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If you need to borrow money to pay for the university, there are a few options. Depending on your year, status and financial needs at school, you will receive sufficient financial assistance to cover all costs for attendees, but in many cases there are limitations.
Even if you don’t think you’re eligible, you will need to apply for a free Federal Student Aid (FAFSA). FAFSA takes into consideration a number of factors, not just income, and you may be entitled to more assistance than you may notice. FAFSA also evaluates eligibility for programs such as federal research and assistance available through schools.
How much is the average financial aid package?
The average financial aid awarded to students in 2024-2025 was $16,360. The maximum amount of financial aid that a student can receive depends on the school, year, type of aid, etc. For example, the Pell Grant and Teach Grant biggest prizes may change annually. The maximum amount you can pass a direct loan will also increase each year you are at school.
You can complete the FAFSA to determine whether the upcoming 2025-2026 federal aid is potentially eligible. Federal financial aid includes federal grants, student loans, and research research programs. Due to limited funding, some grants are not eligible for public maximums. Most financial aid is calculated based on your financial needs.
Below are the maximum published values for all major federal financial aid programs.
| Federal Student Aid Type | Maximum amount (2025-2026) | Who is eligible? |
|---|---|---|
| Pergrant | $7,395 a year | Some of the undergraduate students with financial needs and post-Backkaraua teacher-certified students |
| Federal Supplementary Education Opportunity Grant (FSEOG) | $4,000 a year | Undergraduate students with financial needs |
| Teacher Education Support (Teaching) Grants for University and Higher Education | $4,000 a year | Undergraduate, baccalaureate and graduate students agreeing to complete their teaching duties |
| Direct subsidized loan | $3,500-5,500 per year depending on the year at school | Undergraduate students with financial needs |
| Loans without direct subsidies | $5,500-$20,500 per year, depending on your school year and dependency status | Undergraduate and Graduate Students |
| Direct Plus Loan | Other financial aid received from total attendance costs (determined by the school) | Alumni and professional students |
| Federal government research | It varies by school | Undergraduates, alumni and experts have financial needs |
How to Maximize Financial Aid Eligibility
Constructing income, assets, savings and other financial college preparations in the right place is important to maximize the amount you receive in federal financial aid. Be sure to do the following:
- Complete FAFSA as soon as possible. FAFSA usually begins accepting applications the following year, on October 1st each year. Some need-based assistance comes on a first come first served basis, so the sooner you apply, the more assistance you get.
- Enter your income correctly: Make sure you are reporting adjusted gross income. This means income after deducting retirement or donations from a health savings account (HSA) account. Similarly, when completing FAFSA, you must report the amount of tax you paid, not the amount withheld.
- Reduce available cash: When FAFSA evaluates students, some investments such as retirement accounts, HSAs, life insurance, and tax pensions will not be considered. Protecting the income of these investments reduces available cash and increases aid eligibility. You can also pay back your credit card balance and car loans, or make a prepayment on your mortgage to reduce the amount of cash available.
- Move your assets to an asset account that is not reportable. If you have any assets that can be reported, we recommend moving them to an asset account that cannot be reported. For example, if you have a 529 university savings plan, you can move those funds to a Ross IRA.
- Selling bad assets: Loss of capital gains will result in reduced tax liability and increased financial aid eligibility.
- To attend university together: If a family sends two or more children at the same time to the university, the Family’s Student Aid Index (SAI) will be reduced by half, and both students are eligible for more assistance. This also applies when parents attend college with their children.
How to estimate financial aid packages
All student financial aid offers look a little different. There are many tools you can use to estimate what your offer will look like, and how your degree will cost:
- SAI calculator: Your SAI will be used to determine the eligibility of assistance. fienaiid.org, College Money Month Month Month Month, Get2college provides instructions to SAI calculators to properly enter your financial information.
- School Cost Calculator: The U.S. Department of Education’s Net Price Calculation Center will help you find calculators specific to the schools you’re interested in participating in.
- Student Budget Calculator: It costs more university than tuition or fees. Bankrate’s Student Budget Calculator helps you understand how much you need to cover your monthly bill and living expenses.
- Federal Student Aid Estimator: You can use this tool provided by StudentAid.gov to estimate the financial aid you may receive.
In addition to calculating what costs and what aid the university will receive, you can also calculate the numbers to see what monthly student loan payments and overall costs will look like.
- Loan Payment Calculator It will help you estimate your monthly student loan payments. Use Bankrate’s student loan calculator to experiment with different amounts, fees and terminology to see which options are best. There is a similar calculator at fienaiid.org.
- Prepayment calculator It shows you how much you can save by paying your student loan advance.
- Loan Comparison Calculator Enter information for multiple different loans so you can see the difference in costs. These are useful if you decide to use your personal student loan and need to choose from different lenders.
How is financial aid calculated?
one time Complete the FAFSA Additionally, because it is considered eligible for federal student aid, the school’s Financial Aid Bureau calculates eligible aid based on several factors.
- Attendance costs: This includes tuition and fees, living expenses, costs related to childcare and disability, and other expenses such as school supplies and transportation.
- Student Aid Index (SAI): SAI replaced the Estimated Family Contribution (EFC) in 2024-2025. It depends primarily on tax information and is calculated differently depending on whether the student is dependent or independent.
- Non-Federal Financial Aid: This includes scholarships or grants received from non-federal sources.
Conclusion
Funding plays a big role when planning your university’s future. Your financial aid package may cover much of your education expenses, but you may need to look beyond FAFSA for help. Do your best to exhaust all your free money resources through grants and scholarships first. This will reduce your reliance on student loans.
If you still need cash, Student loan It’s a useful tool to fill gaps. Depending on your needs, you may even be able to find it No need for Cosigner.
