Applying for College Financial Aid

Many people, especially but not exclusively young adults, want to attend college but are not able to afford tuition, textbooks, and dorm expenses. Let's face it; college is a huge financial undertaking—something no one takes lightly. Some could turn to relatives or friends, but why burden your loved ones with this extra expense when you can fill out a simple application for Federal Student Aid?

The process for a new student is fairly straightforward, though one could run into confusing areas. We're going to dispel the mystery of Federal Student Aid, the process of applying, and let you know what to expect.

So, just what is FSA (Federal Student Aid)? Good question. It's a program through the federal government through which low and middle class students can receive grants and loans to go to the college of their choice. The student applies through their college financial aid office and once an assessment of need is completed, funds are dispersed to the student to cover tuition, textbooks, dorm or apartment rent, and even gas to get to campus.

First, let's cover the basics. What is the difference between a loan and a grant? Another superb question. You're on a roll. A loan, as the name implies, is conducted through a lending company and is expected to be repaid within a reasonable amount of time. Usually the lending company (a bank or credit union, etc.) waives payment on your loan as long as you are attending class, but you will have to begin making those payments after six months of graduating. A grant (often called a Pell Grant), on the other hand, is free money given to you by the government without you ever having to pay back a cent. Your financial aid adviser will help you decide what is best and what you will be eligible for with your income level.

Okay, so that's clear. Now, you'll want to decide on the college you want to attend. Go ahead. I'll wait...