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A few months back, we wrote about helpful tips on maximizing merit aid, or aid based on a student’s attributes like academics, athletics and extracurriculars. For college applicants who aren’t deemed financially needy in terms of their FAFSA or EFC, merit aid can make a huge difference in the schools they can realistically afford to attend. Students and families seeking this extra financial aid boost should consider researching schools more likely to dispense merit-based awards but with so many colleges and universities in the U.S., which ones are the best financial bets?

Help has arrived in the form of U.S. News, which has compiled a top 10 list of schools that awarded the highest percentage of merit-based funding to non-needy students during the 2009-10 academic year (the stats do not include financially needy students who were given merit aid or students who received athletic scholarships or other tuition breaks). Take a look:

• Louisiana College - 88%
• Cooper Union - 68%
• Free Will Baptist Bible College - 61%
• University of Central Oklahoma - 54%
• Hawaii Pacific University - 52%
• Cumberland University - 50%
• New College of Florida - 49%
• Denison University - 47%
• Mayville State University - 46%
• DePauw University - 45%

High school students, does this data have you looking at these schools in a new light? Current college students attending one of the schools listed above, did merit aid make the difference as to whether or not you enrolled?

With the economy in a rut, the unemployment rate declining at a sluggish pace and the cost of a college education rising at an astronomical rate, now is the time to consider your options. Here at Scholarships.com, we can’t stress enough the importance of applying early and often for scholarships and financial aid, but when a college education is still just out of reach, some universities are willing to go the extra mile to help prospective students out. Rising high school seniors, take note: The University of Dayton is offering four years of free textbooks to first-year students who visit the campus and complete the Free Application for Federal Student Aid (FAFSA) form by the university’s March 1 application deadline.

According to Dayton officials, the free textbook program is an incentive for families to attend campus visits in a tight economy and as a way to urge families to complete the federal aid form, which is an essential piece of the financial aid puzzle. "Many families don't fill out the form because they believe they don't qualify or think it takes too much time. They miss out on opportunities to get affordable financing or grant funding," said Kathy McEuen Harmon, assistant vice president and dean of admission and financial aid.

Students who fulfill the university’s requirements will receive up to $500 per semester to purchase textbooks at the campus bookstore – funds good toward new, used or rental books. According Harmon, an estimated 75 percent of the first-year class is projected to take advantage of the offer, representing a $1.5 million annual commitment by the University. "We want them to fully understand the rewards of a University of Dayton education and know that those rewards are not out of their reach," Harmon said. "This is a very tangible way to demonstrate our commitment, one they can see immediately."

What do you think of the University of Dayton’s efforts? Are free textbooks enough to get you to commit to an institution? Should others follow suit? Let us know what you think.

The financial aid process can be a daunting one but if you’re planning on attending college any time soon, you should know that there are tons of federal student aid options out there – from Pell Grants to Perkins Loans to FAFSA – but your eligibility to receive aid depends on your level of need and, subsequently, how much aid you are eligible to receive. So, to the folks right in the middle: How does a tax credit sound? The American Opportunity Tax Credit, created in the 2009 economic stimulus bill, expires in 2010, but President Obama has proposed making it permanent, with a price tag of $58 billion over 10 years.

Now what does this mean to you? Because the Opportunity Tax Credit is more generous than its predecessor, the Hope Tax Credit, it provides a credit of up to $2,500 rather than $1,800 and it phases out at a higher income level – $160,000 for married couples filing jointly instead of $100,000. According to a report by the Department of Treasury, it’s also partially refundable so students and families with little or no tax liability can receive up to $1,000 of it as a tax refund. The report comes as lawmakers are debating a bill to extend several expiring tax credits. Recent versions would not extend the American Opportunity Tax Credit, but President Obama hopes lawmakers will reconsider.

"The president obviously feels strongly that this is an important relief for middle-class families," said Gene Sperling, counselor to the Treasury Secretary.

The Department of Education has recently announced that the FAFSA will soon undergo a few changes to accommodate students with same-sex or unmarried parents who cohabit in order to more accurately ascertain an applicant’s financial situation.

The forms, which will be introduced for the 2014-15 school year, will allow students to designate their parents as “Parent 1 (father/mother/stepparent)” and “Parent 2 (father/mother/stepparent)” rather than just mother and father. “All students should be able to apply for federal student aid within a system that incorporates their unique family dynamics," said U.S. Secretary of Education Arne Duncan. "These changes will allow us to more precisely calculate federal student aid eligibility based on what a student's whole family is able to contribute and ensure taxpayer dollars are better targeted toward those students who have the most need, as well as provide an inclusive form that reflects the diversity of American families."

