Your credit score is not just a number. It affects everything from whether you qualify for a mortgage application to whether an employer hires you or not.

So, failing to take active measures to improve your ailing credit score can
cost you hundreds or even thousands of extra bucks on a home mortgage, auto loan, student loan, credit card interest, or an insurance bill.

Creditors and lending institutions look at your credit report to determine your score.

The score is the single largest factor that banks and other lending institutions look at when extending credit.

So, if you have a not so perfect credit score then you can bet that you’ll be charged higher fees and terrible interest rates.

Heck, even insurers use your score as a factor to determine your credit rating as an insurance risk because they too see a correlation between financial responsibility and insurance losses.

This might come to you as a surprise that credit check is not restricted to banks, lenders or insurers, employers too go for credit check before hiring an employee. It is even noticed that credit score is one of the factors that sometimes play a role in promotions as well.

Most apartment complexes run both credit as well as employment background checks before approving an application to rent an apartment. A poor score can have your application denied or you may have to pay a ridiculous amount of rent.

So, I hope this quick little post shows you just how important it is to keep that credit score on the up and up… it means a heck of a lot more than just a cool number between 500 and 850.

In the next few weeks I’ll write a post or two on building your credit while in college… the safe way.

One thing that I was pretty confused about when I was getting ready for college was the

whole FAFSA thing.

For a refresher on FAFSA, check out the article I wrote called, “What is FAFSA ?”.  It just gives you the rundown on stuff you need to know about the FAFSA… worth a quick read.

Anyhow, the thing I was confused about the most with the whole FAFSA thing was… how does FAFSA turn into financial aid?

After 4 years of learning the ropes, I’ve learned a ton about FAFSA that I wish I would have known before I went off to college.

So, I created a little “Top 5″ list of the Top 10 Ways to NOT Get FAFSA aid.  On one of these, I learned the hard way and actually lost out on over $1,000 in my Sophomore year for scholarships.

Here we go:

The Top 5 Ways to NOT Get FAFSA Aid -

1. Don’t fill out the FAFSA application at all: This one sounds stupid, but one of my friends (Jake… you know who you are, lol) for some reason thought that he only had to fill out the FAFSA once… for ALL 4 YEARS OF COLLEGE.As you can imagine… come his sophomore year when he was looking at the Financial Aid that the college offered him… he about swallowed his tounge.  Long story short, Jake didn’t get his FAFSA in in time that year… and missed out a some great work study and student loan programs.  So, FILL OUT THE FAFSA EVERY YEAR!
2. Fill out the FAFSA application TOO LATE for your school: Every college has their own deadlines for when the FAFSA application needs to be in… in order to be considered for certain financial aid (scholarships, student loans, work study, etc.).  Some colleges need everything in by January each year… while others stretch it all the way back to March or April.  Check with your financial aid office to make sure… and get it in BEFORE the deadline.In fact, it’s always best to do the FAFSA application as soon as you can in January each year because some of the work study and scholarships/grants are gone once enough qualified people are accepted.  For instance, every year I had a foundation scholarship that I won for 4 years… but they had a deadline for something like March 20th (I may be making that date up for the FAFSA application to be in.  If I didn’t get it in by then… tough luck for me.  So, write in your calendar to get the FAFSA in early every year to give yourself the best chance for getting great FAFSA financial aid.
3. Being TOO GENEROUS on the income and assets portion: This one is a bit of a gray area.  You want to be sure to be honest on your application… you are telling the government that everything in it is true “to your knowledge”.  However, the FAFSA isn’t the place to go bragging about how rich you or your parents are.  Don’t inflate numbers to sound cool to the FAFSA people. Remember, the FAFSA helps determine your financial need for college.  If you inflate numbers for some reason… it’ll show that you have less of a financial need… and result in less grants, scholarships, student loans, work study… you get the idea.So, when doing your FAFSA, be honest… but be humble at the same time.  Do you think the FAFSA god’s will get all CSI on you to find every last bit of income or assets?  The odds are slim… but don’t tread into shark infested waters and completely lie on your application.  All I can say is… be honest and humble with your income and asset reporting… take that for what it’s worth.
4. Sending the FAFSA to the wrong colleges: This one is kind of a no brainer too.  But, I’ve seen it done.  I had a buddy on the baseball team with me (not the brightest fish in the pond) who didn’t think he’d end up at our college… so he didn’t have the FAFSA sent to our college. Anyhow, long story short… there was a big fiasco of having to redo some FAFSA stuff… get it sent to the college… get them to bend a few rules… etc.  So, moral here is to make sure that every college you apply to is on your list to have the FAFSA sent there.  This is done over at the FAFSA website in your account area… so check it out.
5. Have a huge investment account in your name: This is one that my fiance knows well.  Her parents did the right thing and saved up a bunch of money over the years for her in an investment account.  When we were freshmen, I think the account had something like $25,000 (give or take) in it.  Of course, FAFSA asks for these types of accounts… so you have to tell the “truth” and include them in the application. As you can imagine, this account really reduced the amount of financial aid available to her.  In reality, that account was set up to be available for her as starting money after college… she had great grades and actually had 100% of her school paid for with college scholarships also.  But, if she didn’t have great grades… FAFSA would look at this as money available to her to spend on college… which wasn’t what the account was initially set up for.So, I know of people who are clever in the way these types of accounts are set up.  It’s nothing illegal or shady… just smart asset protection.  One friend’s parents actually have the account in his grandma’s name… which she of course agreed to and has agreed to distribute it when he turns 25.  So, the parents add money to the fund over the years… it stays out of the students name and the parents name… and he doesn’t get the whack from FAFSA saying that the money is available for college.  Pretty smart. Of course, there are some tax issues involved here to work out between my buddy and his grandma… but in some cases it’s well worth it.

