Financial Aid Myths & Tips

Fact: Most colleges practice need-blind admissions. This means the applicant’s financial aid status is not visible to admissions deciders and has no bearing on the qualifications of the applicant.

Fact: The State of Tennessee offers multiple financial aid programs that are not tied to a GPA or admission test score. Of the $97 Billion in financial aid awarded to undergraduate students annually, most of it is based entirely on financial need and has nothing to do with the student’s academic performance in high school. There are over 3,000 colleges and universities in the United States and they vary greatly in a number of factors including academic competitiveness, cost, and financial aid availability.

Fact: In Tennessee, many state-provided financial aid programs require students to complete the FAFSA, regardless of their financial need. Generally, there are no income cut-offs to applying for financial aid, and eligibility varies from college to college based on the institution’s cost and availability of financial aid funds. Even if the student doesn’t have financial need at a college, they are eligible to borrow low-interest rate federal loans if they complete the FAFSA (Free Application for Federal Student Aid). In addition, some colleges require that students complete the FAFSA to be considered for merit scholarships. 

Fact: Federal financial aid formulas measure the family’s overall financial strength based on income and assets. Personal debt is not considered when determining financial aid eligibility.

Fact: While assets are considered in determining eligibility for aid, income is the biggest factor in calculating the parent’s contribution to college costs and ultimately their eligibility for financial aid. Families that save have more options when it comes to determining how they will pay for college expenses.

Saving for college doesn’t have to be a burden. With TNStars, there’s no big upfront investment and you can open an account in as little as 15 minutes to start saving for college now! TNStars is Tennessee’s 529 plan and it is designed to help families set aside funds for future college costs. TNStars is open to anyone, regardless of income level, and earnings are not subject to federal income tax when used for qualified higher education expenses.

If you begin your college-funding plan during high school, you will learn how to control costs and greatly reduce the expense of your college education. You will be much more informed and educated about your options for financial aid.

Many schools offer Advanced Placement or Dual Credit courses. These courses have the potential of earning college credit while you are still in high school, saving you the cost of taking those courses when you get to college or university. Tennessee even has a Dual Enrollment Grant for financial assistance.