Financing college: finding grants, loans, scholarships and work-study.

• Author: McKimmie, Kathy
• Position: EDUCATION

"FILL OUT THE FAFSA." That's the familiar refrain from financial aid offices across the state. The Free Application for Student Aid, FAFSA, is an essential part of college financing because it determines what federal aid will be available, and therefore what other sources of financing, like state grants and loans, are needed to fill in. The information is also used by states, including Indiana, as well as colleges and universities.

Phyllis Schroeder, associate director of financial aid, Valparaiso University, says she occasionally hears people say they won't file the FAFSA because they make too much money. The application determines the expected family contribution, or EFC. She recommends everyone fill it out, even those making more than a $100,000. "Families are often overly pessimistic. It costs them nothing." The largest federal grant program is the Pell grant, she says, for the neediest students at $4,310 a year.

If a family is facing financial challenges not reflected on the FAFSA, like a family member in a nursing home or high medical expenses, they should talk to the financial aid office, she urges. "There is some latitude. Never give up on school." And don't rule out private schools automatically, she stresses, thinking they are a whole lot more expensive--and they are. "Private schools have more gift aid." Compare the bottom-line costs after all the aid packages are on the table, she urges. "Indiana state grants are very helpful. A student with the highest needs and academic honors can get up to $11,000 a year for private school in the state of Indiana."

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A package of grants, gift aid and academic scholarships, work-study and loans is presented when the student applies. "Ninety-two percent of our first-time students receive some sort of financial aid," says Schroeder. "The average financial aid package is $19,800 in gifts, loans and work." Without any assistance, tuition, room and meals would be $32,350 a year. "We try to guarantee them a similar level of gift aid through their time at Valparaiso," she says. "If Morn loses her job, it could go up, if they win the lottery, it would go down."

At the University of Evansville, director of financial aid JoAnn Laugel encourages students to apply for scholarships. "Every college and university has its own mechanism for awarding institutional dollars," she says. In the spring of their senior year, high school students should also apply for private scholarships to go...