Every year, thousands of students and families let misconceptions about financial aid stop them from applying for—and getting—the aid they deserve. Let's set the record straight.
Myth: There isn't enough aid for everyone, and certainly not for my family.
Fact: The amount of federal aid for college students increases every year. According to the College Board:
- More than $136 billion in financial aid was distributed to undergraduates during the 2008–2009 academic year in the form of aid from all sources, including grants, work-study, loans, and tax credits and deductions—an increase of more than $10 billion from the previous year.
- Between 2000–2001 and 2008–2009, grant aid for full-time undergraduates has increased an average of 6.3 percent each year.
If you need financial help, get in line. You have only yourself to blame if you don't.
Myth: My high school grades aren't good enough to qualify for aid.
Fact: The vast majority of federal and state aid is based on financial need, not grades. And to keep that aid, most programs require only an average GPA to show "satisfactory" academic progress. For many private scholarships and merit aid offers, grades don't count as much as you might think. Many use other criteria: financial need, leadership, residence, major, and heritage.
Myth: Paying for advice will increase the amount of aid I get.
Fact: Applying for aid can appear complicated at first. But you can get free help from CollegeData, your high school counselor, and college financial aid offices. Don't fall for slick seminars promising the moon for a "mere" $1,000 or more!
Myth: Only students from minority ethnic groups are eligible for financial aid.
Fact: Some private scholarships target deserving students with particular ethnic backgrounds, but most do not take ethnicity into account. The Free Application for Federal Student Aid (FAFSA), the most common financial aid application, doesn't even ask about your ethnicity. The overwhelming bulk of federal, state, institutional, and private aid is not tied to ethnicity.
Myth: Millions of dollars in scholarships go unclaimed each year. It's too hard to find them, so it's worth paying someone to do it for me.
Fact: There are hardly any scholarships that go unused. Actually, scholarship information is incredibly easy to find online—for free. For instance, check out CollegeData's free scholarship search tool, Scholarship Finder. You can search 545,000 awards worth more than $2.2 billion. Don't fall for scholarship search scams. If they say you need to pay for scholarship help, don't do it. Pay yourself to find scholarships—by getting one!
Myth: I'm not talented enough to win a scholarship.
Fact: Of course, outstanding athletes and performers get generous scholarships. But many scholarships are awarded on the basis of academic performance in high school, outstanding extracurricular involvement, and unique interests. So what are you passionate about? Odds are there are more than a few scholarships for which you are eligible.
Myth: My grades are good enough to attract scholarships that will pay for everything.
Fact: Almost everyone who has private scholarships had to hunt to find them. They don't come to you automatically. More significant, only a handful of students earn scholarships that pay for all college expenses—the so-called "full ride." Be sure to apply for financial aid—grant money is just as good as scholarship money.
Myth: My family has been saving for my college education or has a high income, so we're not eligible for financial aid.
Fact: You won't know whether you qualify for federal aid until you get your FAFSA results. The impact of parents' savings is relatively small. Other factors can make a real difference on the impact of income, such as home mortgages, the number of siblings, and the age of your parents. And, by turning in a FAFSA, you also apply for state and sometimes college aid. Still not convinced? If nothing else, a FAFSA is also required for a federally guaranteed student loan.
Myth: I can't afford expensive colleges.
Fact: You may get enough aid to make the college affordable. The variables include your financial need based on your Expected Family Contribution (EFC), the college's cost of attendance, and the college's priorities for its own financial aid. So if you are a good fit for such a college, go ahead and apply. Make your decision when you get your financial aid award letter, not the first time you see the "sticker price."
Myth: The paperwork is just too complicated.
Fact: To apply for aid, most colleges require only the FAFSA. Most of the information the FAFSA requires is already available on family tax returns. The form walks you through the process and provides online and telephone support. You can enter the information and file online in a single sitting, or save it and return at your convenience. Even if a college requires additional information, think of filing the financial aid paperwork as hiring yourself to do a job—one that potentially pays you very well indeed.
Cutting the Myths Down to Size
If you are unsure of how the college financial aid system works and whether or not you would qualify for aid, check out the other articles in CollegeData's Pay Your Way section, see your high school guidance counselor, visit college websites, or call the FAFSA hotline at (800) 4-FED-AID (433-3243). You have many opportunities to get the truth—and nothing but the truth—about financial aid.
Note: Financial information provided on this site is of a general nature and may not apply to your situation. Contact a financial or tax advisor before acting on such information.
