Part 1: Answers to Readers' Questions About Scholarships The Choice has invited Mark Kantrowitz, the publisher of FinAid.org and FastWeb.com, to answer reader questions about scholarships in the blog's Guidance Office, a forum for college applicants and their families seeking expert advice. Mr. Kantrowitz is the author of "Secrets to Winning a Scholarship." Most recently he helped readers of The Choice navigate the Free Application for Federal Student Aid during his Fafsa Q. and A. series in January. In this first installment of answers, Mr. Kantrowtiz responds to questions about applying for scholarships, the availability of merit aid at highly selective schools, and what to do if you don't think you're eligible for need-based aid. His responses will continue each day throughout this week. Some questions, and answers, below have been edited, including for length and style. - Tanya Abrams How to Apply for Scholarships How does the whole scholarship process work? Does your child apply to his college of choice, then once admitted he applies for a scholarship and financial aid? I'm not perfectly clear on the steps to follow. Any advice would be greatly appreciated. Debbie Students should start searching for private scholarships online as soon as possible. Do not wait until you apply for admission or are admitted. All too often families wait until the spring of the senior year in high school to start figuring out how to pay for school. But by then half of the deadlines during the senior year have already passed, and the student has also missed out on scholarships available in earlier grades. To apply for need-based financial aid from the federal and state government and most colleges, submit the Free Application for Federal Student Aid (Fafsa) on or after Jan. 1 of the student's senior year in high school and each subsequent year. File the Fafsa as soon as possible after Jan. 1, as some states have very early deadlines, as early as Feb. 1. Do not wait until you've been admitted or filed your federal income taxes. Use estimates and the last pay stub of the year if you are unable to file your federal income tax returns early. (You will have an opportunity to correct any errors later. The I.R.S. Data Retrieval Tool can be used to populate or update the Fafsa with information from your federal income tax returns about a week or two after you've filed your federal income tax returns.) About 250 mostly private colleges require a supplemental form called the CSS/Financial Aid PROFILE. Some colleges have their own forms. These forms must be filed according to the college's deadlines. To apply for merit-based financial aid from the college, most colleges will automatically consider students for such scholarships based on the application for admissions. Some colleges also require a Fafsa for merit-based aid. Consideration for National Merit Scholarships is triggered when the student takes the Preliminary SAT (PSAT) test, which is also called the National Merit Scholarship Qualifying Test. Merit Aid at Selective Colleges We've read that highly selective colleges do not give out merit aid, and yet someone told us that they did receive it (quite a lot of it) but they didn't tell us the particulars. How can this be? Susan Don't believe everything your friends, neighbors and colleagues tell you. The parents may be exaggerating or misunderstanding the nature of the financial aid they received. It is not uncommon for parents to think they are getting a free ride when in fact the financial aid award letter includes a $20,000 or $30,000 Direct PLUS loan in addition to $5,500 in Stafford loans. Proud parents sometimes report need-based aid as though it were merit-based aid, just as they often say that their son was potty-trained when he was only six months old. The most selective colleges generally do not give out merit-based scholarships. They do not need to use merit-based scholarships to recruit talented students. All of their aid is based on financial need. For example, Harvard states, "All of our financial aid is awarded on the basis of demonstrated financial need -- there are no academic, athletic or merit-based awards, and we meet the demonstrated need of every student, including international students, for all four years." But some of the most elite colleges have very generous "no loans" financial aid policies that replace loans with grants in the financial aid package. This money sometimes gets misidentified when parents brag about their children's accomplishments. There are, however, some exceptions to the rule. Duke University, for example, has been known to give out a limited number of merit scholarships, especially to top-ranked mathematics students. Colleges that are the next tier down in selectivity may also give out a limited number of non-need-based scholarships to help the institution achieve recruiting and financial goals. This practice is called leveraging. For example, a $50,000 a year college may award a few $10,000 merit-based scholarships to full-pay students because the college still nets more money from these students than from a handful of low-income students. The scholarship helps the college recruit these students, even though the students would pay less at a $30,000 a year public college, in part because it gives the parents bragging rights. Not Eligible for Financial Aid We have saved for our children's education and will not qualify for any financial aid. If we check off the box indicating that no financial aid is being requested, will my children still be considered for merit money from colleges and universities? Audrey Never check off a box that says that you are not applying for financial aid. You can turn down the specific types of aid later. Some colleges will not consider your child for merit-based aid if you indicate that you do not need financial aid. Most colleges practice need-blind admissions, so checking the box will not increase your chances of getting in. The main exception is when a student is admitted off the waiting list, when the college's financial aid budget has already been exhausted. But if you need financial aid to afford college and do not apply for financial aid, you will be in a difficult financial situation. Some colleges will not award institutional grants to students who did not apply for financial aid as freshmen unless there is evidence that the family's financial circumstances have changed. We do not qualify for any financial aid based on need, however, my child is an excellent student who will qualify for some merit scholarships. Is it necessary to fill out the Fafsa to be considered for and receive merit-based scholarships? Thanks for your guidance! Anonymous Guest Parents have a tendency to overestimate their child's eligibility for merit-based aid and underestimate eligibility for need-based aid. Families should file the Fafsa every year, even if they did not qualify for financial aid other than loans last year. The financial aid formula is complicated enough that subtle changes in a family's circumstances can have a big impact on eligibility for need-based aid. For example, the parent contribution is divided by the number of children in college at the same time. So a family that did not qualify for any grants during their eldest child's first year in college might still qualify in a subsequent year when they have two or more children enrolled in college simultaneously. Some merit-based scholarships, including those offered by the colleges and those offered by private scholarship providers, require applicants to file the Fafsa. This ensures that the family gets all the need-based aid for which they are eligible, allowing the scholarship provider to stretch their merit-based funding further. A few hundred private scholarships will even require families to file the CSS/Financial Aid PROFILE form, a more detailed financial aid application than the Fafsa. The Fafsa is also used to apply for state grants, some of which are not based on financial need. Mr. Kantrowitz has agreed to accept questions through Oct. 3. To pose a question to Mr. Kantrowitz, please use the original post soliciting questions or the comments box below.