When you’re looking for financial aid for college, the process generally starts by learning an aid program’s requirements and submitting an application. The source of the aid will then review your application to determine if you qualify. If you do, they will calculate the amount you qualify for and the terms and conditions attached to it. The qualifications for financial aid are typically based on merit or need. To qualify for merit-based aid, a student’s achievements, academic or extracurricular, are taken into account. Need-based aid depends on a student’s level of financial need, often determined by analyzing their family’s income, benefits, and assets. Whether you receive need-based or merit-based financial aid depends on the type of aid you apply for. It’s important to note that you must remain eligible for financial aid throughout your time at a college or university. When you receive financial aid from your college or university, you must stay eligible to continue receiving aid. Eligibility requirements vary per institution, but the main thing schools are looking for is that you maintain “satisfactory academic progress,” which often includes having a certain grade point average (GPA). Financial aid can come from a variety of sources, including:
Federal governmentState agenciesCommunity organizationsCorporationsFoundationsHigh schools
Aid most commonly comes in the form of grants, scholarships, loans (private and federal), and work-study programs. When you’re looking for financial aid for college, the process generally starts by learning an aid program’s requirements and submitting an application. The source of the aid will then review your application to determine if you qualify. If you do, they will calculate the amount you qualify for and the terms/conditions attached to it. The qualifications for financial aid are typically based on merit or need. To qualify for merit-based aid, a student’s achievements, academic or extracurricular, are taken into account. Need-based aid depends on a student’s level of financial need, often determined by analyzing their family’s income, benefits, and assets. When looking over a family’s financial picture there is a two-year look-back period. Whether you receive need-based or merit-based financial aid depends on the type of aid you apply for.
Types of Financial Aid
Financial aid comes in many forms and is designed to help in different ways. But you don’t have to choose just one type of aid. You can often combine multiple types to cover your expenses.
Scholarships
Scholarships are financial aid programs awarded to students who meet the requirements set by the sponsoring party. Scholarships can be need based or merit based. Full scholarships cover all of a student’s tuition expenses and textbooks, and they also may provide funds for living expenses. Partial scholarships, on the other hand, only pay for a portion of a student’s college expenses.
Work-Study Programs
Work-study programs offer qualifying college students part-time jobs to help pay for their education. The federal work-study program encourages work that’s related to your studies or that serves the community. To be eligible, you must:
Be an undergraduate, graduate, and professional student Demonstrate financial needAttend a school that participates in the federal work-study program
Federal Student Loans
The federal government offers a variety of student loans that can be used to pay for college expenses. While you’ll pay interest, these loans can offer benefits over private loans, such as fixed interest rates, loan forgiveness programs, postponement options, and income-driven repayment plans. Private student loans may also be an option, however, they don’t offer the same features and protections as federal student loans.
How To Get Financial Aid
You can apply for financial aid by completing the Free Application for Federal Student Aid (FAFSA). The FAFSA is a form used to determine your eligibility for financial aid from the federal government, many state governments, and most colleges. When you submit the FAFSA, there are several factors that determine your eligibility, including:
The size of your family Your year in school The cost of attendance Your expected family contribution (EFC), which is calculated based on your family’s income, assets, and benefits
After you submit your application, you can check your status using the Federal Student Aid (FSA) ID that you receive. You will then receive your Student Aid Report. Your aid report will explain all of the types of aid you qualify for, the amounts of each, and the leftover costs you can expect to pay for the year. If you are considering more than one college, you’ll be able to review the aid offers from each school and accept the one that suits you best. The Federal Student Aid office recommends choosing aid in this order: The financial aid office at your chosen school will often apply your aid to your outstanding balance and send you the remaining balance. If you still have an outstanding financial need, you can seek out financial aid from organizations with programs not included in the Student Aid Report.
Is Financial Aid Worth It?
Financial aid can help to lower the costs of your college education, reducing the amount you and your family have to pay or borrow. Choosing which aid to apply for will depend on a case-by-case basis. Generally, though, grants and scholarships are preferred, as you don’t have to pay them back in most cases. However, federal loans can also offer a more accessible and affordable alternative to private loans. If you receive financial aid award offers from more than one school, look for the one that provides you with the most gift-based aid, as you won’t have to pay it back down the line.