The department has said that the changes will not impact a vast majority of applicants but it could potentially (read: very likely) translate into reduced aid for students with same-sex or unmarried parents. Why? Those parents who do not benefit from filing joint tax returns will likely disqualify their children from financial aid if it’s found that jointly they are above the income threshold. So while the changes are considered progressive, they’re just slightly off the mark when it comes to helping “unique family dynamics.”

Figuring out the bottom line when it comes to the cost of your college education is definitely a stressful part of the process. With everything that goes into determining your financial aid package (your parents’ income, your earnings and your family’s net assets), it’s important to understand that merit aid – aid based on a student’s attributes (academics, athletics, extracurriculars, etc.) – is available to student regardless of their “need.” New federal rules are blurring the distinction between scholarships awarded on merit and grants awarded because of a student’s financial need – for instance, a growing number of colleges now award “need-based” aid to students from families earning six figures! Who would have thunk it?! So, we’ve compiled a few helpful tips to maximize your chances for merit aid and increase your overall financial aid package.

• Fill out the FAFSA. Federal rules have changed. College aid officials are now allowed to award need-based aid to students whose parents earned decent salaries last year but have recently been laid off, as well as make accommodations for a family’s unique circumstances, such as high medical bills.
• Apply to schools where you’d rank at the top. While your dream school might be an Ivy League, you should apply to at least a few colleges where your GPA would put you in the top 25 percent of the student body.
• Apply to schools that offer generous need-based aid. In the 2009-10 academic year, Louisiana College reported that 88 percent of students were receiving non-need based financial aid. Do the schools you’re considering boast the same kind of aid?
• Do the research. If you’re interested in a college, find out what it has to offer when it comes to merit aid. You might qualify for more awards than you think!
• Before making a final decision, compare net prices. Consider the cost of attendance in its entirety including tuition and fees, room and board, books and transportation. The school that offers the most in merit aid might not be the best choice; sometimes the college offering the largest merit scholarship might have the highest net price because its tuition is higher.
• Don’t be afraid to negotiate. Believe it or not, you have negotiating leverage when it comes to your merit aid package. If you have received admission letters from two or more universities and your first choice has a higher net price than your second choice, contact that institution! Some schools might be willing to match the merit aid offered, which would provide you the opportunity to attend your first choice school for less money!

With just over a week left to enter our “You Like Me…You Really Like Me” Facebook Scholarship, we wanted to remind our fans of a key piece of the judging criteria: The person who best describes how Scholarships.com is helping them prepare for and afford college will win the $1,000 prize. So, while we love hearing that you heart us, we’d much rather have you detail how, for example, our blog post on standardized testing helped prepare you for the dreaded SATs or how our College Prep section gave you a jumpstart on your college planning. Remember, the more you share, the better your chances are at winning.

If you’re new to Scholarships.com and unfamiliar with its contents, take a tour and check out everything we have to offer. Our site is teeming with info – from figuring out the puzzle that is the FAFSA and strategies for winning scholarships to living with a roommate and preparing for an internship – so if you like us (really like us), tell us why. Just be sure to do it soon: The deadline to “like” and leave your thoughtful comment is March 31st. For more details, check out our Facebook page. Good luck!

Loans don’t incite pleasant feelings in students, in anyone on the borrowing side. It doesn’t help that the media has made it a point to discuss, extensively, what appears to be the newest trend… mortgage loan defaulting. Student loans aren't as large as mortgages, but for a growing number, they are catching up.

Regardless of cost, there are a lot of dedicated students out there, and until the college-financing system undergoes a major overhaul (cross your fingers but don't hold your breath), loans may be inevitable. Before taking out loans, students should complete a FAFSA and conduct a free scholarship search. Those who still need money should apply for federal loans. Only after exhausting government loans should one consider private student loans

As a result of the recently passed College Cost Reduction and Access Act, there will be a decrease in interest rates on federal college student loans. That's great news for students with large financial aid needs, but loan rates have not yet been changed. Even before government rates become less expensive, it is in a student's best interest to see what the government has to offer before looking elsewhere. Below are the federal student loan options available to those in need.

Stafford Loans- Students who are interested in taking out a Stafford Loan (or other types of federal student loans) will need to fill out a FAFSA. The amount that a student can borrow will depend on a student’s year in school as well as on whether the Stafford Loan is subsidized or unsubsidized (only a portion of the amount may be subsidized). Stafford Loans disbursed after July 1, 2006 are fixed at a 6.8 % interest rate, but lower rates are in the works.

