Don't give up the financial-aid flight
by Phil Shreves
For most families with children already in college, or perhaps just starting this fall, the economic crisis has placed a real strain on financial resources that many parents had planned to have available for school and living expenses.
Investments have been beaten down, home equity has fallen fast and far, and parents have lost income, in some cases even having been laid off from their jobs. In other instances, families have incurred high out-of-pocket medical expenses.
This grim situation impacts young people attending all types of post-secondary institutions, from higher-cost private schools to 4-year public schools to community colleges, and in all geographical areas, urban and rural. In addition, non-traditionally aged students who are pursuing graduate degrees, trying to work full-time and also helping support families of their own, have been similarly hurt.
However, before throwing in the towel and bringing your child home from college, or giving up on earning that desired degree yourself, consider the following options that may make it possible to significantly reduce your financial worries, no matter how cash-strapped you may feel:
Federal aid. Even at this late date, it’s not too late to apply for federal financial assistance for the current 2009–2010 school year. Certain types of assistance, such as Federal Pell Grant and low-interest Stafford (student) and PLUS (parent) loans are still available to otherwise eligible students who are enrolled and attending a college or university on at least a half-time basis. To be considered for these types of financial aid, the 2009-2010 Free Application for Federal Student Aid (FAFSA) must be completed. There is no other way to apply for this money. Submitting the FAFSA is done on-line at www.fafsa.ed.gov, the official FAFSA Web site (don’t use any other site) and the entire process takes about 45 minutes.
You’ll be asked to enter information from your 2008 federal income tax return(s) and most of the FAFSA questions are quite simple. For details about this application process, as well as the various federal financial aid programs, all of which can be used to help pay college costs, the information located at www.federalstudentaid.ed.gov is extremely helpful and easy to understand. In addition, your school’s Website will most likely provide you a wealth of information about available financial-aid programs, and the policies and procedures governing them.
Appeal. Perhaps you’ve already submitted a FAFSA for the current school year but a significant change has recently occurred in your financial or family circumstances. If so, be sure to contact the financial aid office at the school your child (or you) is attending. College and university financial aid offices have the ability and the authorization to adjust a student’s overall financial aid eligibility, based on documented changes in an individual’s situation. Further, financial-aid officers almost always want to ease the financial burden of families who are struggling. A written explanation is normally required by the aid office, but going through the time and trouble of telling your story can very often result in thousands of dollars in additional financial aid. Again, the specific instructions for appealing your financial aid eligibility are usually posted at your school’s financial aid Web site.
Private Loans. Although many lending organizations have ceased offering private educational loan in recent months, quite a few banks and credit unions continue to provide these types of low-interest loans to students and parents. A good first contact is your family or personal lending institution; however, an excellent source of information about dependable organizations that offer private educational loans is the financial-aid office at your college or university.
Scholarships and grants. Don’t hesitate to contact your school’s financial-aid office or the staff at the institution’s foundation about the possibility of applying for scholarship or grant funds that may still be available—even after classes have begun. It might indeed be too late to receive such funds, but it never hurts to inquire, particularly if you have had a significant change in financial circumstances. Other sources of such assistance are the various community groups and agencies in your geographical area, as well as any organizations with which you or a family member are affiliated. 
Return to Ingram's September 2009
Phil Shreves is Director of Student Financial Assistance, University of Central Missouri
P | 660.543.4033
E | pshreves@ucmo.com