Your Quick Guide to Financial Aid
by Daniel Z. Kane
There is a lot of unnecessary confusion about college financial aid. In fact, many people have serious misconceptions about what financial aid is. So, let's clear up some misconceptions by defining financial aid and the most important financial aid terms.
Financial aid is not, as many folks think, simply "free money". And it can come from many sources...colleges themselves, private donors, foundations and organizations, and via both state and federal programs. Aid can come in the form of scholarships, pay for work, and loans.
Scholarships and grants are categorized as gift aid because they require no work or repayment. Generally, but not always, scholarships have criteria which may include achievement, special ability or an affiliation of some kind. In some instances, financial need may be a factor.
Students seeking financial aid of any kind, especially those who may qualify for need based financial aid, should complete the FAFSA (financial aid form) every year. The paper FAFSA is available in virtually every high school guidance office and every college financial aid office in the nation. The FAFSA may also be completed online. It is the information on the FAFSA that determines your eligibility for need-based aid. But, remember that all aid does not require need.
Some colleges may ask you to supplement the information on the FAFSA by completing their form as well. Normally, these institutional forms are very simple and straightforward.
Work study, another form of financial aid, offers students work opportunities in on-campus offices and, in some cases, at non-for-profit organizations.
There are two kinds of loans offered to students. The first are unsubsidized loans; loans which students with established financial need can receive at reduced interest rates and need not begin repaying until six months after they leave college. The second kind of loan is one that does not require established financial need but comes with a higher interest rate because the government does not subsidize the lender.
Once you understand the terms we have just discussed, there is not too much more you have to know or do. Just meet all deadlines, carefully read all financial aid information available to you, and do not hesitate to contact your college office of financial aid if you have questions or problems of any kind.
Best wishes as you pursue your education.
University Dean Daniel Z. Kane invites you to visit his websites, which offer information on scholarships, financial aid, colleges, universities, campus life, adult education, online colleges, and online degrees. Get your own completely unique content version of this article.
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