Video

Transcript

Welcome to Knowledge for College brought to you by Chase, and thanks for joining us. This series of videos provides valuable information on the many important steps of going to college and financing an education.

Hi, I’m Chelsea Richardson. Do you think you make too much money to receive financial aid for college? Ken Butler has some information that may change your mind.

Many parents from Maine to California are saying, "We make too much money for our kids to get student financial aid, but we don’t have enough to pay for college ourselves. What do we do?"

It’s not unusual for middle- and higher-income families to believe that they’re not eligible for student aid, but that could be a big mistake. One reason you shouldn’t assume you’re ineligible is that your home isn't considered for federal financial aid.

The first step you should take is to complete the Free Application for Federal Student Aid, or FAFSA. You can find the FAFSA at FAFSA.ed.gov . The FAFSA determines a student’s eligibility for federal financial aid, including low-interest federal student loans. But, that’s not all. The FAFSA’s also used by colleges for other types of financial aid available through their school.

So, if you think some schools are out of your price range that may not always be the case.

If students have the grades and experience the school requires, they may be eligible to receive scholarships or grants through the school’s endowment program. These scholarships and grants aren’t based on your financial situation or need. Many colleges have information about academic scholarships on their Web sites. Often, they require a minimum Grade Point Average and a minimum ACT or SAT college test score. If students meet the requirements, they may be able to receive the scholarship.

In addition to academic scholarships, schools may also offer scholarships for community service, diversity and artistic or athletic ability. These scholarships are not based on grades or test scores or the family’s income.

And did you know that some colleges even offer a tuition discount if families have more than one child enrolled at the same school? It’s called a sibling discount, and it’s not based on income.

If your student has exhausted federal aid, scholarships, and grants, but you still need help covering the cost of college, you may want to consider a Parent PLUS loan. This federal loan is credit based and is an alternative to using your home equity, retirement, or higher-interest rate credit cards.

Finally, another option for students is a private student loan. These loans are offered by banks based on credit eligibility. Because students may have limited or no credit history, they may need a cosigner to qualify.

The bottom line is: don’t assume you won’t qualify for financial aid. Be sure to submit the FAFSA, do your research and talk with each school to determine if your student is eligible for financial aid and if the school has other options to offer. Price and what the student receives in aid are often deciding factors in choosing a college.

For more information about federal student loans, scholarships, and grants, visit StudentAid.ed.gov or ChaseStudentLoans.com

Knowledge for College is brought to you by Chase to help you better understand college financing. If you have any questions on your specific situation, consult your financial advisor or the financial aid office of your school.

Important Information: As students determine the best way to finance their education, they should consider the full range of student financial aid options available. Private loans can be used when federal loans, grants and other forms of financial aid are not sufficient to cover the cost of education.

This information was correct as of 11/01/08 and is subject to change. Contact Chase for the most up-to-date terms.

This is a link to a third-party site as described in our Weblinking Practices.