Financial Aid Planning 101 for School Counselors

By Debra Myton

Obtaining financial aid opens the doors of college opportunity to many students who otherwise may not have the chance to attend college. However, the financial aid process can be very complicated, therefore daunting to most families. School Counselors can help demystify the process by following a simplified, family friendly financial aid process.


Financial Aid Options

The most common types of financial aid options include: 1) grants that are based on needs with no repayment expectation, 2) scholarships based on merit with no repayment necessary; 3) loans with modified terms, conditions, and with applicable interest rate with repayment expectation; and 4) federal work study jobs, typically in a department on campus that pays the students for work performed.


Critical Information for School Counselors

The first step in applying for financial aid is to demystify the process by explaining the terms associated with the process to students and their parents. The important financial aid terms include

1)      Cost of Attendance (COA)- includes direct cost, which is payment to the school or cost due up front, and indirect costs which is everything else (such as tuition and fees, books, transportation, etc.).

2)      Expected Family Contribution (EFC) - the income that the student and parent contribute toward their financial need. Colleges and/or universities determine the family’s financial need by subtracting the COA from the EFC.

3)      Free Application for Federal Student Aid (FAFSA) - determines a student’s EFC based on the family’s personal and financial information. Any family that plans on sending their child to a college and/or university will apply for the Free Application for Federal Student Aid (FAFSA).


The second step in applying for financial aid is knowing when and how to start the process of the FAFSA according to the College Board Counseling Sourcebook and the Financial Aid Guide Book for high school students. The list below outlines helpful tips to help maneuver through the FAFSA dateline process successfully.


  • A federal pin (personal identification number) is obtained prior to January 1. This assigned number is to be used by students and their parents until the student completes college.


  • Students and parents tax forms should be completed prior to filling out the FAFSA. Otherwise, last year's tax numbers can be used until this year's forms are available for updating the FAFSA.


  • The FAFSA needs to be completed in January of the year when the student is a senior in high school or the year the student decides to go to college. Completing this application means students have applied for funds awarded by most federal and state agencies. Students can complete the FAFSA application in three ways: (1) Online (2) PDF FAFSA download file at www.fafsa.ed.gov and (3) Paper FAFSA (request for copy by calling 1-800-433 -3243).


  • After the FAFSA is processed, the Student Aid Report (SAR) that comes from the U. S. Department of Education will be provided to confirm the data are received (two to three weeks after submitting the FAFSA). If the FAFSA is filed electronically the process can take seven days.


  • The results are sent to the colleges and/or universities the student selected on the FAFSA. The student’s college and/or university of choice will then send the student an award letter regarding the monetary aid that the student is eligible for at that institution.


  • After the monetary eligibility of the student is determined, the college and/or university financial aid office will determine if the student will need additional loans. If an additional loan is indicated, the student will need to contact the financial aid administrator regarding the procedure to apply for the loan. To apply for a student loan, usually student will have to carefully follow the school’s instructions to complete the Entrance Interview and required Master Promissory Note (MPN) for a student loan.


A Few Considerations Related to the Award Letter

The option of financial aid awarded will be outlined in students’ award letter with the amount and name of the awarding agency. If students have applied to more than one college/university and the financial aid award package is substantially different for each one, then it is worthwhile for the student to contact the financial aid office for an explanation regarding that package. Students should be encouraged to prudently review the letter and weigh their options carefully to determine if they are able to afford the total momentary amount since there is a repayment requirement attached to the loan. School counselors can help students carefully weigh their options.


Other Web-based Resources

The internet contains a number of resources to augment existing financial aid planning information. The following are a few of the website links to financial aid resources.


In closing, school counselors should encourage students and parents to start the process early so they can weigh their options and meet the deadlines or other obligations that the college/university may have in the financial aid process. The financial aid process can be overwhelming for some school counselors but if counselors have a simplified process to follow to help students and parents prepare, plan, and apply for the monetary aid, it can open doors to several students who would not otherwise have this access and opportunity.



