Understanding Financial Aid

Why Financial Aid Matters

College can feel overwhelming, not just academically, but financially. The good news is that financial aid exists to help make higher education accessible by reducing the cost or by providing funds that may or may not need to be repaid. It can come from multiple sources such as, the federal government, state government, colleges, and private organizations. 

 

    Types of Financial Aid

    1. Grants and Scholarships (Free Money)

    • Money you don’t have to pay back.
    • Grants are usually based on financial need (like the Pell Grant).
    • Scholarships can be based on academics, athletics, community service, or other achievements.


    2. Work-Study Programs

    • Part-time jobs, often on or near campus.
    • Flexible hours designed to fit your class schedule.
    • Helps you earn money while gaining work experience.


    3. Student Loans

    • Borrowed money that must be repaid with interest.
    • Federal loans usually have lower interest rates and flexible repayment options.
    • Private loans come from banks or lenders and may have stricter terms.
    • Tip: Only borrow what you need!
     

     

      How to Apply for Financial Aid

      Step 1: Complete the FAFSA

      • The Free Application for Federal Student Aid (FAFSA) is the key to unlocking most types of aid.
      • Opens on October 1st each year (check deadlines for your individual institution as some funds are first-come, first-served).
      • Use your family’s financial information to determine your eligibility.


      Step 2: Apply for State Aid


      Step 3: Check with Your School

      • Colleges often have their own scholarships and institutional aid.
      • Many schools have separate applications or deadlines. 
       

       

        Reading Your Financial Aid Award Letter

        When you’re admitted, your school will send an award letter outlining your aid package. Here’s what to look for:

        • Gift Aid: Grants and scholarships.
        • Work-Study: Opportunities to earn money.
        • Loans: Borrowed funds you must repay.
        • Cost of Attendance (COA): Tuition, fees, housing, meals, books, and supplies.
        • Net Price: The real cost after subtracting your aid.


        Tip: Compare award letters from different schools carefully; Sometimes the lowest tuition isn’t the lowest overall cost.

         

          Managing Your Aid Responsibly

          • Borrow wisely: Only take out the amount you truly need.
          • Stay on track: Many aid programs require maintaining a certain GPA and completing enough credits.
          • Renew every year: Most aid requires filing the FAFSA annually.
          • Apply early and keep track of deadlines
          • Search for local scholarships (community groups, employers, nonprofits).
          • Beware of scams! Never pay for help filling out FAFSA and make sure websites end in .gov.

           

            Applying for Federal Student Aid

            Visit Studentaid.gov

            Stay Safe: Avoid Financial Aid Scams

            When seeking help with your student loans or financial aid, always make sure you're getting information from trusted, official sources. Scammers often create fake websites or send emails that look legitimate to trick borrowers into sharing personal information or paying for free services.

            Be cautious if:

            • You're asked to pay for help with FAFSA or loan forgiveness.

            • You receive unsolicited calls or messages promising quick debt relief.

            • The website doesn't use a .gov or .edu domain.

             

              Still Have Questions?

              Check out the Frequently Asked Questions about the FAFSA or contact the Student Loan Ombudsman directly Here.