The College Student's Guide to Financial Aid

1. Run the numbers

At the start of this process, students and their families should create a budget. By setting realistic expectations, students can get a fuller sense of actual tuition, fees, required books and technologies, transportation, and housing to find a school that meets their financial and academic needs.

2. Complete the FAFSA

Students should fill out the Free Application for Federal Student Aid as soon as possible to learn about federal grants, loans, and work-study funds. Many colleges and universities use information provided on this form to award institutional and departmental scholarships, making it even more important to complete each year. Federal student loans also offer the lowest, non-variable interest rates.

3. Apply for aid you won’t need to pay back

Many students end up taking out loans to cover remaining portions of college tuition, but they should always use funding sources that do not require repayment first. In addition to federal grants, many institutions provide scholarships, grants, fellowships, and assistantships to offset costs.

Also, check with private foundations, nonprofits, and state governments that may offer awards based on merit, financial need, or subject area. Students who need funding beyond tuition and fees may also find scholarships that help cover books, technology, research travel, childcare, and housing.

4. Look into government or employer-based programs

Government-funded service programs such as AmeriCorps and the Peace Corps provide educational awards upon completion of service, while some companies provide employee tuition assistance of up to $5,250 in tax-free funding earmarked for education per year. If working for a university, students may be able to take free or significantly discounted courses.

5. Explore student loan options

In the 2024-2025 school year, students and parents borrowed $102.6 billion in federal and nonfederal loans. Students and their families who approach student loans carefully and borrow reasonably can come out on top.

Loans come from federal, state, and private sources, but students should always start with federal loans as these are the most secure and offer fixed interest rates. Students who want to test various loan amounts, interest rates, and terms to see how much they will pay monthly and over time can use FinAid’s loan calculator.

6. Factor personal income and savings

Not everyone has thousands of dollars in their savings accounts, but by paying as much of your education upfront as possible, you can save on hefty student loan interest in the long run. If using savings isn’t an option, you can work while enrolled, making it easier to pay for daily living expenses and some costs of college.

Depending on the program, some colleges and universities offer interest-free tuition payment plans that charge only a small, one-time fee for paying over the course of the program.

7. Find your bottom line

After adding up all financial aid, loans, personal contributions, and other sources of funding, prospective students will find out where they stand. If they still owe $40,000 for the cost of their education, how long will it take to break even based on projected average salaries? Considering all these factors and continuing to apply for aid while in school can help avoid financial challenges later on.

After sketching out a plan, check out the next section for advice on making the most of your financial aid.

• Continue applying for aid, even if you’ve started your program.
  Many students apply for scholarships, grants, and federal funds as they enter college, but forget to look for funding after starting school. Many sources exist specifically for upperclassmen, so you should always be looking for ways to fund your education.

• Talk to financial aid offices directly.
  If you receive an acceptance letter without funding details mentioned, contact the financial aid office directly to learn about your options.

• Negotiate your offer.
  If you need more money from the school to attend, reach out to ask about other possibilities. At worst, they will say they have no additional funding for you, but your tenacity may pay off.

• File your FAFSA early.
  FAFSA funds are disbursed on a rolling basis, meaning those who apply late may receive less (or no) funding.

• Pay close attention to assets.
  When reporting income and assets on the FAFSA, you can exclude some items that will help lower your Expected Family Contribution.

How Does the FAFSA Work?

To determine available funding, the government considers whether you plan to attend full- or part-time, how much the school costs, and when you plan to attend.

The Cost of Attendance (COA), includes tuition, fees, room and board, books, transportation, supplies, loan fees, dependent care, disability costs, and reasonable study abroad fees. It then calculates Expected Financial Contribution (EFC) based on taxed and untaxed income, benefits, and assets. The EFC is subtracted from the COA, determining how much need-based aid should be awarded.

What are the Requirements for Submitting a FAFSA Application?

Aside from meeting deadline requirements, students should pull together crucial information before submitting the application. These include:

• Social security number or alien registration number (for legal non-residents)
• Federal tax returns
• Earned money records, including W-2s/ and 1099s
• Investment records
• Bank statements
• Details on any untaxed income
• Electronic FSA ID

If applying as a dependent, all of these documents must also be supplied for your parent(s). Applicants must also include a list of all the schools they are considering attending so the government can send FAFSA data to each for scholarship and grant consideration.

What Is the Deadline for FAFSA?

For the 2025-2026 academic year, students must submit the FAFSA by 11:59 pm CT on June 30, 2026. While this is the federal deadline, states and schools set their own deadlines, which are often earlier. Visit the official FAFSA website for more information on deadlines.

