WINTER EDITION

What are scholarships?Scholarships (or “free money”) are an attractive way to pay for college because you don’t need to pay them back. Scholarship awards range from a few dollars to covering the full tuition bill.

Who offers scholarships?Scholarships are offered by many organizations, including federal and state governments and private sources, such as employers, individuals, companies, high schools and colleges, religious groups, professional associations, and countless more.

What visitors are saying about College Answer’s FREE Scholarship Search …

“I’ve used nearly all of the scholarship websites out there and yours is the best!”

– S. Duncan

“Just wanted to say THANK YOU. Your search helped me find some awesome scholarships.”

– M. Ko

“Thank you for not selling out my son’s name like most websites. Our family appreciates that your service is really free.”

– Sammie

Scholarships: What every college-bound student should know!Every year, millions of dollars in scholarships are awarded to college-bound students with various qualifications—not just for the class valedictorian, or star quarterback. With a little time and effort, scholarships can make paying for your dream college easier. Remember to apply for scholarships every year you plan to attend college. Before you start your search, take time to learn some scholarship basics.

A College Answer® Newsletter for College-bound Students and their Parents

knowledge for COLLEGESM

Where to search for scholarships?Start your search using College Answer’s Free Scholarship Search!

• Easy-to-use without unnecessary questions.

• Contains over 2.8 million scholarships with updates and additions made daily.

• A truly FREE service with no ads and no selling of user’s personal info.

• Online questionnaire offered in English and Spanish.

• And numerous features not offered on other websites!

College Answer: Your Scholarship Resource

We can help you plan a strategy to win scholarships:

• Pick up college scholarship application tips.

• Get help with those scholarship essays.

• Learn how to avoid scholarship scams.

• Unlimited access to our scholarship database.

Visit www.CollegeAnswer.com/KFC

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What’s InsideWhat’s Inside Scholarships: What you should know!

Applying for student financial aid featuring the FAFSA.

College resources in your state.

Parents’ Corner: Financing your child’s future, free scholarship search, and Upromise®.

Win a $1,000 Scholarship!

No essays to write, no GPA requirement, no income restrictions … to qualify just register on College Answer.

Registration is free, takes just a few minutes, and offers numerous benefits:

• $1,000 scholarship is awarded to a lucky registrant every month.

• Monthly e-newsletters focused on planning and paying for college.

• Unlimited use of our free scholarship search.

• Helpful checklists to print.

• And more!

Sign up today!www.CollegeAnswer.com/KFC

Tell your parents!Parents who register are eligible to win our $10,000 Parent Answer® Sweepstakes.

Learn more about these topics at www.CollegeAnswer.com/KFC

What To Do Before January 1

7Easy Steps in the Student Financial Aid Process

If you think you need help paying for your college education, the Free Application for Federal Student Aid (FAFSA) is your starting point for applying to most student financial assistance programs, including federal, state, and campus-based aid.

Beginning January 2, high school students headed to college in the following fall can submit their FAFSA for financial awards and low-cost loans. Early applicants have the best chances of getting the most money for college.

If you are dreading completing the FAFSA, take a deep breath and relax. Completing the FAFSA is free. It takes a little time, but it is not as difficult as you may think. If you follow these basic steps, you could complete your FAFSA on the Web in as little as an hour or two. (If you don’t have Internet access, contact your high school guidance counselor for instructions on completing a paper FAFSA.)

Step 1 Get a Social Security Number (SSN). If you submit the FAFSA without a SSN, your application will not be processed. To apply for a SSN, visit Social Security Online, www.ssa.gov.

Step 2 Request a PIN. With a PIN you can apply for and “sign” the FAFSA online, check the status of your submitted FAFSA, and make corrections. If you plan to submit your FAFSA online, you (and one of your parents) can request a PIN at the U.S. Department of Education pin registration website, www.pin.ed.gov.

Step 3 Note state and college deadlines and requirements. College and state financial aid deadlines tend to be earlier than the federal deadline (many as early as February or March), and may require an application in addition to the FAFSA. Play it safe—collect these dates and information early.

Step 4 Obtain the “FAFSA on the Web” worksheet. Use this tool to help gather the information needed to complete the official FAFSA. Worksheets are available from your high school guidance office, public library, and online at www.fafsa.ed.gov as early as October.

Tip: You cannot submit the official FAFSA until after January 1; however, the worksheet lets you get a jump on gathering information and answering questions well before that date.

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FinancialAid Facts FinancialAid Facts

While the FAFSA is available in both paper and electronic forms, 95% of the 14 million annual applicants use the on-line application.

In 2006-07, nearly 75% of full-time undergraduate students received some form of financial aid. Undergraduates received $97.1 billion in financial aid.

Seven out of 10 undergraduates receive aid for college.

Benefits of the U.S. Department of Education’s “FAFSA on the Web”• Online help available for each

question.

• Calculations performed automatically.

• “Chat” online with a customer service representative for free.

• Potential errors detected before the application is processed.

• Electronic filing is faster than submitting the paper version.

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FAFSA FAQs FAFSA FAQs Will I be offered more financial aid if I complete the FAFSA online?NO. Dollar amounts offered are the same whether you submit the FAFSA online or on paper. However, your application will be processed faster (within 72 hours), if you apply online.

