Financial Aid

Another huge aspect of your college search is your financial situation. You need to be aware of the colleges you’ll really be able to afford. However, this amount is truly known after you discover the money you can receive before paying. This is known as financial aid. There are different types of ways one can receive money. We’ll explore the types of aid below.

Grants

When you receive a grant, you do not have to pay this money back. You can only receive grants if you need them. One can receive a grant through Free Application for Federal Student Aid (FAFSA), through a CSS profile, and the Tuition Assistance Program (TAP).

Notice- Unfortunately, undocumented students can not apply for FAFSA but can still gain through a CSS profile and through TAP.

Scholarships

Scholarships also provide money that you don’t have to pay back. These scholarships are mostly based on something specific. This is why there are different reasons one can receive a certain scholarship. Undocumented students can be eligible for multiple scholarships. Here are some examples of types of scholarships:

Work

This type of grant is earned through your labor and again it’s not money you need to pay back. One can “work” through a job, research that provides grants, and paid internships. Undocumented students can get this type of aid.

Loans

One of the most conflicting words ever. Loans are grants that are borrowed. Thus the person needs to pay back the money with interest involved.

The best type of loan one can receive is a federal loan. This is because it has lower interest rates. Along with more options for permanent and temporary relief from the payments. It’s just the most flexible for things like when you’re going to start paying for them.

The worst type of loan one can get is a private loan. This is due to the fact that it doesn’t have any helpful features of federal student loans. Along with the fact that higher interest rates are included.

If you’re going for a federal loan, the best option is to go for a Federal Subsidized Stafford Loan. This essentially gives the benefit of the government paying your interest while you’re in college. It could also provide up to $3,500 max your first year.

The second best option after that is a Federal Unsubsidized Stafford Loan. This type of loan can only provide up to $2,000 your first year. It also does not have the benefit for the government to pay for your interest. It’s important to note that the current interest rate for both types of loans is 2.75%.

If after all the grants, scholarships, work, and loans you have a high price for that college. It’s recommended for you look for a cheaper college. However, if you really want to go to that particular college, there are still a few more options for you.

Federal Parent PLUS Loan

Private Student Loan

Notice: Again if you have to go to these options it is highly recommended for you to choose a cheaper college.

The amount for the college listed on the college website is called a sticker price. Since it’s the full price of the college. Almost nobody pays the sticker price due to the different types of aid available. The price you should focus on is the net price, which is the actual price you’ll pay after receiving aid.

Direct cost vs Indirect cost

Direct costs: Costs that the college bills the student at the start of each term

Indirect costs: Additional costs related to an everyday college student’s life.

If you want to find resources for different types of aid and net prices, go to the Resources section

Check out this video briefly explaining Net Price Calculators

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