October 2010
Federal Government Provides Online Resources for Financial Aid Counseling Under HEOA
Higher Education Opportunity Act Background
In 2008, Congress passed the Higher Education Opportunity Act, or HEOA, reauthorizing the Higher Education Act, which
first became law in 1965. HEOA includes provisions defining diploma mills, allowing dual enrollment, requiring transparency
in the cost of tuition and improving the FAFSA and the filing process. Other provisions were included to improve consumer
information, expand the federal Pell Grant and Work Study programs, extend TRIO and GEAR UP programs, authorize
funding for LEAP and GAP programs, regulate student loans and publish improved information on the Federal Student Aid
Web site.
In compliance with the latter provision of HEOA, the Department of Education provides extensive information related to
college planning, pricing and financial aid online. The “Funding Your Education” section of Student Aid on the Web lists a
number of free and easy to use recourses offered by the Department, many of which are described in this brief. Exploring
these resources will help counselors to better understand the complexities of the financial aid process and better help their
students acquire funding for their postsecondary education.
Research and Planning
Students enter the search for financial aid with varying levels of knowledge and experience. Though counselors willbe
able to answer many of their students’ questions without referencing external sources, online resources can help them find
out more about complicated or obscure topics including eligibility, saving money for college and loan consolidation. The
Department of Education also provides extensive information on the main federal sources of aid, including grants, Stafford
Loans, Direct PLUS Loans for Parents, and federally-sponsored campus-based aid.
MyFSA
Once students are ready to transition from gathering background information to searching for financial aid, counselors can
help them create a MyFSA profile to access personalized funding sources through the Financial Aid and Scholarship Wizards.
Profile information can even be transferred directly to the Free Application for Federal Student Aid (FAFSA), FAFSA4caster,
and electronic college admission applications, shortening these sometimes lengthy processes. MyFSA also allows students
to keep track of the applications they have started and the colleges and careers in which they are interested.
FAFSA Resources
If students want to get an idea of what their FAFSA results will be before filling out the real thing, counselors can point them
to the FAFSA4caster, which does not require a PIN and is available to students at any time. For students who are ready to fill
out the FAFSA but not sure how, the Department of Education offers web-based and PDF versions of Completing the FAFSA,
an introductory publication that can help answer questions students have regarding the FAFSA. There is also a
demonstration counselors can use to walk students through the process (when prompted, login using the username
‘eddemo’ and the password ‘fafsatest’ and note that the web address includes the word ‘demo’).
Other Sources of Aid
A student’s search for financial aid should not stop after they complete the FAFSA. Under HEOA, the Department of
Education is required to makeavailable information about financial aid programs offered by other, non-departmental
sources. Accordingly, the Department identifies federal aid programs provided by other departments, provides a directory
of state higher education agencies and suggests other places for students to look for aid. Students may also find information
on scholarships and conduct a scholarship search on the Department of Education Web site. Though not managed by the
Department, the links under the “pay for your education” section of students.gov connect students to comprehensive online
resources regarding the financial aid search provided by the federal government.
After Aid is Awarded
For many students, the questions do not end after aid has been awarded. Counselors can help students increase their
familiarity with award packages by walking them through a sample or showing them how to compare packages. Using the
Award Worksheet (which requires users to create a free account), students can enter their own financial aid award
information and gain a better understanding of what their family will be expected to contribute after all factors are
considered. Information on repaying student loans is also available, as is a repayment calculator to help students plan
ahead. If they get too overwhelmed thinking about all that money, counselors can share some ways to reduce the cost of
college.
Sites For Counselors and Students
The Department of Education maintains sites specifically for counselors, including a version of FSA for counselors and a list
of counselor resources. Also available is the Counselors and Mentors Handbook on Federal Student Aid online. Resources for
students include College.gov, a site created to teach students about all facets of the college search, application and funding
processes, and a copy of Funding Education Beyond High School, the student equivalent of the Counselors and Mentors
Handbook.
That’s Not All
In addition to resources from the Department of Education, other governmental agencies, private entities, non-profit
organizations, high schools and universities provide a plethora of information online, some of which will be particularly
suited to individual students and counseling offices. The NACAC Knowledge Center, a members-only resource, also provides
reports, brochures, and models/samples for counseling students throughout the financial aid process.
1050 N. Highland Street, Suite 400
Arlington, VA 22201
Phone: 703/836-2222
Fax: 703/243-9375
Web: www.nacacnet.org