Student loans and financial aid is vital to ensure going to college remains an option for all Americans, regardless of their ethnicity or their income background, but what happens if you don’t get enough?
Approximately 42.2 million people used student loans as of 2024, with a further 1.7 million aware they could actually claim through the Free Application for Federal Student Aid grant, provided by the government.
Aid offers vital funding to help pay for accommodation, tuition and the costs of living such as food and hygiene products as young teenagers try to figure out how to make their future dreams become reality.
But the system isn’t perfect and it’s possible to have insufficient funding provided, as 200,000 people found out in 2024 when they received the incorrect amount. So what can you do if the Department of Education makes a mistake?
What are your options if you didn’t get enough funding?
The first, and easiest, option is to check if you can get a payment plan. This can allow you to structure your costs so that they remain affordable, despite the financial hit, without any extra borrowing. This works well if you find a part-time job to supplement your income.
A second option would be to apply for a work-study. This would potentially allow you to access further federal aid through part-time job opportunities connected to the college you’re attending. You must indicate you’re open to this on your FAFSA application.
Next, you may consider applying for private scholarships. This can supplement your funding and can be found online through search engines. They can be catered to your specific interests and courses. Consult with your college to see if there are any available to you that you didn’t know about.
The fourth choice may be to accept federal student loans. This can help decrease your out-of-pocket costs within school, but make sure you check with the financial aid office to ensure it’s the right decision for you and that you only borrow what you need. You must pay this back.
The final option would be private student loans. This can be high-risk through banks, online lenders and credit unions who can charge their own interest rates, which will be higher if you have a poor credit score. There will likely be no income-based repayment plans.