Financial Aid FAQ
Why is applying for federal financial aid so difficult?
Because the process is Byzantine and the system is bloated with multiple layers of mathematical calculation and political regulation. This is one of the great problems of our time. Fortunately, politicians, administrators, and people who study this for a living all agree that things need to be changed. Here at You Should Go To School, we feel your pain, and that's why we've created this section of our website.
What are my financial aid options?
Your specific financial aid options will vary, but most students are eligible for some combination of grants, loans, work-study and scholarships. Other aid options include military aid, private loans, fellowships and tax credits.
What is the FAFSA?
The Free Application for Federal Student Aid is a central application that determines your EFC (Expected Family Contribution) based on your current financial situation. The EFC is the number you and/or your family should be able to contribute out-of-pocket toward your education. By completing the FAFSA, you are actually applying for multiple types of financial aid, including grants, federal loans and work-study.
When should I fill out the FAFSA?
The first day you can fill out your FAFSA is January 1st of the year you plan to attend school. Complete the application as soon as possible since some aid is rewarded on a first come, first served basis.
How do I apply for financial aid?
This will vary depending on what aid you wish to apply for. Completing the FAFSA is necessary to be considered for federal grants, loans and work-study. Each scholarship has its own application process, which could range from essay-writing to filling out a form.
Where can I find scholarships?
The school you plan to attend is a great place to start. Many offer scholarships based on athletic ability, academic achievement or even musical talent. You should also try churches and other community organizations, as well as online scholarship databases such as scholarships.com and fastweb.com. We've also put together a list of notable North American scholarships distilled from Wikipedia.
How do I avoid scholarship or financial aid scams?
Watch out for companies/people that guarantee scholarships, tell you they'll cost money, or ask for credit card numbers. Also, beware fake FAFSA websites that charge fees to file the free application for you. (See the real FAFSA website link above.) Read our blog post for more on how to avoid financial aid scams.
What financial aid must be paid back?
Loans (federal and private) are the only aid that must be paid back. Grants and scholarships are essentially free money, and work-study is earned by working part-time.
Do I have apply to for financial aid every year?
The FAFSA must be filled out for every academic year you plan to attend; however, many scholarships will automatically renew.
What if federal loans and scholarships aren't enough to cover the cost of tuition?
If federal aid and scholarships are quite enough, private loans are an option, but should be considered a last resort. The interest rates are higher than for federal loans, and deferring them is more difficult if you have trouble paying after graduation. If you suspect that grants, loans and scholarships won't be enough, try to plan ahead by opening a college savings account (like a 529 plan).
I have a surplus of student loan money. Should I keep it or pay it back immediately?
That depends. Subsidized federal loan money will not accrue interest while you're enrolled in school, so you may want to put the extra funds to good use. Putting the money in a high interest savings account or other safe investment is one way to go, since any money you make above the principle is yours to keep. Also, make sure you've budgeted for books, supplies, transportation and other secondary costs before you hand that check back. If you don't need the money immediately, and don't trust yourself to spend it responsibly, then you should return the surplus to the financial aid office.
Ask an expert!
Didn't find your question? Email additional questions to Joel@youshouldgotoschool.com, and we'll try our best to send you an answer. Your question may even be added to the FAQ or featured in a blog post. Thanks for visiting, and be sure to check back soon.