College financial aid is money that helps pay for school, and it comes in four main forms: grants and scholarships you do not repay, loans you do repay, and work-study jobs. Most aid starts with the FAFSA, the federal aid application, which colleges and states also use. The college’s financial aid office then puts together an aid offer. This page is general education, not financial advice.
Start with the FAFSA
The Free Application for Federal Student Aid is the form that opens the door to federal aid and much state and college aid. A few things to know:
- It is filed for each school year, so returning students file again each year
- It uses tax and income information from the student and, for most dependent students, from parents
- It produces a figure colleges use to estimate how much need-based aid a student qualifies for
- The official form and current dates are at studentaid.gov. Deadlines set by the federal government, states and colleges can differ, and some state and college aid is limited, so file early and check every deadline that applies
- Some colleges, often private ones, request an additional aid form; check each school’s requirements
Grants and scholarships
Grants are usually need-based and come from the federal government, states or the college. Scholarships may be based on need, merit, talent, background, field of study or community, and come from colleges and outside organizations.
- Read renewal rules: many awards require a minimum GPA or full-time enrollment
- Ask how outside scholarships affect the college’s aid; some colleges adjust other aid when outside money is added
- Be cautious of any scholarship service that charges a fee to apply or promises results
Loans
Loans must be repaid with interest. Federal student loans generally offer protections and repayment options that private loans may not. Some federal loans are need-based and do not build interest while the student is enrolled; others build interest from the start. Parents can sometimes borrow too.
- Borrow only what is needed, and understand the terms before accepting
- Know the difference between federal and private loans
- Talk with the financial aid office before taking on a private loan
Work-study
Work-study provides part-time jobs, often on campus, to students with financial need. Earnings are paid as the student works, so they help with ongoing costs rather than the bill at the start of the term. A work-study award does not come with a job already assigned; the student usually still has to find and apply for a position. See working while in college for balancing a job and classes.
Keeping aid year to year
- Refile the FAFSA each year the student plans to enroll
- Maintain the enrollment level and grades that renewal rules require
- Read every message from the financial aid office and the student portal
- Report outside scholarships and major changes in circumstances as the college requires
Reading an aid offer
- Find the total cost of attendance, including housing, food, books and transportation.
- Separate free money (grants, scholarships) from loans and work-study.
- Subtract only the free money to see what the family would actually owe or borrow.
- Compare offers from different colleges the same way, line by line.
- Write down questions for each financial aid office before deciding.
Working with the financial aid office
The financial aid office is the right place for questions about a specific offer, verification requests, changes in family circumstances such as a job loss, and keeping aid in good standing. Most aid requires students to make satisfactory academic progress, so falling behind in classes can put aid at risk; see academic probation. Students should check their student portal regularly and respond quickly to requests.
Where a mentor helps
Mentors are not financial aid advisers and do not complete forms or interpret offers. A mentor helps a student keep a calendar of forms and deadlines, prepare questions for the aid office, follow through on requests and build everyday money habits. Learn more about money and life skills mentoring and mentoring for college students.
Related
- Public vs private college
- College student money and allowance
- First-generation college students
- Community college vs university
Common questions
Should we fill out the FAFSA even if we think we will not qualify?
Many families do, because some colleges and scholarships require it and eligibility is not always obvious. The financial aid office can tell you what applies to your situation.
Can a financial aid offer change?
Yes. Offers can change after verification, changes in enrollment or grades, or new information. If family circumstances change, contact the financial aid office and ask about a review.
Who should we ask about our specific situation?
Start with the college’s financial aid office. For tax or broader financial planning questions, talk with a qualified tax or financial professional.
Get started
Want a student to stay on top of aid forms, deadlines and money habits? Call (888) 305 5422, email contact@blackburnmentoring.com or start with a short assessment. A member of our team reviews every assessment personally and sets up a free intro call.