Does the FAFSA money you get have to be repaid?
- The kind of assistance you get after submitting your FAFSA determines whether you’ll be required to repay it.
- However, a limited number of grants, scholarships, and work-study monies don’t need to be repaid.
- Your subsidized, unsubsidized, and Direct Plus Loans will need to be paid back.
The Free Application for Federal Student Assistance, or FAFSA, must be completed to be considered for most financial aid forms get it today, including aid from your institution. When it comes to the FAFSA for the 2021-22 school year, it’s open until June 30, while the FAFSA for the 2022-23 school year is open from Oct. 1 to June 30, 2022.
Once your school provides you with a complete package of financial assistance, you’ll know exactly what you’re eligible for based on the information you provide on the FAFSA. Returning some and not paying back others will be your responsibility.
Financial aid that you don’t have to repay.
Unlike loans, scholarships, and work-study funds, grants and scholarships don’t have to be repaid after you graduate. As a result, the sooner you submit your FAFSA, the more likely you will be eligible for financial aid.
- In many cases, Grants are provided based on financial need or membership in a particular organization. Students who commit to teaching for four years in a low-income school and those whose parents or guardians died while serving in Iraq or Afghanistan are eligible for various government prizes. Find out more about government funding in this article.
- Scholarships are often given to students who have excelled in academics, sports, or other areas. The amount of money available for scholarships is determined solely by the institution awarding them.
- It depends on when you apply, how much money your school has available, and how much financial need you have. To help students struggling financially, work-study is a kind of financial aid that provides part-time jobs, such as working in a university library or as a research assistant.
Some private scholarships and grants may assist bridge the gap if you still want “free money” for college, and you won’t have to repay any of this financial aid. Although private scholarships and grants are very competitive, your school may reduce the financial assistance it provides you by the amount of the private scholarship or grant you get.
Financial help that you must repay
Subsidized loans, unsubsidized loans, and Direct PLUS Loans may be available to you when you complete the FAFSA. A set interest rate is in place for all government loans. You must pay back every one of these loans.
- Subsidized loans are granted only to those who can’t afford to repay them. To avoid accruing interest while you’re in school or during your six-month grace period, the government pays the interest on your loan. After you graduate, you have a grace period during which you do not have to begin paying back your student loans in full.
- No consideration is given to financial needs when approving unsubsidized loans. Even if you have a six-month grace period, interest will continue to accrue. Instead of a subsidized loan, this is a more expensive option.
- A credit check is required for Direct PLUS loans, which do not evaluate financial need. Direct Plus Loans are available to graduate and professional students. During the six-month grace period, interest is accrued.
The FAFSA may not cover all of your educational costs, in which case you may need to take out private loans. You’ll have to pay them back, and they should be your last option since personal loans sometimes have stricter terms and conditions than government loans.
You must fill out the FAFSA to determine how much financial assistance you are eligible for, but you don’t have to take all of it.