|
Each year thousands of college students attempt to get financial aid to help them through school. Especially for first year students, navigating the financial aid landscape can be at least a little confusing. Some students my accidentally make these blunders that will surely effect the amount of money that they are able to get for school. Get to know what these mistakes are so you can avoid them!
1. Missing Application - The absolute biggest mistake is failing to fill out the application. If you don’t fill out the FAFSA (free application for student aid) you will not be eligible for government grants or even government backed student loans.
2. Late Application - More than “just getting the application in” it’s important to turn in the application as soon as possible. Since the application asks for information that is commonly on your income tax forms, as soon as you or your parents complete your taxes also get the FAFSA done.
3. Scholarship Blindness – Many people are blind to many of the scholarship opportunities out there. Use internet search tools to find national scholarships that are available.
Some of the most overlooked scholarship opportunities are right in your backyard. Always contact local businesses and outlets of national chains – retail stores like Target, banks, and even restaurants. Often local outlets have funds that they must give away locally. Also connect with civic organizations such as Retired Teacher Associations, Kiwanis, Optimist club and other community organizations.
4. Not Reading the Fine Print – When reviewing financial aid choices that are presented in the FAFSA report note the fine print of each offer. There are different interest rates and payback requirements for parent loans vs. Stafford loans. Unsubsidized loans are not as advantageous as subsidized loans. Learn these terms and read the fine print.
5. Using Plastic – If you don’t get much from financial aid or are short of cash you can always charge tuition right? Well, yes but think about all the interest you could be paying. The idea that you’ll pay it off at the end of the month is a fine one, but often we let the balance carry over. Avoid using credit cards for paying college expenses.
If college students and their families do their financial aid homework they can potentially avoid many of the mistakes that could cause serious financial trouble. Take some time and make sure that you avoid these 5 financial aid mistakes. | 
