What do I do first?
The very first thing to do is fill out the Free Application for Federal Student Aid (FAFSA). It is important that you fill out a FAFSA early. It also needs to be completed each year you attend school.

Where do I get FAFSA?
You may obtain the FAFSA from the school you plan to attend, the public library, or the Department of Education. You may also complete it online at www.fafsa.ed.gov. You will need to gather documents to answer some of the questions on the FAFSA. These will include your (and your family’s, if a dependent student) W2’s, bank statements, most recent federal tax forms, and a driver’s license (if applicable). If questions arise when filling out the FAFSA, contact the financial aid administrator at the school you will be attending or the Department of Education at 1-800-433-3243.

What happens next?
Student Aid Report (SAR)
Approximately four weeks after submitting the FAFSA, you and the schools you listed will receive a Student Aid Report (SAR). If any adjustments are necessary, make the corrections on part 2 of the SAR and return it to the Department of Education, as directed.

The financial aid office will determine your eligibility for grants, loans and any other aid available at the institution. A financial aid award letter will be sent to you advising of the options that are available.

Keep in contact with the Financial Aid Office
Once an award letter has been received, you may be informed that you are eligible for loans. At this point, the school may enclose a loan application or submit information electronically to a guarantor to initiate the process. It is important that all paperwork be understood and completed by you, and that you agree with the terms of the loan. Be sure to read all documents carefully, and direct any questions to the financial aid office. Keep a copy of all paperwork for your records.

In addition, the financial aid office will be handling loan disbursements, either via check or electronic funds transfer (EFT), so be sure to find out how and when funds will be distributed to you (either directly or to an account). The school can certify changes to disbursement dates and amounts, so it is vital that you understand the process. You should make out a monthly budget. It will be easier to plan your budget if you know how and when you will receive funds. Don’t forget to include the following in your budget:

• Tuition • Books
• Room and Board • Supplies
• Entertainment • Clothing and Travel

Considering the Award Letter
Things to consider prior to taking out loans:

Have you exhausted all other sources of aid prior to taking out a loan such as:

• Scholarships – Your high school guidance counselor may have a local listing!
• Grants – Be sure to fill out your FAFSA early! Remember; never pay a fee to be considered for
  grants and scholarships. If it sounds too good to be true – it is too good to be true!
• Savings – Begin saving as soon as possible for college!
• Job – A part time job can help you pay some of your tuition as well as give you some spending
  money.

Grants and scholarships are free money! That’s the best kind because it doesn’t need to be paid back. Loans, on the other hand, need to be paid back in full without exception. It is in your best interest to consider all options prior to signing for a loan. Again, be cautious of a service guaranteeing results or charging fees for information that is generally available at no cost.

The Federal Family Education Loan Program (FFELP) generally offers three types of loans:

• Subsidized Stafford – This loan is based on your financial need. The interest is paid by the federal government while you are enrolled at least half-time, in a grace period, or in a qualified deferment.
   
• Unsubsidized Stafford – This loan does not require you to demonstrate financial need and the interest is not paid by the federal government. You are always responsible for the interest on this type of loan. You may have the interest deferred, or postponed while in school; however, if not paid when you enter repayment, it will be capitalized, resulting in more interest to be paid over the life of the loan.

Remember, there are annual and aggregate limits to Stafford Loans!

• PLUS Loan – A parent of an undergraduate dependent student is eligible for this loan type. This is the parent’s loan and remains their responsibility until the loan is paid in full. The borrower must pass a credit check and is responsible for all interest on the loan. The maximum amount that may be borrowed is the cost of attendance minus all other financial aid received by the student.
   
• Alternative Loan – Students seeking loans in addition to, or as an alternative to, federal loans may seek out alternative loans. These loans are not federal loans. Most require credit checks and have higher fees and/or interest rates. In addition, a cosigner may be necessary to secure the loan. This type of loan is usually considered when all other options have been exhausted.

The Loan Application Process
A promissory note must be complete by the student (or the parent in the case of a PLUS loan). The first section is to be completed by the borrower in full, with the remainder of the application certified by the school. Your Promissory Note can only become a loan if all the information is filled out completely and accurately. Any omissions may delay the disbursement of the funds. Funds will be disbursed to the school on the disbursement date, as determined by the school. Any unwanted funds may be returned to the school or directly to Great Lakes.