The College Board. (2006). College counseling sourcebook. (3rd ed.) New York, NY: Author.

Arkansas Department of Higher Education. (2014). How to pay for college: A guide for Arkansas students 2013-14. Little Rock, Arkansas: Author.



Debra MytonDebra Myton is a National Board Certified Teacher, Global Career Development Facilitator Instructor, and a School Counselor in the Little Rock School District in Little Rock, Arkansas. Counselor Myton works closely with students and parents regarding college and career awareness. She is highly motivated, lively, and positive in helping students make career choices regarding their future. She was a guest speaker at UALR – University of Arkansas at Little Rock for a high school program. You can reach Debra at debra.myton@gmail.com


Printer-Friendly Version


Debra Franke   on Monday 03/02/2015 at 09:37 AM

Debra - I'm in the midst of this with our son who is a 17-year old high school senior. Thanks for the overview. It's very helpful to see the financial aid process explained clearly and concisely.

D. Smith   on Monday 03/02/2015 at 12:51 PM

Congratulations on your article being published. It is an easy read and quite informative.

Karen Carruth   on Monday 03/02/2015 at 01:40 PM

Thank you so much for this article, it's very informative.

T. Thomason-Whitt   on Monday 03/02/2015 at 01:48 PM

Great article---so parent friendly! Congratulations on your article being published!

Michelle Mothershed   on Monday 03/02/2015 at 02:04 PM

AWESOME job to my friend, colleague , my Soror!! You are a hard worker and a team player. May you continue to be about the business of helping others!

Danette Murray   on Monday 03/02/2015 at 02:06 PM

This is a very good article!

Tracy Andrews   on Monday 03/02/2015 at 03:41 PM

Crucial information thoughtfully expressed. Potential college students need to know that it CAN be done. Just follow the steps. Well done!!!

Jamie Kuhn   on Monday 03/02/2015 at 05:23 PM

Debra this is a great article! I always knew what a great counselor you are!!

Marilyn White    on Monday 03/02/2015 at 11:48 PM

Mrs. Myton,

This is an incredible article that makes it very clear in understanding the vital steps necessary to assist any high school student to become successful in college.
You are an asset to this Little Rock school district in your leadership role as a career counselor and teacher. Bravo, Bravo!

Clausey Myton   on Wednesday 03/04/2015 at 12:20 PM

Dear Debra,

You've worked hard and your efforts have paid off. Congrats on writing an informative article and sharing some great resources that will surely assist students and their parents!

Marion J. Howse   on Tuesday 03/10/2015 at 04:07 PM


Congratulations on this wonderful, exegetic article on financial aide. This is a tool that can be used for years to come. The lay-out of your article is in a sequential order that makes following your advice quite easy to understand. As a former high school counselor, I think your article could become a viable part of the high school matriculation/orientation packet(s).

Good luck with your future publications. I know this is just one of many to come.

M. J. Howse, PhD
Little Rock School District

Cynthia Harrison   on Wednesday 03/11/2015 at 03:07 PM

Debra ,I am very proud of you. Very informative article. I can just imagine how many students will be helped by it. Continue to help those who need it.God bless.
Your Aunt

Rita Jones   on Friday 04/24/2015 at 10:42 AM

Great job Debra. So many parents need this information. Keep doing what God has instilled in you.

Linda Macon   on Tuesday 05/19/2015 at 03:09 PM

Excellent article! Congratulations on being published.

James Grey   on Wednesday 07/14/2021 at 05:39 AM

Thanks for the information and congratulation. Really appreciate the time and effort put in to make and present this content. have to say a very parent-friendly information. Thanks and Regards from https://eduhelphub.com/

John Hong   on Wednesday 07/21/2021 at 06:00 AM

nice content

Disclaimer: The opinions expressed in the comments shown above are those of the individual comment authors and do not reflect the views or opinions of this organization.