Need to borrow money for school? It is wise to have a comprehensive understanding of your options when it comes to financial aid. Unfortunately, there is no shortage of myths and misunderstandings floating around about student aid—which is why we are here to debunk them.
Debunking 10 Common Financial Aid Myths
What are the biggest myths about financial aid? Explore the list below and empower yourself with accurate information for navigating financial aid for school.
Myth #1: Only Students With Excellent Grades Get Financial Aid
While some grants or scholarships may be merit-based, this is not the case for all financial aid. Need-based scholarships and grants may be available, too, and student loans are never based on academic performance. This means you do not need to have a perfect GPA to qualify for financial aid. However, it is important to note that maintaining satisfactory academic progress is essential to retaining access to aid. If a student falls below specific academic standards, they may lose eligibility for future financial aid, even if the initial aid was awarded based on need rather than merit.
Myth #2: Financial Aid Only Covers Tuition Costs
Most financial aid may be applied to not only tuition but also related education costs. This may include registration fees, technology fees, equipment, room, and board, and even furniture for a dorm or apartment. Your financial aid award letter should specify exactly what your financial aid can (and cannot) be used toward, so be sure to check.
Myth #3: Saving Too Much Will Hurt Your Aid Eligibility
This could not be further from the truth. Setting aside money for school does not affect your eligibility for loans, grants, or other financial aid. Even need-based aid will only look at factors like your income and previous years’ tax returns—not how much money is in your savings account.
Myth #4: The Financial Aid Process Is Too Complicated
Applying for financial aid does not have to be complicated. The easiest way to determine your eligibility for a wide range of federal aid options is to complete a Free Application for Federal Student Aid (FAFSA), which is a relatively simple process and covers everything from grants and loans to work-study opportunities.
Myth #5: You Cannot Appeal a Financial Aid Decision
If you disagree with an eligibility decision, you can typically contest it by submitting a formal appeal in writing to the lender. There are many potential reasons to file an appeal, ranging from a change in finances or even a personal emergency. If you are not sure where to start with filing an appeal, check with the lender directly.
Myth #6: Private Colleges Are Unaffordable Without Substantial Aid
Although it is true that tuition at a private college tends to be more expensive than at a public college, there are various ways to reduce or offset those costs that do not involve taking out a lot of student loans. Scholarships, grants, and work-study are all possibilities to explore, as is seeking part-time employment to help pay for school.
Myth #7: Financial Aid Is Only for Undergraduate Students
Federal and private financial aid is available to both undergraduate students and graduate students. This includes grants, scholarships, fellowships, and loans. Whether you are pursuing a master’s degree, graduate certificate, or doctorate degree, financial aid options are available.
Myth #8: You Make Too Much Money to Qualify for Aid
Even if you do not qualify for need-based student aid, you might still qualify for merit-based awards in the form of scholarships or grants. And of course, anyone who meets basic requirements may qualify for student loans.
Myth #9: Loans Are the Only Form of Financial Aid
Student loans are a popular form of financial aid, but they are far from the only option. In addition, students should explore grants and scholarships, which are both forms of aid that do not need to be paid back. Work-study programs are another option worth considering for those who need help paying for school but do not want to borrow money.
Myth #10: Filling Out the FAFSA Is a One-Time Task
The Free Application for Federal Student Aid needs to be completed for each year you attend school. Deadlines may also vary from one school to the next, so be sure to complete and submit your application by the posted deadline each year. Failure to do so could mean you are not eligible for federal aid until the following academic year.
Understanding the Impact of Financial Aid Myths
Now that we have uncovered what the biggest myths about financial aid are, consider the effects these misconceptions could have. While some of these financial aid myths may seem harmless enough, the reality is that they could have a seriously negative impact on college students (and prospective college students).
How These Financial Aid Myths Harm Potential Applicants
In some cases, myths about financial aid might be enough to discourage somebody from applying for college in the first place. For example, a person with a mediocre academic record might forego college because they mistakenly believe they will not be able to get financial aid without excellent grades.
The Reality of Financial Aid Opportunities
In reality, financial aid is designed so that everybody has an opportunity to get the student aid they need to pay for college. From merit-based scholarships to grants that are entirely based on financial need, there are numerous options for students to explore.
Navigating the Financial Aid Process Successfully
Not sure where to begin in actually securing the financial aid you need to pay for school? Below are a few simple tips to keep in mind.
Tips for a Smooth Financial Aid Application
If you plan on filling out a FAFSA, be sure to do this well ahead of the deadline, as late applications are not accepted. You can make the application process smoother by gathering necessary documents (such as pay stubs and previous years’ tax returns) ahead of time, too.
Resources to Help You Understand Financial Aid Better
Looking for more guidance or details on a specific type of financial aid? Plenty of free resources can help you better understand financial aid, including:
- StudentAid.gov (information on federal loans, grants, work-study programs, and more)
- NerdWallet (information on private student loans)
- Fastweb (a great resource for finding scholarships)
Learn More About Financial Aid Options at Post University
When addressing the question, “What are the biggest myths about financial aid?” the reality to keep in mind is that there are options and support available for all types of students. With the right information and resources to rely on, navigating the world of financial aid does not have to be a daunting task.
At Post University, we offer a wide range of financial aid options as well as resources to help you apply for financial aid. We believe that knowledge is power when it comes to paying for school—and that a college degree may be a good investment to make.
Thank you for reading! The views and information provided in this post do not reflect Post University programs and/or outcomes directly. If you are interested in learning more about our programs, you can find a complete list of our programs on our website or reach out directly!
Please note jobs and/or career outcomes highlighted in this blog do not reflect jobs or career outcomes expected from any Post program. To learn more about Post’s programs and their outcomes, please fill out a form to speak with an admissions advisor.