Understanding the various sources of financial aid can significantly reduce the cost of college for virtually all families. There are three main “buckets of money” available to help offset college expenses: 1 – institutional aid, 2- federal aid, and 3- independent scholarships. Let’s explore each of these buckets and the 2 key steps you need to take to access them.
Institutional Aid: Money from Colleges
Institutional aid comes directly from the colleges and universities themselves. This bucket often represents the largest potential source of financial assistance for families.
Key Steps:
- Apply for admission before each college’s unique application and scholarship deadlines. These deadlines can vary between institutions, so it’s important to keep track of them.
- Thoroughly research each college’s scholarship offerings. Many institutions have additional scholarships beyond those automatically considered with admission. In some cases, these require separate applications, essays, or other supporting materials.
For example, a college might offer a leadership scholarship that requires a separate essay describing your teen’s leadership experiences or a dance scholarship that requires an audition.
Federal Aid: Money from the Government
The second bucket consists of federal aid, which includes grants, loans, and work-study programs offered by the U.S. government. Most U.S. families qualify for some form of federal aid.
Key Steps:
- Complete the Free Application for Federal Student Aid (FAFSA). This form is the gateway to all federal financial aid and is required by most colleges for institutional aid consideration as well (If you want an early/quick read on your eligibility, use this estimator).
- For many colleges, particularly selective private institutions, you will also need to complete the CSS Profile. This form provides a more detailed financial picture and is used to determine eligibility for institutional aid at these schools.
After completing these forms, send them to all the colleges where you’re applying. Each college will use this information to create a financial aid package tailored to your family’s circumstances.
Independent Scholarships: Money from Philanthropic Entities
The third bucket consists of scholarships offered by private organizations, foundations, and corporations. While typically smaller in amount than institutional aid, these scholarships can add up and make a significant difference.
Key Steps:
- Create an account on scholarship search platforms like Scholarships360. This platform aggregate thousands of scholarship opportunities and can match you with options based on your student’s profile.
- Review and pursue scholarships that align with your strengths, interests, and background. Be strategic in your applications, focusing on scholarships where you have a competitive edge.
For instance, if your college-bound teen is passionate about STEM careers, look for scholarships offered by the tech industry. If your teen excels in a particular subject, seek out academic scholarships in that field.
Maximizing Your Opportunities
By systematically approaching each of these 3 buckets, you can increase your chances of receiving substantial aid. Remember, this process requires diligence and attention to detail:
- Keep track of all deadlines in a centralized calendar.
- Tailor your applications to each scholarship’s specific requirements.
- Don’t overlook smaller scholarships – they can add up quickly.
- Start early to give yourself plenty of time to complete all necessary steps.
By understanding these sources of money and following the 2 key steps for each, you’ll be well-positioned to make college more affordable. Remember, every dollar in scholarships or grants is a dollar less you’ll need to borrow or pay out of pocket, making your investment in higher education more manageable.
To learn even more on this topic, watch our workshop on reducing college costs.
Fitz has dedicated the entirety of his 28 year career to encouraging higher education opportunities. He worked in the Vanderbilt, Duke Law and St. Lawrence admissions offices prior to serving as an enrollment management consultant for 200+ selective colleges around the country. He created Find The Right College to make trustworthy college counseling more accessible. Fitz is also the father of two teens so he also understands first-hand the challenges associated with a college search.
