Confused about FAFSA loans vs grants - beginner needs help

FAFSA itself isn't a loan - it's just the application that determines what aid you're eligible for. Your financial aid package will include a mix of different types of aid: 1. Grants - This is FREE money you don't repay (Pell Grant is the main federal one) 2. Work-study - Money you earn by working part-time on campus 3. Loans - Money you borrow and need to repay with interest With your SAI of $14,320, you might not qualify for much in Pell Grants (those typically go to students with lower SAI scores), but check your aid letter carefully to see exactly what you were offered.

The difference between subsidized and unsubsidized loans is WHO pays the interest while you're in school: - Subsidized: Government pays the interest while you're in school (better deal!) - Unsubsidized: Interest accumulates while you're in school, even though you're not making payments yet Parent PLUS loans are entirely separate loans your PARENT takes out to help pay for your education. They have higher interest rates and fewer forgiveness options, so be careful with those. With your mom's income situation, she might not even be approved, and frankly might not want to take on that debt.

Ok this is IMPORTANT for a first-gen student. Your SAI ($14,320) doesn't determine your out-of-pocket cost!!!! Each college will use that number differently. You need to look at each financial aid award letter and compare them. Also, did you apply for any scholarships? Those can help ALOT and don't need to be paid back. Even small ones add up!!! For loans, ONLY take what you absolutely need. I made the mistake of accepting everything they offered and now I'm paying back money I didn't even use 😫

I WAS IN YOUR EXACT SHOES 2 YEARS AGO!!! The whole system is DESIGNED to be confusing so people take out more loans than they need. They literally profit off our confusion. My advice - call your school's financial aid office and DEMAND a one-on-one appointment to review your full aid package. Ask them to explain EVERY SINGLE LINE ITEM and don't leave until you understand it all. It's their JOB to explain this to you!!!!

I had the same issue trying to reach my financial aid office when I was confused about loans. After wasting hours on hold and getting disconnected, I found this service called Claimyr (claimyr.com) that helped me actually get through to a FAFSA agent to explain my loan options. They have a video showing how it works: https://youtu.be/TbC8dZQWYNQ The agent I spoke with explained everything about the different loan types and helped me understand what I was actually being offered. So much clearer than just reading those confusing emails!

It's specifically for reaching Federal Student Aid, but talking to them first can really help clarify what's being offered before you talk to your school. They can explain all the federal programs and what you qualify for based on your FAFSA, then you'll be better prepared when you do reach your school's financial aid office.

dont worry bout parent plus if ur mom got denied u get more loans anyway. happened to me too

one thing no one told me - check if ur school requires a separate CSS Profile application for institutional aid!! my dumb a$$ missed out on school grants my first year cuz i only did FAFSA and not CSS!

Not all schools require the CSS Profile - it's usually just private colleges and some competitive public universities. But it's worth checking your specific school's financial aid website to see if they require it. The CSS Profile does get into more detailed financial information than FAFSA and can help schools distribute their own institutional aid (grants and scholarships from the school itself).

To answer your scholarship question - no, there's generally no limit to how many scholarships you can accept! The only thing that happens is if your total aid (including scholarships) exceeds your cost of attendance, the school might reduce some of your loans or work-study (which is actually good for you). Also, don't forget to look into work-study if it was offered. It's a great way to earn money for school expenses without taking on more debt.

One last tip - SAVE ALL YOUR FINANCIAL AID DOCUMENTS! Create a folder on your computer and save every email, letter, and document they send you. You'll need them for taxes, future FAFSA applications, and if there are ever any disputes about what was promised vs what was delivered. The system is a mess and you need to protect yourself with documentation.

As someone who was also completely lost my first year, I want to emphasize something really important - you don't have to accept ALL the loans they offer you! I made that mistake and borrowed way more than I actually needed. Here's what helped me understand my aid package: Look for anything labeled "grant" or "scholarship" - that's the free money you don't pay back. Everything else (Direct Subsidized Loan, Direct Unsubsidized Loan, etc.) are loans you'll need to repay. Also, consider starting at a community college for your first two years if cost is a major concern. You can knock out general education requirements for a fraction of the cost, then transfer to a four-year school. I wish someone had told me that option when I was stressing about loans! Don't let the complexity scare you away from college - just make sure you understand what you're signing up for before you sign anything.