December 2007/January 2008

Bimonthly newsletter of College Assistance Plus

Filing the FAFSA now can get you more aid

If you're like most people, you don't have your taxes done for this year. In fact, you probably haven't received your W-2 forms yet! But don't let that stop you from filing your FAFSA online after January first. Just like the early bird gets the worm, those who file the FAFSA first may have a better chance at getting financial aid.

If you haven't had major changes to your financial status in the past year, you can file your FAFSA now and make changes when you complete your taxes. Go online to the FAFSA website, choose the 2008-2009 academic year, and complete the form using last year's tax forms. Submit the form to up to six colleges. When you receive your W-2s and complete your tax forms, go back to the FAFSA website and make changes to correct the numbers.

Although the deadline for filing your FAFSA is in June (for the previous year), if you file early, you will be more likely to get aid. Colleges have a limit to how much financial aid they can offer in the form of grants and scholarships, and once they have allocated it, they aren't able to offer those gifts anymore. They will still give you a financial aid package, but it will probably be comprised mostly of loans.

While loans tend to be a large part of what colleges call "financial aid," remember that you'll still have to pay them back (with interest!) over the span of many years. The best financial packages include grants and scholarships, which you do not have to pay back.

With the holiday season approaching, it's easy to get wrapped up in other things and forget about college for a while. But if you are organized and file your FAFSA right away, you'll probably be rewarded in the long run.

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Interview with a Student - Arena Thompson

Arena Thompson
Editor's Note: Arena Thompson is a stay-at-home mom and part-time Web designer. She began her degree at Northwest Christian College and dropped out after one year.

CAPlus: How much do you have in loans right now? Does that include interest?

AT: Currently it's at $10,000. $5,000 of that is in interest, because even when you defer due to financial hardship, which we did, the loans still accrue interest.

CAPlus: Why did you decide to drop out?

AT: I didn't think it was wise of me to spend so much money on something that I wasn't 100% sure about. So originally I thought I would take a year off to figure it out, but I found a job that paid pretty well so I just ended up never going back.

CAPlus: Does having college debt change the way you live today?

AT: Majorly. I keep telling my husband that I'm so sorry. Having a new baby and pulling $175 out every month for the loan, especially when only about $70 is applied to principal, really stinks. We could be living a lot better, but instead we are coupon cutting and penny pinching. It's especially frustrating because I don't even have anything to show for it.

CAPlus: Do you wish you had continued on to get your degree, or are you glad that you decided not to?

AT: I'm glad I didn't continue to go when my heart wasn't in it. However, I would like to finish at least my 2-year degree. I was known in high school as the one that would do well in college and it feels almost like a personal failure that I didn't finish.

CAPlus: If you had to do it all over again, what would you do differently?

AT: I would never have taken out a single loan. If that barred me from college or university, so be it, but I tell everyone I meet that is headed to college to try not to take out any loans. It will bite you in the behind and isn't necessarily a guarantee of a better job (as my husband is finding, even though he has a Bachelor of Science in Business Management from University of Oregon).

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High school freshmen & sophomores

• Start studying for the SAT and/or ACT exams. Try to spend at least one hour a week studying with a computer program. Boosting your scores will help you get more aid money from colleges.

Do your homework

• Start thinking about where you'd like to go to college. Talk to your parents so that you're all on the same page about your expectations and how much money is reasonable to pay for college. If you decide together how much you can afford, you'll be able to make an informed decision based on fact rather than emotion.

• If you are involved in community service or volunteer projects, ask the teacher or supervisor for a recommendation letter now. It's good to get a head start, especially while the project is fresh in the teacher's mind.

• Look into taking AP courses so you can make a good impression on college admission officers and get some college credits out of the way. Talk to your guidance counselor about this when it's time to choose courses for next semester.

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High school juniors

• Work hard in your junior year, because your junior year grades are very important on your high school transcript. By keeping your grades up, you might be rewarded with college grants, free scholarships, and other educational grants.

Think about colleges

• Study for the ACT and SAT exams! The next ACT test date is February 9; registration is due by January 4. The next SAT test is January 26; regular registration is due by December 26. Visit www.actstudent.org and www.collegeboard.com for more information and to find testing sites. There is also an SAT prep center at the website. Better scores can mean better financial aid!

• Look into taking AP courses so you can make a good impression on college admission officers and get some college credits out of the way. Talk to your guidance counselor about this when it's time to choose courses for next semester.

• Keep refining your list of possible college choices. Check out the websites and start comparing schools by factors that you think are most important.

