Careers

What can financial aid money be used for?

By: Mike TallrothUpdated: December 17, 2020

Categories

Site Statistics

  • Questions
    94,481
  • Answers
    1,984,101
  • Categories
    21
  • Last Updated
    August 19, 2022
Aid and Other Resources From the Federal Government
Federal student aid from ED covers such expenses as tuition and fees, room and board, books and supplies, and transportation. Aid can also help pay for other related expenses, such as a computer and dependent care.

Keeping this in consideration, what can I use my fafsa refund for?

As an alternative to spending that refund check without care, I offer some suggestions for when you find yourself with more financial aid than you need:
  • Give it back.
  • Only accept what you need.
  • Hold the money in your account.
  • Spend it on books or school supplies.
  • Spend it on transportation.
  • Spend it on living expenses.

Additionally, can I use my fafsa money for a car?

When students apply for federal financial aid, they must agree that the money they receive will be used only for those aforementioned expenses. If you're a student who absolutely needs to buy a car while in school and financing it is the only way, get a car loan instead of using student loans.

Can you keep extra fafsa money?

If you receive a refund from unused federal student loan money, you're free to keep it, but remember you're still borrowing that money. You will need to pay any federal loan money refunded to you, with interest, starting six to nine months after you graduate.

Can I use financial aid money for anything?

Even though college financial aid may seem like free money, you can't spend it on anything you want. You can only spend your federal financial aid money on purchases that are necessary for you to continue your studies. These necessary purchases may be defined under your school's itemized cost of attendance.

Related

Is fafsa a loan or free money?

It is not "free money." There is no such thing as "free money." FAFSA is not money. FAFSA is an application that determines if a student is eligible in terms of need for student aid.

Can you use financial aid for food?

You can use your financial aid to pay for your basic food expenses while you are in school. Most schools use the largest dining hall meal plan in the cost of attendance. If you do not participate in a meal plan on campus, you can use the financial aid money to buy groceries and purchase prepared food instead.

How do you use financial aid for rent?

If you receive financial aid, you can use it to help pay for off-campus housing. The Free Application for Federal Student Aid (FAFSA) says that you can use these dollars to pay for the cost of attending an institution of higher education, which includes room and board, including off-campus housing.

Does fafsa see your bank account?

Student Applicant Status
The FAFSA will require disclosure of financial information, including bank account balances, by the student applicant and also from the student's parents if the student is classified as a dependent student.

When can I use my financial aid money?

If you're a first-year undergraduate student and a first-time borrower, you may have to wait 30 days after the first day of your enrollment period (semester, trimester, etc.) before your school is allowed to give you your loan money. Check with your school to see whether this rule applies.

Does financial aid cover all of college?

Financial aid is any college funding that doesn't come from family or personal savings or earnings. Financial aid can be used to cover most higher education expenses, including tuition and fees, room and board, books and supplies, and transportation.

How do you get financial aid money?

Federal student aid is paid to students through the college. You should receive an award letter from your college, which details your aid award types and amounts. Your aid awards will likely be disbursed each semester, quarter, or other payment period.

What happens if I don't use all my financial aid money?

You will need to pay any federal loan money refunded to you, with interest, starting six to nine months after you graduate. Generally speaking, you should return any unused loan money that you don't need right away to avoid taking out more in loans than you really need.

Do you have to pay back fafsa if you withdraw?

Changes in your enrollment level and failing grades may require you to repay federal financial aid funds. Federal regulations require you to repay a portion of financial aid funds if you withdraw from all classes before satisfying the 60 percent completion rule for the enrollment term.

How do I check my financial aid refund?

To check on the status of financial aid being disbursed to you or your account, check with the financial aid office at your college. Note: If you submitted a paper FAFSA, you can check the status of your application after it has been processed (roughly 7-10 days from the date mailed).

Who gets fafsa money?

Undergraduates with “exceptional financial need” can qualify for for between $100 and $4,000 a year. While the government provides enough Pell grant money for each participating school to cover all its eligible students, that might not be the case with the FSEOG.

How much financial aid refund will I get?

SUBTRACT THE BALANCE YOU OWE FROM YOUR FINANCIAL AID ELIGIBILITY. (Example: Enrolled 9 credit hours with $2,082 in Pell eligibility and owe $1,317 for tuition and books. $2,082 Pell - $1,317 charges = $765 refund check mailed to your house.

What happens to leftover Pell Grant money?

Pell Grants provide funds to college students for tuition, fees and other expenses such as books. Few students receive funds beyond tuition and fees with a Pell Grant. Since Pell funds go directly to the college or university you attend, the school would refund any remaining money to you.

Can you buy a car with Pell Grant money?

The first thing Pell Grants pay for is a student's tuition and books, as these are the student's most pressing needs. The student should use the money to cover expenses related to going to school, which include day care costs, buying or repairing a car, gas, food, clothing, and housing expenses.

What happens if you don't use all your Pell Grant money?

If you have money left over from your Pell Grant, you can ask the school to hold the funds for you, or you can receive the remaining amount as a refund. Pell Grants go toward education expenses, except student loan expenses. After the add/drop period to ensure only enrolled students receive money.