Money Sense Tips

Attending college is an expensive proposition. Some families set up college funds while their children are young, but many do not. Fortunately, help is available from many sources, one of which is the federal government.

Federal student aid helps lots of students who otherwise wouldn’t be able to pursue higher education each year. Anyone can apply, and assistance is based on family income and assets. You don’t have to be at the top of your class to get help like you do with most scholarships.

In order to receive education assistance from the government, one must submit a Free Application for Federal Student Aid, or FAFSA for short. This form asks questions about the student’s income, assets and debts, or those of the parents if the student is a dependent. Applicants must also answer questions about family size and number of family members in college.

The FAFSA may be filled out online, or students can obtain paper forms from their schools. There are lots of questions, but the answers to most can be found on income tax forms from the prior year. Many schools hold free workshops to assist students and parents who need help filling out the FAFSA, so there should be no cost whatsoever in applying for student aid.


What Happens After You File

Once your FAFSA is filed, the government calculates your expected family contribution (EFC). This is the amount that they determine you and/or your family are able to pay toward your education. You will receive a Student Aid Report that contains this information a few weeks after filing.

When filing a FAFSA, you should specify which colleges you are considering so that they will also receive a copy of your report. Upon receipt of your report, the college’s student aid office will put together a financial aid package for you. The package may include grants, work-study opportunities and loans from the federal government. Individual schools may also offer financial aid from private programs based on your Student Aid Report.

Some types of federal aid have special requirements. Some require a GPA of 3.0 or higher. Others are only available to first or second year college students or those pursuing certain majors. Many have no special requirements, but you must be a U.S. citizen or eligible non-citizen with a valid Social Security Number in most cases to receive any type of federal aid. More info, check out
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Federal aid can put college within reach for most students. But it’s important to file your FAFSA as early as possible, because schools distribute federal funds on a first-come, first-served basis. Also, keep in mind that you must file a new FAFSA each year to continue receiving aid.

Coming up with the money to pay for college is no easy task. Saving up over the years starting when your child is young makes things easier. But when you have retirement savings and everyday expenses to think about, it may be difficult to find room in the budget to save as much as you’d like to.

Having help from friends and family can reduce the burden of saving for college. In the past, it was difficult for others to make contributions specifically for college expenses. They usually had to send cash or a check and hope that it would go toward college. But with the Freshman Fund, making such a contribution has become much simpler.

The Freshman Fund is a company that facilitates contributions into 529 college savings plans. Parents can create an account for a child and notify friends and family members. When they want to make a contribution, they can easily do so online. Funds are then put into a designated 529 account. If the parents have not yet opened such an account, funds are held in an interest-free account until they do so.

Those who wish to send a gift of college savings can do so even if the recipient doesn’t have a Freshman Fund account. Gift certificates may be sent to anyone with an email address. The recipient can redeem the certificate into any 529 plan. This is a wonderful way to encourage those you care about to start saving for college, and it ensures that the money will not be spent on something else.

College Money for Birthdays and Holidays


More and more parents are opting to discourage traditional gift giving for holidays and birthdays. It seems that most of the gifts end up collecting dust, wasting space and eventually cluttering up landfills. Encouraging friends and family to give money for college is much more practical, especially considering that their gifts will draw interest until your child pursues higher education.

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Freshman Fund users can send email notifications to others to let them know how they can make a contribution. They could also add links to the account to birthday party invitations. These are great ways to encourage contributions as an alternative to the usual kinds of gifts.

A 529 plan can help you save the money your kids will need for a college education. And now, it’s easier than it has ever been for people outside the immediate family to pitch in. When combined with family contributions, Freshman Fund contributions can really add up. By the time your child is old enough to go to college, he could feasibly have enough money to pay for tuition, fees and other allowable expenses with little or no outside help.