Financial Aid Guide
Everything you need to know about paying for college — types of aid, how to apply, and strategies to maximize your package.
$28.6B
Pell Grants awarded yearly
85%
Of students receive some aid
$7,395
Maximum Pell Grant (2024-25)
💰 Types of Financial Aid
Grants
FREE MONEYFree money based on financial need. You don't have to pay it back.
Federal Pell Grant
Up to $7,395/year based on need
FSEOG
Up to $4,000/year for exceptional need
State Grants
Varies by state (Cal Grant, NY TAP, etc.)
Institutional Grants
Directly from your school
Scholarships
FREE MONEYMerit-based or criteria-based awards. Also doesn't need to be repaid.
Merit-Based
Academic, athletic, or talent achievements
Need-Based
Based on financial circumstances
Identity-Based
Heritage, background, first-gen status
Major/Career
STEM, nursing, education, etc.
Work-Study
EARNEDPart-time jobs (usually on campus) that help pay for expenses. You earn money for your work — typically $2,000-$3,000/year.
✓ Flexible hours around classes • ✓ Often related to your major • ✓ Build resume experience
Student Loans
MUST REPAYBorrowed money that must be repaid with interest. Federal loans have better terms than private.
| Loan Type | Rate (2024-25) | Annual Limit |
|---|---|---|
| Direct Subsidized | 6.53% | $3,500 - $5,500 |
| Direct Unsubsidized | 6.53% | $5,500 - $7,000 |
| PLUS (Parent) | 9.08% | Cost of attendance |
| Private Loans | 8% - 15%+ | Varies (last resort!) |
⚠️ Rule of thumb: Don't borrow more than your expected first-year salary. If you'll earn $50K/year, try to keep total loans under $50K.
📝 FAFSA (Free Application for Federal Student Aid)
The FAFSA is your gateway to federal aid, and many schools also use it to award their own grants and scholarships. Everyone should fill it out — even if you don't think you'll qualify.
📋 What You'll Need
- ✓ Social Security Number
- ✓ Federal tax returns (yours + parents)
- ✓ W-2s and income records
- ✓ Bank statements
- ✓ Investment records
- ✓ FSA ID (create at studentaid.gov)
⏱️ How Long It Takes
- • First time: 45-60 minutes
- • Renewal: 15-30 minutes
- • Use IRS Data Retrieval Tool to auto-fill tax info
🎯 Key FAFSA Output: Your SAI
The Student Aid Index (SAI) is the number schools use to determine your aid. It replaced the old "EFC" in 2024. A lower SAI = more potential aid. Your SAI can even be negative (as low as -1500), which means maximum need.
📅 Financial Aid Timeline
October 1
FAFSA Opens
Submit as early as possible. Some aid is first-come, first-served.
Oct - Dec
Research Scholarships
Start applications. Many have December/January deadlines.
January
CSS Profile Due
Required by some private schools. Check each school's requirements.
Feb - Mar
State Deadlines
Many states have early deadlines. California: March 2. New York: May 1.
March - April
Award Letters Arrive
Compare offers carefully. Consider net price, not sticker price.
April - May
Accept/Appeal
Accept your best offer. Appeal if circumstances changed.
May 1
Decision Day
Commit to one school. Submit enrollment deposit.
💡 Pro Tips to Maximize Aid
1. Apply Early
Some aid (especially institutional grants) is first-come, first-served. October 1st should be circled on your calendar.
2. Apply Even If You Think You Won't Qualify
Many families are surprised. Plus, some scholarships and state aid require FAFSA regardless of income.
3. Compare Net Price, Not Sticker Price
A $60K school with $45K in grants costs less than a $30K school with $10K in grants.
4. Appeal Your Award
If your circumstances changed (job loss, medical bills, etc.), ask for a review. Schools have discretion to adjust.
5. Use Competing Offers
If School A offers more than School B, let School B know. They may match or beat the offer.
6. Reapply Every Year
FAFSA must be submitted annually. Your aid package can change based on income, family size, or number in college.
Ready to Estimate Your Costs?
Use our calculator to see your net price and estimated monthly payments after graduation.