Finding funding for college is one of the most tedious parts of the college admission process. You hear words like FAFSA, scholarship, grant, loans and yet you don’t really know how to differentiate one from the other. I will attempt to explain financial aid in a nutshell.  Ahem…

Let’s conquer terminology.

• Scholarship – Free money that you win. Normally based on grades, test scores, or talent.
• Grant – Free money awarded to students based on financial need. Qualification for grant money will be determined by filing the FAFSA.
• FAFSA – FREE Application for Federal Student Aid (visit financialaid.ou.edu or fafsa.ed.gov) to apply. You will need your completed 2009 tax information to file the FAFSA.
• Loans – Money which you will have to pay back.
  • Subsidized – Federal government will pay the interest on the loan while the student is in school
  • Unsubsidized – Student is responsible for paying the interest on the loan while in school
  • Parent Plus – Loan offered to parents of college students to help pay for cost of attendance; Credit check required

Who should apply for financial aid? EVERYONE! All students will qualify for an unsubsidized loan at minimum. This is the best way to access low-interest student loans, which are a reality for many students. Think about it (I just heard this example and am stealing it – thanks Caryn!) if you were to finance a car, how much would you spend? $32,000 maybe. How much will that car be worth in 40 years? Nothing! So what if you financed the same amount for education? How much would that be worth in 40 years? Well, statistics have shown that the average high school graduate will earn approximately 1 million dollars in his/her lifetime. By investing in a  4-year degree a student doubles his/her earning potential to 2 million dollars approximately.

What’s the process? Well, financial aid is essentially a race for the money. We recommend that all students apply for financial aid between January 1 and March 15. This is not a hard deadline, so if you miss the cutoff, please still complete the process. We find that students who will qualify for aid and complete the FAFSA prior to March 15 normally get most of the aid for which they qualify. Note that some money will run out so timing is everything.

1. You will first submit your application for federal student aid online (which is best because it takes you through a series of checks and balances that eliminates many errors) and sign it by using your PIN number. Your PIN number will serve as your electronic signature for your FAFSA form. Both you and your parent will need to sign the form, so you will both need a PIN number. (fafsa.ed.gov is where you can request a PIN). **There are many scams on the internet which will charge you for your free application. Don’t fall for them – use the site I have provided you.
2. Once the federal government receives your FAFSA they contact the University of Oklahoma to see if you have been admitted. If you are still awaiting your admission notice, that’s ok.
3. When OU verifies your admission, the federal government will release your FAFSA to OU’s financial aid department for packaging. OU will contact you via OU EMAIL with all financial aid communication.

For questions regarding OU financial aid, please visit the web site financialaid.ou.edu. On this site you will find a knowledge base of frequently asked questions called Ask the Sooners. You might find an answer to your question here. If not, feel free to contact financial aid services by calling 405.325.4521.

Boomer Sooner!