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What happens to the money earned through FAFSA?

I have applied to FAFSA and I was wondering how do you get connected to the money?
#scholarship #financial-aid #money

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4 answers

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Carolyn’s Answer

FAFSA is an application for financial aid that will be sent to the school that you are planning on attending. The school will then use the information that you provided on your FAFSA to determine how much aid you will need to be able to stay in school based on your parent's income. After the school determines your eligibility for certain federal loans and grants you will receive a financial aid package offer from your school. You can then accept the aid and it will be used towards payment for your tuition, room and board and other things. Scholarships and grants are money that you don't have to pay back so it is nice to see those on your financial aid package but any loan that is on your financial aid package is money you have to pay back. This is not necessarily a bad thing though because you don't have to pay them back until you are out of school and there is even a 6 month grace period for after you graduate or stop schooling to be able to get on your feet and become financially able to start paying them back. My recommendation is to take all the financial aid that you can get and pay out of pocket for the rest of whatever you owe. This tactic was very helpful for me because I graduated with a lot less money to pay back than if I had taken out any private loans for the rest of what I owed after financial aid.

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Theodore’s Answer

Check out https://studentaid.ed.gov/sa/types - money isn't "earned" through a FAFSA application, it gives the schools that you've identified on the FAFSA application access to your financial situation, allowing them to make choices in determining eligibility for financial aid, including student loans. BEWARE student loans, as they aren't really "aid", they are a LOAN that must be paid back. School is expensive, and financial aid departments sell loans so that you can attend their school. A FAFSA application is also necessary to apply for many grants and scholarships, including state or federal funds.

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Tomika’s Answer

Any financial aid that you qualify for as a result of completing the FAFSA will be awarded by the post-secondary institution where you enroll in classes. You may see this financial aid listed on financial aid offer letters from every school where you get accepted, but that financial aid can only be awarded to ONE school—the school where you decide to enroll.

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Sheila’s Answer

Hi Danielle:

You've received some great information from the CV Professionals without my repeating. I highly recommend you review the FAFSA website and become familiar with the process. Here are a few links to help you get off the ground with your research. Good luck to you!

Sheila recommends the following next steps:

Receiving Financial Aid • https://studentaid.gov/complete-aid-process/receive-aid
Types of Financia Aid • https://studentaid.gov/understand-aid/types
How Financial Aid Works • https://studentaid.gov/h/understand-aid/how-aid-works
FAFSA • https://studentaid.gov/h/apply-for-aid/fafsa