Financial Aid Overview
What is Financial Aid?
If you’re planning on attending a college or university then you’ve probably heard the term “financial aid” used many times, however you may be unclear as to what it actually means. The definition of financial aid is often painted in broad strokes to simply mean money that is used to pay for your higher education. While that definition may be true in its simplicity, it doesn’t go very far in explaining where or from whom the money comes from.
Under the blanket of the financial aid term comes several different ways you can receive funds. You may get financial assistance in the form of scholarships (grants) or loans. Scholarships (grants) are aid programs that are given out based typically on some merited criteria (grades, athletics, music, income level etc.) and do not need to be paid back. When dealing with loans, you may receive funds from the government, the private sector or both.
How much do I need?
So now you have an idea of what financial aid is, but how much of it will you need? There are several factors that are involved in the cost of college that go beyond just the cost of tuition. The cost of attendance is calculated over a full academic year, semester or term, not over the entire duration of the schooling process. The calculation takes into account the following costs:
- Tuition and fees
- Books and related study materials
- Travel costs to and from school
- Room and board
Once you’ve made your calculations, you’ll have a pretty fair estimation of what your school is going to cost for an academic year. To know what portion of that amount will need to be covered by financial aid, you must subtract your EFC or Expected Family Contribution. Simply put, the amount the family is expected to pay towards the cost of attendance. What’s left over is the amount that will need to be secured through scholarships (grants) or loans.
What’s the first step?
Applying for aid can take some time, so it’s important to leave yourself ample time for applications to be reviewed and for calls to be made. Always be aware of filing deadlines that are associated with any application and make sure they are always met. Your very first stop should be to the Federal Government by filing the Free Application for Federal Student Aid (FAFSA). Typically high school guidance counselors will have the proper forms to fill out that can be mailed in, however the quickest process is to visit the FAFSA on the web at www.fafsa.ed.gov. You may file your FAFSA after January 1st for the upcoming year.
