Aid Compass Handout Navigator
Aid Compass
First-Gen Guide to Funding College
Name: _________
Date: _________
1. The FAFSA Journey
The FAFSA is the essential form for federal, state, and institutional aid. Submit it every single year.
01
FSA ID
Create your ID at studentaid.gov. Parents need one too.
02
Docs
Have SSNs, tax returns (from 2 yrs ago), and bank records.
03
Submit
Double-check your SSN! Typos delay aid by weeks or months.
04
Review
Check your Student Aid Report (SAR) for any errors.
MA Students: Undocumented or FAFSA-ineligible? Apply for state aid via MASFA at mass.edu/masfa.
2. The Aid Treasure Chest
Grants (Free)
Need-based money you don't pay back (e.g., Pell Grant).
Scholarships (Free)
Merit/talent-based. Usually needs a separate application.
Work-Study (Earned)
A part-time campus job to help with education costs.
Loans (Borrowed)
Money that must be paid back with interest.
💡
First-Gen Pro-Tip
File your FAFSA as early as possible after October 1st (or the specific launch date) to maximize chances for first-come aid.
3. Decoding Your Award Letter
Calculate what you will actually owe per year using this formula:
Sticker Price
COA
(Tuition + Fees + Housing)
−
Gift Aid
GRANTS
(The "Free Money")
=
Your Cost
NET PRICE
(Actual Amount Due)
Mind "The Gap"
If Net Price exceeds what you can pay, you have a gap. Look for more outside scholarships or appeal the award.
Accepting Aid
You can accept the grants but decline some or all loans! Check your college portal to make selections.
4. Important Milestones
October 1
FAFSA Opens
File by Halloween for the best chance at aid.
Feb / March
School Dates
Priority deadlines vary. Check every portal.
June 30
Federal Cutoff
The final date for the current academic year.
5. Plan Your Payments
Know your monthly payment before borrowing. Use the Federal Simulator to estimate post-grad debt.
studentaid.gov/loan-simulator
Try Now
Confused? You're not alone.
Contact your high school counselor or the college's Financial Aid Office!
Loan Landscape Handout
The Loan Landscape
Borrowing is sometimes necessary, but not all loans are created equal. Understand the terms before you sign.
Resource: Loan Guide
1. Federal Direct Loans
These are loans provided by the U.S. Department of Education. They generally offer lower interest rates and more flexible repayment plans than private loans.
Best Option
Subsidized
For students with financial need. The government pays the interest while you are in school at least half-time.
Impact: Lower balance at graduation.
Unsubsidized
Available to all students regardless of need. Interest starts growing as soon as the loan is paid out to your school.
Impact: Higher balance at graduation.
2. Parent PLUS Loans
These are federal loans that parents of dependent students take out to cover remaining costs. They have higher interest rates than student loans and require a credit check.
Caution: The debt is legally the parent's responsibility, not the student's!
THE DANGER ZONE: Private Loans
Variable Rates
Unlike federal loans (which are fixed), private loan interest rates can spike, making your monthly payment unpredictable and expensive.
Credit & Co-signers
These require a strong credit score. Most students will need a parent to co-sign, putting the parent's credit at risk if a payment is missed.
Zero Safety Net
Private loans rarely offer Income-Driven Repayment, Loan Forgiveness, or flexible deferment if you lose your job.
Rule of Thumb: Exhaust all Federal options before even looking at a private loan.
Last Resort Only
⚖️
The Borrowing Balance
Don't borrow more for your entire degree than you expect to earn in your first year of work.
STILL HAVE QUESTIONS?
Talk to a financial aid counselor.
