I spend a lot of time working with seniors in high school and their families and find that the term “financial aid” is frequently used, but is often misunderstood.  So what exactly is financial aid?

Financial aid can be free money (which we love because we don’t have to pay it back), in the form of grants and scholarships.  Grants may be awarded to students by the federal government, the state or the college based on the student’s and/or family’s finances.  Scholarships are different and are typically awarded based on merit, or something the student did to earn it, such as having stellar grades or participating in community service.  Students may receive grants, scholarships, both or none of the above.

It is important to know that not all financial aid is free.  There are government loans (Stafford Loans) that most likely will be offered to students.  These loans may be subsidized (the government pays the interest on them while the student is in college) or unsubsidized (the student is charged interest on them the entire time) and come with a fixed interest rate.  They are loans that are solely in the student’s name, and do not require a co-signer.  The maximum amount that an independent freshman student can borrow is $5,500.  Work study is also considered financial aid.  While work study is not money that will be taken off the college bill itself, it is a set amount of money that the student may earn during that academic year in a work study job.  Many students use this money to help pay for books, laundry and the occasional pizza with friends.

So now that you know what financial aid is, you’re probably wondering how you are able to get some.  Filing the FAFSA form (the Free Application for Federal Student Aid) is free and is your application for all federal and state money and in many instances, school awarded money as well.  The majority of families file the form online at www.fafsa.ed.gov as it has many features built into the software to help make sure your form is complete before submitting it.  In my experience, the single biggest reason that students have not received the maximum amount of financial aid possible is missing a FAFSA deadline.  While you are not able to file the FAFSA before January 1 of the year you plan to attend college, colleges do have deadlines for the application.  Typical deadlines tend to be February 1, February 15 and March 1, although colleges vary and you need to adhere to whatever your colleges ask.  Submit the FAFSA before the earliest deadline your colleges list to ensure being considered for all possible financial aid.

Some private colleges require additional financial aid forms beyond the FAFSA.  The CSS Profile form is administered by College Board and does cost money to file.  Check the deadlines for this form as sometimes colleges’ need it completed earlier than the FAFSA.

So you filed your financial aid paperwork; now what?  You apply for private scholarships through your high school and other organizations and you wait to hear back from your colleges.  If you are accepted to the school, your file moves from Admissions to Financial Aid and their office begins to look at the financial aid forms that you completed.  They put together what’s called an Award Letter or Financial Aid Package, which is basically their financial offer to attend their college.  Make sure you fully understand the offer.  What’s free money versus what has to be paid back?  What is the difference that still has to be funded out-of-pocket?  If you have any questions, call the Financial Aid office at the school; you want to make the best choice for you based on all of the information you have: the school environment, the program of study and the financial aid package.

Financial aid may sound scary, but it can help make college affordable.  Educate yourself so that you feel empowered in this process.  The more you know and understand how things work, the more you can advocate for yourself.

Best of luck,
Val