Should Everyone Fill Out the FAFSA?

Several myths exist that keep some students from applying for aid because they believe they won’t qualify. Some may feel their parents make too much money, while others believe because they support themselves, they can’t use their parents’ information.

Even if they do not qualify for federal aid, filling out the FAFSA can still qualify students for state and/or institutional funding. It’s also a mistake to only fill out the FAFSA as an incoming student, as it must be completed each year with updated financial information to remain eligible.

Apply early. Even though the FAFSA application remains open until June of each academic year, the federal government disburses funds on a rolling basis. Complete the form as soon as possible for the best chance of funding.

Apply online. By applying online, learners cut out the additional time required to print and mail their forms and the time required for FAFSA administrators to review the paper forms rather than viewing them directly online.

Avoid needless mistakes. Leaving blank fields, providing outdated information, or incorrectly filing taxes can all result in application delays and potentially losing out on federal student aid. Review your application thoroughly and double check all information before submitting it.

Re-apply annually. Information required by the FAFSA must be updated annually to continue receiving federal financial aid. This step exists so the government can update the EFC based on current income and assets.

Scholarships & Grants

Scholarships and grants appeal to all students because they don’t have to be repaid if the student lives up to the requirements. They may be annual funds or renewable for several years. Award amounts vary depending on the funding organization and can be awarded based on factors such as merit, need, gender, ethnicity, or intended major.

Medical support students should apply for these as they help offset costs and reduce the amount of loans needed to pay for their education. Most applications require demographic information along with:

• Transcripts
• Letters of recommendation
• Proof of community involvement or volunteerism
• Personal statement and/or an essay

We’ve provided a list of all the different places you can receive scholarships and grants.

Federal Aid

The federal government is one of the largest providers of aid in the country. Here are three options for federal aid that you should know before enrolling in a degree program:

• Pell Grants. These grants are for undergraduates who demonstrate significant financial need. For the 2025-2026 award year, learners can receive up to $7,395 per year, although this amount may lower based on EFC, COA, and whether they attend on a full- or part-time basis.

• Supplemental Education Opportunity Grants. FSEOGs are administered via individual financial aid offices at participating schools and given to students demonstrating the most financial need. Learners can receive between $1,000 and $4,000 per year, depending on their need, application date, other financial aid, and the amount of aid available at the school.

• Military Service Education Grants. Several federal grants exist for members of the military and their families. Examples include Reserve Officers’ Training Corps (ROTC) scholarships, Department of Veterans Affairs Education Benefits, and Iraq and Afghanistan Service Grant/Additional Federal Pell Grant Funds.

State Aid

According to the National Association of Student Financial Aid Administrators, nearly every state offers scholarships or grants to residents of those places. Check out two examples below to see what might be waiting in your state.

• Maryland Higher Education Commission. THE MHEC offer the Hal and Jo Cohen Graduate Nursing Scholarship for resident students studying for a master’s in nursing at a public school in the state. The scholarship covers all tuition and fees from matriculation to graduation.

• The Kansas Board of Regents. Residents of the state can take advantage of the Kansas Nursing Service Scholarship provided they plan to work as an LPN or RN upon graduation. This provides partial coverage of educational expenses as well as guaranteed employment after receiving licensure.

Institutional Aid

Many colleges and universities provide institutional scholarships to learners based on merit and/or need. Many schools use information provided on the FAFSA to award funds, underscoring the importance of filling out the application early and annually.

• Merit-based. These scholarships require students to maintain academic excellence to qualify for funding. One such example is Arizona State University’s SignatureCare Emergency Center Student Scholarship, which provides $1,000 to undergraduates with GPAs of 3.0 or higher.
  
  
• Need-based. These awards exist for students who demonstrate financial need based on FAFSA information. The University of Southern Indiana offers the Lloyd R. Wallis Memorial Scholarship for senior dental hygiene students who can prove financial need.

Private Aid

Private companies and organizations act as a major source of scholarships and grants, making it imperative that learners don’t skip on researching these types of funding.

• Company-sponsored. Many for-profit companies provide scholarships in areas related to their mission to help students get through college more easily.
  
• Non-profits. Students can often find scholarships through nonprofit organizations and foundations that exist to raise awareness and support advocacy efforts within the discipline. The Society of Diagnostic Medical Sonography provides a $2,500 award for those accepted to diagnostic medical sonography or cardiovascular technology programs.
  
• Professional associations. Member organizations often supply educational funding to help champion future practitioners in the field. The American Society of Radiologic Technologists provides several scholarships of up to $5,000 for members.

