Last Updated on June 25, 2023

Understanding The Financial Aid Process

Preparing for college or a career school may seem overwhelming if you are in need of financial aid. But don’t fear: the U.S. Department of Education’s Office on Federal Student Aid can help you acquire the funding you need for your education.

The U.S. Department of Education’s Office on Federal Student Aid is the largest provider of financial aid. They are able to provide grants, loans, and work-study funds to help you achieve your dreams. Grants are provided by organizations to programs and projects and don’t require repayment in the future as its considered “free money”. Student loans on the other hand, need to be repaid and will involve interest over time as well. Work-study funds allow you to earn money so you can pay various expenses incurred by education.

Read on to learn about how the financial aid process can help you:

Early Preparation
The first step is always to prepare early, and this means start saving as early as you can. You can also start researching scholarship programs found in your community organizations as well as state colleges and universities. It also helps to speak with a guidance counselor about the various college funding programs available for you, and the requirements for them.

Applying for Aid
When it’s time to apply for financial aid, visit the FAFSA (Free Application for Federal Student Aid) website at www.fafsa.gov. Your application will ask you to list down schools, and these educational institutions will use your FAFSA information to gauge your financial capabilities and how much aid you are eligible for.  Applications begin in January for the following school year, although it’s best to fill out the forms as early as possible. The FAFSA application must be updated with each year you are in college.

Organize Tax Documents:
The FAFSA application will require you to fill out tax and other personal information. You can retrieve your tax information from the IRS but if you haven’t updated it, you can estimate the figures and update it at a later date.

Student Aid Report:
Upon submission of your FAFSA, you will receive a copy of your Student Aid Report (SAR) which contains a summary of the information in your application. You can correct it and make revisions on the SAR if required.

Types of Aid Awarded:
You will then receive an award discussing the grants, student loans, or work-study jobs that a college is willing to provide you. You may also receive information on various institutional or state aids. If you receive awards from various colleges, you should evaluate them and go with one that best suits your needs.

The aid provided by the US Department of Education helps millions of students attend school each year. You can visit your school’s financial aid office for guidance during your stay, as well as discuss with your loan servicer regarding options for repayment upon graduation. With proper preparation, you can set the foundation for a bright future.

Source: The U.S. Department of Education