What’s financial aid? How do I apply?
What’s financial aid? How do I apply?
At the end of the day, college is an investment. It's an investment of your time and talents and often comes with a substantial financial investment. However, don’t let this stand in the way between you and pursuing a degree. There is money out there - now let’s talk about how to get it!
Federal Aid
When one thinks of the cost of higher education, one often thinks of student loans: primarily given out by the government. To qualify for these loans, and a prerequisite for most scholarships (which we’ll get into shortly) is to fill out the Free Application for Federal Student Aid, also known as the FAFSA.
FAFSA
The FAFSA is an online form prospective and current students fill out each year detailing their education and financial background to see what federal aid they qualify for. The most important things you need to know about the FAFSA are these -
It opens every year on October 1
It is first come, first serve
Priority filing ends on January 15
It must be filled out every single year you want to receive aid
The FAFSA can be daunting, especially if you’re completing it for the first time with no one who has done it before. But ultimately, all it is are questions! Questions about you and your background. If you’re a dependent of your parents or legal guardian. Both your and their financial history, and so on. Before October 1, sit down with your parents/guardian and make sure you have all the information you need. (Your Social Security number or Alien Registration number if not a U.S. citizen, records of any money earned, such as tax returns or W-2s, bank statements, and records of investments or untaxed income, if applicable.) If you are a dependent (most incoming first-years are) you’ll need both your and your parent/guardians' information to file.
You’ll also need to list any schools you are applying to or considering. This tells the government to pass on your FAFSA report to that school so they can know if you receive any aid.
Federal Aid Types
There are a few different aids that the federal government offers based on eligibility. The most common are student loans - money the federal government will loan you for your education. It’s important to note that these are LOANS, meaning you must pay them back with interest. There are two different types of loans offered - subsidized and unsubsidized loans. In short, subsidized loans are much preferable because you will not be responsible for any of the interest they accumulated during your time at school and six months after. Unsubsidized loans, on the other hand, start gathering interest the moment they are taken out, whether you are in school or not.
It’s important to note that you are not required to take out loans if you don’t need them. Similarly, you do not have to take out the entire amount offered to you. If you can pay for college without taking out loans, we highly recommend you choose that option.
Another type of aid sometimes offered is called grants. A grant is a money given to you by the federal government that does NOT need to be paid back. Grants are awarded to students exhibiting extreme financial need.
Non-Federal Aid
Federal aid is a great stepping stone, but many students need more than what the federal government can offer. This is where non-federal aid comes in, typically in the form of scholarships.
Scholarships
Scholarships are money awarded to students that do not need to be paid back. Students can qualify for scholarships in every way imaginable, from merit-based (meaning you did something awesome and people want to award that), need-based (you show significant financial need), or even things such as where you grew up, what your last name is, what you're studying, etc.
Internal Scholarships
Scholarships given out by the school, often referred to as internal scholarships, are typically handled by their financial aid office. These can come from individual departments, funds that alumni or others in the community have contributed to, or more. Every school has a different process for how students apply for and receive scholarships. Your best bet is to contact their financial aid department directly and talk to them about it.
External Scholarships
External scholarships are given out by people or places other than the school. These may come from your place of employment, the city or state you live in, a religious organization, etc. There are plenty of websites out there that will walk you through external scholarships and help you curate some that you may qualify for!
In Conclusion…
College comes with a higher ticket cost - but that doesn’t mean it’s impossible to achieve. It just means you may need to dive into some resources to find ways to help cover the bill! We recommend 1) Filing the FAFSA early! 2) Do your research - look into schools' sticker prices (the amount students are paying on average) as well as the average amount of aid they give out. And 3) contact each school's financial aid office! Make sure you understand their individual process so you can qualify for and receive as much aid as you can. Best of luck!