Financial Aid 411

So you've decided to pursue a college education. GREAT CHOICE! Attaining a college education can open many doors in your professional and personal life.

College is an investment in your future, and there are many choices available for financing that investment. The Georgia Student Finance Commission has been giving students financial choices since 1965. We believe every student in Georgia should have the opportunity to go to college, and we are here to help you reach your goals. The first step for you is to understand these choices and make the best decisions based on your family's situation.

The following list of questions gives you an introduction to Financial Aid and a basic understanding of your options. If you are new to the Financial Aid process, we suggest you read through all the questions and answers in the order they are presented. If you already know specifically what you are looking for, use the links on the left side of this page.

1. How much does college cost?
2. Am I expected to pay for my college education?
3. What is financial aid?
4. What are the categories of financial aid?
5. What are the specific types of financial aid?
6. How is eligibility for need-based aid determined?
7. How do I apply for financial aid?
8. What is a "Financial Aid Package"?
9. How do I compare financial aid packages from different colleges?
10. How do you get the most financial aid?
11. What should I do if my family situation changes?

1. How much does college cost?

College costs vary widely based on the type of institution. Costs that are generally considered are:

• Tuition & Fees
• Room & Board
• Books & Supplies
• Transportation
• Personal Expenses

Below are some examples of college costs in the state of Georgia:

• Public Two-Year Technical College — $1,500/year (Athens Technical College, Columbus Technical College)
• Public Two-Year College — $3500/year (Georgia Perimeter College, East Georgia College)
• Private Two-Year College — $16,700/year (Young Harris College)
• Public Four-Year College — $12,900/year (University of Georgia)
• Private Four-Year College — $25,000/year (Mercer University, LaGrange College)

For more information on the total costs of Georgia colleges and universities, click here.

Georgia offers students a variety of excellent college choices, both public and private. Your decision on which institution to attend should not be based solely on the cost of attendance. Think about your career goals and educational needs in making your decision. Financial Aid is available to offset the costs for many students and families.

2. Am I expected to pay for my college education?

The cost of a college education can be spread among the following groups:

• The family
• The state
• The federal government
• The specific college or university
• Private community or other scholarship sources

The primary responsibility rests with you, the student, and your family. Financial assistance should be viewed as supplementary to the efforts of the family. The amount your family is expected to pay depends on many variables. Use Preliminary Aid Information System (PAIS) to get an estimate of how much your family can be expected to pay.

3. What is Financial Aid?

Financial aid is money from federal, state, and private institutions to help pay educational costs. There are five major categories of financial aid and specific types of aid within each of those categories (see below). Sources for financial aid include:

• Federal Government
• State Government
• Colleges and Universities
• Community Groups (Religious Organizations, Civic Organizations, Corporations,
  Professional Organizations, etc.)

4. What are the categories of Financial Aid?

Various types of financial aid may be combined into a financial aid package for you depending on your financial need and qualification for merit awards. As a rule, you must be accepted for enrollment and have completed a financial aid application before your school notifies you of the exact types and amounts of aid for which you are eligible.

• Merit-Based Assistance is awarded to students with a particular skill, achievement, talent, or characteristic, and is usually in the form of scholarships. Most scholarships require separate applications, often with written essays and referrals. For more information on merit-based scholarships available in Georgia, click here.

• Need-Based Assistance is provided to students who cannot afford to go to college using only their own or their family's financial resources, as determined through federal, state, and institutional formulas. The most common forms of need-based aid are grants, work-study programs, and student loans for which the federal government pays the interest for you while you are in school and other qualified periods (subsidized loans). You must file the Free Application for Federal Student Aid (FAFSA) for federal and state need-based aid (FAFSA Transfer Module). Your college may require additional forms for institutional aid. For more information on need-based assistance available in Georgia, click here.

• Non-Need Based Aid is provided to students when the financial aid formulas indicate the student or family should be able to afford an education using their own funds. Such aid is almost always in the form of a student or parent loan in which the federal government does not pay the interest for you (unsubsidized loans). Students with financial need may also rely on this kind of aid, and most federal and state aid still requires a determination of financial need (using the FAFSA) before approving non-need-based aid. For more information on low-cost loan programs provided by GSFC, click here.

• Gift Aid - is money that does not normally have to be repaid, such as grants and scholarships. For more information on Scholarship and Grant programs, click here.

• Self-help Aid - is aid that requires repayment, such as student and parent loans. For more information on low-cost loan programs provided by GSFC, click here.

5. What are the specific types of financial aid?

There are four major types of financial aid:

• Scholarships & Grants Programs can be in the form of need-based, merit-based, or gift-aid.

• Loans for Students & Parents can be need-based or non-need based. Most financial aid packages involve some loans. We suggest you use our Student Loans Over Projected Earnings (SLOPE) calculator to help determine how much you should borrow.