• If you play spring sports (track & field, baseball, softball, etc.) and want to play in college, take some photographs and video of yourself now. By the time your season is over, colleges will have already made decisions about teams and scholarships. Now is the time to make sure your portfolio is strong.

• Explore the Web for scholarship opportunities. You won't get a free ride to college based on scholarships, but finding some grants and scholarships may help you in the long run.

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High school seniors

• Know the admissions deadlines to schools that you're interested in! Look up the financial aid deadlines as well. Make a list so you don't miss anything.

Make some decisions

• Narrow down your list of potential colleges to about six or fewer. Christmas break is a great time to fill out applications and write admission essays.

• If you aren't happy with your SAT/ACT scores, retake the tests. The highest combination of scores is always used, so taking the tests again won't hurt you.

• File the FAFSA as soon as possible in January to get the maximum amount of financial aid. You can use last year's tax forms and make corrections when you actually finish your taxes.

• Due dates for recommendation letters are approaching, so figure out who you want recommendations from. Make sure you tell them exactly when the letters will be due, and don't hesitate to remind them! It's an important part of your application process.

• Plan visits to any colleges and set up interviews if you didn't get to them during the summer (or if you want to visit again). Read bulletin boards and the college paper, talk to students and professors, and try to spend a night in the dorms. Ask your CAPlus advisor for a college visit packet before you go!

• Take advanced placement (AP) courses if you can. It will help boost your admission standing, and you might be able to test out of required courses when you get to college.

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College freshmen and sophomores

• Work hard during finals week to maintain strong grades for this semester or quarter, especially if you have an academic scholarship. Good grades are important during your first two years!

Don't use loan money for gifts

• When you meet with your advisor to talk about next semester, make sure you're on track to graduate in four years. Don't get trapped into an extra semester or year! This is especially important for transfer students.

• Don't buy books from the campus bookstore if you can help it. Buy books from other students or online to get the best deals. Visit our website for links to discounted books online.

• File your renewal FAFSA by the middle of January to get the maximum amount of financial aid. It's easy to make a mistake, so have your CAPlus advisor review your form before you submit it.

• Beware of credit card companies! You'll receive dozens of credit card offers in your college mailbox, some of which will offer you free t-shirts, iPods, and other gadgets. Don't sign up for a card unless you are going to pay it off each month. Credit cards do not give you "free money" that you can spend whenever you want.

• Don't buy Christmas gifts for your friends using loan money. It might be tempting to think of it as free money, but when you add in the interest over 30 years, you will end up paying a lot more for those Christmas presents than you bargained for.

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College juniors

• Work hard during finals week to maintain strong grades for this semester or quarter. Good grades are important during your junior year!

Don't get stuck in the snow

• When you meet with your advisor to talk about next semester, make sure you're on track to graduate next year. Don't get trapped into an extra semester or two!

• Students with cars should look into getting AAA in case something goes wrong while traveling home for the winter break. You can also get roadside/towing service through your insurance carrier.

• Beware of credit card companies! You'll receive dozens of credit card offers in your college mailbox, some of which will offer you free t-shirts, iPods, and other gadgets. Don't sign up for a card unless you are going to pay it off each month. Credit cards do not give you "free money" that you can spend whenever you want.

• When you are home for the holidays, talk to your parents and friends about helping you find a summer internship or job that is in your field of study. This will help you decide if you've chosen the right field, and it will help you land a job after you graduate.

• Don't buy Christmas gifts for your friends using loan money. It might be tempting to think of it as free money, but when you add in the interest over 30 years, you will end up paying a lot more for those Christmas presents than you bargained for.

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College seniors

• Take advantage of being home for the holidays to talk to people about helping you get a job after you graduate. Getting your first job is all about networking!

Finding a job is hard

• If you have any special family circumstances, such as the recent discovery of an immediate family member with a serious illness or a sudden death in the family that is causing extreme hardship, write a letter to the college asking for a one-time gift in some form. Colleges may honor these kinds of requests if they have the funds to do so.

• Remember to pay off your credit card as soon as your bill is due. Credit card companies slam you with high interest rates, and getting out in the "real world" will be much easier if you have a positive credit history.

• Make sure that you have finished all of the requirements for your degree or major. Don't rely on your advisor to tell you if you need more classes; it's your responsibility. Don't get trapped into an extra semester just because you didn't pay attention.

• Don't buy Christmas gifts for your friends using loan money. It might be tempting to think of it as free money, but when you add in the interest over 30 years, you will end up paying a lot more for those Christmas presents than you bargained for.

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