It's that time of the year again! The school year has started, which means that college applications have opened up. High school students all over the country are working hard to fill out their applications, but dealing with the financial aid process can be overwhelming and often leaves students in a frenzy. Today we are setting the record straight, and simplifying the process as well as providing information on important deadlines and things to note. Let's dive right in!
What is financial aid and why is it important?
As we all know, college tuition can cost a pretty penny. With some colleges costing about 60,000 dollars a year, financial aid can be especially helpful in covering some of those expenses. Financial aid is money that helps to pay for college or career school, and there are three main types: scholarships, grants, and loans. Scholarships and grants are known as free aid, as they don’t have to be paid back and are usually awarded based on some type of merit. Loans, on the other hand, have to be paid back and usually with interest too. The financial aid process starts with filling out the Free Application for Federal Student Aid or FAFSA. There is need-based financial aid, which takes factors like family income into account and includes student loans, certain scholarships, work studies, and parent loans. There is also merit-based financial aid which includes scholarships and grants.
How to apply for FAFSA
The application process for financial aid is pretty easy and consists of seven steps. First, you need to collect the necessary information such as your social security number, family size and income, personal income (if applicable), and the colleges you plan to attend. After that, you can create your FSA ID online, which only takes around ten minutes. (Keep in mind that your parent's FSA ID is different from yours!) Next, enter your demographic information and the schools you are planning to attend. You must list all the schools you want to apply to in order to receive maximum aid. Then, enter your parent's information and financial details. After reviewing, you are ready to sign and submit your application. The whole process should take about an hour. It is recommended to apply as early as possible, so there is enough time to apply for scholarships and other financial support. The form is available from October 1st, 2022, and closes on June 30, 2024, for federal deadlines. Any corrections must be submitted by September 14, 2024. Please note that these are only the federal deadlines, and you should be aware of your state's deadlines.
The wait: what happens after
Your application is typically processed within 3-10 days, and you will receive an SAR (student aid report). It will also include your expected family contribution (EFC) or how much your family is expected to pay. Your FAFSA application, SAR, and EFC are all sent to your desired colleges, and they will use the information to calculate your financial aid package, which includes the amount of grants, loans, and work-study you are eligible for. As mentioned before, loans are aid that you need to pay back. There are two types of loans: subsidized and unsubsidized. Subsidized loans don’t charge interest while you are in school, while unsubsidized loans charge interest the moment you start school. It's important to take these loans carefully before signing. By May, you should hopefully know which college you are planning on attending as payments should be given out before the start of the school year. Schools will usually give you disbursements (FAFSA payments) once every term. With this, you now know how the financial aid process works, and when applying can navigate it without all the previous confusion.
Sources
