Federal Student Aid for Online University Students

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Federal Student Aid, U.S. Department of Education

Federal Student Aid for Online Universities

Federal Student Aid from the U.S. Department of Education plays a critical role in postsecondary education.

Federal Student Aid’s mission is to make sure all qualified students benefit from federal financial assistance programs – grants, loans, and work-study. The USDE’s programs comprise the bulk of all student aid, and more than 10 million students receive federal student aid each year.

Over a working lifetime, an individual with a bachelor’s degree will earn twice what the average worker with only a high school diploma makes.

The cost of a college or university education continues to rise faster than the inflation rate. Since a degree is a significant element in business and professional career success, no student should be denied an education due to lack of funds. Education means opportunities.

Many prospective students are afraid of the student aid process. Most qualify for more assistance than they realize. You can’t make an intelligent decision about financing your college tuition until you see the numbers.

Student aid consists of grants and loans. Grants you don’t have to pay back. Loans you pay back about 6 months after graduation. Loans are based on need, not your credit rating.

If you don’t qualify for loans via the USDE programs, there are alternative lenders which are available based on your credit rating. These loans may become more difficult to qualify for given the current Wall Street meltdown at investment banks and the pending government bailout.

Caveat: If you have prior student loans which are in default, you will not be able to get new loans until you resolve the issue with the Department of Education.

To review the FAFSA process, I have enlisted the help of Charles Lamm, Admissions Advisor at Kaplan University.

Among online universities, I consider Kaplan University to be the best value.

The Better Business Bureau (BBB) monitors online universities and has awarded KU an A+ rating:

http://www.seflorida.bbb.org/BusinessReport.aspx?CompanyID=9636

Not many online colleges or universities can make that claim.

Here is his challenge for prospective students:

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Free Application for Federal Student Aid (FAFSA) Instructions:

The FAFSA process takes about 20 ~ 30 minutes to complete online. Students under 25 who are single or have no children will need their parent’s information also (Parent + Loans).

Completing the FAFSA does not obligate you to any university or lender. It’s simply the first step in the admissions process if you are going to use financial aid.

At KU, we ask students who wish to move forward in the admissions process to complete their FAFSA before we complete the free online application for admission for 3 reasons:

1. it lets us know you are serious about going back to college and getting your degree

2. it shows us you can complete an assignment by a deadline we set together (being able to meet deadlines is vital in online education)

3. it gives us an idea of your skill level on the computer and your ability to navigate the web

If you would like to attend college, you will need to complete your FAFSA. I invite you to do so now.

If Kaplan University has an online program you are interested in, I will be happy to answer any questions you have. If we don’t have a program to fit your needs, I will do what I can to point you in the right direction.

You can see the KU online degree and certificate programs here:

http://kaplan.edu/ku/kuprograms/default.aspx?ID=School&loc=0

Copy, paste, and email me a copy of your FAFSA on the Web Submission Confirmation page that will popup at step 9. This page will have an EFC number (Expected Family Contribution) which will give you an idea of how much the Federal Government expects you to contribute to your education.

An EFC of 0 should qualify you for several grants and loans. Even if you have a high EFC, alternative lenders are available. Students who want to attend college can find a way. Financial aid officers will walk you through the process of selecting a lender.

The first step in the FAFSA process is to obtain or to retrieve your PIN number:

PIN:

The first step is getting your free PIN number from the Department of Education at http://www.pin.ed.gov . This is like an ATM PIN number. Keep it private. Write the number down in a safe place or print it out. You will use your PIN number to e-sign online documents.

When given a choice at the PIN website, let the Department of Education assign a PIN to you. If you select your own PIN, it takes a few days to become active. If the USDE assigns the PIN, it activates immediately.

2008-2009 Free Application for Federal Student Aid (FAFSA):

http://www.fafsa.ed.gov

Need:

1040 form – 2007

Driver’s License

If you cannot find your 1040 form for 2007, you can obtain one by fax from the IRS. Call from a different line (cell phone, etc.) to: 1.800.829.0922 and the IRS will fax a copy of your return to you.

If you did not file taxes in 2007, check the appropriate box in your FAFSA application.

To complete your FAFSA, you will need the KU school code and location. You can add other school codes at a later time if you choose a different school.

School Codes:

Kaplan University

Davenport IA

School Code: 004586

If you are having trouble completing your FAFSA online, help is available from the Department of Education at: 1.800.433.3243

If you let the USDE assign your PIN number, you should be able to e-sign your FAFSA immediately.

When you get to step 9 of the FAFSA, you will see a popup.

1. copy and paste and email a copy to me at: clamm@kaplan.edu

2. save a copy to your desktop

3. print a copy for your records

Always remember to save a copy of all confirmation pages and any other pages that look important to your desktop. This is also important when you are transferred to financial aid for help with your funding plan.

~ Charles Lamm

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After completing your FAFSA, Federal Student Aid will send you a Student Aid Report (SAR). If necessary, you can make changes – for example, add a new school code – and submit for reprocessing.

There is much more to Federal Student Aid, but this is enough to get you started on your way to an online university degree – and a brighter future, more money, or a step up the corporate promotion ladder.

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Ransom Stone advises prospective students as to which online degrees and meet their career objectives, and which universities have the best programs. You can find his articles and observations about online education on his blog at http://virtualjoefriday.com.