Common Mistakes Students Make When Applying for Financial Aid

Figuring out how to finance your education can be overwhelming. Not only do you have to figure out all of the different types of aid available, but you also have to juggle applications and deadlines at the same time. Here at the Higher Education Student Assistance Authority (HESAA) we want to help make the process as smooth as possible for you, so we are going to talk about five common mistakes students make when applying for financial aid.

Mistake # 1 – Not Applying at All

This one may seem obvious, but it’s really easy to count yourself out for financial aid simply because you think you won’t qualify. In reality, you have nothing to lose and everything to gain from applying for all different types of financial aid. While you may not qualify for certain types of funding, you might be the perfect candidate for others. Complete the FAFSA form to get started!

Mistake # 2 – Not Applying Soon Enough

Sometimes we fall into the trap of thinking that as long as we apply by the deadline that we have as good of a chance at getting financial aid, grants, and scholarships as those that applied early. However, this isn’t always the case. Financial aid is often awarded as applicants apply and so there may not be as much money left for those that apply right before the deadline. While you can’t guarantee that you’ll receive funding, you can guarantee that applications are submitted early enough for top consideration.

Mistake # 3 – Not Knowing Your Options

Finding success in paying for school comes from knowing the different types of aid available to you. Students often finance their education through a number of different ways including

• Personal savings
• Family assistance
• Federal aid, scholarships, grants, and loans
• Private grants and scholarships
• Supplemental loans
• Working part-time while attending school

Here at HESAA, we encourage you to take some time to research all of the ways you can finance your education.

Mistake # 4 – Not Asking for Help

There are so many people that can help you apply for financial aid. A parent or caregiver is often your closest and best resource, but you should also consider asking your High School guidance counselors, siblings, teachers or other helpful mentors in your life. You may find that specific mentors are best suited to assist you with certain types of financial aid. For example, your parents will be a great help when filling out the Free Application for Federal Student Aid (FAFSA) and may also help you by co-signing for a supplemental loan. In contrast, your High School guidance counselor is one of the best resources for learning about local and national scholarships and grants. Regardless of those you choose to ask for help, the important thing is that you don’t try to go through the application process alone.

Mistake # 5 – Not Having a Contingency Plan

Even if you’ve done everything in your power to get yourself financially prepared for college by saving money, filling out the FAFSA and applying for grants and scholarships you still won’t have a guarantee that you will receive enough funding to cover the cost of college. In these cases, many students will also apply for a federal student loan and/or supplemental loans like the New Jersey College Loans to make ends meet. While nothing is better than free money, these loans still make attending college a possibility.

What is the New Jersey Tuition Aid Grant (TAG)?

At HESAA, our mission is to provide students and their families with financial information and resources to help those wishing to pursue education beyond high school. We have lots of information about different types of student financial aid options on our website, but today we are going to share information about the New Jersey Tuition Aid Grant (New Jersey TAG) program. This need-based grant is one of the most generous programs in the nation, and the program is also one of the most popular. One-third of all full-time students attending school in New Jersey receive grants through the New Jersey TAG.

Support through New Jersey TAG isn’t limited to just full-time students either. Part-time students attending a county school taking between 6-11 credits are also eligible for an award.

What You Should Know About TAG:

NJ TAG Benefits

Awarded grants through New Jersey’s TAG program may cover up to the full cost of tuition. The amount that you receive is based on several things including the cost of attendance, your financial need, and the availability of funds.

Another great benefit is that the grant may be renewed annually as long as you continue to meet the eligibility requirements.

To give you an idea of what the maximum grant awards are for 2016-2017 take a look at the list below:

• County Colleges - $2,680
• State Colleges & Universities - $7,096
• Independent Colleges & Universities - $12,438
• Rowan - $8,080
• Rutgers - $9,468
• NJIT - $10,986

Verify Your Eligibility

Before you apply, make sure you read through the following requirements to make sure you are eligible to receive a grant:

• Have a high school diploma or recognized equivalent
• Demonstrate financial need
• Be a U.S. citizen or an eligible non-citizen
• Be a legal resident of New Jersey for at least 12 consecutive months immediately prior to enrollment
• Be registered with Selective Service (if required)
• Maintain satisfactory academic progress
• Be a full-time undergraduate student enrolled in an approved degree or certificate program

In addition the eligibility requirements, there are a few things that disqualify you from receiving a grant. Take a look at the reasons below and make sure you are eligible before applying.

