How To Secure College Financial Aid

The cost of college tuition can sometimes be overwhelming, and many students often struggle to stay financially afloat in college. Financial aid helps students to cover college costs, making higher education more affordable. The U.S. Department of Education awards students more than $120 billion every year through financial aid for colleges. As a student, it is essential to understand how to navigate the process of acquiring financial aid to receive financial support. Here is everything to know about financial aid. 

What Is College Financial Aid? 

College financial aid is monetary assistance given to students so that they can pay for a college education. It helps students cover education expenses like fees, accommodation, transportation, books, and supplies. Financial aid is divided into four main categories, grants, loans, scholarships, and work-study programs. 

How Does College Financial Aid Work? 

Financial aid is provided through federal and state governments, colleges, high schools, corporations, foundations, and private organizations. A student’s financial aid primarily depends on institutional, federal, and state guidelines. 

For federal financial aid, a student needs to apply for the aid and answer questions to determine their ability to pay tuition. The aid is then awarded based on the application, and the student can accept or reject it. The type of financial aid a student accepts determines whether it must be repaid. When applying for private aid or scholarships, a student may be required to submit additional applications. 

How To Get Financial Aid? 

A student can obtain financial aid by following these essential steps: 

• Submitting the FAFSA: A student must file the Free Application for Federal Student Aid (FAFSA), an application used by schools and state agencies to determine eligibility for college aid. The FAFSA form is available on the S. Department of Education’s website from October 1 in an academic year. It is essential to fill out the form as early as possible to ensure you get the most financial aid. 
• Financial aid forms: Some schools request additional forms like the College Scholarship Service Profile (CSS Profile) used to determine how they will award their funds. The CSS Profile is more detailed than FAFSA and considers your family’s finances and assets. Ensure you fill out all the forms required by your college and always adhere to the deadlines. 
• Private scholarships: A student who requires additional funding can look for private scholarships and send applications to any potential matches. 

Types of College Financial Aid 

College financial aid is divided into two types, need or merit-based. 

• Need-based financial aid is determined by the FAFSA, which demonstrates a family’s ability to pay college tuition. 
• Colleges, institutions, or private organizations award merit-based financial aid to students for academic or athletic ability and specific talents. The award is not given due to financial need. 

College students are eligible for institutional, federal, or state financial aid. Institutional aid may vary based on the school since every college has its formulas and policies on awarding financial aid. Most college students qualify for federal student aid, which is available in three types: 

• Student loans: The government provides students with fixed-rate loans with an interest rate set on July 1 for every academic year. The federal government’s loan program allows dependent students to borrow $31,000 directly. Independent students can borrow a loan of $57,500. Depending on your loan type, it may be subsidized or unsubsidized. 
• Grants: The money you receive from a grant does not need a repayment. The federal government offers the Pell Grant to students whose eligibility is determined by FAFSA. Specific colleges may also offer grants. 
• Work-study: The program provides students with part-time work, usually on campus. Work-study helps students to cover their college expenses and tuition fees. Eligibility for federal work-study is determined using the FAFSA to demonstrate financial need. 

College scholarships allow students to supplement their financial aid package and minimize debt from student loans. Most scholarships are geared towards financial needs, the field of study, community service, and eligibility groups like women. When enrolling for college, it is crucial to check for scholarship programs offered in your institution. Scholarship programs, such as those offered by University of the People, are popular among students and have helped cater to their tuition fees. 

Deadlines for College Financial Aid 

It is essential to complete your application for financial aid before the set deadline to ensure your request is accepted. FAFSA has three deadlines that a student needs to know. 

1. The college deadline: Colleges set the first due date before the year starts, and it varies depending on your school. The date is marked on the college’s financial aid web pages to ensure students see the deadline and submit their applications on time. Students applying for financial aid in multiple colleges should look up the college’s FAFSA deadlines and submit their applications early. 
2. The state deadline: Every state has its own FAFSA deadline. When applying for financial aid, ensure you adhere to your home state’s deadline. Many states’ financial aid funds are limited, making their deadlines quite early. Ensure you submit your application as early as possible for priority consideration. 
3. The federal deadline: The U.S. Department of Education sets this deadline, which is a time limit for FAFSA application forms. After June 30, the forms for a particular academic year become unavailable. It means the FAFSA form for that specific school year will disappear from their website. The extended deadline means you can technically spend the entire year in college and access the form toward the end. However, the college and state deadlines make it hard to wait since you must adhere to their deadline for your application to succeed. 

The Takeaway 

As higher education costs continue to increase, college affordability has affected many prospective students’ enrollment plans. Financial aid is the only solution to this problem, and students should secure the aid early in the enrollment process. It is crucial to assess your financial capabilities to determine the financial aid that suits you. 

Alternatively, you can opt for tuition-free universities like University of the People, which offers degree programs like Computer Science, Business Administration, and Health Science. No matter the path you take, ensure to make the most out of the college investment to complete your studies.