Q&A: Financial Aid Tips

Suggestions for families seeking financial aid, plus a look at the aid landscape from the Association of Student Financial Aid Administrators

Haley Chitty is the assistant director of communications at the National Association of Student Financial Aid Administrators. In an interview via e-mail with Derek Thompson of BusinessWeek, he told us how the financial aid system is changing and what families can do to get the money they need. Here's a transcript:

What's the first thing every family should do before the financial aid process?

The financial aid office on campus is the best place to start. Financial aid administrators on campus will have the greatest knowledge of federal, state, local, and school financial aid and their goal is to provide students and their families with as much financial aid as possible.

What are some strategies you would suggest for students and parents as they begin the financial aid hunt?

Fill out the [Free Application for Federal Student Aid] FAFSA, even if you don't think you will be eligible for federal aid. Many state and institutional student financial aid programs also rely on the FAFSA to determine financial aid eligibility, so you may miss out on this aid if you don't fill out the FAFSA. Make sure you secure all the grant aid you can before borrowing student loans—borrowing should be a last resort. When it comes to taking out student loans, borrow as little as possible and make sure you understand all the terms of the loans and your responsibilities as a borrower. Borrow as much as possible from federal loan programs (subsidized and unsubsidized Stafford, Perkins, and PLUS loans) before turning to private loans, which are usually more expensive and don't contain the same protections for borrowers.