• You have a bachelor degree or associate degree if enrolled at a two-year college
• You received the maximum allowable number of grant payments
• You owe a refund of a Federal or State grant
• You are in default on a Federal or State loan
• You are enrolled in a program leading to a degree in theology or divinity

Know the Deadlines

The Federal Application for Free Student Aid (FAFSA) must be received (not postmarked) by the federal processor by the dates indicated below to be considered for TAG:

2017 - 2018 Academic Year

• Renewal TAG recipients - April 15, 2017
• All other applicants (fall semester or full academic year) - September 15, 2017
• All other applicants (spring semester only) - February 15, 2018

Apply through HESAA

Applying for the New Jersey TAG is easy. Once you’ve filled out your FAFSA, simply register for an account at HESAA and submit the additional New Jersey questions before the deadline. We’ve done our best to make the application process easy. In fact, we even have an online estimator that will help you estimate your potential TAG award. We encourage you to use this financial planning tool early to assist in your financial preparations.

We hope you have a better understanding of what the New Jersey TAG program is about and what it can potentially offer you. We encourage all qualified students interested in attending school in New Jersey at one of our participating institutions to apply for this grant. If you end up not qualifying for a New Jersey TAG grant, visit HESAA to see what other student financial aid options might work for you.

Student Financial Aid from New Jersey’s HESAA

Getting ready for school? Wondering what is available for Student Financial Aid in New Jersey? The New Jersey Higher Education Student Assistance Authority (HESAA) helps students like you find the financial aid that they need in order to get a higher education. With their mission of “Providing students and families with financial and informational resources for students to pursue their education beyond high school,” HESAA seeks to provide opportunities for that might not otherwise be available through student loans, scholarships and grants.

As you can see in the infographic above, HESAA provides financial aid through many different channels. If you are looking for programs to help you save for college, you may consider looking into the NJBEST program, which helps families plan and save for college.

A popular program used by about ⅓ of New Jersey’s college undergraduates, the Tuition Aid Grant (TAG) program is a need-based grant that may cover up to the cost of tuition based on financial need, cost of attendance, and available funding.

If you are looking for Scholarships, and were part of the top 15% of your class during Junior or Senior year, the NJ STARS program can help you. Created with New Jersey’s highest achieving students in mind, the NJ STARS award can cover the cost of tuition for up to 5 semesters of continuous full-time enrollment in a degree program.

For help getting started, or just to learn more, visit HESAA.org.

Where to Apply for Student Financial Aid

Financing your education can seem like a daunting task. You already know that you should look into financial aid options, but you aren’t sure about where to start. Here at the Higher Education Student Assistance Authority (HESAA) we are here to help you know where to apply for student financial aid. Follow these easy steps and you’ll be on your way to financing your education:

1. Apply for Federal Aid

Complete the Free Application for Federal Student Aid (FAFSA). Federal Student Aid is the largest provider of student financial aid in the nation. It provides financial assistance in the form of grants, loans and a work-study program. There is no age limit to receiving assistance; you simply need to meet all of the eligibility requirements. The FAFSA application is available online and the earlier you fill it out the better. Be sure to visit their website and familiarize yourself with the current deadlines. They even have an Early Estimator Calculator that can help you get a rough idea of an early estimate of your eligibility for federal student aid. They recommend juniors in high school or even those in middle school to use this calculator. Having an idea of the funding that may be available to you early on will help you create a successful strategy for paying for school.

