Where is the money?

Federal grants and loans, private scholarships, and private loans are the usual avenues of college funding for student parents. 

What’s first?

The first step is the Free Application for Federal Student or FASFA. What is FASFA? 

The Federal Student Aid is part of the United States Department of Education, providing approximately $112 billion in grants, work-study, and loan funds each year to help United States Citizens pay for college or career school. The Federal Student Aid uses the FASFA form to assess the funds a student receives. The form opens up during the period listed on the FASFA website. 

What’s next?

Once a student submits their FASFA form, the student receives their Expected Family Contribution (EFC). The value given in their EFC determines the number of funds a student needs to provide out-of-pocket versus the amount of funds a student can receive from Federal Student Aid for their education, also known as aid. An EFC of 0000 determines the student may receive the maximum amount of aid offered by Federal Student Aid.  With an EFC of 0000, the student can qualify for the total amount the Federal Student Aid can provide. For example, the maximum amount for the Federal Pell Grant, a grant a student does not need to pay back with an EFC of 0000, is $7,395 per year, assuming the student is enrolled full-time. The federal government also provides subsidized and unsubsidized loans, with the maximum amount, for example, reaching anything between $5,000 and $12,500 per year. The maximum amount of aid a student receives depends on their EFC and whether a student is considered dependent or independent. Students with dependents and who are the head of their households usually qualify as independent students. Additionally, the cost of attendance for the student’s institution of choice determines the amount of aid a student can receive. 

Colleges also use FASFA to determine if a student qualifies for scholarships provided directly by the college. Colleges award scholarships based on the conditions of the scholarships themselves. Scholarships may be specific to a criterion, such as a student must be a single parent. Overall, college scholarships provide additional funds from those provided by Federal Student Aid. Awards from a student’s college also reduce the loans a student needs to borrow. Apart from scholarships provided by colleges, private scholarships awarded by organizations and foundations are also a source of aid. The qualifications for private scholarships vary between organizations and foundations. 

Where’s my aid?

The Federal Student Aid disburses aid to the college you are attending. Your college’s financial aid office handles the funds. You can see your aid, sometimes referred to as your award package, through the college’s financial aid office. You may also select the amount of federal loans you are borrowing for the school year through the financial aid office. The form of aid remittance is dependent on how you select to receive payment from your school.

Private loans?

Private loans are also another avenue of funding your education. Private loans are offered by private corporations, usually with higher interest rates than those offered by Federal Student Aid. Rates vary from a students credit score and are not guaranteed. As a result, in the long term, private loans are more expensive than federal loans and less accessible than financial aid.