Avoid 3 Mistakes When Applying for Summer Financial Aid
As winter melts into spring, some college students are already looking further ahead -- toward summer. That's because if you plan to enroll in a summer session, now is the time to prepare. And that means studying up on your school's financial aid rules.
You may be an expert in English, calculus and other academic subjects, but funding an education can be an advanced-level topic all by itself -- one that stumps many students. If you want to make the grade and do some successful summer studying, avoid making the following financial aid and student loan mistakes.
[Understand financial aid, payment options for summer classes.]
1. Filing the wrong FAFSA: The first step to getting financial aid for college -- no matter which session you plan to enroll in -- is to complete the Free Application for Federal Student Aid. If you're currently in college, you likely not only know this, but you've also probably already completed this year's FAFSA.
But this year's FAFSA may not be the one you actually use for summer financial aid. Each FAFSA lasts an entire academic year, spanning from July 1 through the end of the next June.
We're currently in the 2016-2017 award year. July 1 marks the beginning of the 2017-2018 academic year. Since summer classes would likely occur during or after July, it makes sense that you'd complete the 2017-2018 FAFSA to receive aid for those classes. That may not be the case, though.
Colleges can divide their academic year differently from the federal student aid definition. Be sure to contact your school's financial aid office to find out which FAFSA to complete for summer aid -- and when the school's priority filing deadline for summer session is. Finding that out will help you maximize the amount of federal and institutional aid you're able to receive -- including student loans.
[Learn what to expect your first time filling out the FAFSA.]
2. Not knowing the rules: While asking the financial aid office about these FAFSA dates, check and see what additional rules they have for receiving summer financial aid. Schools may require you to submit other applications or documentation in addition to the FAFSA.
They may also require you to take a minimum number of credits or units to be eligible for summer aid. At many schools, that number equals at least two courses. So, if you're planning on making up a single course or taking a class that was full during the semester, you may need to find an alternative way to fund it.
Of course, regular rules for receiving federal financial aid apply for summer sessions as well. Among the requirements: You must be a U.S. citizen or eligible noncitizen, not have any existing federal student loans in default and be maintaining satisfactory academic progress per your school's definition. Talk to your school if you have questions about your eligibility.
[Read advice on paying for college.]
3. Not planning ahead: Students take summer classes for a number of reasons, including keeping their studies on schedule -- for instance, if they're double majors or changed majors -- and trying to get ahead of the game and graduate early.
If you're aiming for the latter, you may be doing so to cut your tuition costs. Enrolling in summer classes can be a smart way to achieve this. Schools may charge less for classes during the summer, and you may be able to take them at a less expensive community college, too -- just make sure your primary institution will accept those credits.
And while saving money on college surely sounds great, summer sessions can cost you if you don't plan ahead. Each year, students can receive only a set amount of federal financial aid. If you've used up your allotment by the time summer rolls around, you may need to use more expensive funding options, like borrowing student loans from a private lender.
Your school may offer its own loans for such a shortfall, sometimes called emergency loans, but these likely also won't have the same repayment benefits as federal loan options do. Be sure to scrutinize the details of any loan before you sign for it. While borrowing more than you planned can keep you on track for a summer session, it may end up derailing you financially in the future.
Ryan Lane is the senior editor for American Student Assistance, where he oversees the financial website saltmoney.org and its online community, SALT Central. He graduated from Syracuse University with a B.S. in journalism.
