faith-based Organizations
           	 M/YWCAs,	Boys	and	Girls	Clubs,	churches,	temples,	and	mosques	have	private	scholarship	information.	
           Consult	your	high	school	counselor	to	find	out	more.

14	                                                                                                      M a k i n g	 C o l l e g e	 A f f o r d a b l e
                                     How Do I Apply for Scholarships?
                                     Start early! Begin researching private scholarships at least one year
                                     before you plan to go to college. Allow time to:

                                     1.	Do research
                                                Request	application	forms.	

                                                Make	sure	that	you	meet	eligibility	requirements.

                                     .	Complete the application process
                                                Scholarships	have	their	own	applications	that	you	will	need	to	complete.	

                                                Submit	all	required	materials	such	as	essays	and	school	transcripts.	

                                                	 ive	your	references	(teachers,	youth	leaders,	and	others	you	know	well)	
                                                 enough	time	to	submit	their	recommendations.	

                                                C
                                                 	 omplete	the	FAFSA,	the	application	used	to	determine	eligibility	for	
                                                 federal	and	state	financial	aid	programs,	if	the	scholarship	application	
                                                 requires	it.	See page 16 for an overview of the FAFSA.	

                                                S
                                                 	 ome	private	scholarships	also	require	that	students	complete	a	CSS	
                                                 Profile®.	(See	the	CSS	Profile	registration	booklet	at	www.collegeboard.
                                                 com	for	information	on	which	scholarship	programs	require	the	form.)

                                     .	Meet all Deadlines!
                                                Most	scholarship	programs	strictly	adhere	to	deadlines.	

                                                Make	sure	that	you	meet	all	of	the	eligibility	requirements.

A pp l y i n g 	for 	 Scholarships 	 	       	         	         	         	         	        	                               15
      How to Apply for Financial Aid

      Submit the FAFSA
      (Free Application for Federal Student Aid)
      All colleges and universities require students to complete the FAFSA form in order to be eligible for financial
      aid. You can complete this form on the Internet at, or you can have a paper FAFSA form
      mailed to you by calling the Federal Student Aid Information Center at 1-800-4-FED-AID. We strongly urge
      you to fill out the FAFSA online. If you do not have a computer, we suggest you speak to your guidance
      counselor, or visit a local college access center or library. See the inside back cover for a list of college access
      centers in Massachusetts.

      In order to complete the FAFSA form online, you
      will need to follow these steps:
      1.		Request	a	PIN (Personal Identification Number)	
         for	you	and	your	parents.		You	can	request	a	PIN	at			Be	aware	that	it	can	take	up	to	
         one	week	to	receive	your	PIN.		

      .		Figure	out	exactly	whose	tax	forms	you	will	need	        .		Complete	the	FAFSA	at:
         to	complete	the	FAFSA.	(Note:	If	you	have	not	yet	
         filed	your	taxes,	you	may	complete	the	FAFSA	using	       4.		List	all	the	schools	to	which	you	are	applying	on	the	
         estimated	tax	information.)                                  FAFSA	(up	to	six),	so	that	all	your	FAFSA	information	is	
                                                                      automatically	sent	to	each	of	your	schools.		Find	a	list	of	all	
          •	If you worked last year,	you	will	need	your	own	
                                                                      of	the	schools	in	the	U.S.	and	their	codes	at	www.fafsa.
            W-(s)	and	your	income	tax	form,	which	is	called	
            either	a	1040,	1040A,	or	1040EZ	form.	(The	type	
            of	form	usually	is	indicated	at	the	top	left	and	
            bottom	right	corner	of	the	page.)
          •		 f you live with both natural parents, and
            they are currently married,	you	will	need	both	
            your	parents’	W-	forms	and	income	tax	form(s).
          •		 f you live with one natural parent who is not
            currently married,	you	will	need	the	W-(s)	and	
            tax	forms	of	the	parent	that	you	live	with	for	most	
            of	the	year	(over	six	months).		If	your	parents	are	
            divorced,	and	you	lived	with	each	of	them	for	an	
            equal	amount	of	time	in	the	past	year,	then	you	
            will	need	the	W-(s)	and	tax	forms	of	the	parent	
            who	provides	more	money	to	support	you.
          • If you live with one natural parent and one
            step-parent,	then	you	will	need	the	W-(s)	and	
            tax	form(s)	from	both	your	natural	parent	and	
            your	step-parent.
          •	If you live with your legal guardian,	then	
            you	may	need	his	or	her	W-(s)	and	tax	forms.	
            (Legal	guardians	are	NOT	considered	parents	in	
            reference	to	the	FAFSA	unless	they	have	legally	
            adopted	you.)

