Top 10 Mistakes People Make with Financial Aid and How NOT to Make Them
Securing funds for a student’s educational future is one of the most important parts of the college process. Financial Aid is available for those in need, but not everyone will receive it. This is mostly because people goof their applications or go about things in the wrong way when looking for assistance. This is a top ten list of the most common financial aid mistakes and how you can stop yourself from falling victim to them.
¥ Not Filling Out the FAFSA Form
This is the largest mistake made by undergraduates today. Many feel that they won’t qualify for federal help and don’t even attempt to fill out an application. This form can also be of help in obtaining student loans and is sometimes required in order to receive financial aid from other lenders. Without this form, money is lost before the process even begins!
¥ Paying Someone to Fill Out Forms For You
Other than in extreme situations, there is no need to pay someone to fill out financial aid forms for you. Many companies will offer their services to applicants and will charge a high price for it. These companies tend to make mistakes also, leaving the student or their parents to fix the forms that they paid for to get filled out anyway.
¥ Borrowing from Private Loan Companies (recommended or not) First
Too many students make the mistake of not exploring all federal and state financial aid options before going to a private loan company. Even if this company is recommended by a student’s school of choice, there is no need to give them your business. These loans are more expensive and are often marketed towards families with the option of not seeking advice from an advisor first.
¥ Leaving No Money for Fun
It is extremely important to factor in a spending budget when looking for financial aid. Many students find themselves in an expensive environment where food and other necessities can’t be paid for due to lack of funds.
¥ Not Trying to Get More
Negotiating is an option when it comes to the financial aid office at a school. With a calm approach and a list of expenses, negotiations are a possibility.
¥ Parents Saving in their Child’s Name
Students are expected to give up 35% of their assets for college aid. Parents get to pay a percentage of about 5.6%. A bank account started as a college fund when a student was small will hurt financial aid in the long run.
¥ Missing Deadlines
Anything to do with financial help has a deadline of submission. Miss these deadlines and you miss out on money for the year.
¥ Missing Out on Scholarship Money
There are tons of scholarships out there for all different type of applicants. Scholarship money can offset loan costs when it comes time for financial aid.
¥ Not Weighing All Options
It is not a good idea to pick a school based on the financial aid package they offer without really understanding it. Figuring out what it will cost over time with expenditures needs to be recognized before a school’s package is picked.
¥ Borrowing all the Wrong Places
Parents who borrow from their retirement or 401K funds end up regretting it in the end. Emergency situations happen and debt can be collected by those who borrow from the wrong places.
With all the financial aid options out there, you have a higher chance of getting financial help than being forced to go it alone. Be sure to use every resource at your disposal and all your college dreams will come true.