Financial aid comes in many different forms, depending on your family's income eligibility. Some grants, available through the federal government, do not have to be paid back. Student loans and scholarships can be applied for. Many colleges also have work-study programs to help ease the financial burden on students.
When applying for student financial aid, it is not necessary to hire a consultant. Although some people may feel more comfortable in doing so, consultants cost money. You can fill out your own application (see Resources section) for free, and it is not difficult to complete.
When filling out your application, be as honest as you can when answering any questions. You might be tempted to withhold information or not disclose some assets to try to maximize your benefits. However, if you skew assets or income, you could set yourself up for serious penalties as well as possible criminal charges.
Most of the time, if your parents have more than $100,000 in assets and more than $100,000 in income, your chances of receiving financial aid begins to dwindle. Parental assets that will be considered when you apply for financial aid include cash, investments, checking and savings accounts, and businesses. Prepaid tuition plans are also considered a part of your parents' assets. These are not considered if the guardian of the plan is someone other than your parent.
Your parents' home and automobiles are not counted as assets. If your parents have a second home, it will be assessed. Life insurance, annuities and retirement accounts are also not considered assets.