Scolarships & Financial Aid

Subject: The NAGPS Consumer Guide Chapter on Financial Aid

What Every Graduate Student Should Know About Financial Aid

by Joy Ward, Memphis State University

Welcome to the expensive world of graduate school! Classes are expensive, as are books. Research can cost, especially if it involves necessary travel. You probably will not be automatically covered by insurance, so plan on paying for a costly insurance policy or facing the possibility of medical expenses. Many graduate schools are in expensive areas, such as New York, Boston, or San Francisco so you can plan on paying hefty rents. The list goes on but I think you probably get the point by now. Graduate school is EXPENSIVE. If you are not one of the lucky ones who has an unlimited bank account you will probably need some kind of financial aid while you are in graduate school. Do not be discouraged. There is help available.

What is Financial Aid?

Eligibility

As you can see, eligibility requirements vary widely from program to program. Before applying for aid you will need to ascertain your basic eligibility for each program that you wish to utilize. General eligibility requirements for most US government sponsored programs that go through the campus financial aid office usually include the following:

1. US citizenship or resident alien (green card holder);
2. you must be enrolled at least half-time (as determined by the particular college or university you are attending; and
3. you must be maintaining satisfactory progress (as determined by the particular college or university you are attending).

Although most programs specifically ban students on visitor or student visas from receiving aid, there are some programs that have no such limitations. Some private loan funds will lend to non- resident aliens if they have a relative in the States who can co- sign for them. Also, many private scholarships and assistantships are not concerned with the citizenship of the recipient. Therefore, if you are planning on attending a school Stateside but are not a US citizen or resident alien, the best thing you can do is to contact the school which you plan to enter and ask them for help. This will accomplish two things. 1)They are in the best position to tell you what is available at their institution, and 2)the way in which they respond to your request will give you a good indication of the institutions's commitment to graduate students in general, and your education in particular. Remember, your graduate education is a two-way street. You are not alone in your education. While it is not the institution's responsibility to do your work for you, it is their responsibility to assist you in certain ways. If the institution in which you are interested is not willing or able to help you in something as primary as basic funding sources, there is a possibility that they will be just as insensitive to graduate issues in other areas.

Applying for Aid

The three applications that are most widely used in the US are,

1. ACT Family Financial Statement
2. CSS Family Financial Statement
3. GAPSFAS application.

American College Testing (ACT)

The ACT form is the simplest of the three. The applicant fills in only base information. There is no open space to explain unusual circumstances. This form is excellent for schools with large undergraduate populations and little non-federal aid since it requires minimal financial aid counselor involvement once the form has been completed and returned. Unfortunately, many graduate students have unusual circumstances that are not easily quantifiable using the ACT form by itself. If the college that uses this form does not have a supplemental form that allows you to present a clearer picture of your situation, you may be at a disadvantage. Your situation may be unusual.

Also, the use of the ACT form by an institution for both undergraduate and graduate students may be an indication that the university sees no difference between undergraduate and graduate students. This is a serious problem. Graduate students have some different needs not felt by undergraduates, such as insurance and research expenses. Many graduate students are older, with higher fixed expenses. Universities that are not willing to recognize these issues run the risk of being unaware of other graduate concerns.

College Scholarship Service (CSS)

The CSS form falls between the ACT and GAPSFAS forms in information gathering capabilities. It collects the core federal information as well as supplemental information requested by various states. It also has an area for special circumstances. Therefore, the applicant has a better chance of presenting his/her situation. While this form is not as involved as the GAPSFAS form, it is better for graduate students than the ACT form. In some cases, schools find that this a good compromise form to use if they have both graduate and undergraduate students. It allows the financial aid office some flexibility.

GAPSFAS

The GAPSFAS form is the most involved of the three major forms. It is also the only one used only by graduate and professional schools. It allows for the presentation of the most information. Use of the GAPSFAS form by a college is a good indication that the administration is probably very concerned with graduate and professional financial aid issues.

