FAFSA
What does the acronym FAFSA stand for?
Answer: Free Application for Federal Student Aid
Which two financial aid types are considered "free money" that you do not have to pay back?
Answer: Grants and Scholarships.
Do you have to repay a Subsidized Direct Loan?
Yes. All loans must be repaid with interest.
What happens to your loan repayment schedule immediately after you graduate or drop below half-time enrollment?
You enter a grace period (usually 6 months) before monthly repayments begin.
What is the main purpose of submitting the FAFSA?
Answer: To determine a student’s eligibility for federal, state, and institutional financial aid (grants, work-study, and federal loans).
Are federal Pell Grants awarded based on Merit or financial Need?
Answer: Financial Need.
What makes a Subsidized Loan special compared to an Unsubsidized Loan?
The U.S. government pays the interest while you are enrolled at least half-time in school.
Which form of aid requires you to file a FAFSA to demonstrate financial need before receiving it?
Subsidized Loans (and Federal Grants).
True or False: You only need to fill out the FAFSA once for all four years of college.
Answer: False. You must submit it every academic year.
A scholarship awarded for maintaining a 3.8 GPA or playing varsity soccer is based on what?
Answer: Merit.
How does winning a major private scholarship impact your Subsidized Loan offer?
It may reduce your subsidized loan amount because scholarships lower your remaining financial need gap.
Can a scholarship have repayment requirements attached to it? Explain.
Generally, no, but conditional scholarships (like service-obligation awards) can convert into loans if requirements are broken.
What critical figure does the FAFSA calculate to determine how much aid you need?
: The Student Aid Index (SAI)
Under what rare condition might a student actually have to repay a grant?
Answer: If they withdraw from classes early or fail to meet program enrollment requirements.
Which funding source should a student accept first on their award letter: a Subsidized Loan or a Scholarship?
Scholarship (always take gift aid before any loan).
Name two factors that determine whether you receive a Need-Based aid package vs. a Merit-Based award.
Need-Based: Household income/assets & cost of attendance. Merit-Based: GPA, test scores, talents, or achievements.