Many students are receiving follow-up letters from their initial financial aid award letter, notifying them that their original award amount has been reduced.  In some cases, a grant they were originally awarded has been decreased or cut entirely.  Some colleges and universities and/or states that award financial aid programs may have originally estimated eligibility while waiting for their state budgets to be set and/or they determine the number of eligible students.

In the past, this estimation process has worked successfully. This year, with more students than ever qualifying for these grants and programs (plus many state budget cuts), students are experiencing a decrease in the actual amount of money they receive.  Basically, when the demand and need for these programs increased, the money available decreased.  The result: students being notified that money they thought they were going to receive no longer is available—requiring them to find other ways to fund higher education.

Students and parents that find themselves in this situation should write an appeal letter to the school’s financial aid office, if you have experienced a change in your family’s financial status (such as a job loss).  The school may find you are eligible for more financial aid.  Then try the following (listed in no particular order):

1.     Exhaust your options for “gift aid” (scholarships and grants).  For more information, visit http://mappingyourfuture.org/paying/schlolarships.htm. Federal grants:

a.     Federal Pell Grant

b.     Academic Competitiveness Grant (ACG)

c.     National Science and Mathematics Access to Retain Talent (SMART) Grant

d.     Teacher Educations Assistance for College and Higher Education (TEACH) Grant

e.     Federal Supplemental Educational Opportunity Grant (SEOG)

2.     Consider student loans and exhaust your federal student loan eligibility first. If you are eligible to receive student loans, inquire with your school’s financial aid office to see if you have exhausted both your subsidized and unsubsidized options.

3.     If you have exhausted all of your federal student loan options, considering having a parent apply for Parent PLUS loan.

If you find you still are in a bind during the fall semester and you are unsure of how to finance the rest of your postsecondary education (or are overwhelmed with the amount of loans you will need to borrow), you may want to consider the following:

·         Find a part-time job

·         Move back home while attending school

·         Transfer to a less expensive college or university

Whatever situation you find yourself in, don’t give up on your dream!  Talk with you financial aid office at your school--you may find a solution to your problem!