• Service Cancelable Loans are student loans that can be repaid after graduation by working in the field of study for a designated number of years at specified locations in Georgia, or they can be repaid in cash.

• Student Employment Programs - Work-study programs provide employment opportunities. Work-study jobs may be on campus or in nearby communities. You are paid an hourly wage as set by the school. For more, see the financial aid professional at the college you plan to attend.

6. How is eligibility for need-based aid determined?

There are two major formulas used to determine eligibility:

1. Expected Family Contribution (EFC) = Parent's Contribution + Student's Contribution

2. Demonstrated Need = Cost of Attendance - EFC

The EFC is determined by the data on the FAFSA Application. To get an estimate of your EFC, try our Preliminary Aid Information System (PAIS).

To determine your expected Cost of Attendance, click here.

The following criteria must also be met to be considered for Federal and some State financial aid:

• Complete and submit the Free Application for Federal Student Aid (FAFSA).

• Be a U.S. citizen or eligible non-citizen.

• Have a valid Social Security number.

• Be enrolled at least half-time or accepted for enrollment in an eligible program and working toward a degree or certificate. You may not receive aid for correspondence or telecommunication courses unless they are part of an associate, bachelor, or graduate degree program.

• Have a high school diploma or General Education Development (GED) Certificate, or pass a test approved by the U.S. Department of Education.

• Make satisfactory academic progress.

• Register with the Selective Service, if required (males only).

• Not be in default for any previously received Federal Student Loan.

To receive STATE student aid from Georgia, you also must:

• Maintain legal Georgia state residency.

• Attend an eligible institution in Georgia.

• Fill out applications specific to the state (some state programs have their own applications). Look at programs of interest to you using our Financial Aid Search.

To receive institutional and other need-based aid, be sure to check the specific requirements of the institution or program.

7. How do I apply for financial aid?

• You should complete the Free Application for Federal Student Aid (FAFSA) as soon as possible after January 1 of your senior year in high school. By completing this application you have applied for monies awarded from most federal and state agencies. To fill out an electronic FAFSA, click here.

• Applications are processed and results are sent to the institutions you listed on the FAFSA.

• Your Student Aid Report (SAR) will be provided to you to confirm data (2-3 weeks after submitting your application). Electronic filing of the FAFSA can result in a 7-day processing period.

• Your school will then provide you with an Award Letter outlining types of aid for which you are eligible. Further instructions will be included in the letter.

• If the Financial Aid Office has determined that you will need a loan, contact GSFC and/or the financial aid administrator regarding the procedures to apply for Federal Loans. You can also download an application online by clicking here. PLEASE NOTE: some colleges participate only in the Federal Direct Loan Program. In these cases, there is no choice of a lender. Follow the instructions of these colleges to get the loan. To see a list of FDL schools, click here.

• Check with your college's financial aid office to see if supplemental applications are required. Investigate private aid sources such as religious organizations, civic organizations, and corporations.

• Apply for other scholarships and grants outside of the college or university for which you may be eligible. For more information see our Scholarships and Grants section and talk with your High School Counselor.

8. What is a "Financial Aid package"?

A Financial Aid Package represents the best efforts of the college or university financial aid office to meet a student's demonstrated need or to offer other suggestions for available aid. Some colleges are able to meet full demonstrated need, but some cannot.

Colleges send an "award letter" to students, listing programs of aid and amounts available. Financial aid packages generally include a combination of different categories of aid. The package may be adjusted if/when other resources are awarded to the student.

View Sample Financial Aid Package

9. How do I compare financial aid packages from different colleges?

Ask yourself these questions in evaluating financial aid offers:

• With the aid offered to me, can I afford to attend my first choice college or university? Remember, the goal of aid is to provide access and choice, not to lure you to a college you don't really want to attend.

• Is there a commitment from the financial aid office to continue the aid after the first year of college? Under what terms and conditions?

• Is the amount of loan and/or work a reasonable amount? Can I afford the likely monthly payments on a loan once I have graduated? How many hours of weekly work does the award imply?

• Are there other options available to me at my first choice college or university? Ask the aid office at that college or university if they can suggest other options for financing your education.

10. How do you get the most financial aid?

Apply before your school's priority deadline for financial aid, normally by the end of February. Research and apply for scholarships from private foundations, clubs, employers, and other organizations. If your financial or family circumstances change, contact the financial aid office at the school for a new consideration of aid.

11. What should I do if my family situation changes?

If you or your family experiences a change such as loss of job, illness, or death, divorce or separation contact the financial aid office at your college. According to the circumstances, you might qualify for more aid.

Ready for the next step?

Now that you have a good foundation relative to financial aid, we suggest you move onto Step #2 - Determine Your Eligibility. Anytime you want to move into a more specific area of financial aid, you can click on the links to the left. If you want to access other areas of this site you can click on the tabs above.