I know, these “Top 5″ tips aren’t rocket science… but I can guarantee you that there are thousands of college students every year that fall prey to one or more of these rules.  So, the main thing to remember about the FAFSA to ensure that you get great FAFSA financial aid is to apply early every year… and to be honest… but keep your assets and income as low as legally possible… this isn’t the place to brag about the $500 in under the table income you earned from mowing your grandma’s lawn.

Good luck and I’ll chat with you later!

The FAFSA is one confusing animal when you first get started in figuring out financial aid and scholarships for college.

For one, your FAFSA results can be a real pain the ass if it puts your parents contribution up
too high… but, if you get great results from your FAFSA application, it could mean that you will qualify for more scholarships from your college.

So, what is the FAFSA?

FAFSA stands for: (the definition of FAFSA)

Free Application for Federal Student Aid    (US Department of Education)

As it sounds, the FAFSA process helps determine how much federal financial aid you will be eligible for.  This could be in the form of loans, scholarships from the college, etc.

How does the FAFSA process work?

Well, the whole FAFSA process is pretty simple.

1. The application basically gathers financial information about you and your parents
2. Each school year you fill out or renew your application and update any changes to the financial situation (usually with the tax returns each year)
3. The application produces results that say how much the expected contribution should be from you/your parents based on your income and assets
4. You indicate which schools you want the FAFSA results sent to, and they are automatically sent after you complete the application each year
5. The financial aid offices at the colleges you are looking at receive the FAFSA results and the EFC (estimated financial contribution), and use that to determine your financial need for college

Really, it’s that simple.  The government needs a way to find out who the people with the most financial need are so they can provide those in more need… with more financial aid.

Are there deadlines for FAFSA?

There sure are.  This is where it got confusing for me sometimes.  Here’s the page directly on the FAFSA website to see their deadlines.

==> http://www.fafsa.ed.gov/before003a.htm

A good rule of thumb is to do the FAFSA each year at the start of January to ensure that your application is in to the college in enough time to enable you to qualify for certain scholarships and financial aid.

So, write on your calendar for the next 4 years to do the FAFSA each January.

Do I need to fill out the FAFSA?

Unless you don’t plan on applying for any financial aid at all… you should complete the FAFSA.

