Financial Aid Is Just That!

Aid! With financial aid in hand the students as well as their families are still expected to pay for their college costs up to what they can manage. Once a family is not able to pay for some of the remaining college costs THEN financial aid steps in.

The family's financial contributions

The amount of money that a family should be able to contribute for their children’s college education it is actually based on the EFC or the Expected Family Contribution. This amount that was thoughtfully determined by whoever is granting the family their financial aid; this is usually either the federal government or a representative from the colleges or universities. These "aid officers" will use certain formulas to analyze a family’s ability to pay. This is why they want to know their income, assets as well as the family’s lifestyle and dependents.

Commonly Known Types of Financial Aid

There are actually three more commonly known types of financial aid:

1. Scholarships and grants - these are the type of financial aids wherein it is not like a loan that you have to pay off after a certain amount of time. These grants usually come from the federal or state government even from the individual colleges themselves and are merit based.
   
   
2. Loans - now this is the type of financial aid that needs to be repaid. Most of the loans that are sponsored by federal governments are actually on a low interest basis. But don’t worry about that because the interest rate only applies after you graduate from college and actually start paying off your loan.
   
   
3. Work - there are also financial aids given out to those who can work while studying. This not only gives the students some early job experience but taking up a part time job will also be able to help them pay for various college costs such as their books, personal expenses and school supplies. Of course, this is not hard labor, all kinds of work that is being provided for the students who seek for this kind of financial aid usually works around their campus or in establishments around their school area.

You should always remember that financial aid is limited and that if you are not able to meet the set EFC for your family, there’s really not much that the college's financial aid advisors can do to help you money wise.