What does financial aid mean in college?
Financial aid is money to help pay for college or career school. Grants, work-study, loans, and scholarships help make college or career school affordable.
How do you get financial aid for college?
To apply for need-based financial aid, file the Free Application for Federal Student Aid (FAFSA) at fafsa.ed.gov starting on October 1 of the senior year in high school and annually thereafter. The FAFSA provides access to financial aid from the federal and state government, as well as most colleges.
Is financial aid the same as student loans?
The main difference between student loans and financial aid is whether or not you need to pay back the money you are given. Student loans generally require that you pay back the loan with interest, while financial aid packages like scholarships and grants typically do not need to be paid back.
What is financial aid based on?
The financial aid staff starts by deciding upon your cost of attendance (COA) at that school. They then consider your Expected Family Contribution (EFC). They subtract your EFC from your COA to determine the amount of your financial need and therefore how much need-based aid you can get.
What is need based financial aid?
Need-based aid is financial aid that you can receive if you have financial need and meet other eligibility criteria. You can’t receive more need-based aid than the amount of your financial need. The following are the need-based federal student aid programs: Federal Pell Grant.
Why is financial aid important in college?
College financial aid helps students and their families by covering higher education expenses, such as tuition and fees, room and board, books and supplies, and transportation. There are several types of financial aid: Grants.
What is financial aid service?
A Financial Aid Office is the office at a college or career school that is responsible for preparing and communicating information on financial aid. This office helps students apply for and receive student loans, grants, scholarships, and other types of financial aid.
How do you use financial aid?
Apply for Financial Aid
- Get Prepared. Gather the documents you’ll need.
- Complete FAFSA® Form. Apply early to maximize your aid.
- Review Student Aid Report. Make corrections, if necessary.
- Respond to Aid Offer. Accept the aid you want.
- Receive Aid. Get your aid from your school.
- Renew Your FAFSA® Form. Reapply each year.
What colleges offer financial aid?
Some of the most notable colleges that offer 100% financial aid include: Harvard University. Princeton University. Columbia University. Stanford University. Yale University. Amherst College.
What are the pros and cons of college financial aid?
Pros: You will benefit from a front-loaded financial aid package if you are in a situation where you only need the financial aid temporarily during your first year and will be able to cover your tuition as you enter your second year. Cons: If you are not careful, or if like many students you are unaware of how it works, you could find yourself with dwindling resources from your second year onward.
What you should know about college financial aid?
Financial aid is an umbrella term that includes both grants (money you don’t have to repay) and loans (money you do). Grants and scholarships are the brass ring of financial aid packages. If you get them, you’ve won the college lottery in terms of paying for higher education. They are free money, unlike loans. Loans must be paid back.
What do you need to know about college financial aid?
Deadlines Are Important. For the 2018-19 school year,the FAFSA became available on October 1,2017,and the government’s final filing deadline is June 30,2019.