Although not as exciting as picking out your dorm room decor or trying all the food stations in the dining hall, financial aid is an important part of the college experience.
Getting your bachelor’s degree is an investment with a huge return.
A recent study by the Federal Reserve Bank of New York shows the average bachelor’s degree holder earned $30,000 more a year than those who hold a high school diploma alone. Stacking that against the cost of college today, the return on investment is still 14%, which is far better than the long-term returns on stocks or bonds.
We understand learning about financial aid can be confusing and tedious (AKA not fun). But you’re going to college now, and that means you’re going to learn complex, boring subject matter on occasion. Consider this your first test!
Financial Aid 101: Understanding the Basics
What Is All This “FAFSA” Business About?
The FAFSA stands for Free Application for Federal Student Aid. This comprehensive application allows you to receive financial aid based on your family’s household income. To apply, you’ll first need to create an FSA ID which you can do at fsaid.ed.gov. Once created, you can begin the application process at fafsa.gov.
Check out our complete guide to filing the FAFSA form.
What Does Financial Aid Include?
Financial aid is defined as any grant, scholarship, loan, or federal employment opportunity offered to assist students with education-related expenses.
Does Everyone Need to File the FAFSA?
Every student who is going to college should fill out this application regardless of their financial situation. A college can’t give you a full picture of your financial aid package until you submit the FAFSA. Without the application, you’re missing out on federal grants, loans, and scholarships — in other words, free money.
When Does the FAFSA Form Become Available?
The FAFSA officially opens on October 1 of each year.
Applicants have until June to file the FAFSA for the upcoming fall semester. However, be sure to file the FAFSA before December 1 if you plan on starting college in the upcoming spring.
Aid is distributed on a first-come, first-served basis, so you want to submit the form as soon as possible!
What Are the Differences Between Grants, Scholarships, & Loans?
Grants and scholarships are essentially “free” money, meaning recipients do not owe any money offered.
Grants are usually need-based while scholarships are typically merit-based or awarded for academic, athletic, or artistic excellence. However, there are some circumstances where you may need to pay back all or part of your grant.
Loans are borrowed money that you must repay with interest. Student loans can come from the government, private banks, or other organizations. You should do your research to ensure you’re taking out loans from a trusted entity and that you understand the conditions.
What Is a Financial Aid Package & Award Letter?
A financial aid package is a list, produced by a college, of all grants, scholarships, work-study, and loans that a student might receive from federal, state, and college sources.
Your award letter outlines the package and advises you of your rights and responsibilities as a financial aid recipient. You receive an award letter after getting accepted into college, but first you have to submit a completed FAFSA with the college’s code included.
The code for The College of Saint Rose is 002705, by the way.
When Will I Have To Pay Back My Student Loans?
Most students pay back student loans after they graduate or if they drop below part-time student status. There is typically a six-month grace period on Federal Student Loans, but there is no grace period for PLUS Loans.
To learn more about repayment timelines, click here.
Will I Receive Support Throughout This Process?
At Saint Rose, we have knowledgeable and supportive staff on duty to help with your financial aid needs. They have years of experience with the financial aid process and are happy to be your guide. All questions are on the table.
Congratulations! You survived Financial Aid 101. It’s a good warm-up for all the great things you’ll learn in college.
If you have additional questions on grants, loans, and scholarships, check out our other blog posts.
