5 Key Things to Know When Understanding Financial Aid for College
If you’re planning to attend college, you’ve probably come across the term “financial aid.” Financial aid is the money that a student receives to help pay for the cost of attending college. It can come from different sources, such as the federal government, the state, or the college itself. While financial aid can be a lifesaver for students and families, understanding it can be quite confusing. Here are the five key things to know when understanding financial aid for college.
1. Know the Types of Financial Aid
Financial aid can come in different forms, such as grants, scholarships, work-study, and loans. Grants and scholarships are the most desirable because they don’t have to be repaid. Work-study offers students the opportunity to earn money while attending college. Loans, on the other hand, must be repaid with interest. Knowing the types of financial aid available can help you make informed decisions about how to pay for college.
2. Know the FAFSA
The Free Application for Federal Student Aid (FAFSA) is the key to unlocking financial aid opportunities. All students who want to be considered for financial aid must complete the FAFSA. The FAFSA is used to determine a student’s financial need, which is the difference between the cost of attending college and the amount a family can afford to contribute. It’s important to complete the FAFSA as early as possible because some types of financial aid are awarded on a first-come, first-served basis.
3. Know the Deadlines
Each financial aid program has its own deadlines. It’s important to know the deadlines for each program you’re interested in and to submit your application on time. Missing the deadline can mean missing out on financial aid opportunities.
4. Know the Fine Print
Before accepting any financial aid, it’s important to understand the terms and conditions of the award. Some awards may have specific requirements, such as maintaining a certain GPA or majoring in a particular field. Others may require you to perform community service or other types of work. Make sure you understand what’s expected of you before accepting any financial aid.
5. Know Your Responsibilities
Receiving financial aid comes with certain responsibilities. If you receive loans, you’ll need to understand the repayment process and make sure you’re able to make the payments on time. If you receive work-study, you’ll need to balance your work responsibilities with your academic commitments. And if you receive scholarships, you’ll need to maintain any requirements that come with the award. Knowing your responsibilities can help you make the most of your financial aid opportunities.
Conclusion
Financial aid can be a complex topic, but understanding the basics can help you make informed decisions about how to pay for college. Knowing the types of financial aid available, completing the FAFSA on time, understanding the deadlines, reading the fine print, and knowing your responsibilities are all key to unlocking financial aid opportunities and making college more affordable. By following these five key things to know, you’ll be well on your way to understanding financial aid for college.
