Helpful Financial Aid Information

Types of Financial Aid

Financial Aid is designed to help individuals meet their educational expenses when their own resources are not sufficient.  A student who believes that his/her own family resources are not sufficient to pay for all costs of attendance (tuition, room and board, books, transportation, etc.) should apply for financial aid through the Financial Aid Office of the college he/she plans to attend.  There are three types of aid available:

• Grants or Scholarships - gifts which do not have to be repaid
• Loans - money borrowed to cover school costs, which must be repaid (usually with interest) of a specified period of time (usually after the student graduates from college)
• Work - employment that enables a student to earn a portion of school costs. 

What is Free Application for Federal Student Aid (FAFSA)?

All students who apply for Federal financial assistance are required to complete the FAFSA.  There is no charge to the student of student's family for the processing of this form.  You can receive the FAFSA form by calling 1-800-433-3242, by visiting your high school guidance counselor, or online at www.fafsa.ed.gov.  The FAFSA is also required by all state and many school students assistance programs and is used to apply for federal student and financial aid, including grants, loans, and work-study.  You should apply for aid every year, even if you think you do not qualify.

If you submit your FAFSA application by mail, it will be processed in approximately four to six weeks (two to three weeks for FAFSA on the Web).  You will then receive a Student Aid Report (SAR) in the mail.  The SAR will reflect the information from your application and your Expected Family Contribution (EFC).  Each college you listed on the application may also receive results from your application.  

Before you begin the process of completing the FAFSA form, make sure you have all of the necessary materials:

1. Your social security card and driver's license
2. Your income tax returns and those of your parents, W-2 forms and 1099 forms for the previous year
3. Records of other untaxed income received such as welfare benefits, social security benefits, veteran's benefits or military or clergy allowances
4. Current bank statements and records of stocks, bonds, mutual funds and other investments. 
5. Records of other untaxed income, such as welfare, social security income, AFDC and veteran benefits
6. Business or farm records (if applicable)
7. Records relating to any unusual financial circumstances, such as medical and dental expenses not covered by health insurance, tuition expenses and private elementary or secondary schools, death, divorce, etc.
8. Federal Student Codes for each school you are applying to.  You can get this code from the school, or you can visit the www.fafsa.ed.gov website. 

What is Expected Family Contribution (EFC)?

Family contributions is the amount of money the family of a student is expected to contribute toward college expense.  The family includes the student and the student's parents.  The amount of money that is expected to be contributed by the family is calculated by a standardized formula that takes into account the following:

• Family's financial resources (income and assets)
• Size of family
• Basic living expenses of the family

The calculation of family contribution is based on information provided by the student's family on the FAFSA form.  Expected Family Contribution (EFC) is the amount of money your family can be expected to contribute toward the cost of your education. 

If your EFC is below a certain amount, you will be eligible for a Federal Pell Grant and the amount of this grant depends on your EFC, the cost of attendance at the college and your enrollment status. 

For 2009, the Bay Area Community Foundation will accept an EFC number based on 2007 tax information.  You will be allowed to update your FAFSA when you recieve 2008 tax information.  FAFSA will send a confirmation email with your EFC number within 5 business days of FAFSA completion.  If you have questions, please contact your college financial aid office.