Introduction
Navigating the world of financial aid can be a daunting task. There are numerous types of financial aid available, and understanding how much aid you will receive is essential in order to make informed decisions about college. This article will cover the steps necessary to gain a better understanding of your financial aid package, including researching the types of financial aid available, calculating your expected family contribution (EFC), understanding how financial aid is awarded, applying for federal, state and institutional aid, considering private scholarships and grants, and reviewing your financial aid award package.
Research the Types of Financial Aid Available
The first step in understanding how much financial aid you will receive is to research the types of financial aid available. According to the National Center for Education Statistics, “In 2017–18, undergraduates received an estimated $132.6 billion in financial aid from all sources—an average of about $14,210 per full-time-equivalent undergraduate student.” The main types of financial aid include federal student loans, grants, scholarships, and work-study programs.
Federal student loans are borrowed funds that must be repaid with interest. Grants are typically need-based and do not need to be repaid. Scholarships are usually merit-based and also do not need to be repaid. Work-study programs provide part-time employment opportunities to students.
Calculate Your Expected Family Contribution (EFC)
The next step in understanding how much financial aid you will receive is to calculate your expected family contribution (EFC). The EFC is a measure of your family’s financial strength and is used to determine your eligibility for need-based financial aid. According to the College Board, “Your EFC is a number that’s used to determine your eligibility for federal student aid and is reported on your Student Aid Report (SAR).”
To calculate your EFC, you will need to fill out the Free Application for Federal Student Aid (FAFSA) or the College Scholarship Service (CSS) Profile. Both forms require information about your family’s income and assets. Once you have submitted the form, you will receive a SAR that includes your EFC.
Understand How Financial Aid is Awarded
It is important to understand how financial aid is awarded in order to understand how much aid you will receive. Need-based financial aid is awarded based on the applicant’s financial need as determined by their EFC. Merit-based financial aid is awarded based on academic performance, extracurricular activities, leadership, community service, and other factors. It is important to note that some schools offer both need- and merit-based aid.
Apply for Federal, State and Institutional Aid
Once you have calculated your EFC, it is time to apply for federal, state, and institutional aid. The first step is to fill out the FAFSA. This form is used to determine your eligibility for federal student aid, such as Pell Grants, subsidized student loans, and work-study programs. You may also need to complete the CSS Profile in order to apply for institutional aid. Some states and schools also require additional forms in order to qualify for state and institutional aid.
Consider Private Scholarships and Grants
Private scholarships and grants are another source of financial aid. These awards are typically merit-based and are awarded by individuals, organizations, companies, and foundations. There are a variety of online resources, such as Fastweb and Scholarships.com, that can help you find private scholarships and grants for which you may be eligible. It is important to carefully read the application requirements and deadlines for each scholarship or grant.
Review Your Financial Aid Award Package
Once you have applied for financial aid, you will receive a financial aid award package from each school to which you applied. It is important to review your award package carefully in order to understand how much aid you will receive. Your award package should include a breakdown of the types of aid you are receiving, including grants, scholarships, loans, and work-study programs. It is also important to compare financial aid award packages from different schools in order to determine which one is the best fit for you.
Conclusion
Gaining an understanding of the financial aid process is essential in order to determine how much aid you will receive. This article covered research on the types of financial aid available, how to calculate your expected family contribution, and other tips for understanding and comparing financial aid packages. By following these steps, you will be able to make informed decisions about college and maximize your financial aid package.
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