Debunking College Financial Aid Myths

Many times students fail to utilize all of their college financial aid options, simply because they are uninformed or misinformed. Hopefully we can help debunk some of the most common college financial aid myths, and get you headed down the correct college financial aid path.

Top 3 College Financial Aid Myths

Myth #1 – Financial aid means just student loans.
Ah no, college financial aid includes grants and scholarships, both of which should be your absolute first means of financing your college education. Yes, this can take some work, you sometimes need to get references and write essays to apply for college scholarships, but would you rather write an essay and get free money for college, or repay a student loan back with interest?

Myth #2 – Scholarships are only for (soon to be) first year college students.
Nope, again. Scholarships for college are offered to all levels of college students, all ages, and for all majors. Just because you didn’t think to apply for a college scholarship last year, doesn’t mean you can’t apply for one for the upcoming school year. You would honestly be surprised at how many different scholarships and grants are available to you and your specific area of study if you simply took the time to do some digging.

Myth #3 – My family makes too much money for me to receive federal financial aid.
Again, another misconception. The truth is most students are eligible for some form of financial aid for college, but because they do not file a FAFSA they never will know… big mistake. Eligibility for financial aid depends on several things. The calculation of a family’s expected contribution (a student’s need) doesn’t only factor in a family’s income, but it also factors in the number of dependents in the household, the number of children in college, etc.

There are several more common myths about college financial aid that can mislead students and their families. Let’s take a look at some more…

College Financial Aid Myth Vs Reality

1. Myth:
I (or my family) make too much money to qualify for financial aid.

1. Reality:
Financial aid is not solely based on income. Many factors, such as family size, number of dependents in college, assets, and the cost of attendance, are taken into account. Even families with higher incomes may qualify for some form of aid, such as loans or merit-based scholarships.

2. Myth:
Only students with perfect grades get financial aid.

2. Reality:
While some scholarships and grants may have academic merit requirements, there are many forms of financial aid available that are not solely based on academic performance. Need-based aid, such as federal grants and subsidized loans, is available to students with demonstrated financial need regardless of their grades.

3. Myth:
Applying for financial aid is too complicated and not worth the effort.

3. Reality:
While the financial aid process can seem daunting, many resources are available to help students and families navigate it. Filling out the Free Application for Federal Student Aid (FAFSA) is the first step for most forms of financial aid, and there are guides, counselors, and online resources available to assist with the process. Additionally, the potential benefits of receiving aid, such as grants and scholarships that do not need to be repaid, often outweigh the effort required to apply.

4. Myth:
Only full-time students can receive financial aid.

4. Reality:
Many forms of financial aid, including federal grants and loans, are available to both full-time and part-time students. However, the amount of aid awarded may be prorated based on the number of credits or hours enrolled.

5. Myth:
Once I receive financial aid, I will continue to receive it every year.

5. Reality:
Financial aid eligibility is typically reassessed each year based on changes in financial circumstances, academic progress, and other factors. While some forms of aid, such as federal grants, may be renewable for multiple years, students may need to reapply for aid each year and meet certain eligibility criteria.

6. Myth:
Private scholarships are too competitive, so I shouldn’t bother applying.

6. Reality:
While some private scholarships may be highly competitive, there are also many scholarships with more relaxed eligibility criteria. Additionally, students may be eligible for scholarships based on factors such as their field of study, extracurricular activities, or demographic background.

7. Myth:
Student loans are the same as free money.

7. Reality:
Unlike grants and scholarships, student loans must be repaid with interest. While loans can be a valuable tool to help finance a college education, students should borrow responsibly and consider the long-term implications of taking on debt.

By understanding and debunking these common myths, students and their families can make more informed decisions about how to finance a college education. In order for college students to set themselves up for financial success after graduation, they need to began making the best financial choices while they are in college. Why not minimize the amount of debt you will have after college graduation, by maximizing your best financial aid options while in college?