16	                                                                                              M a k i n g	 C o l l e g e	 A f f o r d a b l e
            You’ll need the following items to complete your FAFSA form

                                    Social Security Number

                                    Driver’s license

                                    2006 W-2 forms and other records of money earned

                                    Your (and your spouse’s, if married) 2006 Federal Income Tax Return. This can
                                     be an IRS Form 1040/1040A/1040EZ OR foreign tax form OR a tax return from
                                     Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands,
                                     the Federated States of Micronesia, or Palau.

                                    Parents’ 2006 Federal Income Tax Return (if you are a dependent student)

                                    2006 untaxed income records: Social Security benefits, Temporary Assistance to
                                     Needy Families, Welfare, and/or Veteran Benefits Records.

                                    Current bank statements

                                    Current business and investment mortgage information; business and farm
                                     records; and stock, bond, and other investment records.

                                    Alien registration or permanent residence card (if you are not a U.S. citizen)

                                                                    Keep these records! You may need them again.
                                                                    For more information, go to

H o w	 t o 	Apply 	for 	Financial 	Aid 	 	      	       	       	        	     	       	                                 17
How to Apply for Financial Aid

      What Happens After I Submit the FAFSA?
      	      1.		Once	you	have	submitted	your	FAFSA,	the	federal	government	uses	the	information	to	determine	how	much	you	
                   and	your	family	can	afford	to	pay	for	college	each	year.		This	amount	is	called	your	Expected Family Contribution

      	      .		Your	EFC	will	be	sent	to	you	either	by	mail	or	email	on	a	form	called	your	Student Aid Report,	or SAR.	The	colleges	
                   you	designated	on	your	FAFSA	also	will	receive	your	EFC,	on	a	form	called	The	Institutional	Student	Information	
                   Report	(ISIR).

      	      .		Based	on	your	EFC	and	the	cost of attendance (COA)	for	the	universities	and	colleges	to	which	you	are	applying,	
                   the	school	will	determine	your	financial	need.		The	school	does	this	by	subtracting	your	expected	contribution	from	the	
                   cost	of	attendance.		For	example,	if	the	cost	of	attendance	for	a	particular	school	is	$0,000,	and	your	expected	family	
                   contribution	is	$5,000,	your	remaining	financial	need	is	$15,000.

      	      4.			Based	on	your	financial	aid	need,	each	college	will	provide	you	with	a	financial aid award package	with	a	variety	
                    of	options	to	help	you	meet	your	financial	need.		The	package	may	include	a	combination	of	Federal	Perkins	Loans,	
                    Federal	Stafford	or	Direct	Loans,	Pell	or	FSEOG	grants,	or	Work-Study.		Some	colleges	and	universities	also	may	
                    award	their	own	institutional	grants	or	aid.

             Note: Although you may qualify for financial aid, your aid award may not cover your entire financial need. In these cases,
             you—the student—are responsible for the remaining cost of attendance.

                                                                        IMPORTANT NOTE!
                                                                        The FAFSA becomes available in January each year. Apply as soon
                                                                        after January 1 as possible. Most schools have application deadlines
                                                                        for the FAFSA, but you do not need to wait for an admissions
                                                                        acceptance or complete your tax returns to fill out the FAFSA.

      Sample Repayment Charts
      The	charts	below	demonstrate	how	the	amount	you	borrow	to	pay	for	college	translates	into	monthly	payments	after	
      you	graduate	or	leave	school.		It	also	shows	how	interest	rates	affect	how	much	you	will	ultimately	pay	on	a	loan.	This	is	
      important	information	to	consider	when	you	decide	how	much	you	can	afford	to	borrow.

      6.80% Interest—Current Federal Stafford Rate
          Annual Amount              Total (4 Years)          Monthly Payment           Total Amount Paid           Total Interest Paid
          Borrowed                   Amount Borrowed          After School
          $2,000                    $8,000                    $92.06                    $11,047.71                  $3,047.71
          $4,500                    $18,000                   $207.14                   $24,857.35                  $6,857.35
          $6,000                    $24,000                   $276.19                   $33,143.14                  $9,143.14
          $10,000                   $40,000                   $460.32                   $55,238.56                  $15,238.56

      8.50% Interest—Current Federal PLUS Rate
          Annual Amount             Total (4 Years)          Monthly Payment            Total Amount Paid           Total Interest Paid
          Borrowed                  Amount Borrowed          After School
          $2,000                    $8,000                   $99.19                     $11,902.63                  $3,902.63
          $4,500                    $18,000                  $223.17                    $26,780.91                  $8,780.91
          $6,000                    $24,000                  $297.57                    $35,707.88                  $11,707.88
          $10,000                   $40,000                  $495.94                    $59,513.13                  $19,513.13
      *Please note: These figures are meant only as estimates. Consult with your financial aid office for specific information on repayment.

