Category Archives: Types of Financial Aid

FAFSA Reminders

It won’t be long before the 2021-2022 Free Application for Federal Student Aid, or FAFSA, is available. This application allows you to see your eligibility for multiple forms of financial aid.  To prepare for completing the FAFSA, make a note of opening day, use the correct website, gather the right materials and know what to expect during and after you submit your FAFSA.

Opening day. The new FAFSA will open on Oct. 1 and it’s important to submit your application as soon as possible once it becomes available. Certain types of aid, such as the Oklahoma Tuition Aid Grant (OTAG) and Oklahoma Tuition Equalization Grant (OTEG), are awarded on a first come, first served basis. To ensure you don’t miss out on any type of aid, submit your FAFSA early.

Free application. There aren’t any costs associated with submitting a FAFSA. Since the first “F” in FAFSA stands for Free, be sure you don’t pay to submit the application. You can make sure you access this free form by using the official website, FAFSA.gov, or official mobile app, myStudentAid. The website and mobile app are compatible, so if you start the application on your mobile device but need to finish it on FAFSA.gov, you’ll be able to do so with ease. Remember, never pay to complete the FAFSA!

Necessary materials. You’ll want to gather the right materials before you start the FAFSA. You’ll need your Social Security card, driver’s license, your parent(s) 2019 tax returns and W-2 forms, and other financial documents detailing your family’s income. Additionally, you’ll need a personal email address instead of a school-issued one. A personal email address allows you to access important updates even after you graduate. Another necessity is an FSA ID. This is your username and password to log in and sign the application. You and one of your parent(s) will need an FSA ID. While the FAFSA isn’t available until Oct. 1, the FSA ID can be created anytime. It’s best to create your ID before starting the FAFSA. You can do that today by visiting fsaid.ed.gov.

What to expect. It can take up to an hour or longer, depending on your circumstances, to complete the FAFSA. Allot plenty of time to submit the form. Your FSA ID and application Save Key (a temporary password you create) allow you to save your application and return at a later date to finish. If you must complete the FAFSA in multiple sessions, be sure to click “Save” before closing the application. When reporting income information, use the IRS Data Retrieval Tool if possible. This tool allows you and your parent(s) to transfer tax return information from IRS.gov to FAFSA.gov. You’ll have to enter other financial information into the FAFSA, but using this tool can help save time and avoid entry errors. Once you’ve submitted the FAFSA, it will take 3-5 business days to process. Your college’s financial aid office will notify you if additional documents are needed. After your application has been processed, you can access your Student Aid Report, or SAR. The SAR is a summary of all your FAFSA answers. It’s important to review your SAR once it’s available to check for errors. Some scholarship programs may require the SAR as a part of the application process.

Submitting your FAFSA is a big part of college planning. Preparing for it in advance can make for a better experience. For more information about what to expect on the FAFSA, visit studentaid.gov.


New Videos

Our friends at UCanGo2 have produced two new videos about financial aid!

FAFSA and Financial Aid provides an overview of the Free Application for Federal Student Aid and how it is the first step in successful financial aid!

Scholarships 101 provides an overview of looking for and applying for scholarships.

You can also view these two videos on our Videos page!

FAFSA Preview

If you’re an incoming high school senior, you’ll probably be hearing an important question this fall that you haven’t heard before: “Have you completed your FAFSA yet?” Let us tell you what the FAFSA is, and why it’s so important.

The Free Application for Federal Student Aid (FAFSA) is the key to unlock money that will help you pay for your education after high school. It’s simply a ‘snapshot’ of your family’s financial situation, and it’s used to determine how much federal financial aid a student may be eligible to receive.

Now that you know what the FAFSA is, let’s talk about what it’s NOT. It’s not an application to college, a loan application or any type of commitment to accept the aid you’re offered. It’s not a credit check, and it’s not limited only to students with stellar grades; the application won’t even ask for your grade point average (GPA).

A new FAFSA is available October 1 each year. For high school seniors, this means yours will be ready for you to submit this October – almost a year before you begin college. Don’t sweat it if you haven’t picked a college yet. One great thing about the FAFSA is that you can have your information sent to up to 10 different campuses.

Even though your FAFSA won’t be ready until October, you can take a look at the current form to see what it’s like. There are two options you may want to consider.

Please keep in mind that neither of these tools is a replacement for the real FAFSA. You’ll still need to complete the actual form online ASAP after October 1 in order to apply for federal and some state-based financial aid.

