1. What is financial aid?
Financial aid means the sum of money awarded to students to help meet their costs of attending institutions of higher education or to fund living expenses. This can be in the form of scholarships, grants, work-study, or loans.
2. What are the types of financial aid available for college students?
The primary categories are:
Scholarships: Merit-based awards for academic, athletic, or other achievements.
Grants: Awarded based on need and do not have to be repaid.
Work-Study: Federal work-study programs provide part-time jobs to help students earn money for college.
Loans: Funds that are borrowed and must be repaid after graduation, usually with interest.
3. How do I apply for financial aid?
Generally, to be considered for financial aid, you would have to fill out the Free Application for Federal Student Aid (FAFSA), which will determine your eligibility for federal, state, and institutional aid. Other schools also require you to submit the CSS Profile in addition to the FAFSA.
4. What is FAFSA?
FAFSA, or Free Application for Federal Student Aid, is a form used by the U.S. government to determine a student’s eligibility for financial aid. It requires information about your family’s financial situation and is used by the federal government, state agencies, and schools to award aid.
5. When should I submit my FAFSA?
It is best to submit your FAFSA as early as possible after the application opens, which is October 1st of the year before you plan to attend college. Some financial aid is awarded on a first-come, first-served basis, so submitting early increases your chances of receiving aid.
6. What information do I need to complete the FAFSA?
To complete the FAFSA, you’ll need:
Your Social Security number-or alien registration number if you are not a U.S. citizen.
Your federal income tax returns, W-2s, and other records of income.
Records of income that was not taxed, such as alimony or veterans benefits.
Assets-anything you have-including savings and investments.
Colleges you plan to apply to.
7. What is the Expected Family Contribution (EFC)?
The Expected Family Contribution, or EFC, is a number that represents a family’s financial situation. It is calculated from the information you report on the FAFSA and is used by colleges to determine your eligibility for need-based financial aid.
8. What’s the difference between grants and scholarships?
Both grants and scholarships are types of gift aid, but:
Grants are typically need-based, awarded based on financial need.
Scholarships are frequently merit-based and are given based on academic, athletic, or other achievement.
9. What is work-study?
Work-study is a federal program that provides students who have financial need with part-time jobs in which they earn money to pay for educational expenses. Jobs are frequently on campus or with nonprofit organizations.
10. What are federal student loans?
Federal student loans are loans extended by the federal government to cater for students to pay for school. These normally have lower interest rates and better payback terms as compared to other private loans.
11. How do federal student loans differ from private loans?
Federal student loans are funded through the government; they normally enjoy better payback terms, for example, with income-driven repayments and a loan forgiveness provision.
Private loans are provided by banks and other lenders, generally with higher interest rates and less flexible repayment arrangements.
12. How can I find scholarship money for college?
You can locate all of these by:
College and university sites
State and federal government programs
Private organizations, foundations, and businesses.
There are also scholarship search engines, like Fastweb and Scholarships.com.
13. What is the CSS Profile?
This is the financial aid application that most private colleges and universities use to assess a student’s eligibility for institutional aid. In contrast to the FAFSA, the CSS Profile requests more information about a student’s financial resources and may involve a fee.
14. How will I receive my financial aid award?
Once your FAFSA is processed and your financial need is determined, you will receive a financial aid award letter from your college. This letter will outline the types and amounts of aid you are eligible to receive.
15. What should I do if my financial aid package isn’t enough?
If your financial aid package doesn’t fully cover your expenses, you can:
Appeal for more aid by contacting your school’s financial aid office.
Apply for additional scholarships.
Consider taking out private loans or finding part-time employment.
16. What are Pell Grants?
Pell Grants are federal grants awarded to undergraduate students based on financial need. They do not have to be repaid, making them a valuable form of financial aid for eligible students.
17. Can financial aid be used for study abroad programs?
Yes, many kinds of financial aid, including federal student loans and grants, may be applied to study abroad programs if the program is affiliated with your school. Contact your financial aid office for specifics.
18. How do I keep my eligibility for financial aid?
In general, you will need to do the following things to keep your eligibility for financial aid:
Continue to be enrolled as a full-time student.
Continue making satisfactory academic progress (attaining a certain GPA or course completion rate).
Submit FAFSA forms for each academic year.
19. What if I withdraw from classes or drop below full-time status?
You may lose some or all of your financial aid if you withdraw or drop below full-time status. Always talk to your school’s financial aid office before withdrawing or dropping to less than full-time status.
20. Can I appeal a financial aid decision?
Yes. If you had a change of circumstances, not included on the FAFSA, such as you suddenly have a great income or the birth of another family member; seek appeal procedures by contacting your college’s financial aid office.
21. Can I use my aid to finance a graduate program?
Yes, and graduate students may apply for loan and some types of scholarships to fund their programs. However, the types of aid available for graduate students are distinct from undergraduate students, and a number of graduate programs offer their own fellowships or assistantships.
22. What is loan consolidation?
Combining multiple federal student loans into a single loan that has one monthly payment is considered loan consolidation. It may ease your repayments, but it may have an impact on your loan terms like the interest rates or repayment options available.
23. What is the deadline for filling out the FAFSA Free Application for Federal Student Aid?
The FAFSA deadline varies by state and institution, but you should submit it as soon as possible after it opens (October 1). Some states and colleges have earlier deadlines, and submitting early increases your chances of receiving aid.
24. What is a student loan deferment?
A student loan deferment lets you temporarily stop making payments on your loan while you are in school, experiencing financial hardship, or under other specific circumstances. Interest will or will not accrue depending on the type of loan.
25. How do I pay back my student loans?
Repayment starts after you graduate or drop below half-time enrollment. You will be informed of your repayment options, which include standard, income-driven, and extended plans. Be sure to keep in touch with your loan servicer to discuss options.