How to Save for College & Still Get Financial Aid

College can be affordable

Students who need help paying for their education should save money and also apply for financial aid. Paying for college can be difficult, but there are ways to make it affordable, and above all, possible.

Things You'll Need

• Computer
• Parental tax information
• Social Security number
• Driver's license
• Income tax returns
• Bank statements
• Investment records

Instructions

Financial Aid For College

1. 

   Students Can Save And Apply For Aid

   Apply for financial aid through the government's Free Application for Student Aid (FAFSA) website (http://www.fafsa.ed.gov/). If you are under the age of 24, you must provide your parent's income information so that the government can take into account what your family is able to pay. Your family's savings must be included as well. However, if you are over the age of 24 or have independent status (meaning you are not claimed as someone else's dependent for tax purposes) you only have to include your own income. The FAFSA website will provide information on eligibility and status.

2. 

   There Is Money For College Available

   Count the amount of money you have saved from jobs and other sources. Have this information available when applying for financial aid. According to The College Board (http://www.collegeboard.com/) students and their families are expected to contribute to the cost of college to the extent that they're able. However, even you save money, you are still eligible for financial aid.

   According to College Confidential (http://www.collegeconfidential.com/), "The perception that families that have saved money get less financial aid is, of course, based on fact. Savings increase the expected family contribution (EFC). The fact is that colleges base financial aid on the income and assets at the time you apply for assistance, looking back at most a year."

   In other words, if your family has saved money specifically for college tuition and this money is reported, you will be partially responsible for paying for college (up to point you can afford).

   According to FAFSA, the gap between what you can pay and the school's tuition and other fees can be filled by financial aid and private loans. The FAFSA application allows you to ask for grants, scholarships and other forms of free money that does not have to be paid back. Free money is usually awarded based on academic merit or obvious financial need.

3. 

   College Money Can Be Borrowed Or Loaned

   If you are a dependent, you will need to provide your driver's license number, and your own and your parents' social security numbers, and information from your parents' and your own tax returns, bank statements dating back one year and investment records, along with general contact and address information.

4. 

   Families May Have To Pay Some Money If They Save

   When your FAFSA application has been completed, take note of the Estimated Family Contribution (EFC). This will be the amount you and/or your parents will be expected to contribute to your school's tuition. Contact your school's financial aid department with questions or to appeal your award.

5. 

   Financial Aid Can Pay For Books

   Even if you receive financial aid, continue working and saving money, as the money earned can always be put toward books, transportation and other expenses that come up over time.

Tips & Warnings

• You can also apply for work-study while filling out your FAFSA. Work-study jobs are campus jobs that are funded by government money. The money earned from these jobs can be used for school or other expenses.

• Be sure to contact the financial aid office at your university or school whenever your financial situation changes so that the financial aid report can accommodate and reflect those changes.

References

• FAFSA
• College Confidential
• College Board

Resources

• Scholarship Database for Students: FastWeb