2. Apply for State-funded Grants and Scholarships

Make sure you are also considered for state assistance. When submitting your FAFSA, check to see if your state offers state funded grants and scholarships. Applying for state funding in New Jersey is easy and convenient. After you’ve submitted your FAFSA online, simply register for an account through the HESAA website and answer the New Jersey grant questions. The New Jersey Tuition and Grant Program (TAG) is one of the most generous need-based financial aid programs in the nation. It offers funding for full and part-time students attending select schools in New Jersey. The TAG program also offers an online NJ TAG Estimator to help you see what types of funding may be offered to you. New Jersey also has merit-based scholarships available through the New Jersey Student Tuition Assistance Reward Scholarship (NJ STAR). These scholarships are eligible to those who rank in the top 15% of their class at the end of their junior or senior year of high school who plan on attending select county colleges in New Jersey. In addition to these two programs, there is information about many more state funded grants and scholarships available through HESAA.

3. Look into Supplemental Student Loans

Consider investing in a student loan. There are times when college savings, scholarships, grants and federal loans just aren’t enough. Federally funded student loans, both subsidized and unsubsidized, tend to be the best and most affordable options. However, you may not qualify for these student loans, or you may not qualify for a loan large enough to cover all of your costs. When this is the case, students and their families can begin looking at private & supplemental loans like New Jersey College Loans to Assist State Students (NJCLASS) available through HESAA. HESAA will help you determine if you are eligible for NJCLASS loans. These supplemental student loans are offered to those New Jersey residents who plan to attend an eligible in-state or out-of-state school and to out-of-state students attending an eligible school in New Jersey.

Knowing the types of financial aid available to you can help you start your financial planning early. Having a plan on how you will pay for school is one of the first steps in setting yourself up for success. Following these easy steps will help you make one of the smartest investments in your future.

How to Receive the NJ STARS Scholarship

NJ STARS: New Jersey Student Tuition Assistance Reward Scholarship

Here at HESAA, we understand that it can be financially difficult for families to send their children to college, even if those children are exceptional students. However, Grants and Scholarships (i.e. financial aid that does not need to be repaid) can make that dream much more attainable. The New Jersey Student Tuition Assistance Reward Scholarship (NJ STARS) program was created by the State of New Jersey in 2004 to help provide financial aid for New Jersey’s highest achieving students.

The NJ STARS award can be used to cover the cost of tuition (minus any State and/or Federal grants and scholarships) for up to eighteen credit hours per semester. This blog article should help you understand the basics of the NJ STARS scholarship.

NJ STARS Eligibility

In order to be considered for an NJ STARS scholarship, students must meet the following criteria:

• Be a Resident of the State of New Jersey — The student must be a U.S. citizen or eligible non-citizen who is a legal resident of the State of New Jersey for at least 12 consecutive months immediately prior to high school graduation
• Rank in the Top 15% of Their Class at the end of either their junior or senior year of high school
• Complete a Rigorous Course of Study at the high school level
• Plan on Attending the New Jersey County College in Their Home County — If the student’s desired program of study is not offered at the county college where they reside or is oversubscribed for at least one year, they may attend another New Jersey county college
• Achieve an Acceptable Score on a College Placement Test, Demonstrating College Readiness — If remediation is required, the student must demonstrate college readiness by September 1st of the year following their high school graduation.

For up-to-date eligibility requirements, please refer to the NJ STARS Fact Sheet for the applicable year.

NJ STARS Application

To apply for the NJ STARS award, you will need to:

• Meet All Eligibility Requirements
• Apply for Admission to Your Home County College
• File Your Free Application for Federal Student Aid (FAFSA) Within State Deadlines (see deadlines for the 2017-2018 school year here)

Once these steps have been completed, you will receive notification regarding your NJ STARS eligibility from your home county college.

NJ STARS Renewal Requirements

Qualifying students may receive an NJ STARS award for up to five semesters of continuous, full-time enrollment in a degree program. However, they must meet additional eligibility requirements to continue receiving the scholarship. They must

• Maintain Continuous, Full-Time Enrollment in an Associate Program at Their Home County College
• Take at Least Twelve College-Level Credits per Semester
• File an Annual FAFSA Within State Deadlines
• Attain a Cumulative Grade Point Average (GPA) of 3.0 or Higher by the Start of Their Second Year of Enrollment

Successful NJ STARS scholars who wish to transfer to a New Jersey four-year public or private university or college in pursuit of a bachelor’s degree may be eligible to receive the NJ STARS II award.

When Should I Start Saving for My Child's College Education?

