Introduction
For many college students, financial aid is critical to making their higher education dreams a reality. But understanding the various components of this assistance can be confusing. One term that often comes up in the context of financial aid is “remaining need.”
Definition of Remaining Need in Financial Aid
Remaining need in financial aid refers to the cost of attendance (COA) that a student’s family is expected to cover. COA includes tuition and fees, room and board, books and supplies, and other educational-related expenses for an academic year. The amount of remaining need is calculated by subtracting the amount of aid a student has already received from the COA.
Unpacking What Remaining Need Means for College Students
Knowing your remaining need in financial aid is the first step towards reducing the amount of money you and your family will have to pay out of pocket. Here are some tips on how to figure out your remaining need and ways to reduce it.
How to Figure Out Your Remaining Need in Financial Aid
Your school’s financial aid office should provide you with an estimate of your remaining need after you’ve filled out the Free Application for Federal Student Aid (FAFSA). This estimate will include the amount of money you’ll need to pay out of pocket for tuition, fees, room and board, books and supplies, and other educational-related expenses for the academic year.
Tips on Reducing Your Remaining Need in Financial Aid
One of the best ways to reduce your remaining need in financial aid is to apply for scholarships. According to a recent report from the National Center for Education Statistics, more than $6 billion in scholarships and grants went unclaimed in 2018. Taking the time to research and apply for scholarships can make a significant difference in reducing your remaining need in financial aid.
You may also want to consider working part-time while attending school or taking on an internship. Although this may take away from study time, it could help to offset some of the remaining need in financial aid.
Understanding What Happens if You Don’t Meet Your Remaining Need in Financial Aid
If your remaining need in financial aid is too high to cover out of pocket, there are several options available to you. Taking out student loans is one of the most common strategies for financing your remaining need in financial aid. However, it’s important to understand the implications of taking out loans before making any decisions.
You may also be able to defer your payments until after graduation or explore payment plans offered by your school. Some schools also offer work-study programs that can help to cover some of the remaining need in financial aid.
Conclusion
Remaining need in financial aid refers to the amount of money a student’s family is expected to cover for the cost of attendance. Knowing your remaining need is key to reducing the amount of money you and your family will have to pay out of pocket. Common strategies for financing your remaining need include taking out student loans, deferring payments until after graduation, exploring payment plans offered by your school, and taking on a work-study program.
For more information on financial aid and how to reduce college costs, check out these resources:
- U.S. Department of Education Federal Student Aid
- College Board Financial Aid 101
-
(Note: Is this article not meeting your expectations? Do you have knowledge or insights to share? Unlock new opportunities and expand your reach by joining our authors team. Click Registration to join us and share your expertise with our readers.)