Student Loans: Borrow Smart!

Once you submit your Free Application for Federal Student Aid (FAFSA), you’ll see a confirmation page that explains your next steps and gives you an estimate of federals grants and loans you may be eligible to receive. When you get your financial aid award letter from the college(s) of your choice, they will most likely include those loan amounts in their offer. Be cautious when borrowing student loans; you may not need all the loan money that’s offered to you. Student loan debt can grow quickly, and you must repay the full amount with interest. Search for grants and scholarships first to cover your college expenses, as they’re typically considered free money. Think of student loans as your last option to help pay for college.

If you must borrow student loans, do your research. ReadySetRepay.org offers information on all aspects of student loan management, as well as Borrow Smart From the Start, a guide to help you navigate student loan process from beginning to end. You’ll find tips on how to avoid or reduce student loan debt and the steps you’ll need to take if you’re having trouble with your loan payments. Students loans are an investment in your future. Remember to invest wisely by making smart borrowing decisions from the start.

Financial Aid Letter

The Free Application for Federal Student Aid (FAFSA) is an important first step in the financial aid process. After you’ve submitted the FAFSA, your college(s) of interest will process the information you provided and will determine your eligibility for federal and state aid. The college(s) will also calculate the loans and institutional scholarships you’re eligible to receive. The summary will be sent to you in an award letter, either electronically or via the U.S. Postal Service. Keep in mind, it takes time to process this information, so most campuses will send out aid offers in late March or early April for those starting college in the fall.

When your offer arrives, it’s important to read it carefully. You’ll be asked to accept or decline all or some of the offered financial aid. On your aid offer, you’ll see several different numbers, which are outlined below.

Cost of Attendance (COA): This is the estimated cost to attend your college for one year.

Expected Family Contribution (EFC): This number is used by the college to determine how much financial aid you’re eligible to receive. While the EFC is a calculation of all the information provided on the FAFSA by you and your parent, it’s most likely not the amount you’ll be expected to contribute. Want to learn more about the EFC? Check out our EFC Overview .

Award Package: The letter will list the types and amounts of aid the college can offer to you. You may see some of the following:

Grants: These are considered gift aid that can come from federal, state and tribal governments. Grants are usually based on financial need.

Scholarships: These can be based on need, merit or interests. They’re awarded by colleges, state agencies, companies, foundations, tribal and private organizations.

Federal Work-Study: This is an opportunity to work on- or off-campus to earn financial aid. Think of it as a part-time job specifically to pay for college.

Federal Student Loans: Loans are borrowed money to help you pay for college. Loans must be repaid, with interest.

Remember, you don’t have to accept all of the aid offered to you, especially when it comes to borrowing student loans. A monthly payment of tuition and fees during college may be a better option for you or your family than a loan payment with added interest after you’ve completed your education. To learn more about the different types of financial aid, check out our publication: Are You Looking for Money?

Talk with your family about your financial situation and decide how much financial aid and which types of aid you need to accept. Still have questions about the financial aid letter? Take a look at our new resource, Understanding Your Award Letter.


Financial aid Valentine’s Day Poem

Roses are red, violets are blue.
College is great – You can go, too!

“How do you pay for it?” students will ask.
Find the free money! It’s your first task.

Focus on scholarships, grants and work-study.
Remember you need a FSA ID.

Complete the FAFSA for financial aid love,
Sign and submit at FAFSA.gov!

There are quite a few questions on that free application.
Confused? Visit StartWithFAFSA without hesitation!

You’ve found extra scholarships! How very smart.
Search for more aid at OKcollegestart!

On your award offer, there may be some loans.
Borrow just what you need to reduce what you’ll owe.

Stay the course through graduation,
and keep preparing for higher education!

¿Habla usted español?

In our continuing efforts to ensure that all Oklahoma students and their families have access to valuable college planning information, the Oklahoma College Assistance Program is offering helpful publications and tools in Spanish. We’ve also included information about Oklahoma’s Promise, an amazing scholarship opportunity that covers college tuition or students who qualify.

College Planning
¿Estás planeando ir a la Universidad?
(Are You Planning to Go to College? – flyer)

FSA ID
Instrucciones para sacar una FSA ID
(FSA ID worksheet – flyer)

  • Guides students and parents through the process of creating the FSA ID, a username and password used to sign, submit and edit the Free Application for Federal Student Aid (FAFSA). Space is provided to write down the answers given in each field.
  • FSA ID worksheet, Spanish

FAFSA Video
La FAFSA en 5
(The FAFSA in 5 – video)

Oklahoma’s Promise Resources
La Promesa de Oklahoma

Did you know that the FAFSA is also available in Spanish? Simply click Español in the top right corner of the home page at fafsa.gov to begin your application.

Financial Aid Awareness Month

February is Financial Aid Awareness Month! This is the time for you to learn all about the financial aid process for college.

What is financial aid?
Free Money

Federal and State Grants

Scholarships

Earned Money

Borrowed Money

How do I apply?

  • Complete the FAFSA (Free Application for Federal Student Aid)
    • Apply every year you need financial aid for college
    • Apply on or after October 1
    • Complete your application online at FAFSA.gov
    • Create an FSA ID to access and sign your FAFSA

How will I know how much financial aid I’ve been offered?

  • After your FAFSA has been submitted and you’ve been admitted, your school will send you an aid offer
  • Review and research all programs offered, and accept only the aid you need
  • You don’t have to accept everything you’ve been offered

To learn more about the financial aid process, review these tools on this site:

  • FAFSA Learning Modules
  • Finish the FAFSA in Five Steps
  • Dependency Questionnaire
  • FAFSA Fundamentals 2021-2022 PowerPoint
  • FAFSA Parent Flyer

You will also find these helpful FAFSA videos:

UCanGo2.org also offers many beneficial FAFSA resources:

  • The EFC (Expected Family Contribution) PowerPoint
  • The FSA ID (Federal Student Aid Identification) PowerPoint
  • The Financial Aid Award Letter PowerPoint

Learn more about Financial Aid Awareness Month here!