Look for scholarships, grants, and other free money first

You should always try to get "free" financial aid first. Free financial aid is the type of aid that you do not need to repay. However, this type usually doesn't cover 100% of your costs, so you need to understand the types of financial aid available.

Minneapolis Media Institute's financial aid offers contain a combination of the following types of aid. This is mostly free aid, then savings and low cost loans, with several alternative sources. However, your situation is unique to you, so be sure you understand all the aid types so you can evaluate these financial aid offers carefully.

To be considered for most types of aid, you must complete the FAFSA (Free Application for Federal Student Aid).  See the link at the left.

Identify your specific deadlines

Financial aid deadlines are specific to your situation: your school, where you live, or what you study. Make sure you have some way to manage your individual FAFSA, school aid, and scholarship deadlines. You can simply write important dates on a chalkboard, track them using a paper calendar, or by using several free online applications such as Google Calendar.

Deadlines for financial aid from your state and private sources tend to be earlier than for federal aid. The most important deadline you should know is your FAFSA deadline. Submit your FAFSA as soon as you can after January 1.

Fill out the FAFSA! The FAFSA is your ticket to financial aid

Again, read the information from the link at the left. It's very important.

Compare financial aid offers from the different schools you're considering very carefully. Not all offers are the same

The schools that you list on your FAFSA receive your results in your Student Aid Report (SAR). This report contains a number called your Expected Family Contribution (EFC). Your Expected Family Contribution is commonly referred to as your family's "ability to pay." Here’s how it works:

* Minneapolis Media Institute uses your Expected Family Contribution to calculate your financial need. This determines your eligibility for aid.
* Then we create your financial aid offer, which can contain federal and institutional grants, scholarships, low-cost loans, and other programs.
* You receive the financial aid offer from us in a package, often referred to as an award letter.

Make sure that you understand the long-term responsibility of the award and make the most appropriate choice for your situation. Consider:

* Will you be able to pay back educational loans?
* Does your financial aid offer contain any grants that may become loans and require repayment?

Be sure you have the money you need to pay your entire education bill

Once you have received your financial aid award, you need to make sure you have enough money to cover all of your education costs. If you have checked into scholarships, applied for grants, received a federal Stafford and/or PLUS loan, and still have costs to cover for college, now you should consider an alternative loan.

Be sure you have exhausted all other financial aid options before applying for an alternative loan

Borrow only what you need to cover your costs. It is tempting to borrow what you are eligible to receive, but that is risky. Understand the terms. Alternative loans have higher interest rates, fees, and less flexible options for repayment than federal programs. Find out if you can defer payments while in school or get a lower interest rate with a cosigner.

Be careful with credit cards

Credit cards for students can be extremely easy to get and use. Usually, they have low limits and high interest rates for students who have little income. Keep in mind the following:

* Some credit cards offer low introductory interest rates. Make sure you know what your rate will be after the initial offer.
* If you miss a payment, many credit cards will automatically raise your interest rate.
* Cash advances can be tempting, but usually come with a higher interest rate.

Be sure to understand what you have received, and know the hidden costs

Your financial aid offer will be different for each school due to different costs of attendance, different financial aid available, and different criteria for receiving certain types of aid.

When comparing your financial aid offers, consider the percentage of the award that is "free money", which you do not have to repay as long as you continue to meet all obligations. Generally speaking, more is better. Make sure that you compare "apples to apples" when it comes to the actual cost of attending school. Often, there are hidden costs which may not be considered in the award letter. These could include:

* Higher living expenses at schools located in major cities.
* Higher cost of transportation if the campus is large or public transit options are limited.
* Higher cost of having a social life - from buying a pizza to attending a movie, these costs add up.