College Financial Aid

Financial Aid is usually income or need-based assistance provided for a student by the federal or state government or the college itself.

Colleges collect donations from previous graduates, and they also use some tuition and other sources of revenue to help out students who couldn't otherwise afford to attend. Similarly, the government collects taxes to help lower-income students attend college. In the long run, better educated students will make more money and pay more taxes.

The FAFSA (Free Application for Federal Student Aid) should be filled out and sent in as soon as possible. Applications open on the first of the year, and they are accepted until mid-spring, but funding is often given on a first-come first-served basis. The earlier you apply after the new year, the sooner your chances of getting financial aid assistance from the federal government.

Thanks in large part to massive trust funds, many ivy league colleges are greatly expanding their financial aid programs - especially for middle and lower income students.

For years, these top-tier universities have collected massive donations from alumni, charitable organizations, corporate trusts, and public tax breaks. Not to mention the significant tuition bills they send their students every semester.

Anyway, since they've stored up so much cash, they've actually decided to spend it on the students who need it. Not a bad idea, I'd say!

Students applying for institutional financial aid directly from their colleges and universities should make sure to get all applications in early. While high profile ivy-league colleges have plenty of money available to help out financially needy students, smaller schools and state-run schools are facing a major budget crisis related to a slowing economy and a lack of available credit.

If you haven't filed an application through FAFSA for your financial aid yet in 2009, what are you waiting for?!

FAFSA applications are time sensitive - and when a school runs out of funds there won't be any additional money left for students who are next in line. The sooner the application for financial aid is completed, the better your chances of actually getting some money.

So while it is only mid-January now, it is almost getting to the point where you should consider a big rush on financial aid! Start getting in contact with last year's employers, and if they don't have your tax information ready soon get out the old paystubs and calculators. It may sound like a lot of work, but trust me, its nothing compared to paying back student loans!