Tips for First-Generation Students: Understanding Your Financial Aid Package and Key Deadlines

For first-generation students, navigating the financial aid process can feel overwhelming. Understanding the ins and outs of your financial aid package, key deadlines, and financial literacy concepts is crucial for making informed decisions about your education. In recognition of Financial Literacy Month, here are essential tips to help first-generation students successfully manage their financial aid.

1. Understanding Your Financial Aid Package

As the college acceptances roll in, understanding your financial aid package is key. Your financial aid package consists of different types of funding that help cover tuition, fees, and living expenses. Here’s what you need to know:

• Grants: These are need-based funds that you do not have to repay. Common grants include the Pell Grant and state-specific grants.

• Scholarships: Merit-based or need-based awards that do not require repayment. Search for scholarships through your school, community organizations, and national databases. To request a copy of our scholarship list, follow @drcharmainetroy on Instagram and request the list via direct mail.

• Work-Study: A federal program that provides part-time employment opportunities for eligible students to help cover educational expenses. Work-study can be offered as part of your financial aid package if you qualify for it.

• Loans: Borrowed money that must be repaid with interest. Federal student loans typically offer lower interest rates and flexible repayment plans compared to private loans.

2. Reviewing and Comparing Financial Aid Offers

• Check the cost of attendance (COA) and compare it to your expected financial aid to determine how much you need to cover out-of-pocket.

• Understand the terms of each aid type, especially if loans are included. Research interest rates, repayment plans, and whether the loan is subsidized or unsubsidized.

• Accept grants and scholarships first, work-study second, and loans last to minimize debt.

3. Key Financial Aid Deadlines to Remember

Missing deadlines can result in lost funding, so stay organized! Here are some key dates to track:

• FAFSA Submission: The Free Application for Federal Student Aid (FAFSA) opens in December for the following academic year. Some aid is first-come, first-served, so apply as early as possible. Also, apply for early admission to your colleges of choices so that you can be considered early for scholarship and grant opportunities.

• State and Institutional Aid Deadlines: Many states and colleges have priority deadlines, which can vary. Check your school's financial aid website to confirm.

• Scholarship Deadlines: These can be year-round, but many have spring and fall deadlines. Keep a calendar to track upcoming opportunities. Apply, apply, apply!! Don’t count yourself out of these opportunities!

• Loan Application Deadlines: If you need additional loans, verify deadlines for both federal and private loan applications.

4. Building Financial Literacy Skills

Beyond securing aid, it’s important to develop strong money management habits.

• Budgeting: Create a budget to track expenses, including tuition, rent, books, and personal expenses.

• Credit Awareness: Understand the impact of credit scores and responsible borrowing.

• Loan Repayment Planning: Review loan repayment options before graduating to prepare for future obligations.

• Emergency Savings: Try to set aside a small fund for unexpected expenses to avoid financial stress.

5. Seeking Support and Resources

• Meet with a financial aid advisor at your college to review your package and ask questions.

• Use free financial literacy resources such as Federal Student Aid (studentaid.gov) and #FirstGenTalks.

• Connect with mentorship programs like #FirstGenTalks or your school’s first-gen support group to gain insights from peers and professionals.

Financial literacy is a critical skill for first-generation students, and understanding your financial aid package is a great first step. By staying informed and proactive, you can make the best financial decisions for your education and future. Use this Financial Literacy Month to review your aid, meet deadlines, and build strong financial habits that will serve you well beyond college.

For more resources and tips, follow #FirstGenTalks and stay connected with the first-gen community!