Financial Aid Myths
Every year, thousands of students and families let financial aid myths and misconceptions stop them from applying for financial aid.
You may receive a lot of advice from friends, family members, teachers and others regarding scholarships, the FAFSA, financial aid deadlines, student loans, who’s is eligible for financial aid, what to do and what not to do. Some of this information may be true, while some of the advice may be based on some financial aid myths that have circulated for years.
So before you take anyone’s advice or make any major decisions about NOT applying for financial aid to help you pay for your college education, you should get the truth from a reliable source such as your high school’s guidance counselor, a college’s financial aid administrator and/or certified financial tax advisor.
Here are some financial aid myths dispelled:
• Myth:
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However, you should still strive to earn A’s and B’s in your classes, there are many private scholarships that will require a minimum grade point average to be eligible for their scholarship. And in order to keep your financial aid for the next school year, most financial aid programs will require that you maintain an average grade point to show “satisfy academic progress” outlined by each organization.
• Myth: “Financial aid is only awarded to minorities and women”
FACT: Everyone has the opportunity to receive financial aid regardless of their ethnicity, race or gender. Now, there are some private scholarships available exclusively to minorities and women. However, the overwhelming bulk of federal student aid, state aid, school aid, and some private scholarships are not tied to students from a particular ethnicity, race or
One of the biggest issues that many students and parents have concerning college education is the cost. Due to the state of the economy, affording college has become very difficult. Fortunately, the government is able to provide financial assistance in addition to the University’s own financial aid. Case is a private institution which means that it costs more compared to a public college. The tuition for Case was approximately, $38,000 in 2007 not including living or book expenses. Even though there was a tuition rate increase for every following year. The only way I was able to afford the tuition at Case was because of the scholarship I earned. In addition, I received federal grants and a substantial amount of aid from the University. I did not have a free ride but I received a great deal of financial help to pay for my college education.
Financial aid is money in the form of loans, grants and employment that is available to a student to help pay the cost of attending. Financial aid comes from the federal government, which is the largest provider of aid, as well as state government, the school and a variety of other public and private sources.
In recent years, there has been a tremendous increase in student enrollment in higher education after high school effecting the need for financial aid for all students. Education has become a growing part in America where more students want to better their lives with a college education. However, the cost of college tuition has increased and more students find themselves struggling to pay off the enormous tuition rates. In a recent study by the Consumer Financial Protection Bureau, student debt has reached $1 trillion in federal loan debt. Student loan debt has crippled the economy and students are struggling to pay off federal loans. In order to help students with the high tuition rates of college the government and universities offer
Every new term a school needs a way to fund its school. Free Application for Federal Student Aid is needed at all colleges for a student to be able to pay their way into the school of their dreams. This form is used to determine the amount of money a family is expected to contribute to the price of attending a postsecondary institution. The results of the FAFSA are used in determining student grants, work study, and loan amounts. Students have two options when preparing their annual, federal student aid application: either prepare the form on the U.S. Department of Education's website or get assistance from a fee-based FAFSA preparation service. Most financial aid is provided on a first-come, first-served basis, and students are encouraged to prepare and submit a FAFSA on the day it opens, January 1 of each year, using income estimates to be updated after taxes are
For centuries African Americans have fought for equal rights, one of them being an opportunity for the chance to get an equal education. Many people believe that African Americans have an equal or better chance at getting an education than other students. This is not the case when in fact, it is actually harder for these three reasons: African American students tend to come from harsh, poverty stricken atmospheres. Shattered family lifestyles that make it difficult to pursue a higher education because they have not received the proper information. Secondly, just because African Americans are minorities does not mean that they receive a vast amount of government assistance or financial aid to pursue a higher education. Lastly, African American students do not receive the same treatment as other students when they attend predominantly white colleges and universities.
In today’s society, the cost of attending college to earn a degree continues to increase, which results in an increase in students needing financial aid. A determining factor in how much a student receives is dictated by the Earned Family Contribution (EFC). The EFC is mandated by Congress as a part of the required Free Application for Federal Student Aid (FAFSA) that every student must fill out in order to apply to college. Steve Cohen, an Op-Ed Contributor to the New York Times and author of “A Quick Way to Cut College Costs” believes that the EFC is flawed in that it does not accurately depict how much a family can contribute to the cost of a student’s education. Cohen’s solution is for Congress and the President to drastically cut the EFC to realistically reflect the unequal rise in college tuition and average household income.
