Financial Aid Myths: Truths Revealed

The main myth about financial aid for college is simple: there is no limit on the amount of income necessary to qualify for financial aid. Students and parents have the misconception that financial aid is only available for very poor students. In truth, most every student can qualify for financial aid. Even students from wealthier families cannot afford to spend the tens of thousands of dollars in one lump sum.

While it's true that only students who demonstrate extreme financial need will be eligible for gift aid--financial aid that does not need to be repaid--there are other types of financial aid packages available. There are a great many scholarships and fellowships available in which you do not have to prove financial necessity. For example, in an art scholarship, all you might have to prove is the quality of your work.

Keep in mind also that income is only one factor that goes into calculating financial aid eligibility. The truth is that wealthier households will also have a higher list of expenses. The size of a mortgage can also affect eligibility, as can the size of the family--a larger family will mean higher yearly expenses. As a result, every family should fill out FAFSA application. It is a necessary step in securing all types of financial aid--both need and non-need based aid.

Affording College

On the flip side, there is as much concern about not being able to afford a college. Too often, students don't even apply to a school--even if it's their first choice--because they think it is too expensive. This is myth number two: some schools are out of your price range. If you play the system correctly, it is possibly to save an astronomical amount on tuition, room and board, and other costs. In effect, you could pay less for an expensive school than you might for an inexpensive school.

You should not apply to colleges based on price. Instead, you should then choose a college based on the financial aid packages that are being offered by each school to which you've been accepted. "Playing the system" means applying for more than one type of aid. Myth number three is that you can only be awarded one type of aid. In truth, you can get several types of aid. Combined together, this can cut a significant amount on tuition costs.

There's a sub-heading to this. People are wary of financial aid programs--let alone adding them together--because they think it will be too complicated. Often, you can submit the same application--the FAFSA or one other application--to each school. While it's true each college will have different financial aid procedures, the process is very similar. In the long run, the work you put in will be worth it.

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