How Student Financial Aid Works: A Guide

Curious how to get student financial aid? Use this as your guide to securing economic assistance for college.

When preparing for college, one key step is applying for student aid. Student aid provides individuals with economic needs a way to still attend and flourish in school without paying for the costs on their own. Yes, this may seem stressful and complicated, but it's easier than you might think—especially if you follow a straightforward process.

Here's how to get student financial aid, whether you're a high school senior preparing for your freshman year of undergrad or an existing graduate student.

How To Get Student Financial Aid: Steps To Follow

Financial aid is critical to many individuals' college experience, giving students from all backgrounds a chance to receive higher education. In fact, 87.3% of first-time college students benefit from some form of financial aid—and that percentage doesn't include all other undergraduate and graduate students who utilize this resource.

But, what are the necessary steps to get economic assistance? Here's a breakdown of the steps to follow:

Step 1: Understand Your Financial Aid Options

It's important to know what financial aid options are available to you. This will ensure you take advantage of all possible resources and get the most out of your financial aid package. Here are the most common forms of student aid:

Grants

Grants are a form of financial aid that provides free money to students, as it does not need to be repaid. These funds are typically awarded based on financial need and often come from the federal or state government, colleges, or private organizations. One of the most well-known grants is the Pell Grant, which helps low-income undergraduate students cover the cost of tuition, books, and living expenses.

Scholarships

Scholarships are financial awards given to students based on merit, need, or other criteria such as academic achievements, athletic abilities, or community involvement. Like grants, scholarships do not need to be repaid, making them an excellent way to reduce the overall cost of higher education. Scholarships can come from various sources including colleges, private organizations, nonprofits, and corporations.

Federal Student Loans

Federal student loans are borrowed funds that must be repaid with interest after graduation or when the borrower drops below part-time enrollment. These educational loans from the U.S. Department of Education often have lower interest rates and more flexible repayment options than private loans. Direct subsidized loans, for example, do not accrue interest while the student is in school, while direct unsubsidized loans begin accruing interest immediately.

Work-Study Program

The Federal Work-Study program provides part-time job opportunities for students with financial needs, allowing them to earn money to help pay for their education. These jobs are often on-campus or with approved community service organizations, providing students with valuable work experience while balancing their studies. Work-study earnings are typically used to cover personal expenses and can help reduce the need for additional student loans.

Step 2: Complete the FAFSA

Next comes the all-important step of filling out the FAFSA—or the Free Application for Federal Student Aid. Before starting the FAFSA, you'll want to have a few things on hand to make this easy:

• Your Social Security number.
• Your contributors' Social Security number.
• USCIS Registration Number for eligible noncitizens.
• 2024 federal tax information, tax documents, or tax returns, including IRS W-2 forms or information for you and your contributors (this will be pulled from the IRS, but still nice to have ready just in case).
• Records of your untaxed income, such as child support received for you or your contributors if you are a dependent student.
• Checking and savings account balances.
• Net worth of investments. This includes stocks, bonds, real estate—not including the home you currently live in—and business or farm assets.
• A list of colleges you intend to apply to (if completing the FAFSA for the first time). After completing the application, FAFSA will send your financial information to this list of universities.

To start the process, visit FAFSA.gov and complete the application. Have the above information ready to keep the application moving forward and avoid stressing over the details. Keep in mind that the FAFSA opens on October 1 of each year, although deadlines vary by state and school.

Step 3: Review Your Student Aid Report

After submitting the FAFSA, you'll receive a Student Aid Report (SAR) with your Expected Family Contribution (EFC). The EFC is the amount of money your family will be expected to contribute to your education. This number is subtracted from the school's cost of attendance.

This report helps schools determine your financial aid eligibility. Look through this report to ensure that all the information is correct. The federal processor will send a copy of your SAR to each school listed on the FAFSA, but keep a copy for your records.

Step 4: Check for Additional State and Institutional Aid and Scholarships

After seeing how much money you could get in federal student aid, it's time to check for additional aid. Outside of the FAFSA, there are countless economic assistance programs to take advantage of. For example, Massachusetts College of Pharmacy and Health Sciences offers institutional scholarships for students in undergraduate programs and graduate programs.

Also, research local organizations, community foundations, and private institutions offer scholarships. Websites like Fastweb and Scholarships.com can help you find opportunities. By combining federal, state, and institutional aid, you can maximize your financial support and minimize student loan debt.

Step 6: Review and Accept Your Financial Aid Offer

Once you've explored your options and submitted the necessary applications, you'll receive financial aid offers from the universities you applied to. These offers will detail the types and amounts of aid you're eligible to receive including grants, scholarships, work-study programs, and loans. Carefully review these offers, paying attention to the balance between grants and scholarships (which don't need to be repaid) and loans (which do) to set yourself up for success in the future.

When you've decided, follow the instructions provided by the college to accept or decline each component of the aid package. Some schools require you to accept aid through their student portal, while others may ask for a signed document—just pay attention to the university's specific requirements. Contact the school's financial aid office for clarification if you're unsure about any part of the offer.

Step 7: Complete Loan Requirements

If you decide to accept federal student loans as part of your financial aid package, you'll need to fulfill certain requirements before the funds are disbursed. First-time borrowers must complete entrance counseling designed to help them understand the responsibilities and obligations of taking out student loans. This can typically be done online through the Federal Student Aid website.

Additionally, you'll need to sign a Master Promissory Note (MPN)—a legal document in which you promise to repay your loan and any accrued interest to the U.S. Department of Education. The MPN also outlines the terms and conditions of your loan, including the interest rate and repayment options.

Step 8: Maintain Eligibility for Financial Aid

Securing financial aid is the first part of the process, but you must maintain that eligibility throughout your college career to continue getting financial help. We'll dive into the eligibility requirements in the next section.

Eligibility Requirements

While countless students can receive financial assistance through different sources, not all people attending college are eligible. Before going through the steps to get financial aid, ensure that you meet the required metrics listed below:

General Eligibility Requirements

• Be a U.S. citizen or eligible non-citizen (such as a permanent resident).
• Have a valid Social Security number (except for certain non-citizens).
• Demonstrate financial need (for need-based aid like Pell Grants).
• Be enrolled or accepted in an eligible degree or certificate program.
• Maintain Satisfactory Academic Progress (SAP) (each school sets its GPA and course completion requirements).
• Have a high school diploma, GED, or completed an approved homeschooling program.

FAFSA-Specific Requirements

• To apply for federal financial aid, you must complete the FAFSA each year at StudentAid.gov.

State and Institutional Aid Eligibility

• Many states and colleges have additional aid programs with separate eligibility criteria. Make sure to check your chosen university's eligibility requirements.

• Some schools require the CSS Profile (College Board) and the FAFSA.

• Some state-based aid programs may have residency or GPA requirements.

Financial Aid Through MCPHS

College is an exciting step in your academic journey. However, finances can be a stressful component that can hinder this achievement. To make school accessible to all students, MCPHS offers several student aid resources to help provide financial assistance to eligible learners.

With countless program options and an experienced staff, you won't want to miss out on an education through MCPHS. Discover the available tools and aid to start the financial aid process today.