Financial Aid - Frequently Asked Questions

FAQs

Should I apply for financial aid before I decide where I'm going to college?
Yes.
You can file the Free Application for Financial Aid (the FAFSA) starting on January 2 of each year. Even if you have not decided which school you want to attend, you can submit your application. You can arrange to have the information sent to schools to which you apply later in the process. It’s better to apply for financial aid as early as possible as available funds are often limited and distributed on a first-come, first-served basis.


Where do I find information about grants and scholarships?
There are many books and websites that offer information about scholarships and grants for students. You may need a combination of grants, loans, scholarships, or work-study jobs to help pay for college. The more research you do, the more likely you are to find scholarships and grants that are provided to students based on specific criteria, interests and planned career path. Students who excel in academics, athletics, community service, and many other areas can also earn scholarships. Throughout this website you will find various links to sites offering scholarship and grant opportunities.


How do I apply for loans if I need to?
File the Free Application for Financial Aid (the FAFSA) to get the process started. The FAFSA is the way to apply for college grants, work-study and loans that are issued by the federal government. A number of lenders and other financial institutions offer private education loans to students. These loans are not subsidized and usually carry a higher interest rate than the federal issued loans.


If I get a loan to pay for college, will I be so in debt that I cannot pay my bills when I graduate?
If you need to take out a loan to pay for a four-year college education, you will have accumulated debt when you graduate. However, you should look for scholarships and grants first to reduce your costs and leave less of a gap that will need to be filled by loans. If you get a loan, it is important to understand your repayment agreement and plan your spending accordingly, so that you will be able to manage all of your financial responsibilities. By contacting your lender, there may also be ways to lower your monthly payments.


What happens if I drop out?
You have a six-month grace period to start paying on your student loan after you graduate, drop out or drop to less than half-time status. Your loans become due six months from the date of your withdrawal from college. Be sure to read and understand the rules for any loan that you or your family take out to pay for college. If you receive a scholarship or grant, you typically do not have to repay these funds if you drop out of school.


Do my parents make too much money?
The amount your family is able to contribute toward your education is referred to as the Expected Family Contribution or EFC. The federal government and financial aid offices use "need formulas" that analyzes your family’s financial circumstances (things like income, assets, and family size) and compares them proportionally with other families' financial circumstances. Most families can't just pay the EFC out of current income alone. The formulas, therefore, measure a family's ability to pay against other families' ability to pay and funds are distributed accordingly.


What do I need to watch out for?
Students should be mindful of the amount of loans they take out. Many students use loans as a way to get money to cover many of their personal expenses because their families are unable to provide them extra cash. If after all financial aid, excluding loans, are applied to a student’s school account and a loan is introduced later, the student will subsequently have a fund balance that is refundable to the student. After four years of following this pattern, students can find themselves with a considerably high debt ratio following graduation.


What is the cost to apply for financial aid?
To apply for financial aid for higher education students should file a Free Application for Federal Student Aid (FAFSA). There is no cost for applying for federal aid.


Will I be seen as a poor student by my peers?
Almost 85% of minority students are receiving some form of financial assistance. With the rising cost of a college education, there are few students not receiving aid or trying to get aid.


What if my credit and my parent's credit are slow or bad?
Students are eligible for federal sponsored loans even if their credit is slow or bad. The government is in favor of providing access to college for all students; however, should you default on a student loan it is extremely different to receive another federal student loan. If your credit or your parents’ credit is slow or bad, private loans are not usually available.