If there is ever a topic among people, young and old, that can create instantaneous cringeworthy moments, it most definitely deals with financial aid. With all of the changes and updates to a FAFSA system that has yet to prove itself, any information one can discover will be beneficial overall. One area that will potentially help pertains to financial aid refunds. But what are they, and how does one go about getting a financial aid refund?
What is Financial Aid Refund?
While any basic research will provide the answer, generally, financial aid refunds are those monies that remain after a learning institution is paid the tuition and any other associated costs for attending that organization.
These may originate from federal grants, any need-based aid awarded, and even school loans, but typically will be generated from any private grants or scholarships a person receives. Most need-based awards do not offer extra money, so the latter are often better at providing refunds.
It’s an easy math formula to determine whether someone will receive a financial aid refund. Simply subtract the total bill from the school from the total amount of aid one has been granted. For example, if a post-secondary establishment’s final billing is $15,000 and a student has been awarded $16,500, once the bill is paid, that student will receive a financial aid refund of $1,500.
Bear in mind that it can be returned if a person qualifies for more money than they need to cover post-secondary expenses. This, in effect, will lessen the amount needed to be paid back in student loans after completing schooling (unless it is grant money that does not need to be paid back) which means less interest compounding during one’s educational involvement.
How Do You Know if You are Eligible for a Refund?
In a world that sometimes provides over-communication, it is quite easy to find out how much you may have been rewarded. Most schools now provide an online portal that allows students to check the details of their bill and any financial aid (scholarships, awards, etc.) that has been credited to them. Also, depending on whether parents or students directly applied for the awards, letters and emails will be generated to inform the recipients of the numbers and possible refunds.
Again, depending on where students may receive their funds, the online FAFSA portal will give some information individually. Logging into the account, navigate toward the “My Activity” section and details will be available. Students can also call their institution’s financial aid office or registrar’s office to learn more, though they may direct students back to online accounts.
Keep in mind that all schools may have different disbursement time periods. Several schools work within a 30-day period, so students must plan carefully if they rely on those funds to live and operate.
What Are the Different Types of Financial Aid That Can Contribute to a Refund?
- Many opportunities abound for receiving money toward post-secondary learning, but some require time-consuming, focused directives.
Federal grants are one method of gaining oft-needed financial assistance. These will vary based on four-year colleges, community colleges, and technical career schools. As long as a person is in need and remains in the program for which they received the necessary money, these grants don’t need to be paid back. The most recognizable grant is the federal PELL grant for undergraduate students. Completing the FAFSA will make one eligible to qualify.
Lesser-known grants may be awarded to those who have served in the military, such as a service grant for members who went on deployment. Some institutions participate in supplemental grants to enhance amounts for individual students. With the national teacher shortage occurring, numerous grants and incentives exist to help build teacher graduate programs, such as the Teacher Education Assistance for College and Higher Education (TEACH) grant.
In addition to grants, the federal government offers opportunities to earn money through its work-study programs (not available at all schools) and federal student loans.
- For those students who have acquired high academic success prior to enrollment in a post-secondary life, scholarships are another form of earning financial support through merit-style awards. These do not usually require repayment and are often bestowed according to academic achievement.
As always, depending on the school and chosen career programs, these will differ in amounts, especially with private schools. These can often be awarded based on special career pathways at the school or offered as sibling discounts if there is a family tradition toward attendance.
- Finally, school loans are those funds that must be paid back. They are characteristically low-interest loans that build during the time one spends at the institution and take effect at some point shortly after graduation. Both students and parents can apply for these types of federal loans to support finances for attendance in post-secondary schooling. And depending on the amounts disbursed, these can also help qualify for financial aid refunds.
How Do You Receive Your Financial Aid Refunds?
Receiving refunds is easy overall. Most funds can be deposited directly into personal bank accounts, making the money instantly accessible. Some individuals may desire the paper check for physical record-keeping and would simply require signatures and a deposit into a bank account. Either way, this credit balance can be used for college texts, additional club fees, or simply money to help with living expenses.
One of the most important actions is to ensure one has a direct deposit set up for these refunds, especially if it is the only option for a return of funds. These require specific information depending on the bank. Some of the most common include the bank’s address and phone number, the type of account (checking or savings), the specific account’s routing number, and the specific account number.
This can be completed online or in the bank through paper forms. If for some reason, one changes banks or deposit information, it is imperative to keep this information up to date in order to receive any future refunds or significant money transactions.
Doing due diligence in research and preparation for entrance into a post-secondary institution and earning scholarships, grants, and school loans will certainly enhance any college experience and provide some relief in handling financial questions.
Financial aid refunds are extremely important to understand and acquire as one enters the career landscape. Students must continue to explore the incredibly different ways to invest in their education, while doing it in a fiscally responsible way, as it affects them for the remainder of their lives.
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