Published: Sept. 29, 1999

Editors: CU-Boulder has joined with more than 1,200 colleges and universities in the national College is Possible campaign, sponsored by the Coalition of America's Colleges and Universities. The goal of the campaign is to enhance public knowledge about financing college education. The following is one in a series of articles designed to provide information about options and sources of assistance for student aid.

For many students, going to college is possible only with the help of financial assistance. Statistics collected by the U.S. Department of Education show that seven out of 10 full-time students receive some form of financial aid.

"Thanks to the availability of student financial aid, my dream of graduating from college is almost a reality," said Randy Huff, a CU-Boulder senior majoring in English literature.

According to Barbara Schneider, interim executive director of enrollment management at the University of Colorado at Boulder, each year more than half of the students enrolled at the Boulder campus apply for and receive some form of financial aid. Total aid for undergraduates and graduate students is approximately $120 million and is usually a combination of loans, work-study, scholarships and grants from institutional, private, state and federal sources.

A 1995-96 U.S. Department of Education National Postsecondary Student Aid Study showed that about half of all bachelorÂ’s degree recipients graduate with student loan debt. Among these students, the average amount borrowed is about $12,000 for those graduating from public institutions and about $14,300 for those graduating from private colleges and universities. The average monthly payment to pay off these amounts in 10 years is $150 and $175, respectively.

Most student aid is awarded on the basis of financial need. Need is defined as the difference between the total cost of attending a particular college and the amount a family is expected to contribute to paying that cost. This "expected family contribution" can differ from institution to institution, but generally is based on a federal formula that takes into account parental and student income and assets. Simply put, the amount of aid that is distributed is based on the following formula: Cost of Attendance – Expected Financial Contribution = Financial Need.

CU-Boulder, along with the Coalition of American Colleges and Universities, wants to get a three-word message out to Colorado families: "College is Possible."

More information on student aid can be found on the World Wide Web at . Information on CU-Boulder admissions can be found at . Additional information on how to pay for an education can be found at , or from the U.S. Department of Education's special toll-free number for college information, 1-800-433-3243.

Following are Keys to Unlocking the Financial Aid Treasure Chests:

KNOW THE FACTS

o Financial aid funds are divided into three categories: 1) grants and scholarships, 2) work study and 3) federal and alternative loans.

o Grants and loans are the most common types of student aid. More than half of all full-time undergraduates received grant aid in 1995-96 and the average amount they received was just under $4,000; about 44 percent took out a student loan in that year and the average amount borrowed was $4,350.

o Student aid comes from many sources, but the majority of funds come from the federal government. Federal student aid accounts for 72 percent of all funds awarded to students, states supply 6 percent and colleges and universities and private sources contribute 22 percent.

o Regardless of their parents' income, most students are expected to make a contribution to the cost of their education. Many students make this contribution with earnings from part-time or temporary jobs. Three out of four undergraduates work during the academic year. Many students hold work-study positions on campus as part of their financial aid award package.

o A substantial amount of aid is available in the form of loans, and is not necessarily based on need. All students, regardless of income, benefit from the low interest rates on federal student loans (although only those with need are exempted from interest charges while they are in school), and many institutions, especially those in the private sector, offer grants to students based on academic and other non-financial criteria.

Several federal tuition tax benefits are available to families with incomes below $100,000, and a growing number of states are offering scholarships to all students who meet certain academic criteria. Many national and community-based organizations also offer scholarships that are based on criteria other than financial need.

PLAN AHEAD

o Katy Mitchell, a CU-Boulder senior earning a double degree in EPO Biology and journalism, emphasizes the importance of seeking financial aid resources early.

"Most students have no idea of the vast number of resources available to them," she said. "I only heard about a lot of them at the end of my time at college, when it was too late to help me plan. Students really need to be educated about the cost of college while in high school, so they can make more informed decisions about which college to attend and how to pay for it, before it becomes a scramble for money once they are in college."

o If you or someone you know is interested in applying for financial aid, the Office of Financial Aid at CU-Boulder encourages all students to complete the Free Application for Federal Student Aid (FAFSA) each year in order to be considered for federal, state and institutional funds. Applications are available from colleges, high school counselors or on the web at .

Continuing students can apply for scholarships listed in the Guide to Financial Aid for Freshman and Transfer Students or the Guide to CU-Boulder Scholarships. Graduate students should contact their departments for information regarding grants, fellowships, and teaching and research assistant positions.