Why apply for financial aid?
Applying for financial aid is crucial for making college accessible and affordable, regardless of your or your family's income level.
Here are the key reasons why applying for financial aid is essential:
- Financial aid makes college affordable:
- Many families find the high cost of tuition and related expenses daunting, and financial aid can help cover these costs and reduce the financial burden on students and families.
- Financial aid can cover a range of educational expenses, such as tuition, fees, room and board, books and supplies, and transportation.
- Scholarships and grants, a form of financial aid, do not need to be repaid, reducing the overall cost of a degree.
- Federal student loans generally have lower, fixed interest rates compared to private loans, and repayment typically doesn't begin until after you leave college.
- You could be eligible for aid even if you think you won't qualify:
- Eligibility for federal student aid is based on various factors, not just income, such as family size and the student's year in school.
- Don't assume your family's income is too high, as many families qualify for some form of federal student aid.
- The Free Application for Federal Student Aid (FAFSA) is the only way to determine your eligibility for federal and, in many cases, state and institutional aid.
- Approximately 86% of full-time undergraduates receive some type of financial aid.
- Maximize aid opportunities by applying early:
- Some forms of financial aid, including grants and scholarships, are awarded on a first-come, first-served basis, so applying early increases your chances of securing these funds.
- Completing the FAFSA early allows you to receive your financial aid award letters sooner, giving you ample time to compare packages from different institutions and make an informed decision.
- Applying early also provides more time to seek other funding sources, such as private student loans, if federal aid doesn't fully cover the cost.
- Potential eligibility for federal loans regardless of income:
- Completing the FAFSA qualifies students for direct federal student loans, regardless of their family's financial strength.
- Federal student loans offer several benefits over private loans, including potentially lower interest rates and flexible repayment plans.
- Proper debt structure, starting in the first year of college, is crucial, especially if graduate school is a future consideration.
- Some scholarships require FAFSA completion:
- Many institutional and private scholarships require a completed FAFSA form as part of their application process, even if they are not solely based on financial need.