Financial Aid Awareness Makes Higher Education More Accessible
February is Financial Aid Awareness Month, a time dedicated to informing college students about the many opportunities available to make higher education more accessible and affordable. The cost of attending colleges and universities has skyrocketed over the past few decades. The average cost of college in the US is $38,270 per student per year, making higher education a significant financial challenge for many families.
“College tuition can seem like an insurmountable obstacle for many, but financial aid can serve as the bridge between aspirations and achievements,” says Joanne Farce, Senior Vice President, Investments at David Lerner Associates, Inc.
During the entire month, the higher education community works to educate students and families about the financial resources available for college.
This initiative aims to highlight opportunities for federal, state, and institutional aid, ensuring more people can afford to pursue their education. It’s a chance to learn how financial aid can make higher education achievable and less overwhelming.
From scholarships to grants, loans, and work-study programs, financial aid provides the support students need to pursue their dreams. By shining a spotlight on these resources, Financial Aid Awareness Month aims to educate families on how to navigate the complex world of funding college.
Understanding the Types of Financial Aid
Not all financial aid is created equal.
To make informed decisions, students and families should understand the key types of aid available:
- Scholarships: These are merit- or need-based awards that do not need to be repaid. Scholarships can come from schools, private organizations, and community groups.
- Grants: Often need-based, grants are another form of “free money” for students. Federal programs like the Pell Grant can make a significant difference for low-income families.
- Loans: Federal and private loans provide funding that must be repaid with interest. Federal loans often offer more favorable terms than private ones.
- Work-Study: This program allows students to earn money through part-time jobs, often on campus, to help pay for education-related expenses.
The Importance of Filling Out the FAFSA
The FAFSA (Free Application for Federal Student Aid) is the foundation of most financial aid opportunities. Yet, many students either don’t complete it or miss critical deadlines, leaving valuable aid on the table.
Filing the FAFSA opens the door to federal loans, grants, work-study programs, and even many state and institutional scholarships*. It provides a clear picture of a family’s financial situation, allowing schools to determine how much aid a student qualifies for.
Here are some tips for completing the FAFSA:
- Submit the application as early as possible, as some aid is distributed on a first-come, first-served basis.
- Ensure accuracy by double-checking all financial information.
- Don’t assume you won’t qualify—many families are surprised by the amount of aid they’re eligible to receive.
*The FAFSA Simplification Act was created to make applying for federal financial aid easier and more accessible. Starting with the 2024-2025 school year, the process was simplified, cutting the number of questions from over 100 to about 30. It also allows families’ tax information to be automatically pulled from the IRS, saving time and reducing errors.
How Financial Aid Makes Higher Education Affordable
Higher education is one of the most significant investments a person can make in their future, but it’s no secret that the costs can be daunting. That’s where financial aid steps in.
According to the College Board, the average cost of tuition and fees for the 2024-25 academic year was $11,610 for in-state public colleges and $43,350 for private institutions. Financial aid helps bridge the gap between what families can afford and the actual cost of attendance.
For many families saving for college, aid can mean the difference between attending their dream school or settling for a less costly alternative—or even foregoing college altogether. By making higher education more accessible, financial aid empowers students to achieve their potential and pursue careers that require specialized training or degrees.
Tips for Maximizing Financial Aid Opportunities
To get the most out of financial aid, students and families should consult their investment counselor so they can understand all their options. Here are some practical tips:
- Start Early: Research scholarship opportunities as early as high school and create a calendar of important deadlines.
- Cast a Wide Net: Apply for as many scholarships and grants as possible. Small awards can add up quickly.
- Keep Grades Up: Many scholarships are merit-based and require a strong academic record.
- Negotiate Aid Offers: If you receive multiple financial aid packages, don’t hesitate to ask schools for adjustments based on your financial situation.
- Seek Guidance: Investment counselors, high school guidance counselors, and online resources can provide valuable insights and assistance.
By taking these steps, families can reduce their reliance on college savings or student loans and make higher education more affordable.
Financial Aid Awareness Month is a reminder that higher education is within reach for everyone. By understanding the types of financial aid available, completing the FAFSA, and taking proactive steps to maximize opportunities, students and families can overcome the financial barriers to achieving their dreams.
At David Lerner Associates, we believe in the power of education and its role in building a brighter financial future. If you or your family have questions about funding higher education, our team is here to help. Contact us today to explore strategies for maximizing your financial resources and achieving your academic goals. Let’s work together to make your educational dreams a reality!
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.