According to the National College Attainment Network, billions of dollars in federal financial aid for college is left unclaimed each year by students who would have qualified to receive the aid; they just didn’t submit a FAFSA. You’ll never know what you’re eligible for unless you submit the application.

For more information about the FAFSA and the types of aid that are available, visit FAFSA.gov and studentaid.gov.

Federal Financial Aid in 2020: What Can I Expect for the Coming Academic Year?

When gathering the money you need to pay for college, it’s important to know the amount of federal financial aid that may be available to you. Each year, grant amounts and student loan interest rates are subject to change. Here’s what you can expect for Academic Year 2020-2021.

  • The Federal Pell Grant: Available to students who qualify based on the level of their financial need as determined by Federal Student Aid, a division of the U.S. Department of Education. Beginning July 1, 2020, the maximum allowable Pell amount you may be able to receive for one year of college is $6,345, which is an increase over the maximum of $6,195 for Academic Year 2019-2020.
  • The Federal Work-Study Program: If your campus administers work-study funds, you may be able to sign up for a part-time job, either on-campus or an approved site off-campus, enabling you to earn money to pay for some of your college expenses. The maximum amount you can earn in the work-study program will be determined by your level of financial need.
  • Federal Student Loans: To provide relief to student loan borrowers during the COVID-19 national emergency, interest is being temporarily set at 0% on federal student loans borrowed before July 1, 2020. In addition, federal student loan borrowers are automatically being placed in an administrative forbearance, which allows you to temporarily stop making your monthly loan payments. This 0% interest and suspension of payments will last from March 13, 2020, through September 30, 2020, but you can still make payments if you choose.

The following table outlines the projected federal student loan interest rates for Academic Year 2020-2021, which show a decrease from last year’s rates:

Loan TypeBorrower TypeFixed Interest Rate
Direct Subsidized and Unsubsidized Student LoansUndergraduate students (up to Bachelor’s degree)2.75%
Direct Unsubsidized Student LoanGraduate or professional students4.30%
Direct PLUS LoanParents of undergraduate students OR graduate/professional students5.30%

Be sure to visit StudentAid.gov for up-to-date information regarding interest rates and special allowances due to the COVID-19 pandemic.

Have You Applied for Oklahoma’s Promise?

The Oklahoma’s Promise scholarship program offers qualified Oklahoma students an opportunity to earn a scholarship for college tuition. To qualify for enrollment:

  • You must be an Oklahoma resident.
  • You must enroll for the scholarship in the 8th, 9th or 10th grade

(at the age of 13, 14 or 15 for homeschool students).

  • Your parent(s)’ federal adjusted gross income (AGI) must not exceed $55K per year. –  Special income provisions apply to legal guardians and certain adoptive parents.

If you have just completed 10th grade, you must submit your application for Oklahoma’s Promise by June 30, 2020 in order to be considered for the scholarship. Students who just completed 8th or 9th grade and miss the June 30 deadline will be able to complete the 2020-21 application in the fall.

Prior to receiving the scholarship in college, the federal adjusted gross income (AGI) of the student’s parents (or the income of the student if the student is officially determined to be financially independent of their parents) may not exceed $100,000. Each year in college Oklahoma’s Promise students will be required to complete a Free Application for Federal Student Aid (FAFSA), which will be used to determine whether the federal adjusted gross income exceeds $100,000. To learn more about Oklahoma’s Promise and to explore other federal and state financial aid opportunities, visit:

Summer Scholarships

Summer break is closing in! This is the time when many students jump back into their summer jobs to earn a few extra bucks. While a summer job is a great first step to easing the financial responsibility of college, there are also opportunities available all summer long to find scholarship money.

Many scholarships have deadlines from May-August and the awards can be applied to the upcoming school year. The more scholarships a student applies for, the greater their chance of being selected a winner. We suggest that students apply for at least 1-2 scholarships per week. There are plenty of scholarships that only require a simple application and/or a short essay. A little effort can reap great financial benefits, so while you’re catching some rays, pull up your favorite lawn chair, grab an iced tea and check out these fun summer scholarships:

Flavor of the Month Scholarship

“Summer and ice cream go hand-in hand. In fact, July is National Ice Cream Month, and that’s the inspiration behind this award. We think people are very similar to ice cream…so if you were an ice cream flavor, which would you be and why?”

Deadline: July 31, 2020

Amount: $1,500

Check out this scholarship and more!

