Sources Of Financial Aid Are Like the Dishes at a Thanksgiving Dinner

A Thanksgiving meal comprises many exquisite dishes, such as turkey, green bean casserole, corn, pies, cranberry sauce, mashed potatoes, and more. When you think about the sources of financial aid, it’s easy to picture them adorning a table at Thanksgiving dinner.

The five primary sources of financial aid are the federal government, state governments, colleges and universities, private sources, and employers. Each source is vital in building financial aid packages for students nationwide. Without these funding sources, students would not be able to afford a post-secondary education, which would have deleterious impacts on the country’s ability to build human capital.

Unsurprisingly, the federal government is the largest source of financial aid. This aid often goes to students who display financial need. The Free Application for Federal Student Aid (FAFSA) form is a crucial tool in this process. It’s an application that students must fill out to be considered for federal student aid, including grants, work-study, and loans. Students can apply for this funding source annually for the academic years they will enroll in. Students must meet specific eligibility requirements before a financial aid administrator can award the student federal aid.

The federal government offers a diverse range of student aid programs, each designed to assist students in financing their college education. On the gift aid side, there are grants like the Pell Grant program and the Federal Supplemental Educational Opportunity Grant (FSEOG). On the self-aid side, there are work-study opportunities and student loans. Other minor programs include the Parent PLUS Loan program and the TEACH Grant. This variety ensures that students have multiple avenues to explore for financial aid.

Residency requirements usually apply to state grants and scholarships. Depending on the structure of the state’s awarding philosophy, aid can be need-based or merit-based. Need-based aid is awarded based on the student’s financial need, as determined by the FAFSA form. Merit-based aid, on the other hand, is awarded based on the student’s academic, athletic, or artistic achievements. Some states have strict deadlines when applicants submit all forms for consideration.

Timely submission of the FAFSA is crucial to avoid any delays in the awarding of state grants or scholarships. Many states rely on the FAFSA information to produce finalized aid offers. Deadlines vary by state, and other restrictions may apply, so it’s important to reach out to your local state education agency to learn more about the possibilities that exist for you. Remember, meeting these deadlines can significantly impact your financial aid package.

Colleges and universities are another significant source of financial aid funding for students across all divisions. Similar to state agencies, institutions of higher education may award gift aid in the form of need-based grants or scholarships, or exclusively by merit-based aid awarding. Some colleges offer self-help aid, such as institutional loans or work-study programs unassociated with the federal government. Again, completed FAFSA may be necessary before a college can award a financial aid offer. Deadlines and application procedures vary by institution, so consult your college’s Financial Aid Office to inquire about institutional aid possibilities.

Private sources, such as foundations, businesses, churches, and charitable and civic organizations, play a minor but meaningful role in financial aid awarding. For example, the Bill & Melinda Gates Foundation and the Coca-Cola Scholars Foundation are well-known private sources of financial aid. Researching these opportunities takes more time, and some colleges post external funding sources on their scholarship webpage. Deadlines and procedures vary for private sources, and some entities may ask for more intrusive information than other sources outlined above. Begin researching private sources early in the college search process. Even if you fail to secure an external scholarship at the start of the academic year, keep your eyes open to new opportunities that arise. Some scholarships pop up during the academic year at unconventional moments.

Do you work for a company that offers employee education benefits? If yes, you may have another avenue for financial aid assistance. Some employers have scholarships or gift aid available for their employees. Inquire with your Human Resources department about this possibility. Many, though, have educational benefits that can substantially reduce your tuition costs. Tax regulations limit the total amount of employer assistance on a calendar year basis, so chat with your Human Resources Office before using these benefits. Other limitations include taxability for educational benefits at the graduate level. Undergraduate educational benefits are tax-free under current Internal Revenue Code laws and regulations.