Finding financial assistance for college can be a source of great stress for students. Luckily, there are resources available that can provide relief.
Each form of aid has different financial repercussions and you must understand these in order to make informed decisions when selecting your college.
Grants
Grants offer students in need an invaluable source of financing. Unlike loans, grant money doesn't need to be repaid. Unfortunately, however, grants have limited amounts available - therefore maximizing its worth is key for success.
The FAFSA is an essential step in the financial aid process. Students unsure about how to complete it should seek one-on-one guidance; additionally, deadlines must be noted, so it's wise for them to consult their colleges, the FAFSA website and other resources for more details.
Scholarships and bursaries are another effective way of helping students meet college costs. Scholarships may be merit or need-based, and can often be awarded through community organizations and nongovernmental institutions. Ideally, these opportunities reward those students who show potential in both their education goals and contribution to society; furthermore they empower students while providing essential economic support for their families.
Scholarships
Financial aid processes may seem intimidating for students and their families, but with some preparation a college education can become affordable to everyone!
Filing the FAFSA (Free Application for Federal Student Aid) as soon as possible each year is the initial step to applying for financial aid, with it recommended beginning as soon as October in your senior year.
Many scholarships are need-based and consider factors like family income or cost of attending a particular school as the deciding factors. To maximize eligibility for these awards, it's essential that your income in the base year, which serves to estimate expected family contributions accurately, is minimized as much as possible and that assets you own during award year are reduced accordingly.
Merit-based scholarships may also be available from colleges, private organizations and other sources. Although merit-based scholarships tend to be more competitive than need-based grants, they should only be considered once all other available grants and scholarships have been exhausted.
Bursaries
Government grants are the cornerstones of financial aid systems, offering students money that doesn't have to be repaid back. Bursaries and scholarships also play a vital role in covering education expenses based on either academic merit or financial need.
Optimizing grant eligibility involves employing various strategies, such as minimizing income in the base year (the tax year before award year) and increasing asset values; both can significantly decrease expected family contributions used to determine aid eligibility.
Financial aid programs play a key role in expanding educational access for both students and wider communities alike. While not all forms of aid may have equal effectiveness, grants have proven more successful at shaping student decisions while loan programs may not.
Loans
Grants provide financial aid dollars without needing to be repaid, often coming from federal and state governments, colleges or private organizations.
Students need to complete both the FAFSA and PROFILE applications to be considered for federal grants as well as nonfederal scholarships and grants available from other sources - many can be found through College Board's Scholarship Search Tool. Students should also consider filling out PROFILE to be considered for some institutions' and programs' institutional aid packages.
Students and their families must carefully consider the total costs associated with attending their preferred institutions. It is also crucial that families understand how different forms of financial aid impact long-term financial responsibility - this resource can assist families in exploring strategies such as optimizing work-study eligibility or decreasing assets to increase need analysis.
