Students encouraged to file financial aid forms early
Applying for any kind of federal aid to help pay for school just got easier. Getting it, on the other hand, may be a little harder, with both admissions applications and enrollment numbers on the rise.
Director of Admissions Jen Putnam said in the wake of the national economic downturn, not only are more people applying to college, but they are applying to more colleges. She said application numbers are up across the state, and the number of those applicants hoping for some kind of assistance in paying for their education is also up.
That aid can come from a variety of sources, including federal or state aid from the Free Application for Federal Student Aid (FAFSA) form, Pell Grants, merit-based and other scholarships, and loans.
Changes have been made to the FAFSA form, which is due May 15 for those entering college fall semester 2010 as part of a government campaign to simplify the form. The initial changes largely affect the online version of the form, which will now automatically eliminate unnecessary questions based on previous answers.
USU Financial Aid Director Steve Sharp said there is also a new option on the form to fill in information from a person’s tax form, if it has already been filed.
“You can just check a box and fill in information from the IRS,” Sharp said.
He said the changes aren’t huge, but should begin to eliminate some of the intimidation factor the form has had.
Another change is in the eligibility rules for Pell Grants, which are federal grants based on need to students that meet certain income requirements. Up until now, a student was eligible for two Pell Grants per year – one for each semester. Under the new rules, Sharp said eligibility will extend to a third semester, enabling students who want to attend school year-round to apply for Pell Grants each semester.
Sharp said the change was enacted to help students finish school more quickly. The only different in the requirements for the third semester grant is that students will need to be enrolled at least part time, which means six credits or more for USU students.
Sharp said the third major change in federal funding for students is that instead of choosing a lender for a loan offered through an approved FAFSA form, all of the loans will be through the federal government. He said the interest rates, amounts and terms of the loans will generally be the same, but there will be a new repayment plan for students who don’t earn much.
Additionally, students who already have loans but want to take out more money will need to sign a new promissory note. Sharp said private lenders will still be able to offer private loans, but it will take a lot of private lenders “out of the game,” leaving credit unions and the state agency UHEAA (Utah Higher Education Assistance Authority).
Sharp said he is hoping the State Board of Regents, part of UHEAA, will still be able to provide loan services because it has done so well in the past. Sharp said it had the lowest default rate on loan repayment in the country for the last year, based on the standards the federal government uses to measure repayment rates.
“It remains to be seen whether they will get a contract,” Sharp said, “but I hope they’ll still have a role to play. They do an outstanding job.”
He said that the changes to the FAFSA as well as to Pell Grant and loan procedures will involve more work from the financial aid office, but will “definitely help a lot of students.”
However, he said if applications for all forms of financial assistance don’t get turned in early, students “don’t have much of a shot at it” because of the increase in applicants.
Putnam said that increase for USU translates to about 1,000 more enrolled than last year. In the past, merit-based scholarships have automatically been awarded to students as they were admitted to USU. If they met certain requirements, they were sent an award letter. This year, however, there was a priority scholarship deadline of Dec. 1, 2009, and a final scholarship deadline of Feb. 1, 2010. Putnam said more people applied by the December deadline than had applied by February the previous year, so no merit-based scholarships have been awarded so far to anyone who applied between Dec. 1 and Feb. 1. For the first time, a waiting list was implemented and grew to 170 students within 10 days, Putnam said. After the May 1 deadline to accept admittance to USU, any scholarships not used will be given to those on the waiting list.
Putnam said the numbers “shed light on the importance of education.”
The old adage, “When all else fails, go back to school,” is still a prevalent attitude in this country, Putnam said, so the economic situation has prompted many to not only seek out additional schooling but to seek alternative ways of funding it.
“If we had money to give everyone, we would, because we love all our students,” she said.
She advised students not to procrastinate in making financial arrangements for their education.
“Everybody has a story and everybody has a need,” she said. “If you are not acutely aware of what it’s going to take for you to be successful, and prepared to pursue it from the time you figure it out, you’re going to find yourself at a disadvantage.”
She said students may not want to take a loan and shouldn’t have to, but even for most private endowment scholarships the Admissions Office requires a student to at least file a FAFSA before being awarded a scholarship, partly because some students don’t look hard enough for funding opportunities.
Part-time jobs, internships, and work-study are also options for financial assistance and educational or work experience, Putnam said.
“Start early, think outside the box and be willing to work for what is necessary,” she said.
– chelsey.gensel@aggiemail.usu.edu