• For the 2007-2008 school year, dependent undergraduate students attending college full time may borrow between $3,500 and $5,500 (borrowing limit increases after each completed year).
• Independent undergraduates or dependents whose parents were denied a PLUS Loan may borrow between $7,500 and $10,500 (again, freshmen may take out less than seniors).
• The maximum amount of a professional or graduate student loan is a bit larger—as is graduate tuition. This year, students may borrow up to $20,500, regardless of their year in graduate school.

PLUS Loans- The Parent Loan for Undergraduate Students or PLUS Loan is offered to, as the name suggests, parents of undergraduate students. Recently, the loan has also been made available to graduate school students. PLUS Loan amounts may not exceed the total cost of attendance minus any other financial aid received. If the student’s estimated cost of attendance (amount determined by each school) is $6,000 and the student receives $4,000 in aid, only $2,000 may be borrowed. To take advantage of this loan, students must max out their Stafford Loans, and doing so is in a student’s best interest anyway. PLUS Loans have higher interest rates than Stafford Loans; those disbursed on or after July 1, 2006 are fixed at 7.9% for Direct PLUS Loans and at 8.5% for FFEL PLUS Loans.

Perkins Loans- Although Perkins Loans are made with government money, they are normally classified as campus-based aid because they are administered by schools. Perkins Loans are offered to students with exceptional need, and only a limited amount is available. Once a school runs low on Perkins Loan funds, students will not receive as much (the same holds true for federal-work study opportunities). This is why students are generally advised to submit their FAFSA early. The earlier they apply, the greater their chance of receiving some forms of aid. The loan amount received through the Perkins Loan program depends on the amount a school has, on already-received aid and on the financial needs of the student. Students who qualify can borrow up to $4,000 each year and pay it off at a 5% student loan rate.

Each year at about this time, I see students, desperate for financial aid of any kind, begin to despair juuuust a bit. “This scholarship is due in two days… I can’t put together a application/winning essay that quickly!” or something along those lines.  Others complain that the deadlines have passed for many of the scholarships for which they might have applied. There is only really one solution for this and that is for you to begin searching for scholarships earlier in the year."

I wrote this article for Campus Compare. You can read the rest here!

The Federal Supplemental Educational Opportunity Grant (FSEOG) is a form of federal student aid that does not need to be repaid. It is awarded to students by colleges and universities, and a mixture of federal and school funds is used to pay for the program. As FSEOG awards are based on financial need, students interested in obtaining this form of financial aid will have to complete a FAFSA and have their Expected Family Contribution (EFC) calculated. A standard federal formula will be used to determine a student’s financial need, but schools will have a large degree of leverage over how much each student will receive.

To obtain the FSEOG, a student must attend one of the approximately 4,000 colleges and universities that participate in the federal program.  Schools that take part in the FSEOG program receive grant money from the government but must still contribute 25 percent of the funds.

Individual colleges and universities determine how much grant money each student will receives based on fund availability, the time a student submits their FAFSA (earlier is better) and the student’s level of need. The yearly awards may vary from $100 to $4,000 per year, and those who were eligible for Pell Grants will be considered first.

If a student is awarded an FSEOG, the school may pay them directly, credit their school account or both. Depending on the school’s term system, students may be paid each semester, trimester or quarter. Regardless of the institutions set course timeline, the money must be paid in at least two installments.

Financial Aid Acronym Overview

• FAFSA (Free Application For Student Aid)


• FSA (Federal Student Aid)


• EFC (Expected Family Contribution)


• FPL (Federal Perkins Loan Program)


• SEOG (Federal Supplemental Educational Opportunity Grants)


• FWS (Federal Work Study)


• PLUS (Parent Loans For Undergraduate Students)


• COA (Cost of Attendance)


• FFEL (Federal Family Education Loan)


• LEAP (Leveraging Educational Assistance Partnership)


• SSIG (State Student Incentive Grant)


• CPS (Central Processing System)


• SAR (Student Aid Report)

Campus Based Financial Aid Programs

• Federal Supplemental Educational Opportunity Grants. These grants are typically awarded to students with a considerable need for financial aid. The amounts awarded vary from $100 to $4000 dollars per year. This amount depends on the students need and the funding available for a given academic year.


• Federal Perkins Loan Program. This program is also designed for students with an exceptional need for financial aid and is available to undergraduates and graduates alike. Interest does not accumulate while the recipient of the loan is in school and repayment of the loan is delayed until nine months after graduation.


• Federal Work Study. Also a program that can be relied upon by undergrads and grads alike. Students who participate in this program have the opportunity to earn money towards expenses related to their education. Typically these students work about 10 hours a week and earn at least the minimum wage.