January Each Year Marks Time When the 'FAFSA' - Free Application for Federal
     Student Aid - May Be Submitted; Sallie Mae's Wiredscholar.com Helps
                   Students Plan and Pay for School Online

    RESTON, Va., Dec. 17 /PRNewswire-FirstCall/ -- There's no escaping the
fact that college costs have been on the rise, so careful planning is even
more of a key for parents and students looking to find ways to pay for a
college education. For high-school students planning to become college
freshmen in the fall of 2003, January is the first month that the Free
Application for Federal Student Aid (FAFSA) can be submitted. The FAFSA
determines eligibility for federal financial aid, making January a critical
time for determining how to pay for college costs. Wiredscholar.com, Sallie
Mae's comprehensive online "going-to-college" resource, has tools and
information to simplify the process of college preparation, evaluation,
selection, application and financing.
    The FAFSA is a student's starting point for applying to almost all student
financial assistance programs. Students must complete this application to
receive any federal student aid. Additionally, many schools also use the FAFSA
as part of their application for non-federal aid.
    "With more than $90 billion in financial aid available, it's vital that
students file applications correctly and adhere to deadlines," said David
Cooper, managing director of e-commerce for Sallie Mae, the nation's leading
provider of education funding. "Wiredscholar.com's interactive tools and
information for planning and paying for college help students and their
parents navigate the complex financial aid process."
    Financial aid comes in the form of grants, scholarships, work-study
programs and student loans. Some of this aid is need-based, meaning that
individuals have to meet specific financial criteria to receive it; other
forms of aid, such as student loans, are available to a wider population.
    To determine aid eligibility, students must complete the FAFSA, which is
available through high school guidance offices, local libraries or online at
http://www.fafsa.ed.gov . Students attending college next fall may submit the
FAFSA anytime after Jan. 1, 2003. The form must also be completed before a
college's application deadline.
    Once the FAFSA is finalized, individuals should contact the schools they
are interested in to determine if additional financial aid forms need to be
completed. Some institutions require the CSS/PROFILE, a customized financial
aid application that collects financial information beyond that represented on
the FAFSA to determine eligibility for institutional aid. For more information
on the CSS/PROFILE, see
http://www.wiredscholar.com/paying/content/pay_aid_css.jsp .
    Approximately two-to-four weeks after the FAFSA is submitted, individuals
receive a Student Aid Report (SAR), which indicates their Expected Family
Contribution (EFC), a number that financial aid administrators (FAAs) use to
calculate the student's financial aid eligibility.  If there are errors on the
SAR, students must quickly correct and then resubmit the form.
    Financial aid administrators at schools where students have been accepted
analyze and verify the FAFSA information to determine for which financial aid
programs the student is eligible.  The amount of aid is contingent upon the
student's enrollment status -- full or part time -- and if they will attend
school for a full academic year or less.  This aid information is outlined in
a financial aid award letter, which schools forward to accepted students in
the spring.
    The award letter indicates the amount of grants, loans or scholarships
that a school is willing to provide to a student. "If a student has been
accepted at more than one college, he should compare each school's academic
curriculum and aid offer to decide which one best fits his needs," Cooper
said.  Students can use wiredscholar.com's Online Award Analyzer to evaluate
the financial aid packages they receive.
    "Throughout the entire process, families should stay organized," added
Cooper. "Parents should work with their children to set up a file with
information about all financial aid programs and keep financial documents,
such as last year's tax forms and recent bank statements on hand. Consider
using a calendar to outline when applications for college, scholarships and
financial aid are due and keep copies of any form before submitting it."

    Wiredscholar.com: Wiredscholar.com is the foremost online resource for
"going-to-college" information for students, parents and guidance
professionals. The site is the most comprehensive and objective resource on
the Web for information, interactive tools and checklists to assist with
college preparation, evaluation, selection, application and financing, all in
one online location. Log on to http://www.wiredscholar.com .

    Sallie Mae (NYSE: SLM) is the nation's leading provider of education
funding, managing more than $77 billion in student loans for more than seven
million borrowers. The company primarily provides federally guaranteed student
loans originated under the Federal Family Education Loan Program (FFELP), and
offers comprehensive information and resources to guide students, parents and
guidance professionals through the financial aid process. The company was
founded in 1972 as a government-sponsored enterprise (GSE) called the Student
Loan Marketing Association, and began the privatization process in 1997. Since
then, Sallie Mae's parent company name has changed, most recently to SLM
Corporation (effective May 17, 2002). Through its specialized subsidiaries and
divisions, the company also provides an array of consumer credit loans,
including those for lifelong learning and K-12 education, and business and
technical outsourcing services for colleges and universities. More information
is available at http://www.salliemae.com .  SLM Corporation and its
subsidiaries, other than the Student Loan Marketing Association, are not
sponsored by or agencies of the United States.  Sallie Mae, Inc. is a
subsidiary of SLM Corporation.

Link to this page:

  

http://www.prnewswire.com/comp/827187.html
CONTACT:
Stephanie Cassidy, +1-703-810-6810, or
stephanie.cassidy@slma.com, or Martha Holler, +1-703-810-5178,
martha.holler@slma.com, both of Sallie Mae

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