Here are common types of financial aid

• Grants: Grants are a form of financial aid that students do not have to repay or pay interest on . Federal, state governments, colleges, and private and civic organizations offer grants to students who meet certain eligibility criteria.

• Scholarships: Scholarships are a form of gift aid that does not have to be repaid. Many nonprofit and private organizations (including colleges you are applying to) offer scholarships to help students pay for college or career school.

• Federal or private loans: Loans are one of the most common college financing options. Federal student loans provide significant advantages over many private student loans.

• Work-study and other programs: Work-study programs allow students to work part-time while attending school. Other programs include tuition reimbursement programs offered by employers.

Merit-based aid offers financial support based on a student’s academic achievements. Most top private universities do not offer merit scholarships.

Ivy League schools such as Harvard, Princeton, and Yale do not give any academic merit scholarships. Other prestigious schools that don’t offer merit scholarships include Columbia University, Dartmouth, and Stanford. In addition to the Ivy League institutions in America, a few dozen other top colleges and universities also do not offer merit aid. These include Amherst, Barnard, Colgate, Georgetown, Holy Cross, MIT, Tufts, Vassar, Wellesley and Williams. These are need blind schools. 

Most need-blind schools offer financial aid based on the amount of money remaining in the cost of attendance after deducting the amount the family is expected to contribute based on income. Some colleges like Columbia University use need-blind admissions for first-year applicants and offer financial aid packages that meet every admitted student’s demonstrated need after the expected family contribution.

Most public institutions provide merit scholarships based on a student’s academic profile, talents, athletic ability etc. They are not based on the family’s financial information. Merit scholarships can be renewable for all 4 years or one time. The renewable ones can have a GPA or other criteria associated with it to maintain eligibility.

Need-based aid provides funds for students based on their level of financial need. Need-based aid requires the family to submit an FAFSA application and/or CSS profile. This has to be done every year the student is enrolled in the college. And every year they will evaluate how much need you are qualified for. The form is used by the federal government, states, and many colleges and universities to determine a student’s eligibility for need-based financial aid, such as grants, work-study programs, and low-interest loans.

To apply for FAFSA, parents need to provide information about family income, assets, and other factors that could affect their ability to pay for college. This information is used to calculate the student’s Expected Family Contribution (EFC), which is the amount the student and their family are expected to contribute towards college expenses.

The FAFSA application opens on October 1st each year and the deadline to submit the application varies by state and institution. It’s important to submit the FAFSA as early as possible to maximize the amount of financial aid you may be eligible for.

Fafsa is free to apply and its online. You need a FSA ID to complete Fafsa. Students and parents should each have separate FSA IDs. Your FSA ID is connected to a single email address. So don't use your high school email to create the ID because once you graduate high school, you will not have access to the school email ID, but you will need your FSA ID for all your years in college. Fafsa is only for US citizens and permanent residents. International students or undocumented students cannot file fafsa. Sometimes your fafsa may be tagged for verification and they will ask for additional information.

For filling up fafsa you will need Social security numbers of the student and parents, FSA IDs for student and parents, and the last income tax records that you filed. So if your student is going to be a freshman the fall of 2023, you are filling the FAFSA in the fall of 2022 and you have to use 2021 tax returns (last completed).

Here are some tips to help you file your FAFSA successfully:

• Apply early: The FAFSA application opens on October 1st each year, and it’s recommended to submit your application as soon as possible to maximize your chances of receiving financial aid. Some states and colleges have earlier deadlines, so be sure to check those and submit your application by those deadlines.

• Gather all the necessary documents: Before you start filling out the FAFSA, make sure you have all the required documents on hand, such as your Social Security number, federal tax returns, W-2s, bank statements, and records of any other income or assets.

• Use the IRS Data Retrieval Tool (DRT): The IRS DRT is a tool that allows you to transfer your tax information directly from the IRS to the FAFSA. Using the DRT can save you time and reduce the chances of making errors.

• Provide accurate information: Make sure all the information you provide on the FAFSA is accurate and up-to-date. Mistakes can delay the processing of your application and may affect your eligibility for financial aid.

• Submit your FAFSA electronically: You can submit your FAFSA electronically through the FAFSA website. Electronic submission is faster and more efficient than submitting a paper application.

• Follow up: After you submit your FAFSA, check the status of your application regularly to make sure there are no issues or missing information. You can also contact the FAFSA helpline or the financial aid office at your college or university if you have any questions or concerns.

• The CSS profile needs to be completed for many private colleges for getting institutional need based aid. This is a college board form and its 25$ per college to submit.

Here are assets that are typically included in both FAFSA and CSS Profile calculations:

FAFSA:

• Cash, savings, and checking accounts: This includes any money you have in bank accounts, including joint accounts.

• Investments: This includes stocks, bonds, mutual funds, and real estate (other than your primary residence).

• Retirement accounts: This includes IRAs, 401(k)s, and other retirement accounts.

• Other assets: This includes any other assets you own, such as rental properties or businesses.

CSS Profile:

• Includes everything that FAFSA has and more, including your home equity.

It’s worth noting that the specific assets and amounts that are included in the FAFSA and CSS Profile calculations can vary depending on the individual’s circumstances and the specific financial aid programs they are applying for. It’s important to carefully review the instructions for each form and consult with a financial aid advisor if you have any questions about what assets to include.

There are several advantages to applying for FAFSA early:

• More time to research options: By submitting your FAFSA early, you can get a head start on the college decision-making process. Because you already submitted the FAFSA, schools can send you your financial aid offer letter sooner. That benefit makes it easier to compare offers from different colleges and find out which school has the lowest overall cost.

• More grant & financial aid money: Financial aid is a limited resource, and some of it is awarded on a first-come, first-served basis. By filing your FAFSA early, you increase your chances of receiving more grant and financial aid money2.

• Easier decision process for picking schools: By knowing how much financial aid you will receive earlier in the process, you can make a more informed decision about which school to attend.

• Reduce your to-do list as you finish high school: By submitting your FAFSA early, you can reduce your to-do list as you finish high school and prepare for college.

• Get your Student Aid Report faster: By submitting your FAFSA early, you can get your Student Aid Report (SAR) faster. A Student Aid Report (SAR) is a document that provides basic information about your eligibility for federal student aid, including grants, scholarships, and federal student loans. You might receive your SAR in the mail or in electronic form by logging into your StudentAid.gov account1. The SAR summarizes the financial aid information you gave on your FAFSA (Free Application for Federal Student Aid) form. Your SAR will inform you whether you are eligible for a Federal Pell Grant, as well as for other federal grants, college loans or work-study programs

• Start applying for other scholarships faster: Many scholarships require that you have submitted your FAFSA before applying. By submitting your FAFSA early, you can start applying for other scholarships sooner.

• Avoid unnecessary stress: By submitting your FAFSA early, you can avoid unnecessary stress and anxiety as the deadline approaches.