Financial Aid Awareness Month – How to Make the Most of Financial Aid

February is recognized as Financial Aid Awareness Month, an excellent opportunity for students and families to learn more about the various types of aid available and how to maximize their benefits. Financial aid, whether in the form of grants, scholarships, or loans, is vital in helping many students afford the rising costs of education.

Understanding the aid package

Firstly, it’s crucial to understand a financial aid package. Offers may come from federal, state, and institutional sources, each with its own terms and conditions. The aid might be merit-based or need-based, and each type has its own eligibility requirements.

• Federal aid: The Free Application for Federal Student Aid (FAFSA) is the primary source of student financial aid. It includes grants, work-study funds, and loans.
• State aid: Several states offer financial aid programs. Eligibility criteria may include residency, academic achievement, and financial need.
• Institutional aid: Colleges and universities provide their financial aid packages. This aid might include scholarships, grants, or work-study programs.

Maximizing aid potential

Making the most out of financial aid begins with early application. Many aid programs operate on a first-come, first-served basis. Therefore, applying early increases one’s chances of receiving awards.

Exploring all available aid options is also worth it. Don’t limit applications to federal and state aid only. Investigate institutional aid, scholarships from private organizations, grants, and employers’ tuition assistance programs.

Managing financial aid

After receiving financial aid, it is essential to manage it wisely to cover one’s educational expenses. Here are some ideas:

• Budgeting- Creating and following a budget is one proactive step in this regard. Track your spending and make sure your needs are met before spending on wants.
• Understand the terms – Fully understand the terms of loan repayments and follow them. Federal student loans come with various repayment plans, deferment, or forbearance options. Make sure to select the repayment plan that fits your financial situation.
• Education is vital – Learn about the complexities of financial aid. Many institutions offer workshops, webinars, and resources about financial aid, its application process, and management. By educating yourself, you are better prepared to make informed decisions.

Navigate change

One’s financial situation can change from year to year, which can affect one’s eligibility for financial aid. Therefore, it’s essential to keep your financial aid office informed about any significant changes in your household’s finances.

5094620-0126a This content is for educational purposes only and does not constitute financial, investment, or legal advice. Information regarding financial aid programs is subject to change by the Department of Education or individual institutions. The source(s) used to prepare this material is/are believed to be true, accurate and reliable, but is/are not guaranteed.