There are different types of financial aid available to students such as grants, scholarships, and loans. There are a lot of these types of financial assistant available for students to have access to. There are many websites available online that have all different types of scholarships. Some scholarships have certain requirement such as race, GPA, demographic, parent’s income, etc. Others require students to write an essay and others only require students to only apply. Grants are given to students and are money that is not required to be repaid. Most grants are federally and state funded. Loans are money borrowed and is required to be repaid and in most cases with interest.
With the rise in tuition the cost of college is very expensive and not everyone can afford it. For the schools I want to attend the tuition is not to insane ,but not cheap. For A&M the tuition plus other fees, room & board, books, etc., is $21,581, for UT Austin it is $26,148, for UT Arlington it is $22,508 (College Costs - 2013-2014 - All Institutions 2013). The cost of the colleges are not cheap, but I can probably get by with financial aid. My brother is currently attending UT Arlington and almost all of his school is paid for by Financial aid and grants. The financial aid I receive should be of similar amount and I am also applying for many scholarships which my brother did not. If I am able to attend college without paying much for it I will have a very good cost vs. benefit.
There are many families were not able for the chance of college because they could not afford it. An example of this, happened to the Morais family. Richard Morais’s daughter got accepted into John Hopkins University. The whole family was happy, but with the acceptance letter was the cost for all of the expenses. All of the expenses came out to be a total of $54,470 dollars. Financial aid only paid for $6000 which left the family to pay $48,470. This caused the family to take out student loans to allow the daughter to go to college. With her taking out the loans she will graduate being $200,000 in
Under the present system, all students applying for federal aid file a form called the Free Application for Federal Student Aid (FAFSA). This form is meant to figure out the amount of money a family is able to shell out for an education, or the Expected Family Contribution (EFC). Assuming the student does not qualify for independent status, both the expected contributions from the student and the parents are included in the EFC. In order for a student to get independent status you have to be married or over the age of twenty-four. After filing the FAFSA, the student will receive back a Student Aid Report (SAR) which includes the Expected Family Contribution. The way most schools determine the amount of aid you will receive is to subtract the Expected Family Contribution from the total costs of the university. Total costs include such things as tuition, room and board, insurance, and other miscellaneous expenses. The student receives the difference in loans and grants. A loan is financial aid that will have to be paid back, normally after the student graduates. A grant does not have to be paid back. A scholarship...
There are also grants available to help pay for your education. Contact the school you are considering for information regarding grants or you can go online and apply. A grant is provided by the government and will pay for a large portion of the education as well as books and other supplies. A grant does not have to be paid back.
To whomever it may concern, I would appreciate if you consider all aspects of my situation when reviewing me for financial aid. Although the tax forms you review state that the household income is a decent amount of money, the majority of that money comes from my step parent. Since I have started my college career I am used to getting close to no financial aid because of this. I have grown up the majority of my life from age two being raised by my single mother with no child support and her income of less than 20,000 a year. This case remains the same today, even though she has married, I don’t receive a penny of the money earned from my step parent. Ever since I was of age to work at 15 years old I have worked very hard, about 30 hours a week, while attending
Fees and loans are too big of a load for young people to carry. A lot of students drop out do to the pressure of having to worry about all the loans they have to pay back after they are done with college. This should not be an issue to the student. According Iatham Emmmons, “Even worse, a large portion of students never receive funding at all due to the multitude of stipulations that must be adhered to in order to qualify for assistance. A major flaw in the current federal educational assistance programs is that the students’ parents’ income is used to calculate financial need” (Emmons 3). Even citizens who try to get help by applying for funding never end up getting it because they do not meet the needs required for the funding. Education should be p...
...ell I plan to receive an academic scholarship, get students loans, and borrow money from a relative. I can aquire an academic scholarship by getting into the top five percent of William B. Travis Highschool of class 2007. I can get student loans by applying to the College Funding Services. I will get my money fast and make no payments until after graduation. Plus I have a grandpa that says he can pay for some of my college money.
Sadly, I had to drop a few classes this semester with the intention to reduce my tuition and total cost of textbooks. However, I am seeking aid to cover my tuition and end the financial crisis that has been challenging my