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::March Edition::
Welcome to the March edition of Financial Friday, Oklahoma Money Matters' online personal finance question-and-answer forum. This month, we’re answering a question about understanding your financial aid offer.
I’ve received my financial aid award letter. What do I do next?
March Madness is not only for basketball but can also be used to describe the influx of financial aid offers for college bound students. This is the time to explore your academic options from a monetary lens. You have the right question and have come to the right place.
Your award offer will list all the types of financial aid you’re eligible to receive. Depending on your eligibility status, you’ll have the option to accept grants, scholarships, work-study and federal student loans. You’ll need to compare your tuition and other school-related expenses to the financial aid you’re offered to determine how much of the funds you actually need to accept. After you’ve figured out exactly how much aid you need, follow the tips below to make the best use of your award package.
- Limit borrowing. Just because it’s offered doesn’t mean you have to accept all the money listed on your financial aid award letter. Go for free money first! Grants and scholarships are considered free money because it's money you can use to pay for your education that you won't have to pay back. Scholarships are available through many sources, including your college, private organizations, state agencies and the federal government. Be sure to check out local organizations, such as your place of worship and community groups, for local and nationwide scholarships. Check out the scholarship page on UCanGo2.org to search for scholarships by deadline or category. You can also visit OKcollegestart.org’s scholarship database to find awards that match your profile.
- Review student loan options. Since student loans must be repaid with interest, explore all your borrowing options to find the loan that best meets your need. Federal student loans typically have lower interest rates and better repayment options than private loans. Borrow only what you need to pay school expenses to keep your student debt as low as possible.
- Be salary savvy. If you need to borrow to pay educational expenses, keep your future salary in mind. Make sure the total amount you borrow won’t exceed your expected first-year salary after graduation. ReadySetRepay‘s loan calculator is a great tool to help you estimate your future student loan payment, and it’s a good idea to start thinking about repayment options.
- Continue to complete the FAFSA. You’ll need to complete the FAFSA as soon as it becomes available each year you need financial aid for college. The FAFSA is required for most sources of federal and state aid and some scholarships. Remember, the first letter in FAFSA stands for FREE. Never pay to complete the FAFSA.
- Explore the OKMM website for financial literacy tips. Planning for your collegiate future doesn’t have to be overwhelming. Utilize the tools provided on the site to help you navigate your options.
- Also, be sure to explore other cost saving measures like comparing tuition rates on OKcollegestart.org, choosing in-state instead of out-of-state schools to avoid paying out-of-state tuition, completing general education courses at a two-year college, or working while in school to pay for tuition and other expenses.
If you have money-saving tips you'd like to share, email us at OklahomaMoneyMatters@ocap.org or visit Ask OKMM to submit a personal finance question for a future edition of Financial Friday. Thanks for participating in Financial Friday. Remember, there is always time to take control of your financial future!
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The OKMM Team
Financial Friday is a service of Oklahoma Money Matters, the financial literacy initiative of the Oklahoma College Assistance Program, a division of the Oklahoma State Regents for Higher Education.
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