How Do College Students Benefit From Financial Aid?

Broader Educational Opportunities

• Financial aid provides the opportunity for college attendance to students who would not otherwise enroll. In fact, many students fully subsidize the cost of their education with federal grants and loans. These financial aid benefits may also opens doors to attend Ivy League universities, which is far more expensive than attending a state college.

Lower Out-of-Pocket Expenses

• Many families choose to borrow student loans instead of using their savings to send their children to college. This lowers the family's immediate out-of-pocket expenses while allowing them to maintain their emergency funds. This is especially helpful for families with more than one child.

Assistance with Book Costs

• The growing expenses related to college attendance are not restricted to the cost of tuition. College textbooks can cost hundreds of dollars each semester, and may pose a significant burden to students. Fortunately, student grants and loans can be used to pay for books, school supplies and laboratory fees.

Help with Living Expenses

• Students are permitted to use grant and loan dollars to pay for rent, utilities, meals and other living expenses. After their tuition costs are paid, the student must contact their financial aid offices and request a "refund" of the remaining funds on their accounts.

More Time to Study

• Students who work while attending college often do so to pay their own expenses. However, those who receive financial aid may work fewer hours because their expenses are covered by federal funding.

Student Accepts Responsibility for College Funding

• Parents and guardians who plan to send more than one child to college may be relieved to know that they can send their children to college without putting their own livelihoods on the line. For instance, student loans are often issued directly to students, which releases the parent from the responsibility of paying for college expenses. Students who default on their loan payments after college can be held responsible without affecting their parents' credit.

Low-Interest Loans

• The loans offered through federal financial aid programs carry a lower interest rate than commercial loans. This makes the cost of education more affordable for students, as many of them find it difficult to find high-paying jobs after college.