February Is Financial Aid Awareness Month
February is the shortest month of the year. However, it is important for showing financial aid options for students in higher education. Financial Aid Awareness Month reminds us to look into the resources that can help pay for college.
Why Financial Aid Awareness Month Matters
For many aspiring students, the financial burden of tuition, books, and living expenses can be a major obstacle. Financial aid provides critical support, helping to bridge the gap between educational aspirations and affordability.
This month, schools and organizations highlight the need to understand financial aid options. They focus especially on completing the Free Application for Federal Student Aid (FAFSA®). If you or someone you care about is planning for college, now is a great time to learn about financial aid. There are many options available to help you.
A Brief History of Financial Aid
The concept of financial aid is not new. In centuries past, wealthy benefactors often supported the education of those in need. However, structured financial aid as we know it today took shape in the mid-20th century.
1950s: Colleges began offering scholarships with their own set of rules.
1964: The federal government introduced work-study programs, allowing students to earn money while pursuing their education.
1965: The Higher Education Act established federal financial aid programs, making the U.S. government the primary source of funding for college students.
Since then, financial aid programs have expanded, offering students a mix of loans, grants, and other assistance. While the system has become more complex, understanding your options can make a significant difference in securing funding.
Exploring Financial Aid Options
Navigating financial aid may seem overwhelming, but there are multiple ways to reduce college expenses. Here are some key options:
1. Complete the FAFSA®
The FAFSA® is a gateway to various types of financial assistance, including grants, scholarships, work-study programs, and federal student loans. While some families hesitate due to concerns about complexity or eligibility, completing the FAFSA is essential. It’s secure, free to submit, and could unlock valuable financial support.
2. Apply for Grants and Scholarships
Grants and scholarships provide funding that doesn’t need to be repaid, making them one of the best ways to reduce education costs.
Merit-based scholarships reward academic excellence, athletic achievements, or other talents.
Need-based grants are awarded based on financial need, helping families with limited income.
Encourage students to research opportunities through government programs, universities, non-profits, and online platforms like FastWeb or Scholarships.com.
3. Explore College Savings Plans
If you’ve been saving for college, it’s important to understand how to maximize those funds. If you haven’t started yet, there’s still time! Consider these popular options:
529 College Savings Plans – Tax-advantaged savings specifically for education expenses.
Coverdell Education Savings Accounts (ESAs) – Another tax-free savings option for education.
Savings Bonds & Life Insurance – Alternative ways to fund a college education.
Final Thoughts
Financial Aid Awareness Month is a good time to check your financial plan. It’s also a chance to find ways to get money for education. Whether it’s applying for scholarships, completing the FAFSA, or contributing to a savings account, every effort counts.
Sources:
https://nationaltoday.com/financial-aid-awareness-month/#history
Disclosures:
This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.
This site may contain links to articles or other information that may be on a third-party website. Advisory Services Network, LLC is not responsible for and does not control, adopt, or endorse any content contained on any third-party website.
This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
529 Plan, or "qualified tuition plan," is an investment account that provides tax benefits when the savings are used for qualified education expenses. Withdrawals from a 529 plan account can be taken at any time, for any reason. But, if the money is not used for qualified education expenses, you will incur a 10% penalty and owe taxes on any investment gains.
These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.
