States Put Squeeze on Public Universities

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The cutbacks underscore what Student Aid Financial Services, Inc., the oldest and largest student aid advisor, reported - anxiety and even desperation in the early days of the student aid season. It reported calls for advice and help preparing the federal aid application, known as the FAFSA, up more than 40% in the first 5 days of the year compared with the same time last year. Given the college and state shortfalls for aid, families and students must zero in on applying for aid now as it is largely a first-come, first-served world. The 2009-2010 FAFSA asks 137 tax and asset questions so be sure if you're going to an independent preparer to make sure they have as a goal to maximize your eligibility and to double check for errors. The Dept of ED lets you file the FAFSA online for free but it says millions don't apply because of the "red tape." Another 2 million or so FAFSA applications last year were rejected for errors (the form is complex) and errors cost time and could make a student lose out on aid. So investing a few dollars in professional help or setting aside time (2-3 hours) to really study the Dept of ED's instructions and form is very important.
Student Financial Aid Services reported that it's seeing many more upper income families apply for aid because their home equity is too low to tap into because of the recession.
Don't let the competition for student aid stop you from applying. Nearly every student is eligible for some form of financial aid, including low-interest federal Stafford and/or parent PLUS loans, regardless of income or circumstances, provided a student:
• is a U.S. citizen, a U.S. national, or an eligible non-citizen;
• has a valid Social Security Number;
• has a high school diploma, GED, or equivalent;
• is registered with the U.S. Selective Service (if a male ages 18 to 25);
• completes a FAFSA promising to use any federal aid for educational purposes;
• does not owe refunds on any federal student grants;
• is not in default on any student loans; and
• has not been found guilty of the sale or possession of illegal drugs during a period when he/she received federal student aid.

Mary Fallon of CA 2:40PM January 14, 2009

This is a dance that we (America) do about ever 5-7 years to higher education (especially public) when a recession comes along, then after, we dig ourselves out of the mess, we have put higher education in over the next 5-7, we do it again. The crazy thing is as we come out of the recession and start funding higher education again, we start moaning about how America is falling behind other countries (even some third world countries)--who even without a third of our resources have continued to fund their higher education systems, thus, making steady and ONGOING progress. You can't have it both ways, either you are committed to quality education or you keep it right in the middle of the funding circus. Very simple but for America, very sad.

Abraham of NC 7:57AM January 14, 2009