Once again, the FAFSA is for federal student financial aid.  If you don’t intend to use an federal financial aid, don’t do the FAFSA.  This includes:

• Scholarships
• Student Loans
• College Work-Study
• Pell Grants
• Other Government Grants

If you have any intentions or desires at all to get any government grants, scholarships, etc. DO THE FAFSA.

How long does the FAFSA take?

The FAFSA is really pretty simple after you do it for the first time.  I would say that the first time I did the FAFSA it took a good 30 – 60 minutes to complete it.

The FAFSA website does allow you to save your application so you can come back to it, so don’t pull your hair out thinking you have to get it done in one sitting.  Your first time will be more to get the feel for the type of information they are asking for.  Then, you’ll save your application, gather the information, and come back later to finish it.

After the first year, all you have to do is renew your FAFSA application.  The first time you submit your FAFSA, you are given a PIN code (write this down and don’t lose it… you’ll need it every year!).  With this pin code and your password, you just log in to renew, update any information that has changed, and submit it.

Easy as that.

What documents do you need for the FAFSA application?

There is a whole list of documents needed for the FAFSA.  Here they are:

• Social security number
• Drivers license
• W-2 forms for you and your parents (or other guardian)
• Federal income tax returns for the year before for you and your parents
• Your untaxed income records
  • Social Security
  • Temporary Assistance for Needy Families
  • Welfare
  • Veterans benefits records
• Your current bank statements
• Investment records, mortgage information, etc.

… and that’s about it.

Just gather up these documents and have them with you at the computer when you are filling out the FAFSA.

Where do I get FAFSA financial aid?

A lot of new students think FAFSA is the actual entity that sends you the money.  This is wrong.

FAFSA is just the application to determine your financial aid.  This application and the results are sent out to the colleges you apply to… the financial aid ends up coming through the college financial aid office.

How do I get started with the FAFSA and the FAFSA forms?

Head on over to the FAFSA website at:

• www.fafsa.ed.gov

There are pretty darn good directions there to follow.  If you have any questions shoot them my way!

Also, be sure to search for scholarships online too.  My favorites are:

• Fastweb   (this is my favorite.  I got the $4,000 scholarship from this site)
• FreeCollegeScholarships.net (great site too… have some scholarships Fastweb doesn’t have.

I always hear a lot of college bound students say, “there are no scholarships out there for me!”  Well… I’m here to tell you that if you are alive and breathing, there are scholarships out there for you.

You need to go beyond the normal everyday scholarships like the ones you apply for at the college itself (do apply to those ones too… but in this article I’ll tell you of some more to look at).

If you aren’t that 4.0 Valedictorian, you need to get a bit creative and look for some of the more weird scholarships out there.  Yep, there are some pretty weird ass scholarships out there that give money away based on some pretty strange criteria.

So, in this article I’ll let you know about some of the more weird college scholarships out there so you can tap into that money pool that most college bound students don’t even know about.  There are a ton of places to get these scholarships… so I’ll try to point you toward websites for the scholarships if I can… but use this article more as a way to get ideas on things to Google to find the scholarship yourself (hey, I’m a busy guy… I’d be spending hours trying to find all of these sites

Also, I found many of these unique scholarships on a great scholarship search site called Fastweb.  Fastweb is free, and when I went to college, I actually got 1 scholarship that I found on that site.  Create a quick account and find some scholarships.

Here we go.

