Financial Aid 101 for Parents: Navigating College Costs

Financial aid. What is it and where to start? As parents and students embark on the journey of higher education, understanding the financial landscape becomes crucial. Germanna is committed to making your student's education accessible and affordable.

OK, so what exactly is financial aid? Essentially, it is free money that helps cover the cost of your student's education. Let’s take a look at the types of financial aid available to students and parents. Understanding these options can significantly ease the burden of educational costs.

1. Scholarships: Imagine being rewarded for your achievements! Scholarships at Germanna recognize academic excellence, talent, and specific accomplishments. These merit-based awards don’t require repayment and are often provided by institutions, organizations, or generous donors.
2. Grants: Need-based financial assistance is available through grants. The Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG) are examples. 
3. Federal Student Loans: Germanna offers government-backed loans with favorable terms. These loans, obtained through the FAFSA, come with fixed interest rates. Repayment typically begins after graduation.
4. Work-Study Programs: Students can gain valuable work experience through part-time campus jobs. These positions are often related to their field of study and allow them to earn money while pursuing their education.

And where to start? The FAFSA is your starting point. The Free Application for Federal Student Aid (FAFSA) is the gateway to financial assistance. Encourage your student to complete it, even if you’re unsure about eligibility. Here’s what you need to know:

• Mark FAFSA deadlines on your calendar. Missing them could mean missed opportunities for aid. Germanna's priority deadline is April 1 but complete your FAFSA as soon as you can.
• Help your student organize necessary documents (tax returns, Social Security numbers, etc.) for a smooth FAFSA submission.
• Even if you think your student won’t qualify, apply anyway. The FAFSA opens doors to various aid options.

Always do your research. Choosing the right college is a big decision. Use the College Scorecard to compare schools based on factors like cost, graduation rates, and financial aid availability. Even if your student's goal is a four-year degree, starting at Germanna allows your family to save money on tuition. You'll save even more with your student learning close to home. Living on campus at a four-year school is an additional expense.

Tips for making college affordable:

• Scholarships: Encourage your student to hunt for scholarships early. Every little bit counts, and multiple small scholarships add up.
• Savings Plans: Explore state-sponsored college savings plans like the Virginia529 College Savings Plan. The earlier you start saving, the more effective these plans become.
• Estimate Aid: Use the Federal Student Aid Estimator to get an early estimate of aid eligibility. Knowledge is power!

Get involved as a parent. As a parent, you should be part of this process. Here are some things every parent should consider:

• Some parent information is reported on the FAFSA, but rest assured, it’s kept confidential.
• Parents play a role in understanding federal student loans. Be realistic about how much you can contribute.
• Teach your student financial literacy. They’ll need it in college and beyond.

Need answers? When in doubt, go straight to the source:

• Federal Student Aid: Visit their website for accurate information.
• Financial Aid Workshops: Attend workshops or seek training to deepen your understanding.

Remember, you’re not alone. By mastering these basics, you’ll empower your student to pursue higher education without financial stress. Germanna's Financial Aid team is here to walk parents and students through each step of the financial aid process.