18	                                                                                                               M a k i n g	 C o l l e g e	 A f f o r d a b l e
    Other Financial Aid Applications
       Additional Forms
       While	all	schools	require	that	you	complete	the	FAFSA,	                  Financial Aid Formula (Sample)
       some	schools	also	may	require	you	to	fill	out	additional	                    Total Cost of Attendance               $20,000
       paperwork	besides	the	FAFSA	to	apply	for	federal	aid.		A	
                                                                                    Expected Family Contribution           $5,000
       number	of	private	colleges,	universities,	and	scholarship	
       programs,	in	fact,	will	require	a	form	called	the	CSS	Profile.		             Financial Need                         $15,000
       They	also	may	require	that	you	complete	their	own	
       institutional	financial	aid	application,	a	customized	form	that	
                                                                                    Financial Award Package (Sample)	
       asks	questions	specific	to	the	school’s	financial	aid	process.	
                                                                                    Federal Pell Grant                     $2,000
       Make	sure	that	you	contact	your	college’s	financial	aid	                     State Scholarship Grant                $1,000
       office	to	find	out	their	application	requirements.		You	may	
       not	be	eligible	to	receive	financial	aid	from	your	school	if	                Institutional Grant                    $5,000
       you	do	not	complete	the	paperwork	in	full.		                                 Federal Perkins Loan                   $1,500

       Filling out the CSS                                                          Federal Direct Loan                    $3,500
       (College Scholarship Service) Profile                                        Federal Work-Study                     $2,000
       The	CSS	Profile	is	similar	to	the	FAFSA	but	asks	even	more	
       in-depth	questions	about	your	family’s	financial	                            Total Award                            $15,000

       situation.		You	can	find	it	online	only	at	http://		If	your	college,	
                                                                              Comparing Award Packages
                                                                              If	you	are	accepted	into	more	than	one	school,	you	will	
       university,	or	scholarship	program	requires	that	you	fill	
                                                                              receive	an	award	letter	from	each	one.		It	is	important	to	
       out	a	CSS	Profile,	you	will	need	copies	of	your	family’s	
                                                                              compare	award	letters	before	you	decide	which	school	to	
       W-s	and	tax	forms	for	the	past	two	years	and	all	financial	
                                                                              attend.		Based	on	the	amount	of	financial	aid	you	receive	
       statements,	including	mortgage	statements;	stock,	bond,	
                                                                              from	each	school,	you	can	determine	which	will	be	the	
       and	mutual	fund	information;	checking	and	savings	account	
                                                                              most	affordable.		You	can	use	the	Financial Aid Award
       information;	and	any	other	statements	reflecting	additional	
                                                                              Comparison Chart	in	the	back	of	this	booklet	to	compare	
       income	or	unusual	family	expenses.
                                                                              your	financial	aid	packages	from	different	schools.		

       The	CSS	Profile	has	a	$5	registration	fee,	with	an	$18	fee	
                                                                              If	you	receive	financial	aid	in	the	form	of	loans,	you	will	need	
       for	each	college	that	you	send	it	to.		There	are	fee	waivers	
                                                                              to	decide	how	much	debt	you	are	willing	to	take	on	in	order	
       that	may	cover	the	cost	of	registration	and	reporting	fees	
                                                                              to	attend	a	certain	school—and	how	much	debt	you	will	be	
       for	six	schools.		If	you	are	eligible	for	a	fee	waiver,	you	
                                                                              capable	of	repaying	successfully.		For	more	information	on	
       will	be	notified	at	the	completion	of	the	application.		If	the	
                                                                              dealing	with	student	loan	debt,	read	the	next	section	entitled	
       Profile	does	not	grant	you	fee	waivers,	you	will	be	required	
                                                                              Debt Management & Loan Repayment.
       to	pay	the	full	cost.	

H o w	 t o 	Apply 	for 	Financial 	Aid 	 	                	         	     	     	           	            	     	       	                          19
      Debt Management
      and Loan Repayment
      As we have discussed, it is important to borrow only the minimum amount of loans necessary
      to finance your education. However, when used wisely, student loans can be a good
      investment in your future, and many people graduate with at least some student debt.

      With the benefits of borrowing for college comes responsibility. Remember that loans are a
      promise—you promise to pay later for goods, services, or money that you receive now. The
      original amount you borrow is called the principal, and what you are charged to use the
      borrowed money is called interest.

