Navigating higher education can often feel like sailing in a sea of student loans, where your ultimate destination — the degree — seems obscured by a fog of financial worry.
But did you know lifelines like financial aid and scholarships can significantly lighten your cost of attendance? For many college students, these resources can mean the difference between a manageable journey and a tempestuous voyage into debt.
Scholarships and financial aid are like free money, and are often tied to your academic achievement (your GPA matters!) and economic need. Unlike student loans, they don’t require repayment, making them well worth pursuing. Whether you're still in high school or already in the throes of college life, it’s never too early (or too late!) to start researching your financial aid options.
You might be surprised at the number of options available to offset the cost of college. We’ll provide tips to help you get the best financial aid package and scholarships possible.
Apply as early as possible
One of our top financial aid tips is to apply early. Time can play a crucial role in financial aid and scholarships.
Many of these programs operate on a first-come, first-served basis — meaning funds can run out. The sooner you apply, the more likely you will get the financial support you need.
Applying early does more than get you in the queue ahead of others. It also gives you a buffer to correct any application errors, gather any additional documentation, and possibly even explore other funding options if your initial ones fall through.
Complete the FAFSA (all students)
The Free Application for Federal Student Aid (FAFSA) is a critical resource that evaluates your financial situation — including your expected family contribution (EFC) — to determine your eligibility for financial aid.
This aid includes grants and federal student loans. The Department of Education manages the FAFSA form, which should be a primary step in every student’s financial aid process.
Consider a supplementary letter with your FAFSA application
Life can be unpredictable and throw curveballs that affect your financial situation. When you’re applying for financial aid, it’s important that the financial aid office gets the full picture.
This is where a supplementary letter can come in handy.
A supplementary letter allows you to explain any extenuating circumstances that aren’t captured in the FAFSA form but could influence your financial aid award. These circumstances might include a job loss, medical expenses, or other unforeseen costs affecting your family’s finances.
The letter allows you to provide context and clarification, which can help the financial aid office understand your financial situation better.
Use the IRS Data Retrieval Tool
When it comes to filling out your FAFSA, accuracy is key. The good news is you can simplify the process and reduce error rates using the IRS Data Retrieval Tool (DRT).
So, what is this tool all about? Instead of manually entering your federal tax return information into your FAFSA, the IRS Data Retrieval Tool automates the process by transferring the required data directly from the IRS to your online FAFSA form. It’s like having a shortcut to accurate and up-to-date financial information.
The IRS Data Retrieval Tool can save you time and minimize the risk of errors that could complicate your financial aid application process. It’s especially useful for students and families who have filed a U.S. tax return with the IRS.
However, there might be exceptions to eligibility, so it’s worth checking the specific requirements.
Understand your family’s adjusted gross income
When it comes to financial aid, understanding your family’s adjusted gross income (AGI) is key. AGI is your family’s income minus allowable deductions. It significantly contributes to calculating your EFC, a crucial factor in your financial aid eligibility.
Here’s the deal: The higher your family’s AGI, the lower your financial aid eligibility. Since reducing household income isn’t generally a preferred option, a strategic approach would be to focus on increasing allowable deductions.
If this sounds overwhelming, don’t worry — a skilled accountant or tax professional can guide your family through this process.
But AGI is just part of the picture. When it comes to need-based financial aid, the federal government uses complex algorithms that consider other factors, like your family’s liquid assets. This includes readily accessible money (e.g., cash in savings and checking accounts).
Shifting assets or paying down significant debts, like a mortgage, might help limit these liquid assets. Note that this doesn’t mean getting rid of your savings — it’s about managing assets wisely to optimize your financial aid potential.
Contact schools to learn about their grant and scholarship opportunities
Navigating the world of college financing can be a challenge. That’s why reaching out to potential colleges is a great idea.
Colleges often have grant and scholarship opportunities, some of which may not be widely advertised. Don’t hesitate to contact the financial aid office and ask about any aid information they may have.
You’ll need your FSA ID (short for federal student aid identification) and a complete FAFSA application to apply for most of this financial aid. Schools may also have work-study programs where you can earn money toward your tuition while gaining work experience. The key is to explore all your aid options and ensure you take full advantage of the available opportunities.
Visit your financial aid office
The financial aid office can be an incredibly valuable resource when trying to navigate college costs. These experts are well-versed in the landscape of higher education funding. They can provide insights into federal financial aid, scholarships, and Federal Parent Loans for Undergraduate Students (PLUS loans).
The financial aid office can also guide you through the financial aid process. They can help you understand the nuances of your eligibility, the interest rates associated with different loans, and what lenders are looking for in loan candidates. They can even assist you in interpreting tax returns and determining your financial need.
Be wary of aid and scholarship scams
While there are plenty of legitimate opportunities for college financial aid, scams may exist.
Some deceptive practices lure students with the promise of guaranteed scholarships or financial aid — only to trick them into sharing personal information or paying a fee. However, legitimate scholarships and aid programs don’t require you to pay to apply for or receive an award.
A few red flags to look out for include:
- Requests for upfront payment. Legitimate scholarships and financial aid programs don’t require payment to apply or get the award.
- Guarantees of financial aid. Be suspicious of any service that guarantees you'll receive aid. No one can make that promise, especially before thoroughly reviewing your application.
- Requests for personal information. While applications need some personal information, be wary if you’re asked for sensitive data like your bank account or Social Security number without a clear need or explanation.
- High-pressure tactics. Any service that pressures you to act immediately or miss out is likely a scam.
- Unsolicited opportunities. If you get an offer out of the blue — especially if you didn’t apply or the offer seems too good to be true — it’s probably a scam.
Search for scholarships on multiple sites
Maximize your chances of finding scholarships by casting a wide net and exploring multiple websites. Scholarships are posted on various online platforms, each with its own unique offerings and eligibility criteria.
Searching on multiple sites increases your chances of discovering a diverse range of scholarships that align with your interests, achievements, and goals.
Start by using dedicated scholarship search websites like:
These platforms provide comprehensive databases and advanced search filters to help you narrow down the most relevant scholarships for you.
And don’t forget to explore other sources, like professional organizations, community foundations, and local businesses. Many of these organizations offer scholarships tailored to fields or communities, providing additional opportunities for funding your education.
Reapply for financial aid each year
Reapply for financial aid every year to keep receiving funds for college. You must submit a new FAFSA to update your information and show you still need financial support. This makes you eligible for grants, scholarships, work-study programs, and federal student loans.
Don’t stop looking for scholarships after your first year. Keep searching throughout college by using scholarship search websites, exploring opportunities in your field, and staying in touch with your college’s financial aid office.
Reapplying for aid and actively pursuing scholarships can help reduce your financial burden and reliance on student loans, allowing you to focus on your education and future success.
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