Whether you or your child are looking into financial aid for college, you’re probably wondering if you should apply. Even if you don’t think you’ll qualify, there are other reasons to complete an application for financial aid.
This is especially true if you’re interested in scholarships or grants. Although completing the Free Application for Federal Student Aid (FAFSA) isn’t a necessity for receiving every type of scholarship (and not required by all colleges), completing it opens up doors for even more scholarship and grant-funded opportunities.
But the question is should you apply for financial aid for college? Let’s take a look.
Is Completing the FAFSA Free?
Yes, completing the FAFSA is free. This makes it easy for everyone to apply. Just be mindful that you need to complete it for every school year and that it requires information about your finances, so have the information readily available before filling out your application.
The FAFSA is essential for any type of Federal Work Study funds, federal grants, and for most student loans. If you choose to take out private student loans from banks or other institutions, you don’t need to complete the FAFSA as they have their own application process.
Seeing as the FAFSA is free and easy to complete (once you gather all the necessary information), it’s advisable to apply yearly.
But do you need to complete the FAFSA? Yes and no. If you want to receive scholarships, grants, federal loans, and more, then yes. And certain schools require it. If your family is paying for college out of pocket or you’re taking out private loans, then no, you don’t need to complete the FAFSA.
However, it’s always a good decision to complete the FAFSA, just in case you need it. If you’re debating on filling out the FAFSA, there are several reasons why you’d want to complete this free form.
Finances Can Be Difficult to Judge
This doesn’t mean families don’t know what their finances are, but that they might underestimate what qualifies for financial aid. And seeing as you don’t have to pay back all financial aid — such as grants — it’s well worth completing the FAFSA application to see what you or your child qualifies for.
Some families are unsure if they qualify at all, and completing the FAFSA is a free way of determining their child’s financial aid needs. Students who don’t qualify for grant money should still apply for the FAFSA, as it opens doors for Federal Work-Study Jobs and various scholarships and grants.
Financial Circumstances May Change
Unfortunately, financial circumstances may change. In this case, it’s best to have a FAFSA application on file for a rainy day.
Since FAFSA has strict application guidelines, some colleges and universities might not allow any applications or requests for financial aid after the application’s due date. But if you have the FAFSA on file, you can request the consideration of funds during the academic year, should the need arise.
Think About Federal Student Loans
Are federal student loans something you’re interested in? If so, you need to complete the FAFSA as it’s a non-negotiable application with the government to receive these funds. Federal student loans typically have fixed interest rates, don’t require a co-signer, and don’t take credit history into consideration, making them ideal for some students and families.
As with any loan, however, you’d want to know the fine print before agreeing to it, but they’re only an option after completing the FAFSA. When researching available loan options, it’s always best to work with a trusted college planning advisor who can explain the application process in great detail.
Colleges Tend to Divy Funds Up Accordingly
This means that some students receive funds based on need while others receive money based on academic or other recruitment scholarships, such as sports. Although it varies from one college to the next, most require that you complete the FAFSA for any non-need-based scholarship consideration.
If you’re unsure about a college’s specific requirements, don’t hesitate to speak with someone from their Admissions Office. Make a list of questions about financial aid and make the best decision regarding your college funding based on that information.
Paying for College Without the FAFSA
If you don’t complete the FAFSA, there are other ways to pay for college. For example, you can take out private student loans. As previously mentioned, these loans are available through banks and other types of institutions, which means you don’t have to complete the FAFSA to apply.
This doesn’t mean you won’t have to complete some form of application for private loans. Additionally, these loans are typically focused on credit scores, income, and financial standing. Because of these qualifiers, this type of loan isn’t ideal for every student or family.
The other drawback is the interest rates. Unfortunately, private loans may come with high interest rates. Since these types of loans rely on credit checks, anyone with an insubstantial credit history might find themselves with a higher interest rate equating to a more expensive monthly payment. Additionally, not every student will qualify for private loans.
Repayment options for private student loans are typically 5 to 20 years, similar to federal student loan repayment options.
It’s also worth noting that federal student loans might not cover your entire college tuition as they often have financial caps in place, but private loans can close these gaps.
Completing the FAFSA
If you’re unsure about the best way to pay for college, complete the FAFSA without hesitation. Even if you don’t qualify for financial aid, the FAFSA opens doors for scholarships and grants, helping to offset the cost of attending a college or university. And seeing as the average cost of attending college is easily tens of thousands of dollars annually, every bit helps.
Just be sure to complete the FAFSA on time. FAFSA deadlines are June 30th, but some colleges require that you apply even earlier for financial aid. And with 85.4% of students receiving some type of financial aid, it’s more important than ever to apply early.
Applying for Financial Aid: College Funding Professionals Can Help
Families may be unsure about their exact financial needs and if they qualify (and for how much). Applying for financial aid, however, allows families to see exactly what they’re entitled to, helping to offset the cost of college.
A family might feel confident in their finances, but completing the FAFSA and applying for financial aid can work to offset what could be an otherwise pricey education for their child.
If you’re interested in learning more about student loans and financial aid, College Funding Professionals can help. Join our free online Facebook Group to gain access to the best college planning advice anywhere. You can also contact us at 201-285-7890 or email us at INFO@CollegeFunding.com.
