Applying for financial aid isn't difficult if you're prepared. Follow these steps to determine how you'll pay for college.
Step 1. Learn what types of financial aid are available
Scholarships come from private donors or from your college and are not repaid. Some are based on financial need while others are based on criteria such as academics, community involvement, leadership, athletics, talents, or military involvement.
Grants are based on financial need and you don't repay them. They include:
- Pell Grants (range for 2010-2011 is $555 - $5,550)
- Supplemental Educational Opportunity Grants
- Academic Competitiveness Grant
- National Science and Mathematics Access to Retain Talent Grant (National SMART)
- State grants
- College-based grants
Work-Study, also based on financial need, allows you to earn money while attending college. You get paid for hours worked so don't expect money up-front to pay tuition. Work-study earnings will not affect future financial aid eligibility.
Loans are a type of financial aid you must repay. Several types of loans are available for students and parents.
Step 2. Apply for scholarships
Start looking for scholarships in your junior year. Use free resources including:
- Your high school guidance counselor
- The college financial aid and admission offices
- ScholarshipQuest with over 2,000 local and statewide scholarships
Don't ever pay for scholarship or financial aid services! If you receive offers, check with your guidance office or financial aid office before you reply.
Step 3. Request a PIN
Request a Personal Identification Number for you and one for a parent at pin.ed.gov. The PIN is your signature for the electronic FAFSA. Keep your PIN for future years.
Step 4. Complete the FAFSA
Complete and submit the Free Application for Federal Student Aid (FAFSA) at fafsa.gov. The colleges you list on the application will receive the results.
- Gather the required items to complete the FAFSA.
- Apply before your college's priority date to get the best financial aid package.
- Complete the FAFSA every year you're in college.
- If you need help completing the FAFSA, contact the EducationQuest office nearest you.
Step 5. Expect a Student Aid Report (SAR)
The Federal processor will send you a SAR which summarizes your FAFSA information and provides your Expected Family Contribution (EFC). If you need to make FAFSA corrections, use your PIN online at fafsa.gov or contact the college financial aid office.
Step 6. Expect a financial aid award letter from the colleges you applied to
The colleges will use your FAFSA results to award you financial aid. They will use this standard formula:
| Cost of Education (tuition/fees, room/board, books, transportation) |
| – Expected Family Contribution (FAFSA results) |
| = Financial Need |
Your financial need determines the amount and type of financial aid you will receive.
Step 7. Compare award letters
Some colleges may offer more in scholarships and grants, while others rely on student loans. Calculate your out-of-pocket expenses for each school to get the whole financial picture. Use our Award Letter Comparison Calculator for an easy comparison.
Step 8. Apply for student loans, if necessary
Your award letter will indicate the type and amount of student loans you can borrow. Apply for them through your college financial aid office.
Step 9. Explore other college funding options
They might include:
- College Payment Plans. Many schools offer a monthly payment plan for your out-of-pocket tuition expenses. Ask about finance charges.
- Alternative loans. These loans come from private lenders who determine the interest rate and repayment terms. Most alternative loans require a co-signer.
- Home Equity Line of Credit Loan. This allows you to borrow money as you need it, which fits well with tuition payments.
- The Military. All branches offer education assistance which may include the Montgomery G.I. Bill, tuition reimbursement and student loan repayment.
