Accepting Financial Aid
You've been admitted to one or more schools and it's time to evaluate and accept Financial Aid Awards. We want you to know: we wish this process was simpler. We'll walk you through the basics here, but please keep in mind that Financial Aid Awards and the process to accept funding differ from school to school. Please click for a fillable PDF Download PDF to help you compare Financial Aid Awards.
Review
Before you continue on with this section, we suggest that you review the pages in this course about the four main types of Financial Aid (Grants, both Federal and State of California; Applying for Scholarships; Work-Study; and Student Loans).
It is essential that you understand the difference between the four main types of aid before you accept any money. It is so essential, in fact, that we'd like you to re-take the self-check about the types of Financial Aid. If you answer any question incorrectly, read the feedback and click the Retry button. Then click the arrow icon to proceed to the next question.
Accepting Aid: The Basics
Here are the quick basics about the typical process for each type of Financial Aid. See the following pages for more details about each type.
- Accept Grants and Student Loans directly from your school of choice. There are additional steps you'll have to complete before the money is dispersed.
- Accept non-school Scholarships directly from the donor, and they will usually send the funds to your school.
- Accept Work-Study by finding a qualifying job and submitting the correct paperwork to your Financial Aid Office.
When you accept Financial Aid, you are usually accepting it for the entire school year. It will then be split equally between semesters or quarters. For example, if your award is for $1,000 and your school is on the semester system, you'll receive $500 for the Fall semester and $500 for the Spring semester.
"Free", Earned, then Borrowed
It is important to understand the order in which you should accept your Financial Aid. In fact, the following pages are in this order.
- First, accept all "free" money (Scholarships & Grants).
- Next, accept earned money (Work-Study).
- Finally, accept borrowed money as needed (Student Loans).
Examining Financial Aid Awards with this order in mind can help you make wise financial decisions as you go through school.
Do you remember why we have the word free between quotation marks?
Even though you don't have to repay Scholarships and Grants, the money is not truly free. You need to apply and qualify for Scholarships and maintain eligibility if it is a renewable Scholarship. In regards to Grants, someone is granting you that money as an investment in your education, with the expectation that you will complete your degree and contribute to society in a positive way. You also sometimes need to qualify based on academic performance. So, though you won't repay these funds, you are still working for them in one way or another. Use them wisely and don't take them for granted.
Tutorial
Many schools have developed tutorials to help students understand how to accept their Financial Aid. We found one we really like through Penn State, a public university in Pennsylvania. Your school's system will look different, but the basics are all there. Spend five minutes clicking through their tutorial before continuing on to the next section.
Penn State Financial Aid Tutorial Links to an external site.
Comparing Financial Aid Packages
If you have been admitted to multiple schools, you'll have multiple Financial Aid offers to consider. It is important to look closely at the offers and understand the financial reality of your different options. Below is a very basic example of what offers could look like. Study them for a moment before continuing.
School A |
School B |
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So, which school is the better financial choice, School A or School B? Notice that both are offering you the same amount in Grants and Federal Student Loans (yes, Student Loans are considered part of "Aid," even though you need to pay them back).
School A is offering you both a School Scholarship and Work-Study, but their tuition is higher, meaning you'll need to find at least $10,000 to cover the rest of tuition. If you want to minimize your Student Loans, you'll need to find between $10,000 and $15,500.
School B, though not offering a School Scholarship or Work-Study, only leaves you searching for between $4,000 and $10,500. Also, if you remember the section on Work-Study, it might be possible for you to receive some Work-Study funds if you find a qualifying job.
The Verdict: School B is probably the better financial choice, but you should definitely be searching for as many scholarships as you can regardless of which school you choose.
What's the point of this exercise? To show you that even if a school's Financial Aid Award seems bigger, you need to look at the total cost of the school before making a wise financial decision. You can use this handy fillable PDF Download handy fillable PDF from the Missouri Department of Higher Education to compare the costs of up to four schools.
Directions
The next four pages will cover accepting each type of aid in more depth; read them carefully, and take any questions to your TRiO or GEAR UP advisor and school counselor. As you learn about these processes, please remember that your experience might vary depending on your school and what types of aid you receive. Use this section as a guide, and visit your school's Financial Aid Office (and their website!) for more specific questions about your individual situation.
Click Next to learn about accepting Scholarships.