The Financail Aid Process

The Financial Aid Process

he financial aid process within any university can be very complicated. Most students are unfamiliar with financial aid and how it works. As a financial aid counselor, I have learned a lot about the financial aid process over the years.

To start, let’s talk about the FAFSA application and how it works. In order for a student to be eligible for financial aid, he or she must complete the FAFSA application. The FAFSA (Free Application for Federal Student Aid) allows student to apply for the Pell Grant, Subsidized and Unsubsidized Loan. To complete the FAFSA, a student must first login to www.FAFSA.ed.gov and create a PIN number. The PIN number is uses to electronically sign the FASFA. Once the student has created a PIN he or she can begin filling out the FAFSA. The fill out the FAFSA application the student must use his or her current year taxes. Each year, a student must renew his or her FAFSA application.  

The FASFA will determine the types of financial aid the student is eligible for. Once the FAFSA application is complete, the federal government will send the application to any and all the schools portrayed on the application. Once the application is received by the school, the school determines what requirements are needed (if any) and determines if the student has been selected for verification. If the student is selected for verification, he or she must submit the proper documentation in order for the school to complete the verification processed. Once the verification is complete, the student’s awards will be packaged. On the contrary, if the student is not selected for verification, his or her awards will be packaged.

As a side note, all students eligible to receive the Subsidized and Unsubsidized Loan must complete the Master Promissory Note (MPN) and Entrance Loan Counseling (ELC) found at ww.studentloans.gov

·         The MPN is a note from the student promising to pay back his or her loans six months after he or she graduation or falls below half time.

·         The ELC is a test taken by the student on the terms and conditions of the Subsidized and Unsubsidized Loan.

Once the MPN and ELC have been complete, the documents are automatically sent to the school. The school can now award the student the Subsidized and Unsubsidized Loans.

After the student has been packaged and the add/drop date of the term has passed, the financial aid department releases the students aid to student accounting. Accounting then applies the funds towards the student’s tuition expenses and issues the student a disbursement refund for all remaining aid. The refund is meant to be used by the student to pay for any additional educational expenses.  The disbursement process happens each term for 4 consecutive terms until the year end date (June 30^th).