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 | The slowdown in the economy doesn’t mean an eligible Arkansas family can’t get a student loan.
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Herb Brubaker, First Security Bank senior vice president, says, “If you don’t buy the lottery ticket then you can’t win.” He recommends attending college fairs, doing online research and talking to your high school counselor and banker about the possibility of getting financial help to attend college.
One of the biggest misconceptions of parents of college-bound high school seniors is the “family makes too much money” to qualify for scholarships, grants and other “free money,” Brubaker says. But even if you feel like you will not qualify, he recommends filling out the Free Application for Federal Student Aid (FAFSA) while your child is in high school. You might find your child doesn’t qualify for any grant programs but could take out a student loan.
The FAFSA packet is filled out during the second half of a student’s senior year. Susie Smith with Metropolitan Bank in Little Rock explains that the application requires the family’s tax filing to complete it.
As long as a student remains in college as an undergraduate, the aid package must be filled out each year.
DON'T BE SHY WHEN IT COMES TO TALKING MONEY
“A family’s financial situation may change,” including a drop in income or the addition of a new child, Brubaker says. Therefore, it’s especially important to note on the federal aid application if there has been a change in the family finances or circumstances. For instance, if income declines, a financial aid administrator “has the power to makes adjustments,” he says.
Parents are often surprised at the “free money” their child qualifies for, he says.
Not all “free money” is based on financial need. For instance, First Security Bank gives away four $500 scholarships each year. Any student planning to attend an Arkansas two-year community college, technical college, four-year state or private college or university can register for the First Security Bank scholarship online for the random drawing.
“It goes a long way in buying books,” says Brubaker about a scholarship that can be applied to tuition, fees, supplies, room and board and of course books.
Brubaker says, “It’s our way of investing in Arkansas’s future.”
For more information about the First Security Bank scholarship, go to www.fsbank.com.
STUDENT LOANS
If you don’t qualify for any of the state’s grant money, but still need help paying for a college degree, Brubaker recommends a student loan.
Despite rumors, there is student loan money available.
“The slowdown in the economy doesn’t mean an eligible Arkansas family can’t get a student loan,” Brubaker says. However, don’t wait until it’s only days away from your child’s first fall semester.
“You need to get started in January or February,” but, he says, for those who aren’t quite sure where to start, he suggests attending a college fair or financial aid workshop. Last year, First Security Bank held two workshops called College Goal Sunday.
Brubaker says, “I really encourage parents to attend a workshop.” That way, they have an idea of the timeframe they need to follow when applying for grants, scholarships and loans, and what they will need to gather together for applications.
STUDENT CHECKING
Both First Security Bank and Metropolitan Bank offer free checking for college students. Brubaker recommends a child and parent be on the account. Like their other banking options, a student checking account can be viewed online.
For today’s student, consider a debit card instead of checks, he says.
Brubaker offers these simple guidelines for students and parents looking for extra financial help:
APPLY FOR FEDERAL AID
Start by completing the Free Application for Federal Student Aid (FAFSA). Colleges use the results of this application to determine your eligibility for federal aid, including grants, work programs and student loans.
Some colleges have application deadlines that must be met, so make sure you meet them.
APPLY FOR STATE AID
Visit www.adhe.arknet.edu to find funding for students graduating from Arkansas high schools, such as Arkansas Academic Challenge, Governor’s Scholarship, Law Enforcement and Military Dependent scholarships.
APPLY FOR INSTITUTIONAL AID
Visit college web sites to determine if there are campus-based resources, such as scholarships requiring an application other than the FAFSA.
DON'T OVERLOOK OTHE RESOURCES
Employers may offer scholarships; high school counselors are a great resource for local scholarships. Search for scholarships free online through the Fund My Future Website at www.fundmyfuture.info.
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