- February 28, 2020
- Posted by: walter
- Category: Blog
Most families that have students that will be attending college will face completing financial aid forms. Many of these individuals have been told completing the financial aid forms is simple and can be completed in less than an hour. While others have been told the financial aid forms are complicated and difficult to understand. Needless to say this can be very discouraging too many parents and students.
1. Having A High Financial Aid Need Will Affect My Student From Being Admitted Into College
Many families had been told if they have a high financial aid need that many colleges will refrain admitting their student or be wait-listed. To be honest, this does happen in a few situations. However, this happens in a very few situations. Statistics have shown that the vast majority of applicants are either accepted or denied admission to a college based on two main criteria. Most colleges will admit or deny admission based on the student’s academic achievement and college test scores. Many colleges will also review the student’s extracurricular credentials as well.
If you want to ensure your family’s finances will not affect your admission decision, you can look for schools that practice a “need-blind” admission policy. Worrying about the family’s financial need, when it comes to being admitted in a particular college, should be the family’s least worry. Therefore, if you feel you will need financial assistance when it comes to paying for college, always apply for financial aid.
2. College Financial Aid Is All About Free Scholarships And Grants
College financial aid comes in several forms. There are college loans, grants, scholarships, and work-study programs. According to the College Board and the federal financial aid system most college financial aid comes in the form of student loans. Most individuals view financial aid as being a free subsidy in most situations. Therefore, how can a student loan be classified as financial aid since these funds must be paid back sometime in the future?
According to the federal financial aid system, student loans are classified as financial aid because students are not subject to a credit check, income verification, no collateral is required, and in many situations the interest on the loans is subsidized by the federal government. Some student loan interest is not subsidize by the federal government, however, the interest rate on these loans are well below the private lending rates that is established by the private lending market.
3. Merit Scholarships Are Only Given To High Academic Students
It is true most merit scholarships are given out to students with high GPAs and ACT/SAT test scores. However, millions of dollars are given out to students that are NOT high academic achievers. Thousands of students each year receive merit scholarships based on athletic or artistic ability, and demographic factors. Many colleges use merit scholarships and grants as a recruiting tool to draw students who are most attractive to them for many different reasons. Many private colleges will give out college incentive scholarships or grants to admitted students in order to be competitive (cost wise), with state-supported colleges or universities.
If you want to understand and learn how to pay for a college education and graduate with zero debt, call us, 781-828-1114, or send us an email [email protected].