Finalize financial aid paperwork

Overview

Finalize all remaining financial aid paperwork by mid-June. Federal and state aid requires additional forms after the initial FAFSA/CADAA submission.

Required Paperwork

FAFSA/CADAA Final Steps

• Accept gift aid (grants, scholarships)
• Decide on loans (accept, reduce, decline)
• Accept work-study or decline
• Confirm enrollment status (full-time, half-time)

Master Promissory Note (MPN)

• Legally binding loan agreement
• Required for federal loans
• Online signature at studentaid.gov
• Applies to all loans for up to 10 years

Loan Entrance Counseling

• Online at studentaid.gov
• Learn about borrowing
• Rights and responsibilities
• Takes 30-60 minutes
• One-time (first year)

Institutional Aid Forms

• Some schools have additional forms
• Scholarship acceptance letters
• Renewal agreements
• GPA requirements acknowledgment

Tax Transcripts (IDOC)

• If required by school
• IRS tax transcript (not just tax return)
• Upload to IDOC or school portal
• Both student and parent transcripts

Timeline Checklist

• [ ] Accept financial aid package
• [ ] Complete Master Promissory Note
• [ ] Complete Loan Entrance Counseling
• [ ] Accept scholarships
• [ ] Submit institutional aid forms
• [ ] Upload tax transcripts if required
• [ ] Review first bill estimate
• [ ] Set up payment plan if needed

Understanding Your Bill

Fall Semester Bill

• Tuition and fees
• Room and board
• Campus fees (athletics, transportation)
• Technology fees
• Student activity fee
• Insurance (if applicable)

Reductions

• Financial aid applied
• Scholarships applied
• Work-study earnings (if confirmed)
• Payment plan option

Balance

• What your family owes
• Due date typically August 1-15
• Late payment fees if not paid

Payment Options

Pay in Full

• Single payment before semester
• Check, credit card, wire transfer
• Most common for families who can afford

Payment Plan

• Divide semester cost into monthly payments
• Usually no interest
• Administrative fee may apply
• Set up through bursar's office

Third-Party Payment

• Employer benefit
• Military benefit (GI Bill)
• State aid programs
• Scholarship to school

529 Plans

If using 529 plan:

• Request distribution in advance
• Send directly to school
• Track tax implications
• Keep records

Sibling Financial Aid

If you have sibling in college:

• Report on FAFSA
• Can increase your aid
• Each college may re-evaluate

Loan Decision

Carefully decide on loans:

• Accept only what you need
• Prioritize subsidized > unsubsidized > Parent PLUS
• Consider living more modestly to reduce loans
• Loans last 10-25 years

Work-Study Planning

If accepting work-study:

• Find job on campus or approved off-campus
• Usually 10-20 hours per week
• $10-$15 per hour typically
• Earnings go directly to you (not tuition)

Special Circumstances

If life circumstances changed since FAFSA:

• Job loss
• Medical expenses
• Divorce or separation
• Death in family
• Contact financial aid office immediately

Verification

If selected for FAFSA verification:

• Additional documentation required
• Submit requested items promptly
• Delay can mean aid packages revised

FERPA Waiver for Financial Aid

If student is 18+:

• Parent cannot access financial aid info without waiver
• Student grants permission if desired
• Important for family involvement

Tax Implications

• Scholarships used for tuition/fees: tax-free
• Scholarships used for room/board: taxable
• Work-study earnings: taxable
• Grants typically tax-free
• Records kept for tax filing

Planning for Future Years

• Financial aid reassessed yearly
• FAFSA renewal required each year
• Keep GPA for merit scholarship renewal
• Report major family changes

Questions for Financial Aid Office

• "How does sibling in college affect my aid?"
• "What happens if family income changes?"
• "How do I renew aid for sophomore year?"
• "What scholarships should I apply for sophomore year?"

Common Mistakes

• Not accepting aid on time
• Declining subsidized loans (they're the best kind)
• Missing MPN deadline
• Not setting up payment plan
• Ignoring bill and getting dropped from classes

Cost-of-Living Adjustments

• Summer earnings for cost of living
• Work-study during semester
• Textbook costs ($500-$1,000/year)
• Personal expenses
• Travel home

First Bill Timing

• Due August 1-15 typically
• Late fees begin 2-4 weeks after
• Classes cannot be attended without payment
• Worst-case: dropped from enrollment

Financial Literacy

Learn:

• How credit cards work
• Building credit responsibly
• Student loan repayment
• Budgeting for college
• Savings habits