• Are you the decendant of a confederate soldier of the Civil War? If so, this could earn you a cool $1000 or more in scholarships.  You can find these scholarships from organizations like the United Daughters of the Confederacy among others.  So, trace your family back to a confederate soldier, write the essay, and give yourself a chance for a quick grand.
• Are you an amateur radio (ham radio) lover? You can cash in big time here.  There are a ton of organizations giving out some pretty darn good scholarships to those who fit the bill.  The ARRL Foundation (don’t ask me what ARRL stands for) has a scholarship program that hands out $500 to $5,000 to amateur radio lovers… and their application isn’t all that tough.
• Left handed are you? Well, you’ve probably heard of this one… but there are a ton of scholarships for left handed people.  Why?  I guess they feel you left handers a unique enough to give you money… but, if I were left handed I wouldn’t complain one bit.  The best place I could find to search for left-handed scholarships was Fastweb and the College Board website.  Both are free.  I like Fastweb a bit better (that’s what I used)… so check it out.
• Make a prom dress out of duct tape… and win $3,000? Yep, Duck Tape brand duct tape maker started a scholarship contest they call the “Stuck at Prom” Scholarship Contest. To enter into this scholarship contest all you have to do is create a creative and awesome prom dress or suit out of Duck Tape brand duct tape, take some pictures… and send them in.  They pick the best few entries each year, and actually end up awarding more than $18,000 in scholarships each year.  This is one you can really have some fun with.
• If you don’t like duct tape, make it out of wool instead and win cash! Here’s another crazy weird scholarship that I came across.  It’s kind of the same thing as the Duck Tape contest, but this one is brought to you by Sheep USA… and you have to make an outfit out of wool.  You can earn a $1,000 scholarship for this win.
• Star Trek fans out there, practice up on your Klingon and win a cool $500. This one is on the geeky side… but hey, if you can speak Klingon… there’s nothing un-cool about winning $500.  Check that one out here.
• Consider yourself a tall person? If so, yep, there’s a weird ass scholarship for you too.  If you are over 6′ 2″ as a man, and 5′ 10″ as a girl, you are eligible for the Tall Clubs International scholarship of $1,000.
• Play the bagpipes? There is a Carnegie Mellon University Bagpipe Scholarship is out there for any bagpipe majors out there.  This probably only applies to 4 or 5 people in the whole U.S., but if it’s you… try to find the scholarship page (I couldn’t).
• Speak more than one language? There are a ton of scholarships out there for bi-lingual students.  Some of the scholarships are school specific, but there are some national ones that anyone who is bi-lingual should qualify for.  So, be sure to ask your college about any scholarships for bi-lingual students that may be out there… and do a good search online.
• Not the brightest tool in the shed when it comes to achademics? Most of us aren’t.  But, there’s hope for us with the AXA Foundation Scholarship for people that excel in areas other than scholastics.  They say if you have ambition, the desire to achieve, respect, and have the ability to succeed in college… they hand out scholarships ranging from $2,000 to $25,000 each year.  All in all, they hand out over $1.3 million in college scholarships each year.  Get yourself in the running… and do it fast before the cash is all handed out.
• Here’s one for you skateboarders out there. If you skateboard and have over a 2.5 GPA, you are eligible for a few scholarships at the Patrick Kerr Skateboard Scholarship.  Each year they give out four scholarships to skateboarders heading to college.  The top prize is $5,000 and the other three are $1,000 each.  So, now your parents can’t tell you that skateboarding gets you nowhere!
• Arabian horses anyone? Have an interest in Arabian horses?  That qualifies you for a $2,500 scholarship through the William Zekan Memorial foundation.  I had a tough time finding the foundation website… but check out Fastweb… I’m sure they’ll have it in there.
• Write an essay about a fire sprinkler, win a $3,000 scholarship. Wow, these keep getting more and more out there.  The American Fire Sprinkler Association Scholarship gives out a total of $20,000 in scholarships each year for high school seniors who write the best essays on successful fire sprinkler activations in your area or town.  This is one that truly anyone qualifies for… just do a bit of research, write the essay, and you’re good to go.  Check it out here.
• Members of the National Rifle Association.  If you are a member of the national rifle association and have gone through certain marksmanship programs, you qualify.  Just submit an essay on “Why I Became Involved in the Shooting Sports” and you are in the running for a $5,000 scholarship from the NRA.
• Bowlers… here’s your scholarship.  A scholarship called the Columbia 300 John Jowdy Scholarship is open to high school seniors who are active in bowling.  This scholarship is just $500, but they all add up… I can tell you from experience.
• A tad bit overweight in the New England area? I hate to say it, but this qualifies you for a $500 scholarship.  I wouldn’t use this scholarship as a reason to stay overweight though… get the scholarship then get healthy in college.

That’s about it for now.  This gives you an idea how crazy some of these scholarships are… but they give away real cash just like any other scholarship.

From my personal experience, most of my scholarship money came directly from the college from academic and atheletic related scholarships.

