Over the past 40 years, the average price of getting an undergraduate degree increased 169%, according to a report from Georgetown University. However, each year, billions of dollars in aid are awarded to students through federal and state governments, colleges, and private organizations. This blog post will give you a complete walkthrough of the financial aid process so that you can afford to achieve your educational dreams!

What is the difference between need-based aid and merit-based scholarship?

Financial aid is typically divided into two categories: need-based and merit-based. Need-based aid is awarded based on a student’s financial need, as determined by their family’s assets. Merit-based aid or scholarship is awarded based on a student’s achievements, such as academic performance, athletic ability, or other talents, and is typically awarded through the initial application process.

How do I apply for need-based financial aid?

You can apply for need-based financial aid by completing the FAFSA and CSS Profile.

The Free Application for Federal Student Aid (FAFSA) opens December 1st and is required by most institutions. Financial aid from states, colleges, and universities is commonly given on a first come, first served basis, so it's advantageous to fill out the FAFSA early. First, you will need to create a FSA ID to log into the system. To complete the application, you will need your parent/guardian’s assistance, especially when finding the required information (Social Security number, tax returns, records of child support, current balances of bank accounts, net worth of investments, businesses, and farms).

The College Scholarship Service (CSS) Profile is a College Board-operated application that is typically used by private institutions to determine need-based aid. This application is currently open for the Class of 2025. If you don’t have a College Board account, you’ll need to create one. If you took the SAT, you likely already have a College Board account, which you can use for the CSS Profile. Unlike FAFSA, the CSS Profile costs $25 to submit for the first school and $16 for each additional school, but fee waivers are available for students whose families earn below $100,000 USD.

Make sure to submit these applications (if required) at least two weeks before the college’s financial aid deadline so they can receive the information in time!

How do I estimate my aid?

Many schools have an extensive Net Price Calculator on their website. These tools can help you determine how much financial aid the institution would give you to attend, along with your Expected Family Contribution (EFC). You will need similar documents to the FAFSA application to complete these forms.

How else can I afford college?

Besides FAFSA and the CSS Profile, you can apply for merit-based scholarships or grants, complete a federal work-study program, or take out student loans. Many organizations, such as the Taco Bell Foundation and GE-Reagan Foundation, offer large scholarships for prospective college students. Specific institutions can sometimes offer automatic merit scholarships if you meet a specific GPA or standardized test score requirement. Examples include, the University of Alabama, Howard University, Ohio State University, Georgia State University, and University of Tennessee.

Additionally, ask your school’s counselors if they are aware of any local scholarships in your city and county. Many states also offer need-based and merit-based grants for residents attending college in-state or studying a specific field (ie: Tennessee HOPE Scholarship).

Furthermore, federal work-study provides part-time jobs for students with financial need, with many positions on campus. Finally, you can take out student loans through federal direct loans, Parent PLUS loans, and private banking institutions (though this is often not recommended as the interest rates offered are often high).

How can I maximize my chances of receiving merit-based aid?

You can increase your chances of receiving merit-based aid simply by broadly applying. Many scholarships are designed with a specific student profile in mind, so don’t get discouraged if some aren’t a perfect fit. Keep applying and casting a wide net! It’s also helpful to ask recent graduates from your high school or city for advice.

Essays are also an important factor in receiving merit-based scholarships, as some schools will ask additional prompts when you apply for scholarships. To see how to improve your essay, try Esslo for free! Esslo is trained on hundreds of personal statements and supplementals from admits to Stanford, Ivy Leagues, MIT, and more. It takes your essay draft, makes dozens of comparisons to our collection of admitted essays, and returns with line-by-line comments, overall feedback, and next steps for improvement. With thousands of essays revised, Esslo is a leading tool to help you succeed in the college application process.