Adulting 101: Applying for college financial aid

Higher education is an important goal for many students, but it comes with its share of questions about affordability. Degrees aren’t cheap, and you want to be sure you and your student are making a sound investment. That’s where financial aid comes in. Even if you have funds set aside for school, it’s worthwhile to apply for help – and you may be eligible and not know it! We hope to help simplify and provide clarity for you and your teen.  

A quick explainer on types of financial aid: 

Financial aid can cover expenses such as tuition and fees, housing and food (commonly called room and board), books and supplies and transportation. It comes in a few different forms. 

• Scholarships: Scholarships are awarded by many private and nonprofit organizations and do not have to be repaid. They can be awarded based on school performance, extracurricular activities or other criteria. 
• Grants: Grants are another form of financial aid that typically do not have to be repaid, with the exception of those that require completion of a program of study or term of service after graduation. Grants are issued by governments, whether local or federal.  
• Loans: Loans are the one type of aid that always must be repaid, with interest. Subsidized loans don’t start accruing interest until the student is finished with school. Unsubsidized loans accrue interest right away, making them more expensive to repay over time. Student loans typically have interest rates lower than those of general loans or credit cards.  

How to apply for financial aid 

1. Use the Federal Student Aid estimator. This tool helps you figure out how much aid your student may be eligible for before you complete the Free Application for Federal Student Aid (FAFSA®). The tool uses personal financial information about the student and financial information about the student’s parents, if applicable. The estimator takes 5-10 minutes to complete. 
2. Fill out the Free Application for Federal Student Aid (FAFSA®). This form helps colleges determine how much aid, of any form, your student is eligible for. It must be filled out every year the student plans to enroll in college. You will need to set up an account and submit personal and financial information as part of the form. It takes about 30 minutes to complete. If you don’t finish it all in one sitting, you can save it and come back to it. Keep in mind some states and schools have FAFSA® deadlines. Even if you miss those deadlines, you may still be eligible for federal aid. Check the status of your FAFSA® by logging in to your account and looking under “My Activity.” If you have questions, visit the help page.  
3. Review your aid offers. If you listed a school on the application for aid and they admit your student, you will receive a financial aid offer from them, including federal, state, private and school sources. You can decide which forms of aid, if any, to accept. 

Where to look for financial aid 

In addition to filling out the FAFSA ®, it is a good idea to check all potential sources of financial aid, especially for scholarships and grants.   

1. Start with the school. If your child has chosen a school, speak with the admissions department about their financial aid options, both with the program your student is interested in and with the school at large. 
2. Check philanthropic foundations in your community. Oftentimes, scholarship funds have a particular focus, such as students of a particular program of study or from a particular location. Sometimes, they are wide open. Scholarship amounts vary and it is best to apply to as many as your student is eligible for, as long as they can submit good quality applications. 
3. Search local civic groups. It is common for community groups to offer scholarships based on their area of focus, such as professions in health care or engineering, or benefiting groups such as veterans.  
4. Check employer benefits. Some workplaces offer scholarships to employees or employees’ children.  
5. Search online. Some good places to start are the U.S. Department of Labor’s scholarship search tool and My Scholarship Central. 

Pat yourself and your student on the back for doing the important work of seeking financial aid. You’re one step closer to those education goals.