Panicking about financial aid? Look no further.
Application deadlines are around the corner, and as the stress of submitting dies down, financial chaos begins to set in. There are many things students will need to know about receiving aid from a school, so we’ve contacted to an expert to answer your pressing questions. Tom Patterson is a financial aid advisor at Loyola University Maryland and he has told us some tips and tricks when it comes to financial aid.
Q: How do you apply for financial aid?
A: Each college will have their own application process and deadlines. For students applying for need-based aid financial aid, all schools require the FAFSA (Free Application for Federal Student Aid). Many colleges require additional applications as well. Tax return verification may be required too.
Q: If granted aid, is there interest on how much you pay back?
A: “Interest” only applies to loan aid. The amount of interest owed will depend on the loans interest rate.
Q: Does the student pay back all of the aid or all of it?
A: Any form of “loan” aid must be paid back. Grants and scholarships do not.
Q: What is the difference between merit-based aid and need-based aid?
A: Merit-based aid, normally referred to as “scholarships”, are awarded to students with superior academic ability and achievement. They are primarily based on grades, course selection, and test scores. Community service, employment, athletics, and/or leadership experience may also factor into scholarship decisions. Need-based aid is awarded based on a family’s financial need. Institutional and state grants, federal loans, and work study are all forms of need-based aid. A family’s income is the single biggest factor in determining eligibility for need-based aid. Other factors include assets, the size of the family, and the number of family member enrolled in college.
Q: What are some ways students pay off their debt?
A: Generally students begin paying off their loan debt once they graduate from college. The most common way is through monthly payments. It takes most students years to pay off their student loans.
Q: Are there opportunities provided by schools?
A: Schools are normally not involved with loan repayment. Students will be repaying the lender which is normally the federal government or a private lender.
Q: Where can students access more information about financial aid?
A:www.fafsa.ed.gov or www.collegeboard.org
Q: Any other tips or information you would like to add?
A: What and when are the two biggest questions students should be asking colleges right now. They should make sure they know what each school they are applying to requires for merit and need-based financial aid and when they require it.