With about 6 weeks left until most colleges start the 2024-25 academic year, it probably feels too late to apply for admission and financial aid. Sure, some schools’ application period has closed and many scholarships have already been allocated. However, many (if not most) colleges are still taking applications for admission and financial aid.
Unfortunately, many families will assume financial aid deadlines have passed or all aid has already been handed out. They’ll pass up the chance to file their FAFSAs and that’s a big mistake.
In this week’s article, I’ll tackle the most common reasons for not filing the Free Application for Federal Student Aid (FAFSA) and my rebuttals for why you should reconsider.
1. Assumptions about Ineligibility:
– Reason: “We make too much money to qualify for financial aid.”
– Rebuttal: The median household income in the US is just under $75k and $69k in Michigan. Many families are surprised to learn that they qualify for some form of aid, even with higher incomes. In fact, over 86% of full-time undergraduate students receive financial aid.
Plus, some schools and states use FAFSA data to award their own aid, regardless of federal eligibility. In Michigan, more than 4 out of 5 families will qualify for Michigan Achievement Scholarship and it’s very valuable:
- Up to $2,750 if you attend a Michigan community college annually for up to three years.
- Up to $4,000 if you attend a private college or university annually for up to five years.
- Up to $5,500 if you attend a Michigan public university annually for up to five years.
2. Misconceptions About Aid:
– Reason: “FAFSA only gives out loans, and we don’t want to take on debt.”
– Rebuttal: FAFSA opens doors to grants, scholarships, and work-study programs that don’t need to be repaid. For example, 34% of undergraduates received Federal Pell Grants, which do not have to be repaid, and over 80% will be eligible for the Michigan Achievement Scholarship. Loans are just one part of the potential aid package.
3. Complexity and Time:
– Reason: “The form is too complicated and time-consuming.”
– Rebuttal: Filling out a government form can seem scary, but new changes to the FAFSA make it more straightforward than ever. The average time to complete the FAFSA is less than 30 minutes, and the potential financial benefits far outweigh the time spent. Even if a student only gets an additional $1000 as a result of completing the form, how many hours would they have had to work to earn that much? At $20/hour, it would take FIFTY hours! This is time well-spent.
4. Privacy Concerns:
– Reason: “We’re uncomfortable sharing personal and financial information.”
– Rebuttal: Your information is protected by federal privacy laws and the federal government already has most of it by virtue of your tax filings. The data you provide is used solely to determine financial aid eligibility and is not shared with other agencies. Over 17 million students complete the FAFSA each year, and there has never been a breach of the database.
5. Undocumented Status:
– Reason: “Undocumented students can’t get any financial aid.”
– Rebuttal: While undocumented students are ineligible for federal aid, they may still qualify for state aid, institutional scholarships, and private grants. For instance, 19 states offer in-state tuition rates to undocumented students, and many colleges provide institutional aid.
6. Fear of Debt:
– Reason: “We’re worried about taking on debt.”
– Rebuttal: Filing the FAFSA doesn’t obligate you to take out loans. It simply gives you options. You can choose to accept only the grants and scholarships you receive. Over 50% of FAFSA applicants receive grants and scholarships that do not require repayment.
7. Non-Traditional Status:
– Reason: “I’m an older student returning to school; this isn’t for me.”
– Rebuttal: FAFSA isn’t just for recent high school graduates. Many non-traditional students qualify for aid that can make returning to school more affordable. In fact, 40% of college students are 25 or older, and many receive financial aid.
8. Premature Decision:
– Reason: “We decided early on to save up and manage without financial aid.”
– Rebuttal: Circumstances can change. Filing the FAFSA keeps your options open and ensures you don’t miss out on unexpected opportunities for assistance. Each year, millions of dollars in financial aid go unclaimed because students did not apply. The reality is that students who complete the FAFSA are 63% more likely to attend college directly after high school. If you have enough saved that you can cover college costs without scholarships, loans or grants, good for you! But, wouldn’t you rather keep some of those savings and roll them over into other investments like retirement?
9. It’s Too Late:
– Reason: “Financial aid deadlines have probably passed.” Or “All aid has already probably been handed out.
– Rebuttal: FAFSA can be completed year-round and most grants are available regardless of when you apply and which semester you plan to attend in a given academic year. For example, students may fill out the FAFSA in September if they plan to start classes in second semester (January). Not only that, but some colleges will hold scholarship opportunities and aid back because they know that some students will change their minds and apply late in the cycle.
I hope that I’ve been able to convince you to complete the FAFSA with statistics. If you aren’t there yet, let me pose one last question- what do you have to lose? What other activity can you undertake where all you have to risk is 30 minutes of your time and the potential rewards are in the thousands of dollars?
As always, CCA is here to help students and families maximize their financial aid opportunities and make college more affordable and you can reach out directly to me for help. So let’s get that FAFSA done!!
