With the cost of college continuing to rise, many students and families are relying on external sources to help pay for it.
Financial aid falls under two categories: merit-based and need-based.
The federal government, state government and colleges award need-based aid through grants, scholarships, work-study and loans. A student’s level of financial need is determined by the Free Application for Federal Student Aid, or FAFSA. For a smaller number of schools, mostly private colleges, filling out the CSS Profile may also be necessary.
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Merit aid, on the other hand, is based on students’ special interests, or academic, artistic, athletic or leadership abilities.
The process of figuring out how to pay for college can be daunting and time-consuming, so here are eight financial aid tips from experts.
1. Don’t Make Assumptions About Financial Aid Eligibility
Deciding not to apply for financial aid can be a mistake, experts say.
“For families who think they won’t qualify, file anyway,” Dr. Shaan Patel, CEO and founder of Prep Expert, a college admissions and standardized testing company, wrote in an email. “The FAFSA isn’t just for federal need-based aid. Many schools require it for institutional grants, merit scholarships and even private outside scholarships. Skipping the FAFSA can disqualify students from aid they would have received. The application is free. There’s no downside to filing.”
[Read: 5 Myths About Parent Information on the FAFSA.]
2. Don’t Shop Based on Sticker Price
It can be tempting to disregard a college based on its high price tag. But families don’t commonly pay the listed sticker price.
Instead, pay attention to the net cost, which is the sticker price minus grants and scholarships. This can be determined through the net price calculator on most colleges’ websites.
A student answers several questions about household finances, GPA and dependency status. Those responses are used to estimate the amount of grants and scholarships a college might award the student. Financial aid numbers are then subtracted from the full cost of attendance to predict what a family might pay.
The sticker and net price of a college “can be tens of thousands of dollars apart,” Patel says. “A school with a $75,000 sticker price might cost a family $25,000 after aid. A school with a $40,000 sticker price might cost the same family $35,000 after aid. The cheaper school on paper isn’t always cheaper in reality.”
3. Be Vigilant of Scams
Many outside scholarships are available, including through religious entities, parents’ employers, local businesses and philanthropic organizations.
“?Scholarships that are less than $5,000 usually have a lower competition pool because people see $500 or $1,000, and they’re not as enticed to apply,” says Nia Baiyeroju, founder of Nia Knows Finance, a platform that aims to help Gen Z with financial decisions and scholarship strategies. “But you are more likely to win those scholarships. I promise you, $1,000 (won repeatedly) adds up to $20,000, the same that one $20,000 scholarship would.”
However, not every scholarship online is legitimate. Be wary of any that ask for personal information, such as a Social Security number, or that guarantee funding, experts say. There are free resources to use, including Scholarships.com, the College Board, FastWeb.com and the U.S. News Scholarship Finder.
4. Be Aware of Deadlines
The FAFSA typically opens Oct. 1, but the federal deadline to apply isn’t until June 30 of the following year. State and college deadlines can be sooner.
Missing a deadline can result in money being left on the table.
[Read: How Undocumented Students Can Get College Financial Aid]
?”Write down the dates and don’t forget because it’s not a good feeling when you could’ve had $20,000, for example, but you missed out because you forgot to hit submit by 11:59 p.m.,” Baiyeroju says.
Jana Willan, vice president for enrollment management at Hiram College in Ohio, recommends students try to meet the earliest deadline of all the schools on their list.
5. Apply Early
Students should not only meet deadlines but apply early, as some financial aid is awarded first come, first served. Pay attention to priority deadlines, experts advise.
Certain awards in states such as Alaska, Georgia, Indiana, Kentucky, Montana, Nevada and North Dakota have “as soon as possible after Oct. 1” deadlines because “awards are made until funds are depleted,” according to the Department of Education’s Federal Student Aid Information Center, or FSAIC.
“There are some scholarships that are state-specific and institutional-specific that may have deadlines attached,” Willan says. “So the earlier you do that, the better chance is that you aren’t missing something unintentionally and it really sets you up to get as many of those gift sources as possible.”
However, many students “search later in their senior year, and there are a lot of institutions that have very flexible deadlines,” she says. “So if it does take a little bit of time to get started on the college search, you’re not necessarily behind. There are lots of institutions that are still great choices and will work out financially for you and your family.”
6. Understand Financial Aid Types
Students should prioritize “gift aid,” which doesn’t need to be paid back, experts say. That includes scholarships and grants.
Taking out a loan, on the other hand, is considered borrowing, and the money needs to be repaid.
“Loans should be the last resort,” Patel says. “A common mistake is treating an aid package as one number, when in reality the loan portion is just deferred cost. Highlight grants and scholarships in one color and loans in another so you can see what’s actually free money.”
[How to Find and Win Scholarships for College]
7. A School’s First Offer is Not Always the Final Offer
The FAFSA requires tax information from the “prior prior” year, which may not reflect a student or parents’ current income or job status. If family finances have changed for the worse, a student should alert the college’s financial aid office to explain and ask for a financial aid package reconsideration, which is called an appeal.
But changes to financial aid packages aren’t limited to special circumstances. A student with a merit scholarship, for instance, can try to negotiate for a higher offer, experts say.
“Everything is negotiable, including your financial aid,” Baiyeroju says. “If you have a package saying school Y is going to give you $30,000 but school X is going to give you $40,000, you can always go back to school Y. Build your case: ‘I would like to attend your school based upon these majors. This is why I’d be a good fit, this is what I could bring. But school X is giving me $40,000, could you match that so I can commit to school Y?’ That goes a long way.”
8. Contact College Financial Aid Offices With Any Questions
Additional details about specific financial aid requirements or deadlines are available on many colleges’ websites. But if the information is still unclear, call or email the financial aid office.
FSAIC is another resource. Questions about federal aid, particularly the FAFSA, from either parents or students can be answered by email, phone or web chat.
“Don’t feel hesitant to reach out to your admission and financial aid offices because we are happy to provide information and next steps, even repetitively,” Willan says. “We’re here to help and we want to make sure that any student who wants to come can, and who wants to take that next step into higher education is able to.”
Trying to fund your education? Get tips and more in the U.S. News Paying for College center.
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8 Financial Aid Tips for College Students originally appeared on usnews.com
Update 05/08/26: This story was published at an earlier date and has been updated with new information.
