What Is Financial Aid?

Financial aid is a type of funding that can make it easier for college students and their parents to afford the cost of higher education. It includes various forms of financial assistance to help you pay for college or career school. Financial aid can come from the federal government, schools, state agencies, employers, and other organizations, and it can save you thousands of dollars on your college costs.

Types of Financial Aid

There are several different types of financial aid available to students, each with its own criteria for eligibility and amount offered. Here are the main types:

Scholarships

Scholarships are a form of gift aid that you typically don’t need to repay. They can be offered by colleges, universities, and private organizations. Scholarships can be based on need, merit, or other factors such as your background or community service.

Grants

Grants are another type of gift aid that usually doesn’t need to be repaid. They are often based on financial need and can be offered by the federal government, state agencies, and private organizations.

Work-Study Programs

The federal work-study program allows students to earn financial aid through part-time work. These jobs are typically on campus, but some may be off-campus with nonprofit organizations or public agencies.

Federal Student Loans

Federal student loans must be repaid with interest. They come with various eligibility requirements, loan limits, and features. Federal loans offer benefits such as loan forgiveness programs and income-driven repayment plans.

Fellowships and Assistantships

Fellowships and assistantships are typically available to graduate students and may require work such as research or teaching. They often cover tuition and provide a stipend for living expenses.

Employer Tuition Assistance

Some employers offer tuition assistance as a benefit. This can cover eligible educational expenses and may have specific eligibility criteria set by the employer.

Financial Aid Deadlines to Know

Financial aid is offered on a first-come, first-served basis, so it’s important to submit your application early. Key dates for the Free Application for Federal Student Aid (FAFSA) and the College Scholarship Service (CSS) Profile for the 2025-26 academic year are:

• FAFSA Open Date: October 1, 2024
• FAFSA Deadline: June 30, 2025
• CSS Profile Open Date: October 1, 2024
• CSS Profile Deadline: January 1, 2025 — March 31, 2025

Check with your school’s financial aid office for specific deadlines.

How to Apply for Financial Aid

Applying With the FAFSA

1. Create a StudentAid.gov account.
2. Gather your documents, including tax returns and bank account balances.
3. Fill out the FAFSA form online or by hand.
4. Submit the form.

Applying With the CSS Profile

1. Create a College Board account.
2. Gather your financial documents.
3. Fill out the CSS Profile application online.
4. Submit the application.

How to Appeal a Financial Aid Award Letter

If you believe you should receive more aid than what your award letter shows, you can appeal the decision by writing a letter. Here are the steps:

1. Gather your documentation, such as proof of unemployment or a competing financial aid package.
2. Write a letter to the financial aid office, clearly stating your reasons for appeal and providing your documentation.
3. Wait for a response from the financial aid office.

Do You Need to Pay Back Financial Aid?

Some types of financial aid, such as student loans, must be repaid. However, scholarships and grants typically do not require repayment. Always read the fine print to understand the terms of your financial aid.

Conclusion

Financial aid can provide much-needed funding for your college experience. To maximize your eligibility, research your options and submit your applications on time. As you begin your college career, it’s also important to start building your credit history.