                                                                                 Credit cards are one of the most
                                                                                 expensive ways to borrow! Buying goods
                                                                                 using credit cards is really just taking out a
                                                                                 high-priced loan. Think twice before you
                                                                                 apply for or use a credit card.

      Good Debt vs. Bad Debt
      Whenever	you	incur	debt,	it	potentially	can	be	dangerous.		However,	some	kinds	of	debt	are	more	dangerous	and	expensive	than	
      others.		Student	loans,	auto	loans,	and	mortgages	are	common	types	of	loans	that	may	help	consumers	to	increase	their	wealth	and	
      earning	potential.		Other	types	of	loans,	such	as	credit	cards,	can	be	very	risky.		

      Credit	cards	work	by	lending	you	money	to	buy	things	you	want.		The	credit	card	company	pays	the	merchant	and	then	often	charges	
      you	a	high	interest	rate.		The	credit	card	company	will	send	you	a	monthly	bill	that	will	show	what	you	charged,	the	new	account	
      balance	with	the	interest	factored	in,	and	a	minimum	monthly	payment	that	is	due.		If	you	pay	off	the	balance	in	full	each	month,	credit	
      cards	can	be	helpful	tools.		However,	if	you	don’t	pay	back	the	full	balance	promptly,	using	credit	cards	can	be	very	expensive.		

      Credit	cards	have	many	disadvantages.	Here	are	a	few	reasons	to	be	wary	of	them:

                          •		 hey	can	create	excessive	debt	that	you	can’t	afford
                          •		t	can	take	many,	many	years	to	pay	off	a	balance
                          •		 he	amount	you	pay	off	may	be	up	to	four	times	greater	than	the	original	amount	you	spend
                          •		 hey	often	have	very	high	interest	rates
                          •		 hey	may	be	stolen	in	a	number	of	ways	(over	the	phone,	lost,	over	the	Internet,		
                            from	your	mailbox,	etc.)

0	                                                                                                       M a k i n g	 C o l l e g e	 A f f o r d a b l e
     Credit Reports and Credit Bureaus—Navigating the System

                                      All types of debt can be risky. Yet, if repaid properly, debt can be a
                                      valuable tool to help you build a good credit record. In turn, having
                                      good credit will allow you to borrow money from banks to buy a car,
                                      house, and many other things.

                                      Financial institutions pay credit bureaus to compile information about
                                      consumers. This information is put into a credit report, similar to a school
                                      report card, which scores your credit rating. There are three main credit
                                      bureaus that record information about your credit history:

                                        Equifax                   TransUnion                Experian
                                        Consumer	Relations        Consumer	Services         Consumer	Relations
                                        PO	Box	10587             PO	Box	90                PO	Box	104
                                        Atlanta,	GA               Springfield,	PA           Allen,	TX
                                        048                     19064-090                7501-74
                                        800-685-1111	             800-81-5604	             888-97-74

                                      You are entitled to receive one free copy of your credit report every year
                                      from each of these three bureaus. To request a copy, contact the bureau using the
                                      information above, or visit, where you can download
                                      copies online.

D e b t	 M a nagement	and	Loan 	 Repayment 	          	       	        	        	       	        	         	       	      1
Debt Management and Loan Repayment
      Repayment Options for Student Loans
      Repayment is the process of paying back the amount of money you borrowed plus
      the amount of interest that has accumulated. Federal student loans offer a variety of
      repayment options:

             •		 tandard Repayment—Ten	years	(or	10	months)	maximum,	with	approximately	the	same	
               payment	amount	due	each	month	throughout	the	entire	period.		Keep	in	mind	that	making	the	
               standard	repayment	amount	or	more	every	month	is	the	most	financially	sound	way	of	paying	back	
               your	student	loan.		You	will	never	be	penalized	for	paying	“extra”	toward	your	bill.

      	      	 	Graduated Repayment—You	begin	by	making	interest-only	payments	for	up	to	four	years.		After	
                four	years,	your	payments	become	higher	than	the	standard	monthly	payments	would	have	been	to	
                ensure	that	the	loan	is	still	paid	in	full	within	the	ten-year	period.

      	      •	Income Sensitive Repayment—You	pick	a	monthly	payment	amount	that	equals	between	4%	
               and	5%	of	your	gross	monthly	income.		You	are	allowed	to	use	this	option	for	a	total	of	five	years,	
               and	it	may	extend	your	repayment	term	up	to	15	years.

             •		 onsolidation—All	of	your	student	loans	are	paid	off,	and	one	new	loan	made	up	of	the	total	
               amount	you	owe	is	created.		You	are	usually	given	a	term	of	between	1	and	0	years,	which	could	
               lower	your	monthly	payments.

