What is need based financial aid

what is need based financial aid
what is need based financial aid

If you have trouble managing money for your education, I am here to help you with that. You can now cover the cost of education and get the most considerate financial aid for yourself. I don’t have to mention how need-based financial aid can support your future. So, let’s help you get the financial support you deserve for your education.  

You think applying need based financial aid is complicated but the steps you need to take are simple. So, why not give it a chance and apply for it.

What is need-based financial aid?

Need-based financial aid – the money funded to you based on your family condition and other financial situations. With rising college costs, it all boils down to how your family situation is. So, instead of looking at your grades- these scholarships, grants, student loans offered based on your family condition.

You can acquire need-based financial aid in a medley of ways. Many colleges, universities, and private for-profit schools can establish their aid programs and decide whether you are eligible for financial assistance or not. You can also apply for government-funded financial aid.  Some factors like- family income, family size, number of siblings in college, untaxed income, tax returns, monthly housing costs can determine your eligibility for need-based financial aid. 

How Aid Is Calculated

Before proceeding further, let us know how your financial aid is calculated-  Cost of Attendance -Expected Family Contribution (EFC)= Financial Need.  

So, when you apply for financial aid ( FAFSA), you receive a Student Aid Report (SAR) that determines your Expected Family Contribution (EFC). Now, your EFC and Your UCCS Cost of Attendance determine the amount of financial aid you are qualified for. Expected Family Contribution essentially used to determine your eligibility for need-based aid. And your cost of attendance determines estimates of tuition, fees, books, room, board, transportation, and other charges. 

Tip– You must file your FAFSA form,it is required for federal aid as well as for most state and institutional aid.

Some types of need-based financial aid

Pell grants

Pell grants are available for undergraduate students with exceptional financial needs. Based on financial need and, unlike loans, typically don’t have to be repaid. This year the maximum Federal Pell Grant award is $6,345, and it varies every year. The amount granted depends on how long you are attending, the full academic year, your status as a part- or full-time student, the cost of attendance for your school and program, and your EFC.

You must complete a Free Application for Federal Student Aid (FAFSA) every year to qualify. The Pell Grant funded by the U.S. Department of Education – not influenced by any other student aid you apply for. 

Federal Supplemental Educational Opportunity Grants (FSEOG)

Federal Supplemental Educational Opportunity Grants (FSEOG) – funded by the education department for undergraduate students. Only given to students with extreme financial needs. You can get an amount between $100 and $4,000 per year through the FSEOG program.  

However, if you want to apply to the FSEOG program, you must first check if your school participates in the FSEOG program. The federal government grants up to 75% of the money, and the school provides the rest. This money – not guaranteed by the government and may vary from school year to the school year.

The funds are received from the U.S. Department of Education’s Office of Federal Student Aid. To increase your chances, you must be an early applicant. Participating schools have an ample amount of aid to give out. Thus, not every student is eligible for it. 

Direct Subsidized Loans

In Direct Subsidized Loans, the government subsidizes the interest that accumulates on these loans till you are out of school and the six-month grace period has ended. With a subsidized loan, you have to demonstrate your financial need, whereas, with the unsubsidized loan, you do not need to demonstrate your financial need. 

Direct Subsidized Loans – designed to cover the cost associated with attending college or when you are in career school as an undergraduate student. When it comes to Direct Subsidized Loans, your loan amount cannot exceed your financial need. Your FAFSA form will conclude how much you will be eligible for as part of your financial aid package. 

If you are receiving a direct loan for the first time, you will have to sign a legal contract. Here you agree to all the terms and conditions of the loan- after participating in entrance counseling, that ensures you recognize to pay the loan.

Once all your expenses like tuition, fees, room and board, and other school charges – paid through your loan, you can ask for additional funds. But you can only use them for educational expenses. You can also apply for federal repayments plans when you want to pay off Direct Subsidized Loans. Here some of them are available based on income, and others are based on fixed payments.

Quick job finders are here to help you get the desired job you wish. All you need to do is take a step.

Federal Work-Study

If you are someone who wants to work along with your education, this is the best for you. Federal work-study provides both graduate and undergraduate students with the opportunity to a part-time, on-campus, or off-campus job. So you can earn money to put toward school or other living costs.

This program does not gain interest during deferment and offered to undergraduates based on your financial need. You only get jobs that either serve the public interest or are associated with your course of study.

Federal work-study is available for full- and part-time students, including graduate, undergraduate, and professional students demonstrating financial need. On-campus jobs entail working for the college, and the off-campus job is typically related to the public interest like community service or work related to their course. 

Acorn– You know saving does not mean cutting more. All you need is some smart steps to adopt to save money. With Acorn, you take better control of your spending, and your money matters. It has three levels of membership available for you.

Lite: Includes a taxable investment account, Personal: Adds an individual retirement account and a checking account-Family-Includes everything in the lower tiers. Besides, it allows you to open an investment account for kids. If you are thinking about saving, you better start working on it.

Should I apply for need-based financial aid? 

Yes, you must definitely apply for need-based financial aid. You must always tick, YES, as you never know you could get into any financial trouble. Most of the time, parents in need have no clue about it and face problems. Thus, you must not forget to fill the form- it will cause you no harm even if your application is not approved. 

Think about what if you are eligible for it you could save money for the future. So, though it is not a requirement for admission, there are still ample reasons for you to apply for it. You might qualify for a little aid if you have a sibling in school. 

Go apply now for the financial assistance you deserve. So, do not miss out on the chance and keep applying for it

Subscribe to our financial blogs to learn from the best financial assistance.