Federal Loans

Federal loans are disbursed by the U.S. Department of Education and help learners of all educational levels cover any educational costs that they cannot pay out-of-pocket or with other sources of funding. Because these loans are secured by the federal government, they offer fixed interest rates and favorable repayment plans that aren’t a given with non-governmental lending options.

Because several different types of federal student loans exist for dependent and independent learners, students considering this option should review each to learn about eligibility, interest rates, repayment plans, and award amounts.

• Subsidized Stafford Loans
  Stafford loans for undergraduate students provide aid up to $20,500 annually, based on how long they have been in school and their dependency status. Because they are subsidized, these loans do not accrue interest while the student is enrolled on at least a part-time basis.

• Unsubsidized Stafford Loans
  Unsubsidized Stafford loans can be used by undergraduate, graduate, and professional students and amounts range significantly based on whether the student identifies as a dependent or independent. Because they are unsubsidized, interest accrues the entire time the student is enrolled.

• Parent PLUS Loans
  These loans exist for parents of dependent undergraduate students. Loan amounts are determined based on cost of attendance after subtracting any other financial assistance. Interest accrues while students are in school. For loans administered between July 1, 2025 and June 30, 2026, the rate is 8.94%.

• Graduate PLUS Loans
  As the name suggests, this loan exists for graduate and professional students and covers any existing expenses once all other financial assistance has been subtracted from the cost of attendance. Interest accrues while the student attends school at a rate of 8.94%.

• Direct Consolidation Loans
  Rather than making multiple federal student loan payments each month, this type of loan consolidates all of them into a single monthly payment. The government charges no fee to consolidate loans. The new interest rate is based on the average of all the consolidated loans and rounds up to the nearest one-eighth percentage point.

State Loans

While most students first think about student loans provided by the U.S. Department of Education, 38 states currently provide separate loan programs. One such example is the Texas Higher Educational Coordinating Board, which offers low-interest options for residents who plan to attend a public Texas university.

If the applicant does not have favorable credit (which typically includes a credit score of 700 or above and no previous loan defaults or bankruptcies), they can use a co-signer. Contact your local department of education to learn about options.

Private Loans

Some students may feel drawn to private loans, but they should fully research this option before signing up, as these often have variable interest rates, require existing credit histories, do not provide deferment or grace periods, and lack income-driven repayment plans.

• Salle Mae
  Sallie Mae provides private loans for undergraduate and graduate learners once they exhaust federal funding options. Rates vary between 4.50% and 16.70% depending on degree level, who takes out the loan, and whether the loan is offered with a fixed or variable rate.

• Credit Unions & Banks
  Many learners are attracted to credit unions due to potentially lower interest rates, better customer service, and less rigid rules surrounding existing credit. On the negative side, they tend to lack the benefits of federal loans and may require you to become a member.

• Private Lenders
  Private lenders may include parents, grandparents, or other family members and friends. Students should carefully navigate this process to ensure the relationship is strong enough to negotiate money contracts while also making sure they get a fair deal.

Borrowing Student Loans Responsibly

After exhausting all sources of funding that does not need to be repaid, students should carefully research the loans they take out to cover the remaining expenses of higher education. Aside from finding the best interest rates and repayment plans, here are a few other things to keep in mind:

• Only borrow what you need
  The COA estimate includes costs outside tuition and fees, meaning students can borrow thousands of dollars for housing, transportation, and other expenses. If at all possible, try not to borrow additional funds to cover these other costs.

• Live cheaply
  Students can quickly wrack up debt by living outside their means. Consider finding roommates, cooking at home, taking public transportation, and doing other things that cut your cost of living.

• Consider repayment realities
  When borrowing, think about starting salaries for your intended career. By considering opportunity cost (e.g. the monthly loan payment versus your salary), you can get a sense of reasonable amounts to borrow.

• Tuition payment plans: Many medical support programs provide tuition payment plans for learners to pay the school directly rather than a loan servicer. These often charge a small additional fee but no interest. Ivy Tech Community College provides an example of what to look for when reviewing financial aid options at prospective schools.

• Loan repayment assistance: Medical support students can sometimes feel overwhelmed by repayment plans when first graduating, especially if they’re still searching for a job or earning an entry-level salary. Those with federal loans can take advantage of several income-driven repayment plans that consider current earnings when setting monthly payment amounts.

• Loan forgiveness: In exchange for working with underserved communities or pledging service at an approved site for a set number of years, many medical support graduates can take advantage of loan forgiveness programs.