But, probably 25% came from weird and random scholarships kind of like the ones on this page.   I had a few $500 scholarships from organizations like the Rotary Club, the booster club for my high school, a local brewery (yep), etc.

Just shake the scholarship money tree and see what happens.

One scholarship that I almost didn’t apply for was an industry related scholarship in the industry my father works in.  The industry is construction equipment rental… and the scholarship was $1,000.  I won that one and it lasted for 4 years… so I raked in $4,000 just by getting over my lack of confidence and sending in the application.

So, use this little list as a jumping off point.  Sit down and write down anything and everything you can think of that may remotely turn into a scholarship.

Any hobbies?  Write them down.

Any talents?  Write them down.

Any health defects?  Write them down.

As I’ve mentioned before, one of the best places to start is online scholarship search engines like Fastweb.  You can make a free account, put in your demographic info so they can find scholarships that fit you, and start applying.  I did it and got at least one scholarship just from about 2 hours worth of searching on Fastweb.

Good luck.  If you know of any other weird scholarships, shoot me an email through the contact page and I’ll post it up.

The other day a reader named Anne C. from Georgia asked me the simple question of:

“How do I get scholarships?”

Well Anne… this answer isn’t exactly simple… but it isn’t very complicated either.  I’ll give you a brief outline of what colleges look for, and point you toward other resources to help you get college scholarships.

First off,

Read my article that I wrote called, “Free Scholarships - How I didn’t Pay a Dime for College”. 

That article is a work in progress and I continually add new information and resources onto that page. 

Second,

Realize that getting scholarships is a NUMBERS GAME as much as it skill

Yep, it’s a numbers game.  Just like if you are a salesman, the more potential customers you visit… the more sales you’ll generate (unless you’re the worst salesman in the world).

So, don’t be too picky when deciding on which scholarships to apply for.  Apply for as many as you humanly can while still keeping each application a high quality. 

I’m not saying to just mass produce your scholarship applications… the scholarship committee will probably see right through it…

… what I am saying is to apply for as many good scholarships as you can to increase your odds of winning some of them.

If you only apply for 2 or 3… odds are that you will only win one (OR NONE).

Third,

Start as early as you can strengthening your resume

By your resume I mean everything that the college scholarship committee’s look at, including:

• Your grades – Work hard to get your GPA at least over 3.5 for the best chances of getting scholarships
• The SAT and ACT tests – Take the SAT seriously.  Many scholarship applications require a minimum SAT score to qualify.  Usually it’s something like a 1000 -1200… sometimes higher… sometimes lower.
• Extracurricular activities- Go out an volunteer for a few things.  Join a club or two related to your career goals.  Do something to show the scholarship committee’s that you are a well rounded student… and person.
• Reference letters – Start in your junior year or early in your senior year getting a feel for who you can get great reference letters from.  I happen to know very well the registrar at a college I applied to… so I had her write me a great reference letter.  Ask a teacher who knows you well that can give a great reference for your ability as a student and a person.

Get those elements above rolling as soon as you can and you’ll be way ahead of the students who put it off until later in their senior year in high school.

Fourth,

Look at local, national, and college specific scholarships

Don’t count yourself out on any scholarships.  I applied for probably 5 – 8 national scholarships (I got one that paid me $4,000), about 10-15 local scholarships, and probably another 10-15 college specific scholarship. 

So, apply for all of those little $500 local scholarships (they really add up), those big $5, 10, 20,000 national scholarships, and all of the college specific ones you can find.

I actually used a website called Fastweb to look for the national scholarships… it is free… really easy, and has a ton of scholarships right here online.  Check it out and set up a free account to get going on that.

All in all, successfully getting college scholarships is both a process and making sure you work hard your junior and senior years in high school to meet the scholarship GPA and SAT requirements.

That is a quick and dirty overview of what it takes to get scholarships.  I’ll go in more depth and give you step-by-step instructions on how to get that scholarship you want.  Until then, browse the rest of the site, set up an account at Fastweb to start searching for scholarships, and get your butt in gear making sure your grades, SAT, and reference letters are in-line.