Scholarship Talk

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College IS expensive! To top it off, applying for financial aid can seem like a long, drawn-out process that’s very confusing, at best. While we’d like to think that financial aid goes to those students who are most deserving, the truth of the matter is that funding goes to those students who know what they’re doing when it comes to the application process.

The following guide aims to educate college students about the financial aid process and what mistakes you must absolutely avoid at all costs. By keeping these tips in mind, you’ll be well on your way to understanding the financial aid process in no time.

1.    Neglecting to Apply

By far the most common mistake many students make when starting college is neglecting to apply for financial aid at all! Don’t – I repeat, DON’T do this. Whether you think your parents make too much money for you to be eligible for aid; you don’t know how, and don’t know what information you need or any other reason, your first step to locating “free money” is to apply for financial aid.

Your first step is to fill out the Free Application for Federal Student Aid (FAFSA) as close to the priority filing date as possible. While that’s your first step, you may need to fill out additional forms that are specific to the school you plan to attend. If you don’t know, ASK! A financial aid counselor should be available to help you, via a personal meeting, e-mail or a telephone call.

2.    Late Planning

Of course, procrastination falls high on the list when it comes to financial aid mistakes. By the time you reach high school, you should already be thinking about where you want to attend college and how you’re going to secure funding to do so. Before you even begin to apply for financial aid, start thinking about how you can organize your finances so that, come college time, your income and assets won’t be counted against you.

For example, family planning should include minimizing any leftover debt you may have, investing your money in a retirement plan, or spending money on essentials your student will need when she reaches college. This way, the federal government can’t count your money against you when it’s time to calculate how much the family is expected to contribute towards college costs.

3.    Scholarships and Grants

Honestly, your best bet in securing financial aid is to apply for federal grants and campus-specific awards. Many students overlook this avenue entirely however, and instead waste time applying for scholarships and other awards they have a very slim chance of procuring.
There are thousands of federal aid programs and campus-based awards that students could potentially secure, but you have to know they’re out there before you can apply for them. If you’re in high school, check with your guidance counselor about local or school awards you can apply for. If you’re already in college, see if there are any grants or awards you could be eligible for based on your course of study.

4.    Family Contributions

Many students aren’t fortunate enough to have friends and family who are able to contribute to their college funds. For those who are, you need to be smart about how that money is secured.

For example, rather than having Mom or Dad deposit money directly into an account in your name, have them open up a college savings account in their name and deposit money directly into that account. A student’s personal assets are assessed much higher on the FAFSA then parents’ assets, which means a large savings account in your name can negatively affect how much aid you can receive.

Better yet, have Grandma or Grandpa open up a college savings account in their name for you, and you won’t have to put that information on the FAFSA at all.

5.    Paying for Information

You’ve heard it all before I’m sure, but let me reiterate – paying someone to help you search for financial aid sources is a BAD idea! Essentially, all you’re doing is forking over your hard earned cash for someone to plug your information into a scholarship search engine. You could easily do that on your own, for free!

Search websites like fastweb.com or Petersons.com for information about college scholarships and grants you might be eligible for. You never know what you may find!

6.    Earning too Much

Yes, you can actually earn too much money- that can impact your financial aid eligibility. The government expects dependent students to contribute the majority of their income towards a college education, so the more you make, the less you potentially earn in federal aid.

If you take a job that isn’t work-study, know that your income will affect how much you can receive in financial aid. If you must work, consider socking away the money you earn early on, then spend most of it on supplies you’ll need when you attend school.

7.    Speak with Financial Aid

Finally, one of the worst mistakes you can make when applying for financial aid is to neglect to speak with a financial aid counselor sometime during the process. While they can’t drastically change your package, they can help you figure out the process of applying and possibly alter your financial aid award for outstanding circumstances.

For example, if you have a unique life or family situation that doesn’t allow for adequate reporting on the FAFSA, you can speak with a financial aid counselor who may be able to slightly adjust your award for that reason.

Even if you don’t think you’re eligible for financial aid, failing to apply early will severely limit your eligibility for aid money. You have nothing to lose by applying for financial aid – and you just might end up with more money than you had originally anticipated.

By following the above tips and learning how to avoid common financial aid mistakes, you are well on your way to earning that college degree in no time!

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