Ask a CPA

Yes. Many families incorrectly assume they do not qualify for financial aid, and prevent themselves from receiving financial aid by failing to apply for it. In addition, there are a few sources of aid such as PLUS loans and unsubsidized Stafford loans that are available regardless of need. Filling out the FAFSA form is free. It is strongly recommended that all students fill out the FAFSA form.

A grant is a monetary gift to qualified undergraduate students, primarily with the most financial need. Eligibility is based on financial need as determined by filling out the FAFSA form. Two types of grants are Federal Pell Grant, and the Supplemental Educational Opportunity Grant. Due to limited funding, Federal Pell Grant recipients are given priority to receive Supplemental Educational Opportunity Grant. This is a federally funded, campus based program administered directly by the financial aid office at each participating school. Not all schools participate in both programs. It is important to apply for financial aid early using the FAFSA form so that both of these programs are available to your family.

A Federal Pell Grant is different than a loan and does not have to be repaid. Pell Grants are awarded only to undergraduate students who have not earned a bachelor's or professional degree. Pell Grants provide a foundation of financial aid to which other financial aid may be added. Pell Grants are awarded on a financial need basis. Financial need is calculated by subtracting the Expected Family Contribution "EFC" from the Cost of Attendance. It is the standard formula the U.S. Department of Education uses to evaluate the information you report when you apply. If your Expected Family Contribution is below a certain amount, you will be eligible for a Federal Pell Grant, assuming you meet all other eligibility requirements. The maximum award for the 3011-2012 award year was $5,500. You can receive only one Pell Grant in an award year. How much you get will depend not only on your Expected Family Contribution but also on your cost of attendance, whether you're a full time or part time student, and whether you attend school for a full academic year or less. You may not receive Pell Grant funds from more than one school at a time.

A Federal Supplemental Educational Opportunity Grant is for undergraduates with exceptional financial need. It is designed for students with the lowest Expected Family Contributions and gives priority to students who receive Federal Pell Grants. A Federal Supplemental Educational Opportunity Grant doesn't have to be paid back. The difference between the Federal Supplemental Educational Opportunity Grant and Federal Pell Grant is that the U.S. Department of Education guarantees that each participating school will receive enough money to pay the Federal Pell Grants of its eligible students. There's no guarantee every eligible student will be able to receive an Federal Supplemental Educational Opportunity Grant. Students at each college may be awarded a Federal Supplemental Educational Opportunity Grant based on the availability of funds at that college. You can receive between $100 and $4,000 a year, depending on when you apply, your level of need, the funding level of the college you're attending, and the policies of the financial aid office where you attend college.

Possible Yes. Under certain circumstances. A discharge releases your parents from all obligations to repay the loan. A complete listing of the discharge conditions is given in your loans Borrower Rights documentation. Your parents' loan cannot be discharged because you did not complete your program of study at your school unless you were unable to complete the program because the school closed, didn't like the school or the program of study, or did not obtain employment after completing the program of study. For more information about loan discharge or repayment PLUS Loan borrowers should contact the lenders or agencies that hold their loans.

Generally, repayment must begin within sixty days after the final loan disbursement for the academic year. There is no grace period for these loans. This means that interest begins to accumulate at the time the first disbursement is made. Your parents must begin repaying both principal and interest while you are in school.

Yes, your parents will have an opportunity to cancel their loan after they sign the promissory note. Your college must notify your parents in writing whenever it credits your account with your PLUS Loan funds. This notification must be sent to your parents no earlier than 30 days before and no later than 30 days after the college credits your account. Your parents may cancel all or a portion of their loan if they inform your college that they wish to do so within 14 days after the date that your college sends this notice, or by the first day of the payment period, whichever is later. Your college can tell you the first day of your payment period. If your parents receive PLUS Loan funds directly by check, they may refuse the funds by not endorsing the check.

Currently Plus Loans can be obtained at a Fixed interest rate of 8.5%. Your parents will be notified of interest rate changes throughout the life of their loan. Interest is charged on the loan from the date that the first disbursement is made until the loan is paid in full. This loan is based on credit-worthiness and the parent starts repayment 60 days after the full disbursement of the loan. The parent may borrow up to the student's cost of education, excluding awarded financial aid.

How do you calculate a student's financial need? What applications are required and what are the deadlines?What scholarship opportunities are available? What's the total cost of attending your school for one year? What's been the average increase in tuition over the past two years? Do you meet the full need of every admitted student? What percentage of the freshman class is paying full tuition? Is my financial aid package renewable each year? When will I receive my financial aid award letter?

Internship is a part time job during the academic year or the summer months in which a student receives supervised practical training in a their field. Internships are often very closely related to the student's academic and career goals, and may serve as a preparer to professional employment. Some internships provide very close supervision by a mentor in an apprenticeship like relationship. Some internships provide the student with monetary compensation.