Other Forms

You should be aware that each institution may have other documents you will be required to submit before being considered for or receiving aid. These documents may include, but not be limited to, prior year's tax returns, institutional applications, and others. Also, private agencies will all have their own applications and requirements. Neglecting to follow up with any requested forms may cost you financial assistance. You should always check with your college to insure that all necessary paperwork has been completed and returned.

If possible, get the name of a contact person at the institution. In some cases, this may not be possible or useful. Larger institutions usually have so many people handling your case that to try to work with just one person is not feasible. Smaller institutions, on the other hand, may be more interested in giving you more personalized service.

Types of Aid

There are four basic sources of financial aid, federal, state or regional, institutional, and others. The federal aid is either filtered through the campus financial aid office or can come directly to the student via programs such as Javitz fellowships. State aid is generally channeled through the campus aid office but may involve some outside initiation of action by the applicant. Institutional aid comes from or through the university and can be given by numerous departments on campus. The last of the four, other aid, can come from anywhere else.

Federal Aid

Federal Aid has two sides. It can come through the Financial Aid Office or through outside federal agencies. Most aid you will encounter will probably be of the first type. It includes the following programs:

Stafford Loans (SSL)

Stafford Loans (SSL) are low cost, government guaranteed loan. The government does not guarantee that you will be eligible for the loan, only that if something happens and you are unable to repay the loan, the government will reimburse the lending institution. Eligibility for this loan is based on need, as discussed in the Needs Analysis section. The maximum amount per year for a graduate student is $7500 or up to the unmet need of your institutionally defined student aid budget, whichever is less. The interest varies from 8% per year while you are in school to 10% 5 years after graduation. Interest does not accrue and you are not required to make payments until 6 months after you leave school. Applications are available at your university or at any lending institution that is involved in the program.

Supplemental Loans for Students (SLS)

Supplemental Loans for Students (SLS) is a higher cost loan which is also government guaranteed. Eligibility for this loan is not based on need, and is therefore available to more students. The maximum amount per academic year is $4000 or up to the unmet need of your institutionally defined student budget, whichever is less. Applications for this loan are available in the university financial aid office or at any participating lending institution.

The interest on the SLS is trickier than that on the SSL. The interest rate changes each July based on Treasury Bill rates but cannot exceed 12% per year. Interest accrues from the first day the check is cashed. You may decide to pay the interest as it occurs, usually monthly or quarterly or you may decide to defer interest payments. If you defer interest payments, you should know that different banks have different ways of compounding the accrued interest. Some banks compound and capitalize (add the outstanding interest to the principle of the loan so that the next interest will include both principle amount borrowed and the previous accrued interest) the interest immediately, some do this quarterly, and some do this yearly. The best lenders, from a graduate student viewpoint, are those lenders who compound and capitalize your interest when you graduate.

Perkins Loans

Perkins Loans, which were previously known as the National Direct Student Loan or NDSL, is the lowest cost, government sponsored loan. This loan is based on need and is usually not available to all students. The maximum amount varies from school to school but the funds received must not exceed the unmet need of your institutionally defined aid budget. The interest rate is 5% but the interest does not begin to accrue until 6 months after you leave school.

College Work-Study

College Work-Study is a work program whereby the student works on campus, generally for a fairly low wage. Most universities target this program to undergraduates.

Special Note: Needs Analysis

All of these funds are approved on campus using a process known as needs analysis. Needs analysis involves using the information you supplied on the previously discussed application to ascertain how much assistance you need to attend school. These figures are then compared with the institutionally derived student budget. If the budget is higher than the amount the calculations say that you are able to supply to fund your own education (Expected Family Contribution) then you are eligible for the amount over your funds.

Student Budget
- Expected Family Contribution (EFC)
-Other Resources
=Aid Eligibility

While the base computations are fairly cut and dried, individual offices do have some autonomy in changing the computations. The individual offices can apply what is known as "Professional Judgement" to factor in non-core items. For example, if you had high medical bills in the previous year that ate up the funds that the financial aid office says you should have available to pay your tuition those bills can be included in your needs analysis. You will need to document the bills and meet with a financial aid counselor to discuss your situation. This is where the difference in applications, and attitudes, can affect you. Some offices may have policies that discourage the presentation of additional information. An office that is insensitive to these types of problems may be indicative of insensitivity in other areas, and on campus offices. Be concerned if the Financial Aid Office at the institution you are investigating is not interested in helping you with individual problems. The attitude is probably coming down from higher administrators.

