Mastering the Financial Aid Process

There’s a lot to think about when you’re preparing for college. Next to all the excitement of applying for schools and buying dorm decor, it’s easy to feel like the financial aid process is daunting and complicated—but it doesn’t have to be. Read this post, and you will be able to prepare for college confidently with the information you need.

What You Need to Know About the FAFSA

The Free Application for Federal Student Aid (FAFSA) is a critical step in the financial aid process. This application is where you will learn if you are eligible for government scholarships, grants, work-study funds, and loans. 

The FAFSA website at StudentAid.gov walks you through the process of applying. You will need information like your Social Security number, assets and current income, GPA and high school transcript, and a list of colleges you are considering. Even if your parents are not assisting you financially, their information is still essential to your application.

Some families assume they won’t receive any financial aid, so they choose not to fill out the FAFSA. However, it’s worth taking the time to complete it no matter what. Colleges look at this information for financial aid purposes. Additionally, FAFSA determines your eligibility for work-study and may offer other opportunities. 

Recent FAFSA Changes That Can Benefit You

The federal government overhauled the FAFSA over the past two years. Most of these changes simplified the process for families; here are some major items to note:

1. The FAFSA will ask you to give permission for the IRS to import your tax information. This option reduces your chance of making errors on your application. This change has made the FAFSA more user friendly and fair.
2. Families are getting more aid in general.
3. The “contributor” element is more convenient. (You’ll find more information about what this means under the junior year list below.)
4. The sibling discount was removed; instead, more federal aid is being given to all students.

More students are now eligible for Pell Grants.

Financial Aid Checklist

This reference guide is a detailed look at the most up-to-date information regarding everything you need to know from your junior year of high school to graduation.

Junior Year of High School

• Take the SAT and ACT: In addition to strengthening your college applications, higher scores on these tests may benefit your financial aid package. Many colleges don’t require these scores for applications.
• Apply for Scholarships: Take advantage of any scholarship opportunities your high school recommends, and look for scholarships within your local community such as businesses, clubs, and organizations. It can be helpful to look within your own interests and hobbies, as organizations like churches and sports leagues often award scholarships to current or past members. Search online for further opportunities, and make sure to take note of what scholarship packages are available at your potential college.
• Keep Track of Your Accomplishments: It is important to make note of your academic honors, GPA, and extracurricular awards for the FAFSA and your college applications.
• Visit Colleges and Learn About Their Financial Aid Opportunities: Visiting potential colleges is not only an opportunity to compare campuses, but to also learn about associated costs and available financial resources. Pay attention to any published deadlines.
• Net Price Calculator: This tool will help you estimate your current financial position and determine what you might pay for specific colleges. You will be able to find this tool by searching it with the name of your potential college.

Senior Year of High School

• Create YOUR OWN StudentAid.gov Account: You will need to create a StudentAid.gov account as a student; additionally, your parent/guardian (known as a “contributor”) should make their own account to avoid any conflicts or confusion. Your account is where you will manage all of your federal student aid information and documents, and complete the FAFSA. 
• Complete the FAFSA: The FAFSA for the following academic year is released annually on October 1. After creating your account, wait 2–3 days before completing the FAFSA so your data can be processed. After completing the FAFSA, it may take a few weeks to receive your offer. Reach out through the StudentAid.gov website with any questions, or call the Federal Student Aid Information Center (1-800-433-3243).
• Apply for Colleges: Be aware of your specific college’s application deadlines, and fill out and send all of the required information and documents accordingly. In addition to some basic personal questions, applications may ask for your high school transcript, letters of recommendation from your teachers, SAT and ACT scores, a list of your extracurricular activities, and often an essay.
• Do You Qualify for Free Tuition? Students from Iowa, Minnesota, and Wisconsin who have a qualifying income and GPA may be eligible for free tuition at some schools, including Luther College. Some stipulations apply.
• Make Informed Decisions About Student Loans: It’s important to do research about student loans after receiving your FAFSA information, and to decide what is best for you and your situation. Common advice is to not overborrow, and to be conscious of what you’re able to pay back.
• Work-Study: You may choose to work on campus and earn spending money or credit toward your tuition. Your FAFSA results will determine if you qualify for work-study and the amount of hours you may be able to work. If you do not qualify, some colleges like Luther offer their own work-study program.

Reach out to your potential college with any questions you may have. A good financial aid counselor will work with you and your family to make the best decisions possible about financing your college education.

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