Parents & Guardians: Financial Aid
101
College Knowledge Foundation
A Parent’s Guide to Understanding College Costs
Paying for college can seem complicated, but understanding financial aid is one of the most important steps in helping your student make smart and affordable choices. Financial aid can come from many different places, and with the right planning, it can make college more affordable than you might expect.
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At the College Knowledge Foundation, we believe that when parents and guardians understand the financial aid process, students feel more supported and confident about their future.
What is Financial Aid?
Financial aid is money that helps students pay for college expenses, including tuition, housing, books, and supplies. It can come from the federal government, state programs, colleges, and private organizations.
Type of Aid
Description
Repayment Required?
Grants
Money awarded based on financial need. Common examples include the Federal Pell Grant and state grants.
No
Scholarships
Money awarded based on academics, talents, leadership, or other achievements.
No
Work-Study
A federal or school program that lets students earn money through part-time jobs on or off campus.
No
Loans
Borrowed money that must be repaid with interest after graduation.
Yes
Key Financial Aid Terms
1. FAFSA
The main form used to determine a student’s eligibility for federal and state financial aid.
2. CSS Profile
A separate application used by some private colleges to award institutional aid.
3. Expected Family Contribution
The amount the government estimates your family can contribute toward college costs.
4. Award Letter
The official document from each college explaining the types and amounts of financial aid your student is eligible to receive.
Steps for Parents to Take:
1. Complete the FAFSA
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Start with the FAFSA, which opens each year in the fall. It’s free to complete and required for most types of aid.
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Website: https://studentaid.gov
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You’ll need tax information, income records, and your student’s details.
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Both the student and a parent will need FSA IDs to sign electronically.
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2. Check for the CSS Profile
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Some private or out-of-state colleges require the CSS Profile for institutional financial aid.
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Website: https://cssprofile.org
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It may ask for more detailed family financial information than the FAFSA.
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3. Research Scholarships
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Encourage your student to apply for local, national, and school-based scholarships throughout the year.
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Explore our Free Scholarship Finder Websites page for trusted resources.
4. Compare Financial Aid Offers
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When acceptance letters arrive, review each school’s financial aid award letter carefully.
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Compare how much of the package is free aid (grants and scholarships) vs. loans.
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Factor in total costs, including housing, meals, transportation, and books.
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Use a net price calculator to estimate the true cost of each school.
5. Have a Family Discussion
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Talk openly with your student about college costs and what’s realistic for your family. Include discussions about part-time work, savings, and responsible borrowing.
Helpful Tools for Parents
Explore trusted resources to better understand how to guide your student through the process:
Don the Knowledge Guy’s Tip
Financial aid can seem confusing at first, but it’s really about being informed and proactive. Start early, keep track of deadlines, and ask questions when you’re unsure. The more you understand now, the easier it will be for your student to make smart financial choices later.
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Knowledge is your superpower, and encouragement is theirs.