Answers to Financial Aid Questions

What is financial aid?

Financial aid is money in the form of grants, scholarships, loans, and work-study. Financial aid is available from private sources, colleges, or state and federal government agencies.

What type of aid is available to me?

You must fill out a Free Application for Federal Student Aid (FAFSA) each year to determine your eligibility for most types of aid. Schools award aid based on information given on the FAFSA. This includes loan eligibility.

How can I tell if my family makes too much money to qualify?

There is no "income cutoff" or other method to help you anticipate your eligibility. If you think you will need assistance in paying for higher education expenses, fill out a Free Application for Federal Student Aid (FAFSA). By filling out financial questions on the form, you will receive a Student Aid Report (SAR), which will indicate eligibility. The calculation that determines eligibility for aid is complicated, but standard. Since the application is free, the process does not cost you anything. More information can be found on the FAFSA website.

How do I fill out a Free Application for Federal Student Aid (FAFSA)?

You can fill out an application online at the FAFSA website. You can pick up a paper form from your financial aid office, public library, or guidance counselor's office. You can also call 800.4.FEDAID (800.433.3243). Only file one of these methods. New forms for each year are distributed every January 1.

What should I do if I have special financial circumstances that might affect my eligibility for aid?

Direct any correspondence about special circumstances to the financial aid office at your intended school. No correspondence will be read at the FAFSA processing office.

When should I apply for financial aid?

File as soon as possible after January 1 for the upcoming academic year. Always check with the school you plan to attend for other financial aid forms that may be needed, as well as important deadlines for admission, financial aid, and deposits.

How do I start the process of searching for available financial aid?

Make an appointment with your high school guidance counselor or a representative from the financial aid office at the school you wish to attend.

How is financial need determined in awarding financial aid?

Financial aid offices use the information provided by the FAFSA to determine your eligibility for need-based aid.

Where can I get a loan application?

Obtain an application from the financial aid office at the college you wish to attend, or order a free application on our website. You may also apply online.

Where can I look for scholarships and grants?

Contact your high school guidance counselor, a representative from the financial aid office of your intended school, or search online or in libraries for resources. Check out Sallie Mae's free scholarship search today!

How long does it take to be notified if my loan was approved or denied?

To monitor the status of your loan, go to your servicer's website. Availability of funds varies from three days to two weeks according to each school's process. Stafford Loans are guaranteed loans that do not require credit checks.

How much money can I borrow?

You may borrow an amount equal to your cost of attendance less any other financial aid you are receiving. Loan eligibility may be based upon financial need, as recorded in your FAFSA.

For dependent students who apply for Stafford Loans, first year students may borrow up to $5,500, second year up to $6,500, third through fifth year up to $7,500. For independent students who apply for Stafford Loans, first year students may borrow up to $9,500, second year up to $10,500, third through fifth year up to $12,500.

Keep in mind that amounts are subject to many factors, and your school must certify the loan amount. Never borrow more than you really need to pay your education expenses.

How will I receive my funds?

Colleges and universities determine the methods for disbursement of Stafford Loans.

To whom do I make my loan payments?

Our loan servicers, ACS and Sallie Mae, handle payments for Student Loan Finance Association loans.

Can I pay more than my predetermined monthly payment?

Yes. There are no prepayment penalties for paying more than the monthly amount. It is to your advantage to repay your loan as soon as possible.

How are assets evaluated when applying for financial aid?

Income and assets are evaluated based on the information you have provided on your FAFSA. Income is considered far more than assets in determining financial aid eligibility. Financial aid calculations may expect parents to contribute up to only 6 percent of their savings, but up to 47 percent of their available income to a dependent's education costs.

How can students lower the cost of borrowing?

Student Loan Finance Association offers attractive borrower benefits that can help reduce the overall cost of borrowing.

What is a loan servicer?

A loan servicer is an organization that manages loans. Many lenders work with student loan service organizations, also called servicers, to manage their loans and handle billing during repayment.

What is the HEC Board?

The Higher Education Coordinating Board is a nine-member citizen board that administers all of Washington state's student financial aid programs and provides planning, coordination, monitoring, and policy analysis for higher education in the state of Washington. The Board is charged by state law with representing the "broad public interest above the interest of the individual colleges and universities."

What is the official state program for parents to save money for their children's education?

Guaranteed Education Tuition (GET) program is Washington's prepaid college tuition payment program. This program will allow Washington residents to purchase college tuition units in advance. Tuition units can be purchased at the current price and redeemed in the future at no additional cost.