5 Dangerous Financial Aid “Types” to Avoid


apply-onlineWhen hunting for financial aid, make sure you’re familiar with the five types of students who are in the most danger of losing dollars—and don’t be “that guy.”

The Worker Bee

Even though most students feel perpetually broke, it is very possible to earn “too much” while you’re in college. The downside of achieving a higher tax bracket is that it can cause you to miss out on thousands when it’s time to report your income.

The fix: Instead of working multiple jobs or angling for big one-off paydays, pour that energy into getting the highest GPA possible. In the long run, the financial aid opportunities available to good students pay off more than any job or paycheck.

The Dawdler

Imagine this: You’re about to begin your sophomore year at your dream college. You’ve filed the FAFSA and checked all the appropriate boxes, but when your award letter arrives, it’s for $8,000 less than the year before—leaving you to make up the difference somehow.

The fix: Most federal and institutional aid is awarded on a first-come-first-served basis, so missing important deadlines could leave you high and dry. File the FAFSA as soon after January 1 as possible and, if necessary, estimate your tax returns and those of your parents. It’s better to have to go back and update your forms than to skip a deadline and miss out on your maximum reward.

The Believer

Despicable as it is to prey on needy college students, many scammers do just that—and falling for a scholarship scam can set you back time and hassle, not to mention thousands of dollars.

The fix: Fortunately, scholarship scams are pretty easy to spot if you know the warning signs. Avoid any offer that a) requires you to pay a fee upfront; b) claims to be “automatic,” “guaranteed,” or simply too good to be true; or c) asks you to attend a free seminar. All of these are common characteristics of cons, but when in doubt, research the award/organization with the Better Business Bureau.

The Perpetual Student

Waffling back and forth between majors, repeatedly switching schools, borrowing more than you need: All these things can impact your financial aid eligibility. With no access to funding, you may have to take a break from your studies and save money. But how are you supposed to do that when no well-paying employer will hire you without a college degree? It’s a pretty miserable catch-22.

The fix: It’s understandable—and sometimes advisable—to switch gears at some point in your college career. But for the sake of your solvency, it’s smart to choose a general direction as early as possible and stick with it. Meeting with your advisor early and often is the key to staying the course.

The Casualty

Divorce is hard enough without all its inherent financial implications. But for college students, accidentally reporting the “wrong” parent’s income on financial aid forms can spell disaster.

The fix: Pay close attention to the portion of the FAFSA where it talks about reporting your custodial parent’s income—that’s the parent you live with most of the time. You may also be asked for information for noncustodial and step-parents; when in doubt, contact the prospective school’s financial aid office to be sure you’re reporting the right info.


ABOUT THE AUTHOR

This article was written by Hannah Purnell

Hannah Purnell is a staff writer for CollegeView.com. Hannah writes extensively on the topic of undergraduate studies and the college search process.

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