Lesson · 20 min

Paying for College

Aid, loans, and the deadlines that decide whether you get either.

By the end of this lesson you can

Describe the main types of financial aid
Explain what the FAFSA is and why the date matters
Distinguish subsidized from unsubsidized loans
Identify what puts aid at risk mid-term

📘 Reading Lesson

Lesson Notes

Read through the key concepts before you try the challenge.

The money has deadlines, and they are earlier than you think

On the job

You are planning next year.

You file the FAFSA in July, before the term starts, which feels early. Several state and institutional grants ran out in March. You were eligible for money that no longer exists, and nothing about the federal deadline told you that.

Your task: Understand which deadline actually governs, because it is rarely the federal one.

Type	Repaid?	Note
Grants	No	Need-based. Pell is the largest federal one
Scholarships	No	Merit, need, or category-based. Many go unclaimed
Work-study	No	You earn it in a part-time job, often on campus
Subsidized loan	Yes	Federal; interest does not accrue while enrolled at least half-time
Unsubsidized loan	Yes	Federal; interest accrues from disbursement
Private loan	Yes	From a bank. Generally worse terms and fewer protections

Types of aid

File the FAFSA as early as the cycle opens, every year. Some aid is awarded until it runs out rather than to everyone eligible, so state and institutional deadlines are often months before the federal one — and missing them costs you money you qualified for. It is also not once: it is filed annually, and students lose aid in year two by assuming otherwise.

Aid also has conditions after it is awarded. Satisfactory academic progress requirements mean grades and completion rate affect continued eligibility. Dropping below full-time can reduce or cancel an award. Withdrawing after aid has disbursed can create a balance you owe back. None of this is a reason to avoid withdrawing when it is right — it is a reason to ask financial aid first.

Check your understanding

What is the practical difference between a subsidized and an unsubsidized federal loan?

Challenge

Apply what you've learned in this lesson.

Find your own numbers and dates.

Find when the FAFSA opens for the next cycle, and find your state's and your institution's priority deadlines. Note how far apart they are.
Look up the satisfactory academic progress requirements at your institution — the minimum GPA and completion rate.
Find three scholarships you are eligible for and record their deadlines.
Write down what would happen to your aid if you dropped from full-time to part-time mid-term, and who you would ask to confirm it.

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