If you're applying for financial aid and wondering if you should bother completing the FAFSA
, the short answer is "Yes, the sooner the better."
FAFSA stands for "Free Application for Federal Student Aid," and it's your first step toward securing the money you need for college. Once you complete the FAFSA, the information is sent to the schools of your choice, and the schools use it to determine how much financial aid you're eligible to receive. This is called your "financial aid package" and you'll find out how much aid each school can offer when they send you your award letter.
Your financial aid package can include various kinds of aid from federal, state, and institutional sources, including money that doesn't have to be repaid, such as grants and scholarships. It will also tell you how much you can borrow in federal student loans.
Once you decide on a school, you should certainly accept all the grants and scholarships available. When it comes to student loans, however, it's smart to compare your options before deciding which loan(s) is right for you.
Every student and family is unique, and no one loan is right for everyone. Carefully explore the federal and private student loan options available to you, reviewing interest rates, benefits, and other loan details. Ask questions of your school's financial aid office and potential lenders you may work with.
If you borrow, be smart about it.
Borrowing money to pay for school is common these days, but be sure you're borrowing carefully with an eye on repayment at all times. Take a look at the projected monthly payments for the amount you intend to borrow. Compare it against the income you anticipate making when you graduate. That can be tough to do when you may not even have a major yet, but ask your parents for guidance when it comes to income projection.
Try to take the edge off repayment if you can by making interest payments on your loan while you're in school. Not only will it pare down the total amount of interest you'll have to repay, it will help keep you budgeting and planning for the day you'll start repaying your loan.
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