             •		 xtended Repayment—If	you	have	more	than	$0,000	in	outstanding	student	loans,	you	may	
               choose	to	extend	your	repayment	term	up	to	5	years.

                                                                   If you can’t afford your
                                                                   monthly payments, contact
                                                                   your lender to find out
                                                                   about other repayment
                                                                   options instead of
                                                                   defaulting on your loan.

	                                                                                                 M a k i n g	 C o l l e g e	 A f f o r d a b l e
Default Prevention
Loans must be repaid whether or not you finish your
degree. For most students, you will begin monthly
payments once you are out of college. The amount
you pay back depends on the amount you borrowed.
If you do not repay the loan, your loan will go into

There	are	serious	consequences	if	you	default	on	a	student	loan.		
Defaulting	on	a	loan	will	affect	your	ability	to	get	other	credit	such	
as	credit	cards,	car	loans,	additional	education	loans,	or	a	mortgage.		
Defaulting	on	your	student	loan	also	will	negatively	affect	your	credit	
report	for	up	to	seven	years.		

If	you	are	unable	to	afford	your	monthly	payments,	contact	your	
lender	to	find	out	about	other	repayment	options,	instead	of	
defaulting	on	your	loan.		Many	lenders	are	willing	to	work	with	you	
to	lower	your	payments	so	that	you	do	not	default.		Another	option	
to	consider	is	consolidation,	which	also	may	lower	your	monthly	

If	you	are	having	financial	difficulty	because	you	or	your	spouse	have	
recently	lost	your	job,	you	have	a	medical	condition,	or	another	
serious	reason,	you	also	can	talk	to	your	lender	about	deferment	
or	forbearance.		Forbearance	is	when	you	discontinue	your	loan	
payments	for	a	short	period	of	time	until	you	are	able	to	recover	
financially.		Deferment	or	forbearance	should	be	a	last	resort,	and	
need	to	be	arranged	with	your	lender	ahead	of	time.

                              The Importance of Budgeting
                              So how do you properly manage your debt so that you have a clean credit report?
                              Budgeting, or carefully planning out how to apply your income toward your expenses,
                              is one solution. Creating a budget is an important part of successfully managing your
                              debt. Once you create your budget, you may need to change it as circumstances in
                              your life change. On page 26 you’ll find an example of a Budget Worksheet that you
                              can use throughout the different stages of your life.


D e b t	 M a nagement	and	Loan 	 Repayment 	                        	      	   	                                      
        Academic Competitiveness Grant                                 Federal Income Tax Forms:	The	forms	that	you	
        (ACG) Program: A	federal	need-based	grant	for	                 use	to	file	your	yearly	taxes.		Most	commonly	used	are	
        students	in	their	first	and	second	years	of	secondary	         1040,	1040EZ,	and	1040A	forms.
        education	with	strong	academic	backgrounds.	This	does	
        not	need	to	be	paid	back.	                                     Federal Pell Grant:	Need-based	financial	aid	that	
                                                                       does	not	have	to	be	repaid,	and	that	is	distributed	by	the	
        Consolidation:	Combining	all	of	your	existing	student	         federal	government.
        loans	into	one,	larger	loan,	often	with	a	fixed	interest	
        rate,	so	that	only	one	large	payment	needs	to	be	made	a	       Federal Student Aid: 	Assistance	from	the	federal	
        month,	rather	than	several	smaller	payments.                   government	in	paying	for	college.		This	includes	Pell	and	
                                                                       FSEOG	grants,	Stafford	Loans,	Direct	Loans,	Perkins	
        Cost of Attendance (COA): The	total	amount	of	                 Loans,	and	PLUS	Loans.		In	order	to	receive	federal	
        the	various	costs	of	attending	college,	including	tuition,	    student	aid,	you	must	file	a	FAFSA	form	and	demonstrate	
        fees,	books,	supplies,	room	and	board	(that	is,	housing	       financial	need.
        and	food),	and	transportation	or	travel	to	and	from	
        college.                                                       Federal Student Loans:	Loans	that	are	offered	
                                                                       to	students	and/or	their	families	based	on	financial	need.		
        Credit:	A	history	of	all	of	your	credit	card	payments,	        These	loans,	which	include	Perkins	Loans,	Stafford	Loans,	
        loan	payments,	and	other	financial	information	for	the	
                                                                       Direct	Loans,	and	PLUS	Loans,	have	very	low	interest	
        last	several	years,	as	reported	by	the	three	major	credit	
                                                                       rates	and	must	be	used	to	pay	for	college.
        bureaus,	Equifax,	Experian,	and	TransUnion.
                                                                       Federal Supplemental Educational
        Default:	Failure	to	pay	a	loan.                                Opportunity Grant (FSEOG):	Need-based	
                                                                       financial	aid	that	does	not	have	to	be	repaid	and	that	is	
        Deferment or Forbearance Period:	Period	
                                                                       distributed	by	the	federal	government.
        of	time	when	a	student	is	not	required	to	make	loan	
        payments	on	his	or	her	student	loans.		In	order	to	defer	
                                                                       Financial Aid:	Financial	resources	geared	toward	
        your	student	loans,	you	must	first	arrange	it	with	your	
                                                                       helping	students	and/or	their	families	cover	the	costs	of	
                                                                       attending	college.

