College Planning & Financial Aid

No. Unlike the previous Stafford Loan Application Promissory Note, the Master Promissory Note is simply the promissory note. Rather than completing a separate application, you begin the loan process each year by answering "yes" to the question on the Free Application for Federal Student Aid (FAFSA) that asks if you are interested in student loans. The financial aid office will advise you of any additional steps they require in the application process such as completing a loan request or loan information form.

If your school is authorized by the Department of Education, and uses the Master Promissory Note as a multi year note, you will only have to sign the note once as long as you don't change lenders. If you attend a two year or proprietary school, you will need to complete the Master Promissory Note each year. If your Master Promissory Note exceeds 10 years, you must sign a new Master Promissory Note.

Both EE and I US government bonds are eligible for an education tax break. However certain restrictions limit their applicability. Interest on all I or EE bonds are free from income tax if you use it to pay for college expenses and your income in the year you cash in the bonds falls within certain limits. As of January 1, 2012, paper savings bonds will no longer be sold at financial institutions. This action supports Treasury’s goal to increase the number of electronic transactions with citizens and businesses.

The first step in the college loan process is to fill out the FAFSA form. This form can be obtained from your child's high school guidance office and can also be obtained on the web at www.fafsa.ed.gov. Once you complete the application, you will find out what loan programs you are eligible for. Please speak to a CPA in your area for other loan options.

Yes. www.ope.ed.gov/security/ is the U.S. Department of Educations Office of Postsecondary Education. It includes Campus Security Statistics for over 6000 colleges and universitiies in the U.S. The websites goal is to help potential college students and their parents research criminal offenses on college campuses. It also has other campus security related links.

The Reserve Officers' Training Corps. (ROTC) provides students with money for college. Generally, the arrangement is, in exchange for the college education, the student must make a commitment to join the armed services after graduation. After graduation, students become commissioned officers in the Marine Corps, Army, Navy or Air Force. ROTC scholarships pay for tuition, fees and books for all four years of college. Lesser programs are available for students who want to make lesser commitments.

Need-based financial aid is college aid that is awarded to students based on the income and size of their family and based on the student's income. Need-based aid is given in loans and outright grants. Merit based financial aid is awarded to students for their academic, artistic, or athletic skills. Eligibility is based on their special skills and talents, combined with their test scores, grades and after-school activities. This criteria sets merit- based aid apart from need-based aid, which is awarded based on the income level and similar factors.

The expected family contribution is a key factor that determines whether your child can receive college financial aid based on your expected family contribution. Your expected family contribution is calculated according to a formula set by Congress. It takes into account the family's income, savings and other factors. Generally parents are expected to contribute about 6 % of their savings to pay for their child's education. The child presumably has fewer overall expenses. About 35 % of their savings will be expected to be used to meet college costs. Your expected family contribution will then be compared to the cost of attending the college your child has selected to determine whether they are eligible for financial aid. Some parents feel this calculation is not realistic and is an inflated amount.

Colleges prepare a budget, known as their Cost of Attendance, (COA), to help students plan their educational expenses and apply for financial aid. Generally, the budget includes tuition, fees, books and supplies, room and board, travel, personal and miscellaneous expenses.