How to Pay for College: Federal Financial Aid

How to Pay for College: Federal Financial Aid

The average cost of college in the United States has more than doubled since the beginning of the 21st century. Currently, students pay an average of $38,270 annually. That number can be daunting, but understanding financial aid options can alleviate this monetary burden.

Colorado State University Global helps students navigate the complexities of federal financial aid to access an affordable education. This article explores how to pay for college using federal financial aid, the types of aid available, and what to expect when applying.

What Is Federal Financial Aid?

Federal financial aid is a type of financial assistance that helps students pay for higher education expenses, including tuition, room and board, and university fees. The goal is to increase access to higher education for students who can’t afford it.

The Department of Education manages the program, awarding aid based on factors such as student need, enrollment status, and cost of attendance. The three main types of federal financial aid are grants, loans, and work-study programs.

Types of Federal Financial Aid

Each type of federal financial aid involves unique terms and eligibility requirements. Here’s a breakdown:

• Grants: A grant is need-based aid that you don’t have to repay. The government offers various grants, including Pell Grants, Federal Supplemental Educational Opportunity Grants, and Iraq and Afghanistan Service Grants.
• Federal loans: A loan is borrowed money you pay back with interest on a set repayment schedule after graduating. The federal government offers subsidized and unsubsidized loans. Subsidized loans are based on financial need, and the government pays the interest while you’re still in school. Unsubsidized loans are available to any student and accrue interest even while you’re in school.
• Work-study programs: The federal work-study program provides part-time employment opportunities for students, allowing them to earn money to pay for education-related expenses. Jobs include office administration, tutoring, research assistant, and library assistant positions. Eligibility depends on your financial needs and whether the university participates in the program (CSU Global does not.).

How to Apply for Federal Financial Aid

You must complete the Free Application for Federal Financial Aid (FAFSA) to receive government money for college.

Complete the FAFSA

Visit the FAFSA website to create an account and FSA ID that allows access to the government’s online systems. You can then fill out the application. The FAFSA collects information about your family’s income, assets, and household size to determine financial need.

It also asks for a list of all colleges or universities you’re considering. These schools receive your FAFSA information to determine your personalized financial aid package. Additionally, you must submit your form within a certain timeframe. Alongside federal deadlines, each state and school has its own due dates that vary based on the academic year.

Information you’ll need to complete the application includes:

• Social Security number
• Parent or guardian Social Security number (if you’re a dependent)
• Tax returns
• Bank statements and investment records
• Records of untaxed income, such as child support
• Driver’s license number

Understand Your FAFSA Results

After submitting the FAFSA, you’ll receive a Student Aid Report, which summarizes information provided in your application. It also includes your Expected Family Contribution (EFC), a number based on your family’s income and household that schools use to calculate your aid package. The higher your EFC is, the less money the school offers.

Receive Your Award Package

After reviewing your information, each school you listed sends an offer or letter detailing the amounts and types of financial aid for which you’re eligible. Once you choose a school, you can accept or decline portions of your package. The school may ask you to complete additional steps, such as attending loan counseling or signing a Master Promissory Note.

Tips for Maximizing Federal Financial Aid

Maximizing your financial aid can help you score a generous award to cover higher education expenses. Strategies to consider include:

• Applying early: Submitting an application early ensures you’re considered for the maximum aid available.
• Exploring state and institutional aid options: Every state and most universities offer their own form of student financial aid, which often includes grants and scholarships, to further reduce educational expenses. Review eligibility requirements before applying.
• Seeking financial aid counseling: Attend financial aid counseling, either through a university or other organization, for personalized advice about which types of assistance align with your needs.

Common Misconceptions About Federal Financial Aid

Some people mistakenly believe their family makes too much money or they need to be enrolled as full-time students to qualify for aid. However, federal financial aid doesn’t have an income cap. You can still qualify with a higher income, especially if other household members are students. Additionally, part-time students can receive federal aid at a lower amount, equivalent to their enrollment status.

Some people also believe all student loan options are the same, meaning it doesn’t matter which one you choose. However, each loan has its own repayment plan, interest rate, and eligibility requirements, emphasizing the importance of reviewing terms and conditions before making final decisions.

Federal Financial Aid at CSU Global

CSU Global helps students access and maximize financial aid options through educational resources and trained advisors, offering guidance on how to apply for and manage federal financial aid, as well as communicating updates to the FAFSA. CSU Global financial aid advisors can explain policies or changes relevant to your situation and address any questions.

Learn More About Student Financial Aid

Understanding the ins and outs of federal financial aid can affect how much you pay for college. Applying early, reviewing each aid type, and seeking professional assistance can maximize your aid package, making higher education more affordable and accessible.

Apply for federal financial aid for support during your next academic year. For more information, check out CSU Global’s financial aid resources.