I think my parents make too much money. Should I still complete the FAFSA?YES. Many families erroneously think they do not qualify for aid, and prevent themselves from receiving financial aid by failing to apply.

To view additional FAQs, visitwww.CollegeAnswer.com/KFC.

What To Do After January 1

Step 5 Complete the FAFSA on the Internet. To access “FAFSA on the Web”, visit www.FAFSA.ed.gov (it is also offered in Spanish). Apply as soon as you can after January 1, because funding may be awarded on a first-come, first-served basis.

Tip: If your family’s tax return is not ready for filing, don’t put off completing the FAFSA. Estimate the tax information and submit the FAFSA. Be sure to make corrections later, if necessary.

Step 6 Review your Student Aid Report (SAR). Your SAR summarizes the data you reported on your FAFSA. When you receive your SAR, carefully review it line by line. Make corrections or changes, if necessary. If your FAFSA information is complete, an Expected Family Contribution (EFC) is printed in the upper-right-hand corner. Schools you listed on the FAFSA will receive electronic copies of your SAR.

Step 7 Compare award letters. If you’re eligible for aid, schools at which you are accepted will send you an award letter. Carefully compare amounts and types of aid awarded.

Visit www.CollegeAnswer.com/KFC for:

• Answers to your FAFSA questions.

• Documents needed to complete the FAFSA.

• Common FAFSA mistakes.

• Calculator to estimate your Expected Family Contribution (EFC).

• State financial aid and deadlines.

• Assistance for international students.

• Helpful checklists and more!

Learn more about these topics at www.CollegeAnswer.com/KFC

Your State Could Help Pay for Your College Education

Besides federal student aid programs, it’s important to explore funding offered at the state level as well. Many states offer excellent grant and scholarship opportunities, tuition waivers, and resources to help residents to succeed in college.

Take advantage of planning and paying for college resources in your state.

Visit www.CollegeAnswer.com/KFC for details.

Upromise®

The way to Earn, Save, and Pay for collegeThere’s no getting around it: Paying for college is a major undertaking. That’s where Upromise comes in. Upromise is the free service that helps families earn extra money for education by showing you great ways to Earn, Save, and Pay for college. It’s that simple.

By becoming a Upromise member, you can earn rewards for eligible purchases from hundreds of leading companies—on the things you buy everyday—like groceries, gaso-line, online shopping, and more at participating retail stores and services.* These rewards go into your Upromise account, where they become actual savings which can be used to pay college expenses or even pay down an eligible student loan. You can even consider giving your savings the opportunity to grow in a 529 savings plan.**

Upromise members can earn savings on everyday purchases at:

• 40,000 retail stores and services

• 21,000 grocery and drug stores

• 8,000 participating restaurants (up to 8% savings)

• 550 leading online retailers when you shop via upromise.com (1% to 25% savings)

It’s never too late to start saving for college and Upromise makes it easy. Join the over 8 million Upromise members and discover the ways Upromise can help you Earn, Save, and Pay for college.

Visit www.CollegeAnswer.com/KFC for more information.

*Specific terms and conditions apply for each company’s contributions. Participating

companies, contribution levels, and terms and conditions are subject to change without notice.

**529 college savings plans are municipal securities. The value of units will vary with market

conditions and are not government or FDIC insured. Securities offered through Upromise

Investments, Inc. Member NASD/SIPC. To learn more, visit www.CollegeAnswer.com/KFC.

© 2007 Sallie Mae, Inc. All Rights Reserved. Sallie Mae, CollegeAnswer.com, Parent Answer, and College Answer are registered service marks, and The Planning For College Destination and Knowledge For College are service marks of Sallie Mae, Inc. Upromise and the Upromise logo are registered service marks of Upromise, Inc. SLM Corporation and its subsidiaries, including Sallie Mae, Inc., are not sponsored by or agencies of the United States of America. BOR-411 11/2007

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Parents’ CornerParents’ CornerFinancing Your Child’s Future

If you’re the parent of a college-bound student, you’re facing critical decisions about meeting

education costs. After all, while contributing to some or all of your child’s college expenses

will pay off for your student in the long run, your decision will likely affect your own financial

status and standard of living—especially during retirement.

Every family is different and your decisions in meeting the cost of higher education must

be tailored to your family’s particular needs, goals, and circumstances. When you visit our

new parent resource, you’ve chosen to investigate your options for financing your child’s

education. While we won’t advise you on how you should pay for college, it may enlighten

you about how you can afford to meet the financial demands of higher education.

Learn more about these topics at www.CollegeAnswer.com/KFC:

Your Financing Options

• 529 Savings Plans

• Tuition Payment Plans

• IRA Withdrawal

• Federal Parent PLUS Loan

• Private Education Loans

• Home Equity Loans

• Credit Cards

• Liquidating Your Investments

• And more!

Find ScholarshipsCollege Answer’s free scholarship

search contains over 2.8 million

scholarships and a new parent

feature so you can locate

scholarships for your child.

File the Free Application for Federal Student Aid (FAFSA)

Compare Federal Family Education Loan Programs

Parent-as-Borrower vs. Student-as-Borrower