        Direct Loans: See	Federal	Student	Loans.
                                                                       Financial Aid Package:	The	amount	of	federal,	
        Expected Financial Contribution (EFC):	The	                    state,	and	college	money	(in	the	form	of	grants,	
        amount	a	student	and/or	the	student’s	family	is	expected	      scholarships,	loans,	and	work-study)	that	is	made	available	
        to	pay	for	college,	according	to	the	federal	government.		     by	a	college	or	university	to	help	a	student	pay	for	
        This	is	determined	by	the	information	the	student	enters	      attendance	at	that	school.
        onto	his	or	her	FAFSA	form.
                                                                       Financial Need:	The	difference	between	the	cost	of	
        FAFSA (Free Application for Federal                            attending	a	particular	college	and	what	a	student	and/or	
        Student Aid):	The	primary	form	used	to	determine	              his	or	her	family	can	afford	to	pay.
        a	student’s	eligibility	for	financial	aid.		Any	student	who	
        wishes	to	be	considered	for	financial	aid	for	any	college	     Forbearance: See	Deferment
        must	complete	this	form.

4	                                                                                                     M a k i n g	 C o l l e g e	 A f f o r d a b l e
   Grants:	Financial	aid	money	that	does	not	have	to	be	            Scholarships:	Financial	aid	money	that	does	not	have	to	
   repaid.		Generally,	grants	are	awarded	based	on	the	student’s	   be	repaid.		Generally,	scholarships	are	awarded	based	on	the	
   financial	need.                                                  student’s	merit.

   Loans:	Money	that	is	borrowed	by	the	student	or	family	to	       Stafford Loans: See	Federal Student Loans.
   pay	for	college	costs.		This	money	must	be	repaid	after	the	
   student	leaves	college.                                          Student Aid Report (SAR):	A	form	sent	to	a	student	
                                                                    after	his	or	her	FAFSA	has	been	processed	that	the	student	
   Merit-based aid: Financial	aid	awarded	to	students	who	          can	use	to	verify	his	or	her	information	and	make	corrections	
   demonstrate	outstanding	academic	achievement,	or	special	        to	the	FAFSA,	if	needed.
   talent	in	the	arts,	athletics,	or	other	areas.		
                                                                    Subsidized:	When	a	federal	loan	is	subsidized,	the	
   National SMART Grant Program: A	federal	need-                    government	pays	the	interest	on	this	loan	while	the	student	
   based	grant	for	students	in	their	third	and	fourth	years	of	     is	in	school.	
   secondary	education	with	strong	academic	backgrounds	in	
   math	and	science.	This	does	not	need	to	be	paid	back.            Unmet Need:	The	difference	between	the	student’s	
                                                                    financial	need	and	the	amount	of	financial	aid	he	or	she	
   Need-based aid: Financial	aid	awarded	to	students	who	           receives	from	the	college.
   demonstrate	financial	need	as	determined	by	the	college	they	
   attend	or	plan	to	attend.                                        Unsubsidized:	An	unsubsidized	loan	will	continue	to	
                                                                    collect	interest	while	a	student	is	in	school.
   Perkins Loans: See	Federal Student Loans.
                                                                    W-2 Form:	A	record	of	all	of	the	money	you	have	earned	
   Personal Identification Number (PIN):	A	unique	                  from	a	particular	employer	during	one	year.
   number	that	the	federal	government	assigns	to	a	person	after	
   he	or	she	applies	online	(		This	number	         Work-Study: Need-based	financial	aid	students	earn	
   must	be	used	to	electronically	sign	the	FAFSA	form.              by	working	at	work-study	jobs	on	campus	or	in	off-campus	
                                                                    community	organizations.		Students	can	use	their	paychecks	
   PLUS Loans:	See	Federal Student Loans.                           toward	living	expenses	or	other	costs	of	college	during	the	
                                                                    school	year.

