Many college students rely on financial aid to afford higher education and achieve their dreams. However, due to the increase in college education costs and the inadequate and confusing information regarding student financial aid, some college hopefuls dash their higher education hopes.
College students should know the various financial aid available to them. There are college scholarships, grants, loans, and work-study programs. Look for different sources where you can get financial aid and determine how much you can get to support your college education. If an intellectual examination is required, you can take a refresher through learning resources like Udemy.
Know where to apply for college financial aid and how much of it you can receive to afford your postsecondary education in this blog post.
College Financial Aid from the Federal Government
Students wanting to pursue a college education can apply for a form of financial aid through the Free Application for Federal Student Aid (FAFSA). You must provide information regarding your household income for this benefit.
A student relying on financial support should also provide personal information about family members and their expected contributions. Most schools consider it the responsibility of parents to pay for a significant part of the college education cost of their children if the latter is financially dependent on them.
The financial aid office will assess such information to determine a college benefit package, including work-study programs, Pell Grant, and student loans. The student found to require the most help will receive higher financial aid than others. But there’s a maximum amount to the benefit a student will get.
Factors such as enrollment status, the school’s cost of attendance, and your personal earnings will matter how much money you receive.
A work-study program offers students jobs inside or outside the campus. Unlike having regular employment, this program doesn’t decrease your financial aid package but gives you additional funds for your postsecondary education.
The information you put in your FAFSA application will determine your eligibility, and your chosen college or university must award you a job. Depending on your school, you can work at the library, bookstore, cafe, dining hall, etc.
You should apply for a job and be accepted because your eligibility for work-study doesn’t automatically provide you with work. Meanwhile, the maximum amount you can get via the program will be outlined in your financial aid package.
Qualified students can receive between $2,000 to $5,000 maximum, but you’re not allowed to earn more than that amount. Taking extra jobs or shifts isn’t permitted if it entails earning more than your maximum.
Moreover, an hourly minimum wage will be paid to undergraduate students under the work-study program. If you’re an undergraduate, you can receive the payment to your bank account on a bi-weekly or monthly basis. You can use it to cover living and academic expenses.
Federal Pell Grant
This program offers students financial aid for their academic expenses. The Federal Fell Grant of 2022 to 2023 academic provides an eligible with a maximum of $6,495. However, this maximum fluctuates every year based on various factors.
The advantage of a Federal Pell Grant is you don’t have to pay it back unless under certain circumstances. For instance, you have to pay back the grant if you withdraw from your college or university before the end of the academic year.
Qualified students under this grant can cover their academics for the entire year. Each semester, you’ll receive half the maximum amount for that purpose.
Federal Student Loan
Federal student loans are a form of financial aid to cover college education. You can borrow a maximum amount depending on your enrollment status and loan, and it has to be repaid upon graduation.
There are two types of federal student loans: direct subsidized and direct unsubsidized. Students prefer direct subsidized loans because it offers a grace period during which the Department of Education covers the interest payments.
An eligible student can receive a limited amount of financial aid each academic year. However, there are times when the amount a student will receive each year may be less than the yearly limit.
For undergraduate students:
- Yearly Loan Limit for the First Year: $5,500 (Max. $3,500 in subsidized loans)
- Yearly Loan Limit for the Second Year: $6500 (Max. $4,500 in subsidized loans)
- Yearly Loan Limit for the Third Year: $7500 (Max $5,500 in subsidized loans)
- Yearly Loan Limit for the Fourth Year: $7500 (Max $5,500 in subsidized loans)
For Graduate Students:
- $20,500 (Exclusive to subsidized loans)
It’s only right that students wanting to apply for financial aid know how much they can get. Factors such as earnings, dependency, enrollment status, and other school requirements may influence the maximum amount of your financial aid. Make sure to inquire with the FAFSA if you have further questions regarding this matter.