October brings with it the opening of the Free Application for Federal Student Aid or FAFSA.
And, as the FAFSA deadline of Dec. 1 nears, there are things every college student receiving federal aid should know.
There is an array of aid students can receive: scholarships, grants and subsidized or unsubsidized loans, said Leslie Hammes, associate director for University of Idaho Student Financial Aid Services.
Scholarships are any amount of money provided which does not have to be paid back, Hammes said. Students qualify for scholarships based on merit or need.
Grants, which are provided to students based on financial need, do not need to be paid back, Hammes said. However, many students are approved for student loans, an area of aid which Hammes said is foreign to many who have never taken out a loan before.
The main difference between subsidized and unsubsidized loans is whether or not the loan accrues interest.
The interest of a subsidized loan is not charged until the student finishes school. An unsubsidized loan, meanwhile, accrues interest while the student remains in school, Hammes said.
For students to lower the amount they owe when they get out of school, Christiane Williamson, the Better Education About Money for Students (BEAMS) manager on campus, advises students always know how much school will cost and only take out what they need.
“While in school they (students) just need to be mindful of how much they’re taking out,” said Williamson.
To pay off student loans, Williamson said students should work it into their spending plan, which is based on what students can afford, which considers rent, food and other expenses.
To help students with financial planning, Williamson said there are many resources on campus for students to help navigate financial aid.
Such resources include iGrad, which helps students build personalized plans to improve money management, career and student loan skills. UI’s financial aid website also includes a financial planning sheet in which students can estimate finances they will need, Hammes said.
Williamson recommends students talk with individuals at the career center to look at job options after graduation and estimate how much they could be making.
Students wishing to find how much they have recruited in student loan debt, Hammes said visit National Student Loans Data System (NSLDS).
NSLDS uses a student’s federal student aid ID to log in and will show how much debt a student has at one time, Hammes said.
For more information on financial aid services, students can stop by the Student Financial Aid office in the Bruce Pitman Center to find print outs of financial information or meet with a counselor.
Kali Nelson can be reached at [email protected]