Please refer to the sections on Student Budgets and Budget additions for more information. Student Budgets are another area where unusual expenses may be taken into consideration.

The other side of federal aid is that put into fellowships and scholarships. These programs are more difficult to locate, involving more work on your part. They also can be much more rewarding, both financially and professionally. The best places to look for announcements for these programs are in departmental and graduate studies offices.

State and Regional Funding

State and regional funding is supplied by states or regions, and comes in the form of both loans and grants. The federal financial aid information brochure available at most US financial aid offices includes the list of all state aid agencies. Regional aid can be a little harder to find. The aid is usually targeted to particular target groups, such as potential health care providers. Therefore, the best place to look for information can be graduate studies offices and financial aid offices at the prospective college or professional school.

Institutional Funding

Institutional funding includes graduate assistantships, departmental fellowships, university scholarships, and any other funding supplied by the educational institution or private donors through the institution. The main source of information on these funds will be on the individual campuses. Check with the departments, the graduate studies offices, the financial aid offices, and any other source you happen to hear about or encounter while on your quest for funds.

Do not limit yourself to only dealing with your department, especially when you first arrive on campus. Oftentimes, a department will hire a graduate student from another division because of their need for special skills or because they simply have an unfilled opening and no one to do the job. This can be particularly helpful to you if you are entering a department with very limited graduate funding. Make use of all possibilities.

Other Funding

Anything that is not included in the three previous sections is included in this one. Numerous other agencies, of all sorts, offer some sort of assistance. The list of sources for you to investigate is only limited by your available time and current contacts. If you are willing to invest some time into a search you may very well come up with extra aid.

The best place to start your search is to look around you. Many organizations have scholarship and/or loan programs for employees and associates. Large corporations often offer tuition benefits for employees. Some religious organizations have aid programs for members. Service organizations, like the Rotary clubs, have assistance available to both members and non-members alike. Fraternal groups, ethnic organizations, and unions often support their constituency through educational aid programs. Unfortunately, it may take you some time to locate these funds. The rewards, though, can sometimes be substantial. Awards range from $100 to full funding to study overseas for one year.

The next place to look is your local main library. The reference section should contain books listing scholarship and loan funds. These books usually show their listings by constituency, i.e. minority, female, etc. Once again, this can take some time but can also prove fruitful. Do keep in mind, though, that many of these funding sources are privately controlled. Therefore, the eligibility requirements and availability are subject to rapid change.

The last place to look would be grant centers. There are three of these in the States of which I am aware. One is located in Los Angeles, one in San Francisco, and the third is in New York City. There may be more. The one in Los Angeles is known as the Grant Center and the other two are the Foundation Centers. These centers are supported by foundations wishing to disseminate information on their programs. They are mainly geared toward grant funding for institutions but they do generally contain books on individual funding. They also teach short workshops on grant finding which you may find useful if you plan to write a grant.

The one place I would generally urge you to avoid would be so- called "scholarship finding" services. They are fairly expensive and usually not very effective in finding funding sources you yourself could have uncovered with a minimum of effort. The most recent study of which I am aware regarding these services showed that the majority of sources provided were already available to the students through their financial aid offices. But, if you wish to try your luck, go ahead. Caveat Emptor.

The Financial Aid Office

People

The people who work in financial aid offices are, for the most part, very dedicated, well-meaning professionals. A financial aid office can be a high pressure place to work, with long hours a regular part of the regime. In larger offices, the people may become somewhat detached from their student populations. This is rarely the case in smaller offices where counselors and directors alike are very often face to face with students constantly.

