This time of year often raises the question of “should we apply for financial aid?”  Just like the college admissions process, it is not a one-size-fits-all answer!  Here are some helpful tips put together by Sarah Emmons, the Director of Financial Aid here at Campus Bound, to help you navigate this important step and make the choice that is right for you and your family.

Financial aid explained

• Financial aid is a broad term that folks in the higher education world use to cover ANY financial assistance given to families to help with the cost of college. 
• There are TWO different types of financial aid. Let’s break it down: 
  • Merit Aid – based solely on your student’s admissions application. Colleges will look at their GPA, test scores (if applicable), and all other parts of their college application to determine their merit award.
    • Not every school offers merit scholarships. As a general rule, the more competitive a school is, the less likely they are to offer merit aid. 
    • Some schools may require an additional merit scholarship application – this is different than the FAFSA. This tends to happen at larger, out-of-state public institutions. It’s always a good idea to double-check with your child’s school to see if they require any additional applications for merit aid. 
  • Need-Based Aid – aid based on your family’s financial need as determined by financial aid applications like the FAFSA and the CSS Profile. 
    • Every school, from Bunker Hill Community College to Harvard, offers need-based aid.
    • The FAFSA and CSS profile look at your family’s income, assets, taxes paid, and more, and calculate what level of financial need your student will qualify for.

Here is where it gets confusing:

If you have concerns about the cost of college, ALL schools will encourage you to apply for need-based aid. Many will say things like, “For maximum consideration of ALL scholarship funding, please complete the FAFSA (and CSS profile, if necessary).” They are trying to cast a wide net and cover everyone with any concerns. You do not HAVE to apply for need-based financial aid. 

What if you don’t think you’ll qualify for aid?  Is it still worth it?

• The FAFSA and CSS Profile are NOT required for merit scholarship consideration. Again, schools will encourage you to apply for “full consideration,” but if your family is outside the realm of need-based financial aid, then there is not typically a reason to apply. This varies, and we are always happy to help you talk through this. 
• Some schools (not all) MAY offer FAFSA Incentive awards ranging from $500 – $1,500 per year for filling out the FAFSA. If this is important to you, then you should fill out the FAFSA. 
• Filling out the FAFSA allows students to secure Federal Direct loans even if you don’t qualify for need-based aid.  This can be a great way for your student to have “skin in the game”
• Filling out the financial aid forms can give some protection in the event that your financial situation suddenly changes such as with the loss of a job.

However, there may be situations where it isn’t worth the effort.  

If you are still aren’t sure reach out to us! A conversation with the Campus Bound financial aid team will help you to figure out if any college costs savings are available to you, even if you don’t qualify for need-based aid.   This includes for juniors and younger who are just starting to think about their college search.  Schedule a complimentary consultation to talk through the process of applying for aid: Financial Aid Consult – 60 Minutes | Campus Bound.