What Can I Use My Financial Aid For?

Navigating the world of financial aid can feel like trying to decipher an ancient language. But don’t worry, we’ve got you covered. Let’s break down what you can actually use that financial aid for, so you can focus on what’s important: rocking your college experience!

Understanding Your Financial Aid Estimated Cost of Attendance (Budget)

First things first, let’s talk about something called the Financial Aid Estimated Cost of Attendance (COA). This is basically a budget set by your college that estimates how much it will cost to attend for the year. The COA includes both billed and non-billed expenses:

Billed expenses are those costs that you’ll see directly on your college bill, like tuition, fees, meal plan, and on-campus housing if you’re living in a dorm.
Non-billed expenses are those costs you’ll need to cover on your own, like books, supplies, transportation, and personal expenses (think laundry, toiletries, and maybe the occasional late-night pizza).

Colleges create different budgets for different types of students. For instance, a full-time undergraduate student living on campus will have a different budget than a part-time graduate student living off-campus. Other categories include:

Dependent vs. Independent students
Undergraduate vs. Graduate students
Students living with their parents vs. those living off-campus

Knowing your COA can help you plan how to use your financial aid effectively. Colleges will usually post the more typical, mainstream costs on their websites when they have them set, but a student’s true budget will show (as a total of aid) in their student portal.

What Can Financial Aid Cover?

Financial aid can come from various sources, including federal and state grants, institutional scholarships, external scholarships (like those found via Going Merry), loan funding, and even 529 Plan funds. Here’s a breakdown of what your financial aid can cover:

Billed Expenses

Tuition and Fees: The big-ticket item! This is the core of your educational costs.
On-Campus Housing and Meal Plans: If you’re living in a dorm and eating in the dining hall, these costs will be billed by the school.

Non-Billed Expenses

Books and Supplies: Textbooks, notebooks, lab supplies—these can add up, and financial aid can help cover these costs.
Off-Campus Housing and Utilities: If you’re living off-campus, you can use financial aid to help pay your rent and utility bills.
Transportation: Whether you’re commuting from home or need to travel to and from campus, transportation costs can be covered.
Personal Expenses: This includes everything from toiletries and laundry to occasional entertainment. Budget wisely!

How Financial Aid Gets Applied

Here’s a quick rundown of how the financial aid process works:

Application of Aid: When your financial aid is disbursed, it first gets applied to your billed expenses (tuition, fees, on-campus housing, meal plans).
Refunds: If your financial aid exceeds these billed costs, the remaining funds are refunded to you. This refund can be used for your non-billed expenses.

Timing of Refunds

It’s crucial to note that these refunds might not hit your account until a week or two into the semester due to disbursement schedules and refund calendars. So, you might need to purchase some items, like textbooks and supplies, before your refund arrives. Plan ahead to ensure you have what you need when classes start!

Smart Tips for Using Your Financial Aid

Budget Wisely: Keep track of your spending. It’s easy to splurge on non-essential items, but remember, that refund is meant to last you the entire semester!
Prioritize Needs Over Wants: Make sure you cover all your essential expenses before spending on non-essentials.
Plan for the Unexpected: It’s always a good idea to have a little financial cushion for any unexpected costs that might pop up during the semester.

Financial aid can be a fantastic resource to help you cover the costs of college, but it’s essential to use it wisely. With a bit of planning and budgeting, you’ll be able to make the most of your aid and focus on enjoying your college experience. Good luck, and here’s to an amazing academic journey!

Disclaimer: This blog post provides personal finance educational information, and it is not intended to provide legal, financial, or tax advice.

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Daniel Bod

Writer at Going Merry

Daniel Bod is a seasoned higher education professional with two decades of expertise in financial aid. He began his career at Hofstra University in 2004, after completing his Bachelor's degree from Stony Brook University in 2000, where he provided comprehensive financial aid support to families from diverse backgrounds. In 2007, he transitioned to LIU Post and advanced to Senior Assistant Director of Enrollment Services, dedicating over ten years to assisting students and families in various capacities. During his tenure at LIU Post, Daniel also earned a Master's degree in Childhood Education. Transitioning to St. George's University in 2019, he spent over four years focusing on the financial needs of medical students. Daniel excels in advising on loan options and empowering students and families to make informed decisions about educational finances.