What Does A Financial Aid Advisor Do?

One of the most important jobs at a higher education institution is that of financial aid advisor. There's no doubt that any kind of higher education is expensive, whether it is at a 2-year community college, a four year college or university, a distance learning institution or even a trade school. The vast majority of students require some type of financial aid, and an advisor helps them through the application and approval process. They provide counseling on all the different types of financial assistance available. This usually begins with federal financial aid.

The U.S. Department of Education provides loans and grants to many students. Advisors almost always direct students to start with federal aid before they go other routes. The first step is to complete a FAFSA, which stands for Free Application for Federal Aid. This form can be completed and submitted online. Once approved, an advisor sits down with the student and goes over the different types of federal aid they have been approved for. The first loan a student usually gets is the Stafford Loan. Advisors explain this loan and how it works to the student.

Stafford loans are given to most every student. The maximum amount awarded depends on the grade level of the student. There are subsidized and unsubsidized loans, which are based on financial criteria. With a subsidized Stafford loan, the interest that is accrued is paid by the government until the student leaves school, which is when they begin paying on the loan and the interest. With an unsubsidized Stafford loan, the interest is paid by the student each month. This loan is not enough to cover an entire college education, so an advisor will go over the next recommended federal loan or grant.

Perkins loans are awarded to students with a high level of financial need. These loans are given on a first-come-first-serve basis, and funds are limited. The funds are given to the school by the government, therefore the student gets their Perkins loan from the school rather than the government even though the government provides the funds. If you want to apply for this loan your advisor will tell you to do so as soon as possible.

A financial advisor will also help you get grants, which are funds that never have to be repaid. There are private grants and federal grants like the Pell grant. There are also private grants available, as well as scholarships. Some scholarships are merit based, some are need based, and some have to do with one's gender, race, nationality or area of interest. The Internet is a great source if you want to look up information on scholarships, but your financial officer can help you also.






 

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Financial Aid News:

 

Despite Concern, Banks Give Student Loans the Old College Try - Wall Street Journal

Wall Street Journal
Despite Concern, Banks Give Student Loans the Old College Try
Wall Street Journal
Wells Fargo & Co. and Discover Financial Services, which are among the nation's largest student lenders, have also said they want to expand rather than shrink in student lending. The cost of college continues to rise and private student loans provide .
RBS Citizens expanding student loans businessPhiladelphia Business Journal

all 2 news articles »
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Number of the Week: Student Loan Bubble - Wall Street Journal (blog)

Number of the Week: Student Loan Bubble
Wall Street Journal (blog)
By Phil Izzo 368%: The jump since 2007 in the measure of consumer credit held by the government comprised primarily of student loans. If a student loan bubble were to pop, the government, not private banks, would be the one standing around with gum in .

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Three Financial Goals That Trump College Savings
Before opening a college account, you should tend to these three more urgent financial matters...


Financial literacy highlighted in ISU study
ISU researchers and the financial aid office are working to increase financial literacy after a study found that 9 percent of ISU students are unaware of just how much financial debt they are in...


IRS system helps with college financial aid application process
DALLAS EURCollege-bound students and their parents typically want to make every dollar and every minute of the college experience count including money spent on tuition and time spent on the college financial aid application process...


2 Wash. scholarship programs aid the middle class
A popular book a few years ago advised middle class parents to forget about saving for college. The author argued that since the federal government deducts a percentage of savings from the amount of financial aid for which a child could qualify, they could lose money in the end...


 

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