Financial Aid

How are you planning to pay for college?

There are many different ways to pay for college. Have you thought about how you plan to pay for college?

Sources of College Funding

Savings
Parent Income & Savings
Student Income & Savings
Borrowing
Student Borrowing
Parent Borrowing
Others
Grants & Scholarships
Friends & Relatives

Chart Source: Sallie Mae and Ipsos. How America Pays for College 2017.

It’s no surprise that grants, scholarships and student borrowing make up a large portion of sources of college funding.

Federal Student Aid, a part of the U.S. Department of Education, is the largest provider of student financial aid in the nation. Federal Student Aid manages student financial assistance programs that provide grants, loans, and work-study funds to students attending college or career school.

Does my child need to apply for student aid?

Even if you have come close to your savings goal, as your child heads into his/her last year of high school, it often still makes sense to complete the Free Application for Federal Student Aid (FAFSA®.)

As a reminder, when your child completes this form, they will also automatically be applying for funds from your state, and sometimes from their school as well.

APPLY TO FAFSA

Here are 3 steps to keep in mind:

1.

Summer before 12th grade – encourage your child to go on the Federal Student Aid website and create a username and password and an FSA ID, that they will use to confirm their identity when accessing information and electronically signing documents.

2.

As soon as possible after the October 1 release of the application, complete and submit the free FAFSA form at fafsa.gov.

3.

Refer to the FAFSA deadlines as you work through the financial aid process.
Please note the federal aid deadlines and the state aid deadlines included in the document and that different states and colleges have different deadlines.

Helpful Hint

Federal Student Aid offers a great resource to help avoid scams. Be cautious as you come across offers to help find financial aid. Some things are too good to be true.

Download our Navigating Financial Aid Options flyer for reference.


3 Main Types of Loans for College

Maximum LoanNeed BasedPayback
Responsibility
RateGrace Period
Stafford Loan Maximum total debt at graduation (aggregate loan limits) is $57,500, with no more than $23,000 in subsidized loans Subsidized: Yes
 
Unsubsidized: No
Student Subsidized: 4.66% Fixed
 
Unsubsidized: 6.21% Fixed
6 Months
Perkins Loan $5,500/year Undergraduate
 
$8,000/year Graduate
Yes Student 5.00% Fixed 9 Months
PLUS Loan Cost of education minus any financial assistance received No Parent
Student
7.21% Fixed Within First
60 Days

Chart source: U.S. Department of Education. Federal Student Aid on the Web. http://studentaid.ed.gov, December 2017.

Next Steps

Open an Account

Open an NJBEST account online

Open Account

Apply for Financial Aid

Complete and submit the form.

Apply for FAFSA

Want to Speak with Us?

We’d love to answer any questions live.
Call us at (877) 4NJ-BEST / 465-2378