Solar Action Alliance Scholarship

It’s summertime and the sun is shining. Solar Action Alliance wants to spread the word about the most clean, reliable and abundant source of renewable energy: the sun. They are offering a scholarship to a motivated student who can answer the question: “What excites you most about the future of solar power?” Students must submit their answer in the form of a 500-1000-word essay.

Deadline: July 1, 2020

Amount: $1,000

Check out this scholarship!

Slumber Search Scholarship

Summer is a good time to catch up on sleep. It’s also a good time to apply for scholarships! Slumber Search wants to assist students as they start their entrepreneurial endeavors. To apply, students must create a short video answering the following questions:

“If you were to create a product or business to disrupt a current industry, what would you do and what would it be?”

Deadline: June 30, 2020

Amount: $1,000

Check out this scholarship!

Want to find more scholarships? Check out UCanGo2!

When you’re submitting your scholarship applications, be sure to remember these tips:

  • Check your eligibility: Some (not all) scholarships have age, grade level or GPA requirements. Be sure you are eligible before investing your time in an application.
  • Check the requirements: Do you have all of the documentation required for your scholarship? Do you need letters of recommendation? Be sure to double check that you’re prepared to submit a complete application.
  • Proofread: Verify that your contact information is correct on scholarship applications. Also, make sure you review your essay, if one is required. Represent yourself well with professional and clear writing.

Student Loan Grace Period

While searching for ways to pay for college, it can be encouraging for students to discover that federal loans help ensure their ability to fund higher education. Many student loan borrowers have questions about how loans work, different loan types, repayment options, and the grace period. It’s important for them to be well-educated on this process before they enter repayment. Here we will provide information on understanding the grace period.

What is a grace period?

One of the advantages of a federal student loan is the six-month grace period. Borrowers usually aren’t required to make a payment on their loan until six months after they graduate, withdraw from school or drop below half-time enrollment status. The grace period gives borrowers time to find employment and adjust their budgets accordingly.

How does a grace period work?

During a grace period, interest will accrue on Direct Unsubsidized Student Loans, and sometimes subsidized loans (see the ‘Interest’ section of the Master Promissory Note, or MPN). Borrowers are strongly encouraged to make interest payments on their loans while in school and during the grace period, if possible, in order to keep the interest from being capitalized (added to the principal balance of the loan). Be sure to visit ReadySetRepay.org to see how making interest payments while in school and during the grace period can help you Save Money on Student Loans.

Here’s something else you should know. A borrower could possibly have more than one grace period to monitor if they’ve dropped below half-time status at their school for any reason. This scenario could take place if a borrower had loans at one college and then borrowed again when they transferred to another college. Dropping below half-time status at one or both of those schools would change the timing of their grace period, thus starting the six-month timeframe at different intervals. It’s important that student loan borrowers talk to their school’s financial aid office, or their loan provider, to confirm repayment start dates on each of their loans.

More information about successful loan repayment can be found at ReadySetRepay.org.

Military Benefits and the FAFSA

When it comes to reporting military benefits on the Free Application for Federal Student Aid, or FAFSA, families aren’t always sure what to include. Three questions on the application relate to military benefits; they request information about combat pay, housing allowance and noneducational veteran benefits. Let’s break them down here.

  • The first question concerning military benefits asks about the service member’s total combat pay. Depending on the military member’s rank, this benefit may not need to be reported. If the person is an enlisted member or a warrant officer, they don’t have to provide this information. However, if they are a commissioned officer, they will need to report their combat pay. This amount can be found on the service member’s W-2 form in box 12.
  • The next inquiry about military benefits concerns the service member’s housing allowance. Reporting this information is dependent on other factors. If the member receives a subsidy for on-base military housing or a Basic Allowance for Housing (BAH), then the member doesn’t need to report the benefit. Those who receive housing allowances other than the ones mentioned above must include that information on the FAFSA.
  • The last question regarding military benefits asks service members to report their noneducational veteran benefits. Those who receive the Montgomery GI Bill, Post-9/11 GI Bill, Dependents Education Assistance Program or Vocational Rehabilitation Program don’t need to provide this data. Those who receive other noneducational assistance, such as benefits including Disability, Death Pension, Dependency and Indemnity Compensation (DIC) and VA Educational Work-Study allowance, must report that information. Noneducational veteran benefits can be found on the service member’s monthly VA benefit statement.

Knowing which types of military benefit information to include on the FAFSA and gathering the right documents can make the process easier. The service member should collect the appropriate year’s tax return, W-2 forms and benefit statements to answer these three questions accurately. For more information about military benefits and the FAFSA, please visit MilitaryBenefits.info.  

