Many students would be unable to attend a college or university after high school without the support of financial aid. In fact, according to the National Center for Education Statistics, the large majority of students–87% at 4-year institutions and 82% of students at 2-year institutions--receive some form of financial assistance. 

For most students and families, however, navigating the process to apply for, access, and be awarded the maximum amount of financial aid available is uncertain at best, and prohibitively challenging at worst. This process has been made even more difficult over the past couple years, with significant changes to the FAFSA (the Free Application for Federal Student Aid) form and process that have included implementation and rollout issues. And confusion over the different types of financial assistance–including loans, grants, and scholarships–and worries about the long-term implications of each abound among students and families. Schools and districts play a crucial role guiding students through this process so they are able to realize their postsecondary dreams. 

February is Financial Aid Awareness Month. Administrators, counselors, and educators can celebrate this month by shining a spotlight on the importance of educating students and families about financial aid, providing resources to support their efforts, and dispeling any common misconceptions to ensure that all students who can benefit from financial assistance are able to access funding. 

Consider using district and school communication channels to share the information below with students and families: 

Who is Eligible for Federal Financial Aid Support

• Federal financial aid is available for most students and families; not just those with extreme financial need. There is no income cut-off for federal financial aid, and many variables are considered to determine aid amounts. Most students who attend college qualify for some level of financial aid.

• Students attending community college can qualify for financial aid. Students attending a 2-year college can qualify for grants, loans, scholarships, and work-study programs. This even includes students attending college at a half-time status. 

• Students attending trade schools are eligible for financial aid. Students who go on to programs that are accredited by the Accrediting Commission of Career Schools and Colleges (ACCSC) are eligible for federal financial aid. There are also scholarship and grant opportunities specific to trade schools. 

• Federal financial aid is need-based, not merit-based. Even students without strong academic records can receive financial aid. While there are often merit-based measures for college acceptance and scholarships, money awarded via the Free Application for Federal Student Aid (FAFSA) is reflective only of a family’s financial situation.   

The FAFSA Application and Process

• Everyone should complete the FAFSA. There is no cost to complete the FAFSA, and no penalty for not using the financial aid offered. With that, filing the FAFSA can allow students to know about potential aid as they make important decisions about their future plans. And without applying, no aid can be granted.

• FAFSA doesn’t end with the application. While students will be gone from high school before they need this information, it can be helpful to preview it while they are tuned in to all-things FAFSA. The FAFSA must be completed each year, and students must make “satisfactory academic progress” to maintain access to the funding. Individual schools determine “satisfactory academic progress,” but it typically involves maintaining a certain grade point average and completing credits towards graduation. 

• The FAFSA is not just for students to receive federal financial aid. Many states and colleges utilize the FAFSA to determine state- or institution-based aid. Completing the FAFSA allows students to access all of the different types of financial support available to them.

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Scholarships, Loans, and Institution-Based Financial Aid

• Not all financial aid has to be repaid. Financial aid in the form of grants and scholarships do not have to be repaid. In financial aid packages, this kind of assistance is referred to as “gift aid.” Some grants and scholarships are awarded for a single year and some are distributed annually during the four years of college. 

• Loans must be paid back. While financial assistance in the form of loans eventually must be repaid, student loan repayment typically does not begin for 6 months after leaving college or dropping below half-time enrollment. Students can use online tools to calculate what the repayment plan and amounts will look like and compare that to average starting salaries in their projected fields. 

• There are numerous scholarships for a wide variety of students. Scholarships are not just for academic or athletic achievement. They can be for a wide variety of activities, volunteer service, or participation in different organizations. Students can use scholarship databases to search for scholarships that fit their profile. 

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Financial Aid Awareness Drives Student Success

With the ever-rising costs of college, helping students and families navigate financial aid–ensuring access to financial aid information and resources, breaking down barriers to communication and understanding, and helping students realize their goals–is more important than ever. Schools and districts play a key role in helping students to see all that is possible for their futures. 

And beyond educating and supporting high school seniors, administrators and counselors can use this financial aid awareness month to also begin educating younger students and their families about the vast array of financial assistance available to support postsecondary dreams and the processes required to access that financial assistance. By doing this now, students can begin to put a plan in place to make their long-term aspirations a reality. 

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