Financial Aid

There are three types of federal financial aid:

• Grants—financial aid that doesn't have to be repaid (unless, for example, you withdraw from school and owe a refund)

• Work-study—a work program through which you earn money to help you pay for school

• Loans—borrowed money for college or career school; you must repay your loans, with interest

Many schools offer financial aid from their own funds. Find out what might be available to you:

• Visit your college's financial aid page on its website, or ask someone in the financial aid office.

• Ask at the department that offers your course of study; they might have a scholarship for students in your major.

• Fill out any applications the school requires for its own aid, and meet the deadline

Even if you're not eligible for federal aid, you might be eligible for financial aid from your state. Contact your state grant agency for more information. 

Many organizations offer scholarships or grants to help students pay for school. 

Loans made to eligible undergraduate students who demonstrate financial need to help cover the costs of higher education at a college or career school.

Loan Limits: If you are an undergraduate student, the maximum amount you can borrow each year in Direct Subsidized Loans and Direct Unsubsidized Loans ranges from $5,500 to $12,500 per year, depending on what year you are in school and your dependency status.

Loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need.

Loan Limits: If you are an undergraduate student, the maximum amount you can borrow each year in Direct Subsidized Loans and Direct Unsubsidized Loans ranges from $5,500 to $12,500 per year, depending on what year you are in school and your dependency status.

Loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.

Loan Limits: If you are a graduate or professional student, you can borrow up to $20,500 each year in Direct Unsubsidized Loans. Direct PLUS Loans can also be used for the remainder of your college costs not covered by other financial aid.

If you are a parent of a dependent undergraduate student, you can receive a Direct PLUS Loan for the remainder of your child’s college costs not covered by other financial aid.

Are you saving money for college for your student? Where are you saving it? Is the money in your name or your child’s? Where your money resides will determine how much it will get taxed and how it will impact your FAFSA results? Always consult with your professional tax advisor for details. 

Thinking about taking out a bank loan? Private Educational Loans tend to be high interest. Make sure you speak with your financial advisor about your options.

Apply for federal student aid using the Free Application for Federal Student Aid (FAFSA®) form. And remember, the first F in “FAFSA” stands for “free”.

All parents must fill out the FAFSA (www.fafsa.ed.gov) to qualify for the four types of aid: grants, loans (both parent and student loans), work study positions, and need-based scholarships. You are encouraged to fill out the form regardless of  family income level and apply as soon after October 1st as possible to take advantage of state and federal monies given on a first come first serve basis.

**IF YOU HAVE A SOCIAL SECURITY NUMBER, YOU WILL FILL OUT THE FAFSA.

Click here to learn more.

The Texas Application for State Financial Aid (TASFA) collects information to help determine eligibility for state (or institutional) financial aid programs administered by institutions of higher education in the state of Texas. Students classified as Texas Residents who are not eligible to apply for federal financial aid using the Free Application for Federal Student Aid (FAFSA) are encouraged to complete the TASFA. 

**IF YOU DO NOT HAVE A SOCIAL SECURITY NUMBER OR HAVE A SOCIAL SECURITY NUMBER THROUGH DACA, YOU WILL FILL OUT THE TAFSA 

Click here to learn more.

• Creating a FSA Student ID

• FAFSA on the Web Worksheet 2020-21

• Who is my parent when filling out the FAFSA?

• Financial Aid Myths

• Not applying for financial aid because they “think” they won’t qualify.

• Waiting too long to file the Free Application for Federal Student Aid form (FAFSA) with the U.S. Department of Education. This paperwork determines how much federal aid families receive. FAFSA applications begin October 1st of your senior year. 

• Assuming there are thousands of dollars available through scholarships if students will only search for them. Significant national scholarships often go to “superstars.” Solid students may be better off pursuing local scholarships. 

• Assuming expensive private colleges are out of reach. Some may offer significant financial aid.

• Assuming financial aid from a college will continue past the first year. Families should confirm any financial aid package with the college. Determine what is required for the scholarship to renew.

• Failing to understand that financing college often means borrowing money and working. Families need to have open financial discussions with their student prior to selecting and applying to colleges.

• Paying companies to search for financial aid or scholarships. Paid services are often scams.

• Assuming students will get a good financial aid offer from an out-of-state public university. Schools often reserve their need-based aid for residents.