Most counselors, and those above them, are required to have at least a Master's Degree. This is not always the case but it is definitely the trend. Financial aid evolved in the last twenty years from a few easily managed programs to a plethora of intricate, byzantine government regulations and requirements. Many schools started out with support staffs running their financial aid programs, but this is quickly changing. The amount of information from both the applicants and the government that an office must process is staggering. The financial aid profession is not for the faint of heart.

Many financial aid professionals came into the field from the liberal arts. They are not business types and do not see themselves as simply "paperpushers." If you approach them with that attitude you will be doing yourself and them a great disservice. Financial aid professionals are doing what they do because they feel they can make a difference in the world. They are there to help.

Do not make the mistake of trying to exploit their concern. Most professionals have been practicing financial aid long enough to know the tricks and the scams. They are concerned, not stupid. Financial aid professionals want to help you use the system, not misuse it.

Size

Financial aid offices vary greatly in size, depending on many factors. As one would expect, larger student bodies require larger offices. Also, the amount and types of aid available will influence the number of people needed to staff the office.

There are a few things that you should consider when looking at the size of the office. Are there enough staff people available that you could get into see one within a reasonable period of time? Financial aid does have very busy periods when counselors would not be readily available, but generally you should be able to get into a counselor within a week of making an appointment. Too few counselors mean long waits not only in lines but also in paperwork processing. Lastly, too few counselors could mean that the office will be anxious to handle your file as little as possible. This means that your case could easily get a superficial, and unfair, review simply because the staff is under the gun to review and award as many student files as possible.

Does the staff appear to have enough working space? This may not seem like something that could affect you, but it might. If space is overly limited it could mean that the university administration does not place a high value on financial aid programs, and support. If you are dependent on such programs you should be aware that this lack of support could mean that financial aid programs could be on the chopping block if budget cuts are made. Also, cramped working spaces can lead to unnecessary delays in your paperwork.

Student Budgets

Student budgets are set by individual colleges, using the federal requirements. Generally speaking, graduate budgets in similar or adjoining geographic areas should not vary greatly, except for fees. If you have received two budget quotes that vary greatly you should look at the individual parts of the respective budgets. Most differences will occur because of differences in fees and living expenses.

The base budget is made up of fees, books, room and board, expected personal expenses such as toiletries, and local transportation costs. The costs are averaged out for every student, and are not generally personalized. If the institution does not readily publish a breakdown of their expected student budget you have the right to request a copy of it. You need to compare it with your personal budget. If you have any questions you can then make an appointment with a financial aid counselor to explain their figures.

You should be aware that your budget may not match the financial aid budget. By federal guidelines, they do not include budget items like credit card or car payments. These things are not allowable. Your other living expenses may be more than those shown on their budget. Most student budgets assume that if you are single you will be splitting housing expenses with at least one other student. While these budget items may not be flexible, other expenses may be considered.

Special Note: Budget Adjustments

Although the initial paradigm for student budgets is fairly clearcut, financial aid personnel do have some flexibility to change your budget. If they elect to use their "professional judgement," they can add other items that they deem to be necessary to your education. The main types of budget adjustments include the following areas:

1. Health. If health insurance is not already included in your budget, it can be added. This expenses incurred while you are in school. This does not include elective operations, such as plastic surgery.
2. Moving expenses. These expenses can be funded if they are school related and /or they occur while you are in school.
3. Car expenses. This is perhaps one of the mostcontroversial types of adjustments. While schools cannot assist you with car payments they can enlarge your budget to include particular repairs done while you are in school.
4. Extra supply and book expenses. If your book and supply expenses exceed those outlined in your aid budget, you can request that the additional amount be added to your budget.
5. Other expenses. There are other expenses, such as bankruptcy payments, child support payments and other unusual expenses that financial aid offices can include in your base budget.

If you have any unusual expenses you should inform the financial aid office know, especially before you decide to attend that institution. How the financial aid department reacts to your situation will tell you a great deal about the financial aid office and the college's view of graduate students. There are many expenses that an office is specifically prohibited from including in your budget, but they do have some latitude.

