Taking out financial aid is almost a necessity with the rising costs of tuition, and while many students do actually take out the time to plan how to go about it the right way, most students haphazardly work their way through this process, and in the end may not get the award package they could have gotten as a result. Don’t let yourself become part of this majority! By taking note of a few simple concepts you can easily make the most out of your ability to get financial aid for the upcoming school year, and because a lot of the aid that you may qualify for never has to be paid back, it can be a win-win situation for all parties involved.
The three primary concepts that you should learn about before you go ahead and begin your search for aid include identifying the major types of aid that are available, gaining an understanding of how to qualify, and establishing how you can go about applying. Once you know how to do these things you should be able to navigate through the financial aid landscape with greater ease, and in the end you should be able to maximize your ability to get the most aid you possibly can by keeping in mind these general principals.
You first need to have a general understanding of what the major kinds of aid are that may be available to you, as there are a handful of categories that the preponderance of aid is classified into. Most aid comes in the form of either grants, scholarships, student loans, or other miscellaneous forms of aid like work-study. Within each of these major categories there are of course a number of specific instruments that you should at least be aware of, and while it can be overwhelming at first to take into consideration all of these right off the bat, it is imperative that you at least gloss over the major instruments that exist in each category.
Federal and State Grants
The Pell Grant isn’t the only grant that you may be able to qualify for, as there are a number of grants beyond just the Pell that exist in this category that can provide you with a significant amount of aid to attend college. The great thing about grants is that they never have to be paid back unless you do something highly irregular, and while many students have the belief that they cannot provide a significant amount of money towards their college education, this is wrong thinking, as many grants can pay for the full cost of tuition at many state-run institutions.
Most of the grants that you’ll be able to qualify for are either classified as federal grants, or state grants, and by filling out a FAFSA you should be able to put yourself in the running for a majority of these. Some state grants, and other sorts of non-educational federal grants may require you to apply on an independent basis, and it is important to perform your own research with regard to each of these if you may be interested.
Financial Aid Through Scholarships
Next up we have scholarships, as these are awards that are similar to grants in that they never have to be paid back. Scholarships are relatively difficult to qualify for, and just because you fill out a FAFSA doesn’t necessarily mean that you’ll be able to get the exact scholarship you have been thinking about receiving. Most scholarships are either merit-based, or need-based, and are either provided by the federal government, state government, third-party organizations, or the actual school that you are attending.
You therefore may automatically be put in the running for some scholarships due to your achievements, or status as a student. Other times you may have to perform your own research and apply independently for each type of scholarship you may think that you can qualify for. Scholarships can provide a tremendous amount of aid for your postsecondary education-related expenses if you can get approved for one, so make sure to do all the things that are necessary in order to make yourself eligible, including filling out a FAFSA.
Federal and Private Student Loans
If you still need additional funding beyond the aid you receive by way of grants and scholarships, student loans can fit the bill if you’re willing to go into debt. Student loans are of course actual loans, and therefore need to be paid back, and while this may seem like a negative thing, they still can provide you with the opportunity to get the money you need to pay for your tuition, and other education-related expenses, and should therefore be looked upon with high-esteem if you are a college student who is in need of more money to put toward your education.
There are two major categories of student loans, federal student loans, and private student loans. Federal student loans can be applied for via the FAFSA, and the most popular loan instruments that most students get approved for are the Stafford loan, the Perkins loan, and if the student’s parents are involved, the PLUS loan. When compared to private student loans, federal student loans typically carry much lower interest rates that are fixed, and preferable repayment terms, and for this reason should be looked to first whenever you are considering taking out a student loan.
Private student loans are more expensive than federal student loans over the long-term, although they can provide you with a very high amount of money to put towards your college education. Private student loans can often provide up to the cost of attendance for matriculating to your particular institution, and because they are based on credit, you will have to come up with a credit-worthy cosigner to get an approval. There are a large number of lenders who provide these types of student loans, and you will typically need to apply independently for every private student loan you need for the upcoming school year.
The Overall Process
There are other miscellaneous forms of financial aid that you may also be able to qualify for such as work-study if you still need more money to pay for school. Many of these programs can be found by contacting your school’s financial aid office and inquiring about what is available. Once you have performed the appropriate analysis, and have identified what forms of aid that you may think you’ll be able to get for the upcoming school year, it is then critical that you establish a plan that can guarantee that you are able to apply before any deadlines are past.
The most crucial financial aid application is the FAFSA, or free application for student aid. You will automatically be putting yourself in contention for a large amount of federal aid just by submitting this form, including the Pell Grant, and some of the aforementioned federal student loans that were mentioned earlier. Other forms of aid you may have to apply for on an independent basis, but it is never a bad idea to figure out what you are able to receive by way of federal aid before you go out and try to locate other types of funding, such as private student loans.