Glossary	       	        	        	        	         	        	      	        	         	        	         	                         5

        Budget Worksheet
        On the following page you’ll find a handy budget worksheet that you can photocopy and use every month.

        To use this chart:
                      Enter your monthly income in the top row
                      Estimate your expenses for each item listed in the gray column at left
                      Enter these estimated expenses into the column marked Month 1
                      Calculate your total expenses at the bottom of the chart
                      Look at your Budget Balance—compare your total monthly income to your total expenses.
                             Do you need to adjust your budget to better meet your expenses?

                      Use the data from Month 1 to calculate your budget for Month 2
                      Adjust your budget monthly, or as often as you need to reflect your changing expenses

6	                                                                                             M a k i n g	 C o l l e g e	 A f f o r d a b l e
                                                        Month 1               Month 2
            Total Monthly Income                        $                     $
            Constant Expenses
                Auto payment
                Auto insurance
                Auto registration
            Student loan payment
            Renter/home insurance
            Health insurance

                                                                                                *Estimated taxes: For annual income up to $27,050, estimate 15% of salary; $27,050 to $65,550, estimate $27.5%; $65,550 to $136,750,
            Estimated taxes*
            Variable Expenses
            Retirement plan
            Credit card debt
            Child care
                Auto gas

                                                                                                estimate 30.5%; $136,750 to $297,350, estimate 35.5%; and $297,350 or higher, estimate 39.1%.
                Auto maintenance
                Public transportation
                Clothes purchases
                Laundry/dry cleaning
            Holiday/special occasions
            Travel expenses
            Pet supplies
            Personal care/hygiene
            Luxury Expenses
            Gym/club membership
            Cellular/mobile phone
                Internet access
            Total Monthly Expenses                      $                     $
            Budget Balance
            Subtract total expenses from total income

Re s o u r c es 	   	         	         	        	      	     	   	   	   	       	     	   	                                                                                                                                          7
      Your Student Resources
      Financial Aid Deadlines:
      Each school has different deadlines and requirements. Keep track of them by filling in the form below.

        School Name                          Deadline Date           Check When Sent

                                                                      FAFSA           CSS Profile  College Form
                                                                      FAFSA           CSS Profile  College Form
                                                                      FAFSA           CSS Profile  College Form
                                                                      FAFSA           CSS Profile  College Form
                                                                      FAFSA           CSS Profile  College Form
                                                                      FAFSA           CSS Profile  College Form

      Financial Aid Form Passwords:
      Be sure to keep this form in a safe place!

       FAFSA                                                      CSS Profile

       Student PIN:                                               User Name:

       Parent PIN:                                                Password:

      School Passwords, Scholarship Search Passwords, etc.:

       Organization/Web Address                User Name                            Password

8	                                                                                             M a k i n g	 C o l l e g e	 A f f o r d a b l e
          Financial Aid Award Comparison Chart
          Fill in this chart to compare your financial aid award packages.

                                                                   College Name               College Name         College Name

           1. Cost of Attendance

           2. Expected Family Contribution

           3. FINANCIAL NEED
              (subtract line 2 from line 1)

           4. Grants Awarded

           5. Scholarships Awarded

           6. Total Grants/Scholarships
              (add lines 4 and 5)

           7. Federal Stafford or Direct Loans, Subsidized

           8. Federal Stafford or Direct Loans, Unsubsidized

           9. Federal Perkins Loans

           10. Total Federal Loans
               (add lines 6 through 9)

           11. Federal Work-Study

           12. TOTAL AID AWARDED
               (add lines 6,10, and 11)

           13. UNMET NEED
               (subtract line 12 from line 3)

                           Questions to Consider
                           Use these questions to help you and your family make the best decision for your future.

                           	    1. Which college gives you the most grants and scholarships? This money generally does not need
                                   to be repaid.

                           	    2. Which colleges meet your total financial need (that is, cause your unmet need in line 13 to equal zero)?
                                   Which colleges do not?

                           	    3. How much of your financial aid package is in loans? This money must be repaid.
                                   Think hard about how much debt you can afford to repay.

Re s o u r c es 	   	       	         	         	      	       	        	        	        	        	         	       	                        9
      Additional Internet Resources
      for Learning About Financial Aid
      The following are websites you can visit to gain information on colleges, careers, scholarships,
      and various sources of financial aid. These sites are categorized for you by the types of
      information provided.

      College Planning Information                           Financial Aid Information
      These sites provide information on career, college,    These sites provide users with financial aid
      financial aid, and much more.                          information ranging from scholarships, federal and
                                                             state aid sources, credit-based student loans, EFC
      TERI College Access         calculators, and aid applications.

