Five Financial Aid Flaws: Five Steps to Avoid Financial Aid Problems

Millions of students apply for financial aid each year. However, many parents and their students find it difficult to navigate the financial aid system. Here are five common financial aid problems and easy solutions to avoid them.

First, students should apply for financial aid as early as possible. The FAFSA or Federal Application for Free Student Aid becomes available for students to submit in early January. Many parents and students delay submitting the FAFSA due to their taxes being incomplete. It is perfectly acceptable to fill out the forms with an educated guess and then edit the forms at a later date. Many schools have deadlines as early as March for students to qualify for many financial aid programs.

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Seconds, students should make sure their application is filled out with correct information. Spelling mistakes, incomplete fields as well as errors in mathematical calculations can cause paperwork to be delayed or students to not qualify for thousands of dollars in aid. Students and parents should carefully review their calculations before submitting their application. Many applications will flag blank fields but students must review these fields on their own.

Third, students should apply for scholarships outside of their university. Many freshman believe that they will not qualify for scholarships that are offered by their high school, religious organization or civic groups. However, many of these groups have thousands of dollars in scholarships that they award each year. Best of all, this is money that does not have to be repaid and can be utilized before having to turn to student loans and other resources.

Fourth, students should not abuse financial aid. Many people who attend college take the extra money from their student loans as a living allowance. While this can be acceptable, individuals should consider whether they want to have to repay their living allowance with interest for up to fifteen years after they graduate. Many students may be better off by handing any excess funds back to their student loan provider and applying for an on campus job. On campus jobs can be a wonderful way for individuals to meet new friends and experience the working world.

Fifth, students should pay attention to all information they receive from their financial aid office. Many universities will contact individuals with problems via telephone, mail, email or a combination of these methods. Make sure you are checking your email and opening any mail from your university to ensure that your financial aid is properly processed.

Five Financial Aid Flaws: Five Steps to Avoid Financial Aid Problems