Financial aid and FAFSA forms are terms you probably have heard before. But, do you know what they mean?
Financial aid is assistance for students who are enrolled in colleges and universities. This student aid comes in various forms including scholarships, loans, grants and work-study opportunities. The goal is that this aid helps students fund their post-secondary education.
The average cost of most colleges and universities is too expensive for many students to pay for out of pocket or for their parents fund. Therefore, this is where financial aid comes in.
The U.S. Department of Education offers federal financial aid to students across the United States.
According to Federal Student Aid’s website, they are reported as “the largest provider of student financial aid in the nation” giving “approximately $112 billing in grant, work-study, and loans funds each year to help pay for college or career school.”
In doing so, this makes education doable for over 10 million students annually.
The federal government determines students’ financial needs by having them complete a form, the Free Application for Federal Student Aid (FAFSA).
The first step is filling out the FAFSA application,said Keith Schwartz, director of financial aid and scholarships at ECC.
Based on the information students provide on the form, the DOE determines how much financial aid students will receive. This information includes the student’s dependency status, number of people in one’s household, the student’s income and the student’s parents income (if the student is a dependent).
Now, you may be inquiring what is the process for filing out this form?
Schwartz recommends completing the FAFSA form online.
This can be done off-campus. Or students can come finish the form on campus in computers in the lobby of building A or in the library in building B.
The application of 13 questions should take about 20 minutes to complete.
Schwartz said this method is preferred over a physical application that is mailed because of the processing time.
After students’ FAFSAs have been processed by the federal government, they will receive a financial aid package.
It may contain scholarships from ECC, which is a form of financial assistance that does not have to be repaid. Scholarships are often awarded based on grades, program of study or other factors.
Loans may also be included in a financial aid package. Unlike a scholarship, loans are financial assistance that is borrowed that must be repaid, typically starting after graduation. Another key to note is that interests on loans must be paid back as well.
A grant, like a scholarship, does not have to be repaid.
According to Federal Student Aid’s website, if a student withdraws from school the grant must be repaid. Eligibility for grants is based on students’ financial aid. Here are the types of grants: Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG),and Iraq and Afghanistan Service Grants.
The last type of federal financial aid is work study.
According to Federal Student Aid’s website, this program gives students part-time on-campus jobs earning at least federal minimum wage. The website explains that the total for work-study that students are awarded “depends on when you apply, your level of financial need, and your school’s funding level.”
If you still have questions or need help with financial aid or completing the FAFSA form, stop by the Office of Financial Aid and Scholarships in B156.
