Most High School Senior students look forward to their impending Graduation which is the first step towards their future and who they will become. Usually, the next step for most entails going to college. Like most students who want to go to college, one of the first thoughts that crosses their mind is how they are going to pay for it. Now, there are a couple different ways to help to pay for it. So, here are all the options available. There is FAFSA, Student loans, Grants and Scholarships.
FAFSA stands for the Free Application for Federal Student Aid. This is a free form to fill out for current and future college students. FAFSA is one of the best ways to obtain money for college. FAFSA is how colleges know what Financial Aid you qualify for. It is always best to apply for FAFSA even if the student feels they may not get anything. Anything is possible, and chances are the student will most likely qualify for some sort of financial aid.
The FAFSA application must be renewed annually while the student is in college. There is no income requirement to apply for FASFA, however, Financial Aid that is based off income. Be mindful, because there is a deadline to apply. The dates are from October 1 till June 30 and all updates or corrections must be made by September 10. Make sure to fill out as soon as possible because there is some aid that is based on first come, first served.
Apply by going to FAFSA. gov. To begin the FAFSA application, both student and parent – if the student is a dependent – need to create an FSA ID. Be sure to make it something easy to remember. The student will also need a state issued ID, bank statements, and recent tax returns.
When filling out the FAFSA, make sure to not leave any blank spaces and to check that all information is correct, or the application will not process. When listing schools, the student needs to list all possible schools they wish to attend. Only schools listed are eligible to receive the Financial Aid. Also, be sure to list schools in descending order starting from the highest one on the wish list.
This could always be changed later. Important things to know are that the student is only considered an independent student if they are 24 or over by January 1 of the school year they are applying for or they are married, have children, in graduate school, or on active military duty. There are plenty of resources for students who might need assistance with any step of the process. Call the Federal student aid information center at (800)433-3243, make an appointment with your high school counselor, or your colleges financial aid office.
College Grants are free money that can be used by students for many college expenses. The advantage of a College Grant is that it is an unrestricted use of funds and the fact that they do not have to be paid back. A scholarship is a Financial Aid award that helps to further a student’s education. Scholarships can be awarded based on many different things such as academic merit, diversity, inclusion, athletic skill, and financial need. Scholarships do not have to be paid back, either. A student can receive Grants and Scholarships through FAFSA or the college Financial Aid Office.
Unsubsidized Loans are for undergraduates and graduate students and are based upon financial need. It is determined based on the student’s tuition minus any Financial Aid that is received. The Unsubsidized Loans must be paid back, and interest is charged while the student is attending school, during deferment and grace periods. The maximum interest rate for an Unsubsidized Loan for an undergraduate student is 9.50% and for a graduate student the maximum interest rate is 10.50%. Subsidized loans are for undergraduate students who demonstrate financial need. These also must be repaid but interest is not charged while the student is attending school. The interest is temporally covered by the government. The maximum interest rate for a subsidized loan is 8.25%
To qualify for an Unsubsidized Loan or a Subsidized Loan the student must apply for FAFSA to be eligible to receive them. Student loans can be used for many different things such as tuition, on-campus and off-campus boarding, utilizes, transportation, gas, tolls, books, supplies, toiletries, medication, lines, a microwave, dishes, groceries, fees for testing, licensing, certificates, and study abroad programs. However, they should not be used for entertainment, pricey electronics, travel, a new car, nightly takeout, down payment on a house or car, repairs to house or car, small business expenses, or other debt such as any type of other loan. When considering a student be sure to consider all the options because a student loan can be costly in the long run and could possibly put the student in debt in the future. However, if a student loan is necessary, only get what is needed and use it appropriate manner.
So, in conclusion FASFA is used for most ways to pay for college and should be the first and most important step when applying for college.