If you’ve ever looked at How Much College Actually Costs, you probably wonder just how early you should begin saving for your child’s college education. Here at HESAA, we wanted to help you answer that question. The truth is that the short answer is:

Start Saving for College as Soon as Possible.

That being said, let’s look at the long answer. Your ability to save for your child’s future education has a lot of influencing factors. First, before looking at saving for college, you need to be taking care of your current financial obligations, including all of your livings expenses and your current debt payments.

Next, you need to determine which savings goals matter most to you.

For example, you may want to figure out if you think it is more important for you to save for your child’s college education or for your own retirement. For many, saving for retirement takes precedence over college savings because they don’t want to become a financial burden on their children later in life and there are other financial opportunities that can help pay for college that are not available for retirees. Many financial advisors also suggest that you have a “rainy day” fund with 3-6 months worth of income in it and an emergency fund for large, unexpected occurrences like car repairs or medical bills.

You can, of course, start saving in each of these areas, because saving for one does not preclude saving for the others. However, determining your priorities will help you decide how much you can put into each savings category.

Why Should I Start Saving Early?

It is our opinion, however, that you should begin saving for your child’s education while they are still young. You may not be able to save enough money to pay for college outright, but anything you are able to save doesn’t have to be made up later using Grants, Scholarships, or Expensive Student Loans.

Interest Rates Make a BIG Difference.

Another reason to start saving early is that the length of your investment, coupled with compound interest adds up. Looking at a few savings examples will help illustrate why saving early can pay off.

If you start saving for college when your child is born and save $100 per month in an account that receives 1% compound interest, by the time your child turned 18, you would have invested $21,600, resulting in nearly $23,800 after interest.

On the other hand, if you wait until your child is 5 years old to start saving and put the same $100 per month away with the same 1% interest rate, you will have invested $15,600, resulting in close to $16,800 after interest.

In these examples, saving sooner resulted in much higher investment levels, of course, but the additional interest also resulted in an extra $1,000. If you are able to find a higher yielding investment, that difference grows exponentially. If we look at the same $100 per month investment at a 3% interest rate, it would result in over $28,800 over 18 years or just over $19,200 over 13 years.

As you can see, starting to save for your child’s education early can make a big difference in how much you can help them pay for college. Here at HESAA, we want to help you Plan for Your Child's Future. If you’re ready to start saving for you child’s future, you may want to look into qualified tuition plans like NJBEST, New Jersey’s 529 College Savings Plan.

How Cosigning a Student Loan Works

Between rising tuition costs and higher prices on everything from housing to books, many — if not most — college students find that student loans are their last hope for acquiring a higher education. Those students who find that borrowing money is necessary, even after College Savings Plans, Grants, and Scholarships, should look into ways to Minimize Their Student Loan Debt.

Additionally, if student loans are necessary, Federal Student Loans should be used as the student’s primary borrowing source. Federally backed loans typically don’t require a cosigner and provide additional benefits like lower interest rates, payment deferral while in school, tax deductible interest, and the possibility of deferral or forbearance during repayment.

Private and Supplemental Student Loans Often Require a Cosigner

There are times, however, when college savings, scholarships, grants, and federal loans just aren’t enough. Under these circumstances, students and their families can begin looking at private & supplemental loans like New Jersey College Loans to Assist State Students (NJCLASS) available through HESAA.

Because most college students either don’t have a good credit score or don’t have an established credit history, many private and supplemental lenders require a cosigner on student loans, but Cosigning a Student Loan Can Be Risky. Understanding how cosigning works is critical in this situation.

Why Is a Cosigner Needed?

Private and supplemental student loans are termed as unsecured consumer loans. That means that they are not backed by the government and they aren’t secured by a tangible asset like a house or a car, making them riskier investments because there is nothing to repossess if the loan defaults. When a student doesn’t have a good credit score or an established credit history, financial institutions will also see them as a risky investment because there isn’t any historic data indicating that this person is likely to pay back the loan. This typically results either in high interest rates, low borrowing limits, or both. It can even result in being turned down for a loan altogether.

