There are two potential roadblocks to helping families get the financial assistance they need for college—terminology and priorities.
Here are four terms to familiarize yourself with, and below them, your three priorities when applying for financial aid.
1. Grants/Scholarships
Grants and scholarships mean the same thing—free money that does not have to be paid back. The bigger this number, the bigger your resulting celebration. These can come from the government, the state, or from the colleges themselves. “Outside scholarships” come from sources outside of schools, like companies, foundations, churches, etc. They usually require separate applications.
2. Loans
These loans are usually taken out by the student rather than the parents, and are often subsidized and guaranteed by the government. In most cases, no interest is charged while the student is in school, and the repayment does not begin on Perkins or Stafford loans until the student graduates.
3. Work study
Work study is a job the student is given, usually on campus, for which the earnings may then be used to pay for college expenses.
4. Financial aid
Financial aid is a blanket term for financial assistance to pay for college, and it can include any combination of the three types described above. So, getting $15,000 in financial aid doesn’t necessarily mean you just got a $15,000 discount on the college’s sticker price. It could be a combination of free money, loans, and/or work study.
Thankfully, you don’t necessarily need a master’s degree in accounting to avail yourself of this aid. In fact, just plan on doing these three things and you’ll have your priorities straight.
1. Apply to a balanced college list that includes schools where you have a very strong chance of admission. Schools have the power to give more aid to the desirable students, so applying to those colleges that may pay is a good strategy.
2. Submit the FAFSA (Free Application for Federal Student Aid) according to your colleges’ deadlines. If you’ve been through this before, your deadlines will be earlier this year, and the FAFSA may now be submitted before January 1.
3. File any additional paperwork, such as the CSS Profile, that any of your colleges require.
Yes, there are things you can do to increase your eligibility. You can also apply for outside scholarships in the hopes of getting more money. And if you have younger students, you should make saving for college a top financial priority. But for students in the class of 2017 who will be applying to college this fall, make the above three steps your college financial priorities. They are the most crucial—and most effective—ways to get the financial aid you need.