FAFSA | Financing Your Education
How do I pay for college? That’s one of the big questions many college hopefuls, and their parents, ask. College is a huge investment, but remember that it is an investment. Not just a product or an expense that you consume. Your college tuition dollars are an investment for your future success.
But it’s still expensive. And those dollars don’t just appear out of thin air. However, the key to financing your education is planning, and we want to help you get started.
Start with the FAFSA
If you ask any college representative about paying for college, they will tell you, “Fill out the FAFSA.” The FAFSA is the Free Application for Federal Student Aid. To empower young people to pursue higher education, the federal government provides various forms of financial aid to offset the high costs.
If you want any access to free money and student loan plans, the FAFSA is your first step. This free form allows the federal government to evaluate your eligibility for different types of aid and gives you access to valuable financial resources.
Basically, through the information you give, the federal government evaluates your family’s ability to finance a college education. They factor in earnings, number of children in the household, how many children are currently in college, and other information. Then, they deliver aid options to help you finance your education.
You don’t have to take advantage of any of those options, but after filling out the FAFSA, they are at your disposal.
What types of aid are available?
There are various types of aid available, and we couldn’t possibly talk about all of them here, but the two biggest categories are grants and loans.
Grants
A grant is basically free money. That money goes directly to your school bill, and you don’t have to pay that money back to the government at any time. Ever.
The most popular grant is the Pell Grant, and students that demonstrate significant financial need often qualify for this grant. Based on your FAFSA evaluation, the size of your grant can vary based on available funds each year. You can read more about the Pell Grant here.
In addition to the Pell Grant, there are other grants available including the Federal Supplemental Educational Opportunity Grant, the Academic Competitiveness Grant, and the National SMART Grant. Each is based on different criteria including academic performance, financial need, and college tuition costs.
You can learn more about these grants and their stipulations here.
Loans
Student loans are monies that must be paid back with interest. While the current student loans crisis might make you uneasy about taking advantage of this form of financial aid, it can be extremely helpful if you manage it wisely. Thankfully, there are payment plans available, and you will receive financial counseling at the beginning and end of your college days to ensure that you understand how to manage your loans.
Federal student loans often have a lower interest rate than private loans or credit card loans, making them a smarter financial choice for students.
Two common types of loans are Direct Subsidized Loans and Direct Unsubsidized Loans.
Direct Subsidized Loans are granted based on financial need. The Department of Education will actually pay the interest on the loan while you are in school and during a grace period after you graduate. You can also defer the interest and loan payment if you decide to continue your education.
Direct Unsubsidized Loans are granted to those who do not display financial need. The main difference between this loan and the previous is that you must pay the interest that accrues while you are in school.
To learn more learn more about the specific criteria of each option, click here.
Your Next Step
So, you need to fill out the FAFSA. Even if you already have a plan to finance your education, you could save thousands of dollars by simply filling out the form.
The form can seem daunting at first, but if you gather the correct documentation before you begin, the process is quite simple
First, visit studentaid.gov to set up a FAFSA ID, start your yearly FAFSA form, or get more information about types of aid, the application process, and plans for managing your grants and loans.
Once you have created a FAFSA ID, start the FAFSA form. To finish the form quickly and easily, you will need access to your personal information and your recent tax returns. Having your parents’ tax returns on hand will also be beneficial.
Don’t forget to send your FAFSA information to MBU using the unique code 016394.
Through the secure website, you will be able to sign and submit the form with your FAFSA ID.
Congratulations! You’ve completed your FAFSA.
Consider other types of aid
Once you complete the FAFSA, you are one step closer to successfully financing your education. In addition to Federal Aid, there are a plethora of scholarships and privately funded aid options available to students of all ages and backgrounds that you can find by searching online.
Learn more about the financial aid offered at MBU on our Financial Aid page. Paying for college can seem like a mountainous task, but there are resources at your disposal to help you achieve the goal.