If they are unwilling to work with you, there could be a problem with their professional philosophy. Some financial aid offices view their job as fund caretakers, letting money loose only when forced to do so. These offices tend to lump undergraduates and graduates into the same group. Not only will they cause you to be unnecessarily financially strained during your time at that school, they may also represent an administration that is less that sympathetic to graduate students. This attitude should make you reconsider whether or not you want to be involved with the institution.

Appeals

You have the right to appeal any decision to the Financial Aid Director. You should be aware that the counselors rarely act on their own. They are usually acting within the rules set by the federal government and the institution. But if you feel that you have not had a full hearing you do have the right to appeal. Appeal procedures vary from school to school but they are required to be published. Therefore, you should be able to get the procedures from the financial aid office.

What to Look for in a Financial Aid Office

Are undergraduate aid and graduate aid overseen by the same people? The best situation is the one in which the graduate and undergraduate aid programs are administered out of separate offices and by different counselors. Barring that situation, there should at least be different counselors for the graduate students. Graduate students invariably get short shrift when they are considered for aid with undergraduates.

What type of aid application does the office use? Is it simple, or does it give you more room for an explanation of your situation. In this case, simple is definitely not better. A simple form may be an indication that the staff is overworked and underfunded. If that is true, you may very well suffer needless delays and an office that is not interested in your situation.

What type of aid does the university offer? If their aid is limited to federal monies and loan funds you might be walking into a school that is either financially strapped or disinterested in graduate students. Either case could cause you problems down the road.

How do current students feel about the financial aid office? Invariably, someone will have an axe to grind, but that should not be the general student opinion. If the current students are not satisfied with the financial aid office, chances are your experiences will not differ greatly from theirs.

All of the above questions are ultimately part of one main question. What is the prospective college's or university's attitude towards and interest in graduate students? If the attitude is negative, it will affect your entire time at that institution.

Your Rights and Responsibilities as a Student

Rights

1. You have the right to know the entire cost of attending an institution.
2. You have the right to know the schools refund policy.
3. You have the right to know the financial aid criteria for the funding of aid applicants.
4. You have the right to know how your need for aid was determined and which resources were included in the calculations.
5. You have the right to know how much of your ascertained need was met through financial aid.
6. You have the right to ask the school to explain your aid package. If you feel that you were treated unfairly, you have the right to ask the financial aid office to re- evaluate your situation.
7. You have the right to be told how to apply for increased funding if your circumstances change for the worse.

1. You have the responsibility to read the institution's information carefully.
2. It is your responsibility to accurately complete your aid application and meet all stated deadlines. This includes all additional documentation that an institution or other funding agency may require.
3. It is your responsibility to read and understand all forms that you sign. You should always keep a copy of any forms that you sign.
4. It is your responsibility to maintain academic satisfactory progress as stated by the institution.
5. You must notify the institution of any change in your situation, such as change of name or address, new funding, or enrollment.

For foreign students, SSAS0@ib.rl.ac.uk (Sara Sengenberger) adds some good info :

Try looking in The Grants Register 1993 - 1995, ed Lisa Williams, pub Macmillan 1992. This is an excellent all-around source of information for anyone seeking funding at or above the graduate level. It isn't terribly well organised, but it is comprehensive, and I presume you're sufficiently motivated to plough through many pages in search of money!

Another good book that I can recommend is "THE PRENTICE HALL GUIDE TO SCHOLARSHIPS AND FELLOWSHIPS FOR MATH AND SCIENCE STUDENTS", by Mark Kantrowitz and Joann P. DiGennaro. It is "A Resource for Students Pursuing Careers in Mathematics, Science, and Engineering". It also talks about the following :

• How to uncover all possible sources of financial aid, assess career goals, obtain the most useful letters of recommendation from teachers, and get nominated for scholarships and fellowships.
• How to choose an undergraduate school that best meets your needs -- evaluating everything from courses of study and instructors to social atmosphere and extracurricular activities.
• How to improve your chances of being accepted by the graduate school of your choice. Here are key pointers on what to put into a Statement of Purpose, how to achieve the highest score on the Graduate Record Examination, how to choose an advisor, and how to select a thesis topic and write a thesis proposal.