14 Important Financial Aid Questions You Must Ask
It is almost impossible for most families in America to cover the costs of education with their personal savings alone. Fortunately, financial aid is available to help them bridge the gap between tuition fees and personal funds. If this is your first experience with college finance, it's a good idea to prepare a list of financial aid questions to ask a financial advisor.
Financial aid comes in many forms, from free grants and scholarships to loans that must be repaid. Each college differs in the type of financial aid. Eligibility requirements, application format, and other terms and conditions also vary between colleges. This can affect the total cost of your tuition fees. It also determines whether that particular school is affordable for you. To avoid this situation, it is helpful to ask a college financial advisor questions related to financial aid.
We've put together some basic questions to ask a financial advisor before paying for college. Getting answers to these questions will help you decide which college is right for you.
1. What types of financial aid packages does your school offer?
Each school creates different financial aid packages. Usually this is a combination of scholarships, grants, and student loans. Scholarships are awarded on the basis of merit and do not have to be repaid. Grants are awarded on the basis of need and do not have to be repaid. The more free financial aid you receive from the school, the less you need to borrow through loans.
2. Are your financial aid packages pre-loaded?
Each college differs in how it distributes its financial aid packages. Scholarships and grants are available to first-year students only.
Not all colleges upload their financial aid upfront, but many do, and it can make a huge difference in the overall cost of tuition. With a college that offers a consistent financial aid package, you know exactly what to expect for four years. This will help you budget better. On the other hand, if your financial aid changes every year, your budget will be completely screwed up. Having an answer to this question will help you gauge whether the school is affordable for all four years, not just the first year.
3. What is the deadline for your school to apply for financial aid?
One lesser-known fact is that financial aid application deadlines for colleges differ from the FAFSA deadlines. The FAFSA (Free Application for Federal Student Aid) deadline is June 30 of the year you attend school. However, many colleges have set earlier deadlines for receiving financial aid applications. This means that although you can file for a FAFSA at any time before June 30, you may lose financial aid from some schools.
Once you have shortlisted the colleges you are interested in, contact the financial aid office and ask about application deadlines. Don't forget to write it down.
4. Do I need to fill out a CSS profile for your school?
Many colleges also require students to fill out a CSS undergraduate assistance profile. If the college requires you to fill out a CSS profile, remember that it will be in addition to the FAFSA. Only some colleges may require the FAFSA. Others may require both a FAFSA and a CSS definition file. Either way, the FAFSA is a prerequisite to qualifying for federal financial aid.
5. Can you help me understand the details of my financial aid award letter?
Once the school has accepted you, it will send you a financial aid award letter along with your acceptance letter.
Your financial aid award letter will include a description of the personal financial aid package the school has put together for you. This will include details of the types of aid offered and the amount you will receive of each type. The award letter will also include details of when and how funds will be disbursed, along with any special requirements for securing funds.
Although a financial aid award letter is very detailed, it can be very technical. This is done intentionally to avoid any misunderstandings. However, this also makes it difficult to understand. If you're not sure about something that seems vague, call the school's financial aid office and ask them to clarify. Don't make the mistake of assuming anything. If I am wrong, it will be a costly mistake.
6. When and how will the funds be distributed?
It is important to know when and how the money will be distributed. This is because you may have to pay some expenses like lodge fees and meal plans up front and you will need to make arrangements.
Generally, all money other than work study is deposited directly into the school account before the term starts. Payment is made twice a year before each semester. From there it is added to the student's tuition bill. Any funds remaining after tuition and fees have been paid are transferred to the student's account within approximately fourteen days.
The only financial aid you don't get at the beginning of the semester is the study and work part. You will receive these amounts as a weekly check once you begin working.