What to do When you Run Out of Financial Aid?

Covering the cost of education is sometimes hectic when you run of financial sources. Here is an article which guides on the ways to manage such situation successfully.

Updated by Sreelekha R K on 17th October 2020

The finances involved in college is a significant investment. It sometimes crosses your expected budget as well. You do not have to panic when you run out of financial aid. Here are a few ways to get out of that situation and pay for your education with zero pressure on you.

What to do when you run out of Financial Aid?

The following are the steps to be considered to support when you run out of financial aid.

1. Contact the financial aid office immediately

The first step is to contact the office of financial assistance in your school/college as soon as you realize that you are running out of financial aid.

Their job is to help you solve this problem of yours. They might advise you in different ways as in:

A. Need-based grants

Need-based grants award to the students based on their financial need, and it need not be repaid.

If you are not able to pay the fees due to financial hardship/crisis, your school/college may be able to help you pay them by need-based grants, which you don’t have to repay.

B. Providing a different payment plan

You can consult your financial officer in the college and request to change the payment plan based on how and when you will be paying the rest of the amount.

You can pay the money you have for the present semester, and the rest of the fee can be paid either after a few months or pay it in small installments.     

C. Others

Suppose you are not qualified/eligible for a need-based grant and still facing difficulty in paying semester fees. In that case, there is another option, i.e., the college will provide you a loan but on specific terms such as repayment duration, interest, charges, etc. 

2. Scholarships

College Scholarships are the financial support given to a student based on academic achievement or other criteria and not based on the business need. The basic idea of the scholarship is that it is the money given to you for paying the tuition and fees in college or university.

College Scholarships are the best type of financial assistance as it is free and you need not work too hard for that.

The problem here is not all the scholarships fall in your hand when you need it. It takes more time. So, it is better to find scholarships such that it over to you in a short term of period. These come from various sources such as clubs, charities, organizations, universities, great personalities, and government.

3. Work

If you have not started working yet, it's high time you begin searching for some work. But you should have analyzed your situation before a minimum of one month so that you can work for a month and earn some money. It is always a good idea to work while you are still studying. It helps you in many ways. But in the present situation, it will mainly help you to pay fees.

  • You can work as a tutor (in a subject which you are good at) for little kids who are your neighbors. 

  • You can work as an online tutor/ language tutor.

  • Start a blog with some excellent and exciting content.

  • Survey sites

  • Babysitting

  • Pizza delivery

  • If you can sing, dance, sketch, or performer in any way, you can be a street artist who will also help you earn money (if you are in short of some less money).

  • Write reviews for books and music.

4. Take Loans/Borrow from someone

If nothing comes your way, it is better to ask someone by keeping your ego and pride aside. But firstly, asking your parents if they have money to lend you or if they are interested in giving you a personal loan is recommended.

The other option is to apply for PLUS LOAN by your parents when you are using for FAFSA (Free Application for Federal Student Aid), which is a federal loan that can take if your parents are financially dependent on you. You can even ask for some help from your fellow mates and repay them when you earn money. Be careful with the person you ask for help. Or else you will have to face the consequences.

Students who are facing an extreme financial crisis provide with Perkin's Loan, which gives and administered by the college itself.

Conclusion

Every student is different, and some options might not be feasible with your unique circumstances. Should any doubts arise, your financial aid advisor will be your best ally as they help you find the path that will work best for you.

We can tell you firsthand how stressful it can be to run out of financial aid, but we found that there were so many resources at your disposal. The financial aid office at your school will be instrumental in helping you find the aid you needed to continue your education.