The Free Application for Federal Student Aid (FAFSA) has been available since October 1, but that doesn’t mean it’s too late to apply! You can still apply to receive federal and state student aid in the form of grants, work-study and loans by submitting your FAFSA. Many students don’t apply at all and forgo FREE money for college! Below are some common reasons students miss out on financial aid.
Myth: If I’m not poor, very smart or super-talented, I won’t qualify for financial aid.
Reality: While it is true that the FAFSA is a need-based program, there are many factors other than income that go into the calculation. You never know if you qualify unless you apply. Plus, the FAFSA is used for more than just federal aid. Many universities and foundations require that you complete a FAFSA to be eligible for their scholarships.
Myth: I have several scholarships lined up, so I don’t need to submit a FAFSA.
Reality: College expenses include more than just tuition and fees – don’t forget about, books, room and board and transportation, among other potential costs. Submit your FAFSA to explore other funding possibilities in the event that your scholarships don’t cover all of your costs. You can always turn down aid that’s offered to you.
Myth: I’m going to pay my own way through college, so there’s no need to complete a FAFSA.
Reality: Paying your own way through college is a great plan, and completing the FAFSA could allow you to keep more of that money in your pocket. Applying for federal aid has become easier and can significantly reduce your financial burden. A few minutes of your time is definitely worth the potential for thousands of dollars in aid.
Complete your application for federal student aid today at FAFSA.gov!
Submitting your FAFSA to find out your eligibility for federal and state aid is definitely a huge step in the financial aid process, but it’s only the first step. After your FAFSA has been processed and you’ve visited with the financial aid office at your school(s) of interest, watch for an Award Letter from one or more of those institutions. The letter may be sent electronically or via the US Postal service. It’s important that you read each Award Letter carefully, for it describes the types and amounts of financial aid the college or career tech can offer to help you pay for one year of higher education.
On your award letter you will see:
- The total Cost of Attendance (COA) – what it costs to go to that school for one year
- Expected Family Contribution (EFC) – a number 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’.
- Grants – gift aid that comes from federal, state and tribal governments, usually based on financial need
- Scholarships – can be based on need, merit or your interests; awarded by colleges, state agencies, companies, foundations, tribal and private organizations
- Federal work-study – there may be an opportunity for you to work on or off campus to earn some of your financial aid
- Federal student loans – money that you borrow to help you pay for college; loans must be repaid, with interest
- Federal PLUS loan – an undergraduate loan your parent(s) may qualify to borrow to help you pay for college, subject to credit history requirements; your parent(s) are expected to repay the loan
Now, do a simple calculation. Subtract all of the financial aid shown on your Award Letter from your Cost of Attendance. This will determine your estimated Net Cost. The Net Cost is the out-of-pocket amount you’ll be expected to pay. You may hear this referred to as unmet need, or ‘the gap’. It’s possible that your Net Cost could be zero if your financial aid package covers your whole Cost of Attendance (a negative amount would count as a zero).
What options are available to help you pay the Net Cost?
- You don’t have to accept all of the aid offered to you, especially when it comes to borrowing student loans. A monthly payment during college may be less expensive than a loan payment with added interest after you’ve completed your education.
- Each award letter will give you a deadline to accept or decline some or all of the aid by a specified date. Always keep track of deadlines.
- If you receive more than one Award Letter, be sure to determine what your Net Cost would be at each school. The schools will most likely have different packages to offer.