      The College Board                TERI College Access

      U.S. Department of Education               American Student Assistance

                                                             FastWeb Financial Aid Search			
      Academic and College Information
      These sites primarily provide information about        Financial Aid Homepage
      colleges and academic issues.
                                                             Massachusetts Educational Financing
      College Net                        Authority
      College View
                                                             FAFSA on the Web
      Mapping Your Future			
                                                             College Goal Sunday

      Standardized Test Sites                                Credit Reports
      These sites provide information about standardized     These sites provide information about your credit
      tests that may be required for entry into college.     reports that may be used to determine your
                                                             eligibility for credit-based student loans.
      Educational Testing Services
                                                             Request Free Annual Credit Reports 		
      Princeton Review             
      Test Prep                            TransUnion

                                                             Experian (TRW)


0	                                                                                   M a k i n g	 C o l l e g e	 A f f o r d a b l e
          Private Loan Alternatives
          Borrowing Private Loans
          Borrowing private loans to pay for school should be your last option after
          exhausting all the tuition assistance, scholarship and grant money, and federal loan
          money that may be available.

          Where federal education loans offer low-interest rates, flexible repayment
          plans, and options for borrowers who have trouble repaying their loans, such as
          deferrment and forbearance, private loans may not offer such benefits.

          There	are	many	private	education	loans	available	to	students	
          today,	and	you	should	ask	your	college’s	financial	aid	office	
          about	private	loan	programs	available	specifically	for	its	
          students.		Specific	lenders	may	have	agreements	with	your	           Things to Know
          school	to	offer	low-cost	loans	to	students.		Otherwise,	to	          Before You Borrow
          get	the	best	possible	deal,	search	for	a	loan	with	the	lowest	
          interest	rate.		Advisors	at	Educational	Opportunity	Centers	         Before you sign on the dotted line, find out:
          also	may	be	able	to	help	you	identify	the	questions	to	ask	
          when	determining	the	loan	that	best	meets	your	needs.
                                                                               • The type of student loan you are taking out. Is it
                                                                                   a federal loan or a private loan?

                                                                               • The loan’s interest rate. Is the interest rate fixed
                                                                                   (stays the same throughout the whole repayment
                                                                                   term) or variable (changes each month or year)?
               Private loans may be used to                                        Will you be responsible for paying the interest
                                                                                   while you are still in school?
               supplement federal student
               loans when federal loans are not                                • The total amount you are able to borrow.

               sufficient to cover the total cost
                                                                               • What your approximate monthly payments will
               of attendance. However, this                                        be. How long is the average repayment term?
               should be a last resort to be used
                                                                               • How much will be deducted from your loan for
               when all other sources of aid
                                                                                   fees. What is the actual amount of money that you
               have been exhausted.                                                will receive?

                                                                               • When your repayment will begin.
                                                                                   Is there a grace period before you have to begin
                                                                                   repayment on the loan?

Re s o u r c es 	   	      	        	         	        	        	          	   	          	        	       	                            1

	           M a k i n g	 C o l l e g e	 A f f o r d a b l e
N o t e s 		   	   	   	   	   	   	   	   	   	   	   
4	   M a k i n g	 C o l l e g e	 A f f o r d a b l e
TERI College Access Centers

         Boston, MA                       Brockton, MA
         Boston Public Library            34 School Street
         700 Boylston Street              Brockton, MA 02301
         Boston, MA 02116                 866-891-4716
         with eight satellite locations
         throughout Greater Boston!

                  Statewide Education Hotline:
                  1-877-ED-AID-4U (1-877-332-4348)

                  Find us on the Web!

  Massachusetts Educational Opportunity Centers
         Leominster                                Pittsfield
         North Central Educational                 The Learning Connection
         Opportunity Center                        10 Lyman Street
         100 Erdman Way                            Pittsfield, MA 01201
         Leominster, MA 01453                      (413) 499-9531
         (978) 840-0176, ext. 107

         Lynn                                      Greater Springfield
         Educational Opportunity Center            Valley Opportunity Center
         Corner of Broad & Market                  152 Center Street
         Danvers, MA 01923-0840                    Chicopee, MA 01013
         (781) 477-2114                            (413) 612-0206

         New Bedford                               Worcester
         Seven Hills Behavior Health               EDCENTRAL—Colleges of
         New Bedford Educational                   Worcester Consortium
         Opportunity Center                        484 Main Street, Suite 500
         10 Welby Road                             Worcester, MA 01608
         New Bedford, MA 02745                     (508) 754-6829, ext. 3004
         (508) 995-3026

                            Produced by American Student Assistance®

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