College Financial Aid

College Financial Aid

If you are getting ready for college or have children who are nearing the end of high school, today’s blog will be well worth the read as we will discuss financial aid for college.

Financial aid can consist of the following: loans, grants, scholarships and work study. Grants and scholarships are preferred because they do not have to be paid back, unlike student loans which does have to be paid back with interest or work study which requires a work commitment. In general there are three main sources for college grant aid: the government, state higher education agencies, and colleges.

To be considered for any type of grant aid, you or your child should file for the federal government’s financial aid application (FAFSA). In addition private colleges, usually require the CSS Profile form of their own individual aid form. The FAFSA and CSS Profile can be filled out and submitted online (is free but the CSS Profile has a fee). Please note that these forms do take some time to fill out, but it will be worth it. Not only are these forms a prerequisite to various types of grant aid, but some colleges may require them in order for students to be eligible for college merit scholarships. Keep in mind that students must reapply for financial aid annually.

U.S. Government Grants

There are two main federal grants for college; Pell Grants and Federal Supplemental Educational Opportunity Grants (FSEOGs). Both are based on financial need.

The Pell Grant program is the United States’ largest financial aid grant program. Pell Grants are made available to undergraduate students with exceptional financial need and are the foundation of every undergraduate student’s financial aid package (for those who qualify). Graduate students are not eligible. Pell Grants are administered by the federal government and awarded on the basis of college costs and financial need. Financial need is based on factors such as family income and assets, family size and the number of college students in the family.

The second largest program is the FSEOG and it is available to students who present the greatest financial need. Priority is given to Pell Grant recipients. The FSEOG is a campus based program, meaning the financial aid office of each college administers it. Every college receives a certain amount of FSEOG funding from the federal government every year. Even if a student is eligible based on their financial need, the college may have already used up all the funds for that year.

State Grants

Many states offer programs as well, each one is different, and they tend to prefer state residents attending in-state schools. For more information, please contact your state’s higher education agency.

College Grants

Many colleges offer specialized grant programs. This is true for older schools with many alumni and large endowments. These grants are usually based in scholastic ability or financial need.

For more information on college financial aid, college funding click here or call our office at 201-342-3300. One of our associates will be happy to speak to you.