However, many lenders will consider extending a loan with better terms if somebody is willing to cosign the loan with the primary borrower. The credit score and history of the cosigner will be taken into account and allow the lender to offer better interest rates, borrowing limits, and loan terms. While most student loan cosigners are the student’s parents, a cosigner doesn’t have to be related to the borrower.

What Does Cosigning Mean?

A cosigner — as the name indicates — signs the loan in tandem with the primary borrower. In essence, they guarantee that they will cover the debt if the primary borrower fails to pay back the borrowed money. Even though they don’t receive any money from the loan, the cosigner takes on equal responsibility for repaying the debt.

It’s important to note that any cosigned loans will show on the cosigner’s credit rating and credit history, and any late payments on those loans can and will affect their ability to borrow money themselves. If the primary borrower fails to make payments or defaults on the loan, the cosigner can be held responsible for repayment of the debt.

Cosigning a Student Loan Is a Big Responsibility

In many ways, cosigning a loan isn’t that different from taking out a loan yourself. Until the loan is paid back, you are financially responsible for its repayment. Before agreeing to cosign a student loan, you should carefully consider how doing so will affect you and your credit. You will need to be sure that you are willing and able to repay the loan if the primary borrower fails to make payments on the loan for any reason.

If you choose to cosign a student loan, you should carefully consider all aspects of the loan including the loan’s interest rate, term, repayment schedule, and penalties. Then, you should make sure that the primary borrower fully understands the risk you are taking on for them and how their action or inaction can and will affect your financial position.

What Are NJCLASS Student Loans?

Paying for College

Paying for college isn’t always easy, and with rising tuition fees, it can sometimes seem almost impossible. When college costs are looming, it can be easy to lose sight of the different ways you can meet these financial obligations, which is why HESAA is here to help. Generally speaking, there are three main sources of funding that can be used to pay for school. First and foremost, educational savings put aside by the student or their family can be a great advantage in attending school affordably.

Second, prospective and current students should always look into eligibility requirements for Grants and Scholarships. Choosing not to look into these types of funding can be a big mistake. Because they don’t have to be repaid, both grants and scholarships are, in essence, free money.

Student Loans

When educational savings, grants and scholarships aren’t enough, it’s time to start looking at student loans. Federally funded student loans, both subsidized and unsubsidized, tend to be the best and most affordable options. However, there are times that students and/or their families make too much money to qualify for these low-interest loans or they don’t qualify for high enough loan amounts to fully cover college costs. When this occurs, private or supplemental student loans may need to be considered.

Private student loans tend to have the highest interest rates of any loans available for education, and should typically only be considered as a last resort. Supplemental student loans, on the other hand, are available from various sources, including the U.S. Department of Education and various state agencies. For example, Direct PLUS Loans are offered to parents of dependent undergraduate students and to graduate or professional students through the U.S. Department of Education.

NJCLASS Student Loans

Students who are from New Jersey or who plan on attending college in New Jersey should determine if they are eligible for NJCLASS student loans, supplemental loans available through New Jersey’s Higher Education Student Assistance Authority (HESAA). New Jersey College Loans to Assist State Students (NJCLASS) are supplemental student loans offered to two specific groups of college students:

New Jersey Residents Who Plan to Attend an Eligible In-State or Out-Of-State School
Out-Of-State Students Attending a School in New Jersey

These loans can help you pay for college costs that are not covered by other sources of funding like savings, grants, and scholarships. The program was established in 1990 and most repayment plans offer lower fees and interest rates than Federal PLUS Loans. Like PLUS Loans, NJCLASS loans can be utilized by undergraduate students’ families and by Graduate and Professional students. NJCLASS loans are also available for consolidation of student debt.

For New Jersey college students and their families, NJCLASS loans are often a better choice than PLUS Loans because they tend to offer lower fees and interest rates than their federal counterpart. Most borrowers have a choice of repayment options and can begin repayment while they are still in school or after graduation. Additionally, there are no prepayment penalties for paying off NJCLASS loans early, so borrowers can save even more money on student loan debt interest by paying more than their minimum payment each month.

In conclusion, NJCLASS loans can be a great option for those seeking a college education in New Jersey. However, you should always remember that if you need to borrow money for a college education, you need to Borrow Wisely.