6 common misconceptions about financial aid


So, you’ve gotten into college (congrats!), filled out your FAFSA (great!) and are now staring at a financial aid award letter, wondering what to do next (uh-oh). As the May 1 deadline to accept financial aid offers approaches, TIME Moneyland spoke to Mark Kantrowitz, publisher of FinAid.org and Fastweb.com, to thwart many of the common misconceptions families have when it comes to financing a college education.

1. Loans reduce the cost of college.Student loans help families manage their cash flow by spreading out the cost of college over many years, but they do not lower the expense. “A loan is a loan is a loan,” says Kantrowitz. “But a lot of financial aid award letters treat loans as if they reduce the cost.” They don’t. Instead, loans simply reduce the amount of money families have to write a check for up front. Additionally, because of interest, they actually increase the final cost…

Click here for the full story

Sign up for our K-12 newsletter

Newsletter: Innovations in K12 Education
By submitting your information, you agree to our Terms & Conditions and Privacy Policy.

Want to share a great resource? Let us know at submissions@eschoolmedia.com.

New AI Resource Center
Get the latest updates and insights on AI in education to keep you and your students current.
Get Free Access Today!

"*" indicates required fields

Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
Hidden
Email Newsletters:

By submitting your information, you agree to our Terms & Conditions and Privacy Policy.

eSchool News uses cookies to improve your experience. Visit our Privacy Policy for more information.