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Paying for College

Financial Aid: What Do I Need to Know? πŸ’Έ

4 min readβ€’august 15, 2021


Everything to Know about Financial Aid for College πŸ’Έ

What is Financial Aid? 🀷

Financial aid is any monetary award from the federal government, state, college, or private sources used to help you pay for college. Every school will have an advertised "sticker price," but you can find the Net Price, the price you are much more likely to pay, by subtracting various forms of financial aid. Each person will have different financial packages; no two people will be spending the same college price. Think of it as buying an airplane ticket. The price you paid for your seat is most likely not the same as the person sitting two seats in front of you or across the aisle. Your goal is to receive the most amount of aid and pay the least amount possible.

Calculating Your Financial Aid Package πŸ”’

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Cost of Attendance 🏫

The Cost of Attendance, also the sticker price, is the estimated cost for attending a school for one full year and is comprised of a few things:
  • Tuition
  • Room and Board
  • Books and Supplies
  • Personal/living expenses
Very few students pay the total Cost of Attendance.

Expected Family Contribution πŸ™Œ

Expected Family Contribution (EFC) is the amount that the federal government calculates that your family can expect to pay. It is determined by the following factors:
  • Parent's prior year income
  • Student's prior year income
  • Value of parent's assets
  • Value of student's assets
  • Number in household
  • Number in college
  • Age of oldest parent

Financial Need πŸ‘

Based on your financial need, each school will offer you a package of financial assistance that may include loans, scholarships, grants, and work-study plans. This is your need based financial aid. Subtract your total aid from the Cost of Attendance to get your Net Price: Cost of Attendance - Expected Family Contribution = Financial Need
Check out this article for more detailed information on how to calculate your financial aid.

Resources:

Types of Financial Aid πŸ“œ

Gift Aid 🎁

Gift aid is money you do not have to pay back.

Grants πŸ…

Grants may come from the college, state, federal government, or other sources and are awarded based on your financial need. Students usually get the most money at the institutional (your college) level.

Scholarships πŸ€“

Scholarships have more eligibility requirements or an application process. They can come from the college, the federal or state government, your school, or private organizations.

Institution Scholarships

You may be automatically considered for specific scholarships when applying to a college, whereas others might require a separate, more specialized application.

Private Scholarships

There are tons of private scholarships available, and not just for seniors! There are national, regional, and local scholarships with different applicant pools, requirements, and reward amounts. You may have a higher chance of winning local scholarships because of a smaller applicant pool, but national scholarships may have higher rewards. Prioritize which scholarships get more of your energy by considering the award amount and difficulty of the application. Do your research, and apply for any you're eligible for. The rewards add up! Learn more about how to get scholarships with this article.
Pro Tip: Set up a separate email for anything related to colleges and scholarships. You don't want important emails to get lost in your personal email!

Resources:

Self-Help Aid βœ‹

Unlike grants, these awards are either earned through work hours or loaned to you, with added interest rates.

Loans 🏦

Often, financial aid offers will include some form of a loan. If you decide to accept a loan, you are borrowing money, and the amount borrowed will accrue interest over time. There are both federal and private loans. With federal loans, your interest is paid by the government while you are a full-time student. If you take out a private loan, you will have to pay all interest.

Work-study πŸ‘”

If you are offered work-study in your financial aid package, that money is still not guaranteed. You can opt out if you don't feel you can work that semester, and you won't receive the money. If you want to participate in work-study, you will need to find and apply for a work-study job. These may be on-campus jobs or off-campus through a partnership with local businesses. Keep your schedule in mind when deciding whether or not to include work-study as part of your financial aid package.

What to Think About Next πŸ€”

Resources:

Resources πŸ“š

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