Financial Aid is Not Free

One day I was talking to one of my students outside of the classroom. He was not performing well in class, and I was offering him tutoring services from myself or the tutoring center. He said one of the main reasons he was not performing well was because he worked a lot.

While I was talking to him about options of balancing between his job and school, he said, “I’m not paying for school anyway.”

I said, “Oh really? What methods do you use to cover your tuition?”

He said, “I’m on financial aid.”

I said,” You do know you have to pay financial aid back….don’t you?”

“No I don’t,” he said,”that’s why it’s called aid.”

Let me dispell the financial aid myths for you right now. This stuff can be extremely confusing for both students and parents. There are three types of financial aid and there are huge differences between each of them.

1. Grants: This is the free money you aren’t responsible for paying back. This free money is usually awarded if you get a scholarship, you have exemplary grades, or you qualify to be in extreme need of the money based on you or your family’s financial situation. You can also get a grant if your employer provides tuition reimbursement.

2. Most students take out loans without even realizing that they’ll have to pay this money back. Popular loans are from Sallie Mae, Stafford, Perkins, and Plus loans. Approximately six months after graduation, the loan companies start sending you bills for the money you owe. The interest rates on these loans are usually rather low. The ideal behind them is that when you graduate, you’ll be able to find a job and pay them back. The loan companies tend to be flexible in working out payment plans, as long as you are responsible in paying on time.

3. Another way to pay for school is to find out any work study your school might have to offer. They don’t normally pay too much, but it’s at least something you are paying off gradually while you are in school, instead of the lump sum you’d be asked to pay six months after graduation.