Scholarships, Grants, and Loans

1. My child is potentially a scholarship athlete. Where can I get information on the NCAA regulations concerning high school athletes?

Contact the NCAA at (913) 339-1906. The NCAA publishes a guide for high school students. Ask for a copy.

2. I received a scholarship. Do I have to report it to the financial aid office? How?

Yes, you do need to report it to the financial aid office. Some campuses may have a special form you can fill out to indicate scholarships or other aid you will be receiving, or you can contact the financial aid office in writing that you have received a scholarship. Make sure that you include the name of the scholarship and the amount, your name and student ID number or Social Security number on your correspondence.

3. I will be receiving a scholarship from my high school or local community organization. How will this scholarship be treated in my financial aid award?

Federal regulations require that all financial aid assistance you receive be taken into consideration when awarding aid. This means that scholarships must be used to meet your financial need. Most campuses use the scholarship to replace an equal amount of loan or work-study funds you would have received before they reduce your grant aid. If your full financial need has not been met, generally the scholarship may be used to fill the gap.

4. What do I do once I take out a student loan?

Before taking out your first loan, you must attend entrance counseling that explains your rights and responsibilities as a borrower. Once you take out a loan, it is important that you keep the lender and your school informed of any changes in your address or enrollment plans. Before you leave school (including withdrawing, transferring or graduating), you must receive exit counseling which will cover your payment obligations and the options available to you as a borrower. If you leave without exit counseling the financial aid office will attempt to contact you. If at any time you have questions regarding the repayment of your loans, contact your lender or the financial aid office.

5. I was offered a loan, but I'm not sure I should take it; how do I decide?

Because of the limited gift aid available, students are often offered one or more educational loans. Although loans are helpful in meeting the cost of education, they must be repaid with interest. Therefore, carefully consider the amount you are borrowing. Remember, the amount you borrow this year will be added to other loans you have or will be taking out in the future. So while the loan amount may not seem to be very much this year, four or more years of debt can add up. You may want to look at your budget and see if there are ways you can minimize your borrowing. Also, consider the differences in loans, such as the interest rate, when that rate is assessed, the amount you'll be borrowing and repayment options.

You should also consider how much your college education investment might be worth. If you will qualify for a high paying profession (like a dentist or doctor) you can safely take out more loans than you might if you want to be a teacher, for example. For some professions, like teaching, there might be special programs to help you repay the loans later on. This might influence your decision as well.

The most important advice? Seek personal advice and balance all of the factors involved.

6. Can my parents and I both apply for loans?

Yes. Loans are available for both parents and students. Parents may borrow for their undergraduate students through the PLUS loan program and there are numerous borrowing options available to students. However, the total amount borrowed (by both you and your parents), cannot exceed the cost of your education.

7. How do I apply for a grant? For loans? For student employment?

By completing the FAFSA and supplying any other required documents to the financial aid office you are considered for federal grant, loan, and student employment programs. In order to be considered for Cal Grant, as well as for university funds, you will need to meet the priority deadlines. For the Cal Grant you will also need to complete a GPA verification form. The Cal Grant deadline for the GPA verification form and for the FAFSA is March 2 prior to enrollment.

8. My child was awarded a Federal Stafford loan as part of a financial aid package. The award letter also indicated that we could take out a PLUS loan. How do we find out more about borrowing?

Specific information on how to borrow should be included in your child's financial aid award letter. Your child should receive information that specifically identifies how to apply for the loans, what forms you need to fill out and the terms of the loans.

9. I am concerned that my child will have to take on a lot of loans in order to go to the college of her choice. Do we have options?

Yes, there are many options.

First, it's important to apply and find out about everything that is available. Don't make decisions about college choice without real information. The campus financial aid office will first determine your child's eligibility for grants and then loans. If offered a loan, all or part of it may be declined. Your child also may consider a part-time job to help meet expenses. It is wise to review your child's expenses to determine those areas in which costs can be reduced. Also, high grades increase a student's eligibility for scholarships. Parents also can take out a PLUS loan and, if available, utilize other financial resources.

After you have received an offer of financial aid, consider the amount of debt and family sacrifice involved. If the debt is too great, you may consider some of the options above. You might also consider starting college at a low cost college where loans are often not necessary. For example, the community colleges offer excellent transfer programs that can help a family wait until the last two years of college to incur debt.