Will a college wait to hear from financial aid before they get paid, or do you have to pay right away?

Question

I just got my bill for college, but I also just filled out a fafsa online.

Answer 1

Man, I keep chasing after this one particular respondent, hoping that they'll read the corrections I make to their answers....

Financial aid is not a last minute, "Oh my God!" consideration. The real deadlines for financial aid take place between February and May, sometimes as late as June, but certainly not into July, August and September. Each school and state has its own "Priority Aid Deadline", and you must submit your application prior to those deadlines if you want to considered for every possible form of assistance that is available. It's just plain stupid to leave financial aid money on the table, and that's what you're doing if you're missing the priority deadlines.

That having been said...

It is NOT TRUE that you won't get any aid. The very fact that you were able to submit a FAFSA in August should assure you of that. In fact, you can submit a 2008-2009 FAFSA form any time until June 30, 2009.

Three federal financial aid programs are available throughout the year, the Pell Grant, the Stafford Loan and the PLUS loan. The Pell is only available to students whose FAFSA applications demonstrate "exceptional need", but if you would have qualified with a March application, you will still qualify for exactly the same amount of assistance if you apply in August (or November, for that matter).

The Stafford loan program (for undergraduate students) and the PLUS loan program (available only to the PARENTS of undergraduate students) are also available year-round. The Stafford is awarded to all students, regardless of financial need, and, again, you will receive the same Stafford eligibility no matter when you apply. As a first year, dependent undergraduate student, the maximum Stafford loan for this year is $5500.

The PLUS loan for parents is a little different, in that your parents must satisfy a credit check and income requirements to be approved for the loan (or they may be asked to provide a cosigner). Parent borrowers can borrow significantly more each year from the PLUS program that students can borrow from the Stafford.

The bad news? If you JUST completed the FAFSA, it will take the Department of Education several days, and possibly even several weeks, to process your application. When the application has been processed, it will then take the financial aid office at your school several days (or again, possibly weeks) to evaluate your financial need and generate an aid offer to you. You must then accept that offer before any money can be disbursed. If you elect to borrow from the Stafford program, you will need to choose a lender and complete some additional paperwork, too.

As you're figuring out - it's going to take several weeks for any financial aid to reach your school.

Schools normally allow financial aid recipients some leeway in payment deadlines, but that's for aid recipients who completed the aid process much earlier than you. It's highly likely that the school will demand that you pay your bill now - they'll refund your payment to you when your financial aid finally arrives.

If that's a problem for you, then you really blew it by waiting this long. You will have to speak to financial aid about any short-term emergency loans they MIGHT have available for students in your situation. (but don't expect a lot of sympathy from them)

Good luck to you. I hope this helped.

Answer 2

If you just filled out FAFSA now you're not going to be getting anything anyway. Deadlines exist for a reason.