College Aid application

College acceptance letters are coming soon to your mailbox. It's about
that time when parents and students begin to get nervous about the final
step to the college application process: financial aid. In March we had a
posting informing parents about the college financial aid application
process. Here we discuss that again to remind parents what they need to
go through during these final days.

If you have not done so yet, begin the process of financial aid now, fill out
a Free Application for Federal Student Aid (FAFSA). The Department of
Education, which processes these forms, has been accepting them for the
2005-2006 school year since January 1 and be sure that most of the
parents have already finished application. You can find the form at the
website of FAFSA or by calling toll free number 1-800-4-FED-AID.

Documents you will need for the application include: a W-2 form from the
parents and student, mortgage and investment statements, and bank
statements. About two to four weeks after submitting your child's FAFSA,
you'll get your Student Aid Report (SAR). You'll want to look at your
Expected Family Contribution or EFC, that's the amount your family is
expected to pay out of your own funds towards annual tuition. If your EFC
says you must contribute $10,000 and the college's tuition is $30,000, your
child's financial need is $20,000.

When the student applies for financial aid with the school, the institution
will try to design a package that can meet that financial need. The aid
package may contain a mix of loans, grants, and work-study. Most
packages are made up of federal loans. Grants can be federal and
institutional -- possibly from university endowments. Work-study allows
students to pay part of their tuition by working in programs subsidized by
the federal government.