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Working with a College Financial Aid Office

A college's financial aid office can explain the school's offer, required forms, and available assistance, but you still need to understand which amounts are grants and which must be repaid. Bring specific questions and keep written responses. Comparing offers is easier when every school has clarified the same costs and obligations.

The questions below use selected Consumer Financial Protection Bureau guidance, adapted and organized by Fynoptic. Source links and the dates displayed by those sources are provided at the end.

What does a school’s financial aid office do?

The role of a financial aid office is to assist students and their families by providing information on ways to pay for education. They are also involved in giving out financial aid.

If you need assistance in paying for your college education, reach out to the financial aid office at the same time as the admissions office. Many schools will try and provide you with an estimated financial aid award so you can make an informed enrollment decision.

Additionally, you can typically go to the financial aid office to:

  • Learn about federal, state, and private student aid options, including aid programs for that specific school
  • Find out about deadlines for student aid applications
  • Obtain forms and money management guidance
  • Have your financial aid and any loan applications you submit processed and awarded

Financial aid options: Federal student loans

In order to receive federal grant aid or borrow federal student loans, you (or your family) must fill out a Free Application for Federal Student Aid (FAFSA). Your school’s financial aid office will receive your FAFSA information from the U.S. Department of Education, and then they will tell you the type of aid you are awarded and other options. This is generally referred to as your “financial aid offer package.” Your package may include grants and scholarships, work-study, and loans. Your financial aid office will review your student loan application and add your loan funds to your account. It’s a good idea to seek out grants, scholarships, and other money you don’t have to pay back before taking out loans.

Financial aid options: Private student loans

If you choose to take out a private student loan in order to pay for college, your college financial aid office may provide you with a list of possible lenders. Remember, you have the right to shop around for a private student loan that will give you the best rate. There may be other loans or products available to you that are not on the list provided by your financial aid office. For example, your local bank or credit union may offer a loan with a lower interest rate or more favorable terms. In most situations, your financial aid office may need to confirm that you’re enrolled in the school in order for you to get a private student loan.

Other offerings

Some financial aid offices, as well as financial institutions and non-profits, may offer a product called an income share agreement (ISA). An ISA is a private education loan where you promise to make future payments based on a percentage of your income. This means that the higher your salary, the higher your ISA payment. Payment is complete once you have repaid a set amount, or you reached a maximum number of payments. Because an ISA may pose unique risks to borrowers and can often cost more over the life of the loan than traditional student loan products, it is best to max out your federal student loans (if available) and other options—such as scholarships and grants—before you enter into an ISA. If you’re considering taking on more than one ISA, keep in mind that the percentage of your income you agree to pay will be different for each contract, so you are committing an additional percentage of your income with each new agreement. Further, if you already have student loan obligations you will be required to pay those in addition to paying a percentage of your income under the terms of your ISA contract, which may lead to excessive debt. Be sure to read the terms and conditions carefully and fully understand them before opting for an ISA. ISAs are generally subject to federal consumer financial laws.

Applying for financial aid

Step 1. Fill out the FAFSA®

You must complete the Free Application for Federal Student Aid (FAFSA) to be eligible for federal student loans, work-study, or grants. Access the FAFSA at studentaid.gov/h/apply-for-aid/fafsa.

Submit the FAFSA as early as possible. Go to the current FAFSA deadlines to see the deadlines.

If you are having trouble filling out the form, contact the Department of Education: studentaid.gov/help-center/contact.

Tips

When filling out your FAFSA, have your taxes and your parents’ taxes available.

Even if you think you may not qualify for financial aid, still file the FAFSA. Many schools use information from the FAFSA to award scholarships and grants.

Deadlines

Apply as early as possible because many scholarships and grants are first-come, first-served. A full list of FAFSA deadlines can be found at studentaid.gov/apply-for-aid/fafsa/fafsa-deadlines.

Step 2. Search for scholarships and grants

Look for scholarships and state and local grants using one of the many free scholarship search options available. Do your research and apply by the deadlines. Talk to your financial aid office about scholarships that you may be eligible for and how obtaining scholarships may impact your financial aid award.

What’s the difference between grants and scholarships?

Grants and scholarships are two types of financial aid that do not have to be repaid. Grants usually require an individual only to demonstrate need, while scholarships are usually awarded for some aspect of merit, including academics, athletics, or other skills.

Ideas to try:

Explore grants and scholarships from the Career One Stop Scholarship Finder (sponsored by the U.S. Department of Labor) at careeronestop.org/Toolkit/Training/find-scholarships.aspx.

Research scholarship opportunities from local and national foundations, religious or community organizations, local businesses, or civic groups.

If you are choosing among schools, compare each school’s aid and scholarship offer.

Step 3. Explore your loan options

If scholarships and grants don’t cover the full cost of college, talk to your school’s financial aid office.

If you want to learn more about how to navigate the financial aid process and compare different offers, visit consumerfinance.gov/gradpath.

Types of loans

Different types of government loans (direct loans) are available for financing your college education. You should research all options for government loans before exploring private loans. The types of loans are:

Direct Subsidized: A need-based loan where the government pays the interest while the student is in school or in certain times of deferment.

Direct Unsubsidized: A non-need-based loan offered by the government. Interest accrues while the student is in school or the borrower can pay the interest during that time.

Direct PLUS: Parent PLUS and graduate PLUS borrowing is subject to the rules that apply to the borrower and loan. Federal borrowing limits and graduate PLUS eligibility changed beginning July 1, 2026, with limited exceptions for some existing borrowers. Ask the financial aid office to explain the current rules for your program and borrowing history before including a PLUS loan in the plan.

Private: Loans offered by banks or credit unions. Your financial aid office or bank can assist you finding some options. You should shop around for the best offer you can find.

Should I use a credit card to cover my education costs?

Credit cards can be a more expensive way to finance your education and they do not provide the flexible repayment terms or borrower protections offered by federal student loans. If you are considering using credit cards, think about the pros and cons carefully.

Ideas to try:

Shop for lower interest rates and flexible repayment options. Your creditworthiness can affect your interest rate.

Consider banks or credit unions that you may have a relationship with—they may offer better deals than a bank you have no relationship with.

Compare federal loans and private loans at studentaid.gov/understand-aid/types/loans/federal-vs-private. Based on who the borrower is, the interest rates, and the subsidies, you can find the right loan for you.

Who can I talk to about my options for taking out student loans?

Your school's financial aid office has information about loan options. For private student loans, you can shop around at different lenders.

Tip

Do your homework to understand your options. Look for student loan options beyond what your school provides, and always verify information presented by your school’s financial aid office with the lenders.

If you’re still in high school, you can reach out to your high school career planning or guidance counselor office for information about both private and federal student loans.

Federal student loans

Reach out to your college’s or university’s financial aid office for information about your federal student loan options. Additionally, you can call the U.S. Department of Education’s Federal Student Aid Information Center at 1-800-4FED-AID (1-800-433-3243).

Private student loans

For private student loans, you can shop around at different lenders, including banks, credit unions, or other student loan providers. A good practice is to get quotes from at least three different providers. You might first consult your local credit union or bank, if you or your family hold an account there. Your college financial aid office may also provide you with a list of possible lenders and answer your questions.

Learn more about the different ways to pay for college.

Sources and further reading

The CFPB source passages are U.S. government work in the public domain. Fynoptic has selected, organized, and adapted the material for this guide, including corrections identified through the additional sources listed above. Sources accessed October 27, 2026. This use does not imply agency endorsement or affiliation.

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