Understanding Financial Aid and Scholarships

Zoe, a high school senior, is applying to colleges and needs financial aid. She should submit the FAFSA to determine her Expected Family Contribution (EFC) and eligibility for need-based aid. Even if she doesn't qualify for need-based aid, filling out the FAFSA is crucial for merit-based scholarships. After submitting the FAFSA, Zoe will receive a Student Aid Report (SAR) and should check each college's financial aid requirements. Outside scholarships can reduce her need-based aid but favorably offset loans first. Understanding award letters and prioritizing free money over loans is essential. The video concludes with advice on next steps and resources.

What is the first step Zoe should take to apply for financial aid?

• Submit the CSS Profile

• Submit the FAFSA

• Apply for outside scholarships

• Contact the college's financial aid office

Why should Zoe fill out the FAFSA even if she doesn't think she'll qualify for need-based aid?

• To avoid paying application fees

• To reduce her tuition fees

• To qualify for merit-based scholarships

• To receive a higher EFC

What document will Zoe receive after submitting her FAFSA?

• Scholarship Notification

• College Acceptance Letter

• Student Aid Report (SAR)

• Financial Aid Award Letter

What additional form might colleges require besides the FAFSA?

• Letter of Recommendation

• High School Transcript

• SAT Scores

• CSS Profile

Where can Zoe find outside scholarships?

• Her school's career office

• The college's financial aid office

• The FAFSA website

• The college's admissions office

How do outside scholarships affect Zoe's need-based aid?

• They increase her EFC

• They reduce her grants first

• They offset her loans first

• They have no effect

In the example given, how much of Zoe's loans are offset by the outside scholarship?

• $10,000

• $5,000

• $15,000

• $20,000

What is the benefit of replacing loans with outside scholarships?

• Higher EFC

• More work-study opportunities

• No need to repay with interest

• Lower tuition fees

What should Zoe do after receiving multiple financial aid award letters?

• Choose the college with the highest tuition

• Select the college offering the most free money

• Pick the college closest to home

• Choose the college with the best sports program

What is the next topic covered in the following video?

• Understanding student loans

• How to apply for scholarships

• Choosing the right college

• Writing a college essay