A College Sent Me A Financial Aid Offer – Now What?

When you submitted your Free Application for Federal Student Aid (FAFSA), you listed one or more college codes that represent the schools that interest you.  Once your FAFSA’s been processed, you may begin to receive financial aid offers from these schools sent electronically or via the US Postal Service. It’s important to read each offer carefully, as they describe the types and amounts of financial aid a college or career technology center can provide to help you pay for one year of higher education.

On your financial aid offer you’ll see:

  • The total Cost of Attendance (COA) – An estimate of what it costs to go to that school for one year
  • Expected Family Contribution (EFC) – A number calculated from your FAFSA that’s used by the school to determine how much financial aid you’re eligible to receive (most likely not the amount you’ll be expected to pay)
  • Types and amounts of aid the school can offer you; this list is often called a ‘financial aid package’. Your offer may consist of:
    • Grants – aid based on financial need that typically doesn’t have to be repaid
    • Scholarships – gift aid awarded to you by colleges, state agencies, foundations, tribal and private organizations
    • Federal work-study – an opportunity for you to work on or off campus to earn money for college expenses
    • Federal student loans – funds awarded based on financial eligibility that must be repaid, with interest
    • Federal PLUS loan – a loan your parent(s) may borrow to help you pay for college; your parent(s) are expected to repay the loan (credit check required)

Now, subtract all of the financial aid shown on the offer from your Cost of Attendance. This will determine your estimated Net Cost, which is the out-of-pocket amount you’ll be expected to pay. If you should end up with a negative amount, the Net Cost would be zero.

What options are available to help you cover the Net Cost?

  • More scholarships – You don’t have to be a straight A student or a sports star to qualify for many different kinds of scholarships. OKcollegestart.org and UCanGo2.org are great places to begin your scholarship search.
  • A 529 College Savings Plan – visit ok4saving.org for more information
  • Military benefits – visit military.com/education/gi-bill to learn more
  • A monthly payment plan approved by your school

Don’t forget:

  • You don’t have to accept all financial aid offered to you, especially when it comes to borrowing student loans. Using a monthly payment plan while you’re in college can be less expensive than a monthly loan payment with added interest after you’ve graduated. If you’re unable to make a monthly payment to the school, consider making smaller monthly interest payments on any unsubsidized student loan(s). This will decrease your overall student loan debt once you graduate or leave school.
  • Pay attention to deadlines. Accept or decline your financial aid offer before the specified date.
  • If you receive more than one financial aid offer, you may want to determine what your net cost would be at each college. Ultimately, you’ll want to choose the school that’s the best fit for you.
  • To add more school codes to your FAFSA, log in as a returning user at studentaid.gov.

Student Loans: How To Borrow Smart from the Start

When you receive your financial aid offer from a college you may be interested in attending, it’s quite possible that one or more student loans will be included in the offer. If you need a student loan(s) to help cover the costs of college, you’ll want to borrow smart from the very start of your college experience to minimize your debt after graduation. Here are some things you need to know as you consider student loans.

  • Use ‘free money’ first. Take advantage of all the gift aid you’re offered—grants and scholarships—before deciding how much you’ll need to borrow.
  • You don’t have to accept student loans. You can decline any amount of financial aid that is offered to you. If you must borrow to pay college costs, only borrow what you’ll need to get you through one year of college. Review your finances each semester, and keep that commitment to borrow only what you need to cover school expenses.
  • Do your research. Some experts recommend that your monthly loan payment should be no more than 8-10% of the monthly income you expect to earn during the first year after graduation. To estimate your loan payments, try the Loan Calculator found at ReadySetRepay.org.
  • Subsidized = less expensive. Interest won’t be added to a subsidized federal student loan balance until after you graduate, withdraw or drop your class load to less than half-time status.
  • Make interest payments. Students who borrow federal unsubsidized loans are responsible for all interest on the loan as soon as their institutions receive the first disbursement. Student loan interest payments are generally affordable, even on a college student’s budget. If possible, keep the interest paid down while you’re in school and during your grace period. To help you think it through, see how two students took different paths to repay their student loans.
  • Keep in touch with your lender(s) and loan servicer(s). Always make sure you let them know your current address, and contact them if you’re having trouble making your payments. You can find contact information for your lenders/servicers at StudentAid.gov under Manage Loans. Be sure to have your FSA ID handy—it’s the username and password you created when you submitted your FAFSA. You’ll need it to access your federal student loan information.
  • Stay informed. Find more information and FAQs at ReadySetRepay.org and StudentAid.gov.