If you are going to get student loans from private lenders, then you should probably wait until you know what your costs are going to be. Do not borrow more than you need, because it is easy to get into a never-ending debt pit.

When you apply for fin aid using the fafsa, you need to apply as soon after Jan 1st as possible using the previous years tax forms. This application – using your 07 tax forms – would be for the student to start in fall of 08. (Yes, you are applying 8 months in advance).

The reason is, because although the Pell grants never “run out” so to speak, state grants do. Once the money is gone for your state funded grant programs, that’s it. Priority is given to those who apply as close to Jan 1 as possible. Someone who waits, perhaps deciding on which school to attend, until June or July say for example, would NOT have priority for that state grant over someone who applied back in Feb.

On the fafsa, you can list up to 6 different schools, so you don’t have to have made up your mind when you apply. The school will not, however, issue you an award letter (a detailed letter explaining how much fin aid you will get and what kinds) until you apply to the school. But schools won’t do this until 4 weeks before the semester starts or sometimes earlier depending on the school. If you really can’t decide, it is perfectly okay to apply to more than one school.

As a matter of fact, I really encourage this. Especially if you are considering schools with varing degrees of cost. Public vs private for example. Your award letter may make your decision for you.

And by the way for other people that are answering your question Financial Aid means all types of funding (student loans, grants everything that helps you fund your schooling). Most people do not know this.

I just did this where I wanted to see if I would be approved for aid and what amount so I could then choose a college within the budget but it doesn’t work that way, they sent me a letter that they needed to know which college I was shooting for. So you will not receive an aid Amount until they know which school you want. The approval amount is based on which college you choose. They will not tell you what the approval amount is they tell the school and the school tells you.

I suppose people think if they award you funds for an Ivy League college and you go to a community college then you have $28,000 to spend on a shopping spree but it doesn’t work that way, any funds not used toward admissions and tuition must be paid back. In my case I wanted to be absolutely sure that I’d be at least 90% covered as I am currently unemployed. I didn’t want to waste money on application fees just not to be able to afford the balance.