Financial Aid Tip Sheet
The cost of college is rising and students and families are finding it increasingly difficult to pay for college. Yet the federal government limits how much funding it will loan a student and this limit hasn't increased in step with the rise in cost of post-secondary education. To make up the difference, increasingly, young adults are searching for alternatives in scholarships and private funding to finance their education.
The trend toward private funding is alarming because such loans often carry a variable interest rate that lack the protections offered by federal loans. Students, a vulnerable segment of the population, will often get into trouble because they don't fully understand the terms and agreements of the loans and scholarship they are looking into. Further, they will often sign anything put in front of them. Additionally, families are swindled by fraudulent scholarship searches that offer guaranteed money.
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“The best knowledge is experience. SMYSP gave me the chance to observe real surgeries, which helped me figure out what type of surgeon I aspire to become. I know that it will be a long and rough road, but because I have met similar people like me, in places I want to be, I know it is possible.” |
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Protect yourself. The following useful tips will help you tell the difference between legitimate and fraudulent scholarships and financial aid.
- Document everything. If you are offered a discount on your loan or are "guaranteed" a scholarship, get it in writing. No one can guarantee a scholarship, and if you are promised a refund, get the refund policy in writing.
- Seek advice. Talk to a financial-aid adviser about loans before agreeing to borrow money.
- Ask questions. If your loan interest rate is variable, find out what the upper limit the interest rate can go. If you won a scholarship you never applied for, be sure the scholarship is legitimate.
- Do research. Before considering other forms of loans or scholarships, first exhaust all federal and state loan possibilities as well as state and institutional grants and student aid. Don't be fooled by companies that promise to do all the work processing a scholarship or grant for you. (You must apply for these yourself.) Don't believe anyone who says you can't get the information they are offering anywhere else. Schools and libraries, for example, maintain free lists of available scholarships.
- Keep private information private. Be very careful if, when conducting a scholarship search, you are asked for credit card or bank information to hold a scholarship. You should never have to pay for a scholarship, and it's possible you are being set up to make an unauthorized withdrawal from your account.
Source: SF Chronicle, October 25, 2006; Congresswoman Lucille Roybal-Allard
Financial Aid Organizations and Web Sites
- California Student Aid Commission: Cal Grants
- Congresswoman Roybal-Allard's Student Resource Guide
- Educators for Fair Consideration
- Fast Web!
- FAFSA: Free Application for Federal Student Aid
- FinAid!
- Mexican American Legal Defense and Education Fund (MALDEF) Scholarships
- GrantsNet
Other Helpful Links
- American College Testing (ACT)
- California Community Colleges: A comprehensive list of two-year colleges in California.
- The College Board
- CSS Profile: CollegeBoard Financial Aid Profile
- Educational Testing Organization (ETS)
- Federal Supplemental Educational Opportunity Grant
- HBCU Connect: The first community network for Historically Black College and Universities students, alumni & supporters!
- Indian Health Services
- Kaplan Educational Centers
- National Merit Scholarships
- University of California Admissions: University of California's undergraduate admission information and application network.