If you are the parent of a student in college, the next couple of years can be difficult. To help you get a better grasp of what lies ahead and to not shock your bookkeeper, it is advisable to know as much about the financial aid process as possible. In that spirit, we have gathered just 10 things every parent should know about financial aid.
1. The FAFSA
The Free Application for Federal Student Aid can be your best friend and worst enemy at the same time. Just about every college in the U.S. requires it be filled out to be considered for financial assistance. The good news is you only have to fill out once no matter which college your child goes to. The bad news is it is incredibly long and requires you enter sensitive financial information. For more on the FAFSA, click here.
2. Deadlines count
When filling out the FAFSA there is an early, middle, and late deadline as to when you can apply. Filling it out and turning it in early can help you best prepare for what is to come and know how much financial assistance your child qualifies for.
3. Good odds
Because tuition can be so expensive, the good news is that most students qualify for financial aid, even if their parents have means. While most students will not be 100 percent covered in their tuition expenses, schools often work with students and their families to make an education as affordable as possible.
4. Scholarships
One of the most desired forms of financial aid, the scholarship can be awarded based on academic achievements, need, or a combination of both. Scholarships are free money for school that do not have to be paid back and can often be a feather in the cap of the student who earns one. The bad news is that many students apply but few are awarded.
5. Grants
This is the most common form of financial aid. Grants are also free money like scholarships but are mostly handed out on a needs basis. The best part is that everyone who applies for a grant and qualifies for one, gets one.
6. The catch
As with all things there is a catch to earning scholarships and grants. The most common is that students are required to continue their education and graduate on time. Students who try to “take the money and run” are required to pay back scholarships and grants.
7. Work for study
Another favorable financial aid option for parents, this is where students take a job within the school in exchange for decreased tuition. Students end up earning valuable job experience while parents enjoy lower education costs.
8. The student loan
With all the protesting brought about in part by students with tons of debt, it is more advisable than ever to consider carefully before taking out a student loan. If the above financial aid options still don’t cover the educational costs, attempt to do the below before taking out a student loan.
9. The financial aid office
Because schools want students to attend, just about every college in America has a financial aid office. Give them a call or visit them in person to discuss what your child’s options are in the financial aid realm. They can also help you locate scholarships and grants, as well as fill out the FAFSA.
10. Know before you go
Did you know that once your child is accepted into a school they are required to tell you how much financial aid the student qualifies for? This is an excellent reason why your child should apply to many schools, see which they get into, and find out the financial aid available to them before deciding on which to enroll in.
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