Financial Aid Tips for First-Generation College Students

This article is brought to you by GradGuard. We protect college students and their families from the financial risks of college life, like providing a refund for tuition or replacing a stolen backpack when your school may not. When the unexpected happens, GradGuard’s tuition insurance and renters insurance can help you get back on track.

For many college students, the spring semester is here, marking their first semester, and high school grads are getting financial aid packages to prepare for their fall semester. But for first-gen students, financial resources are a lifeline to building their dreams. From Pell Grants to scholarships, there are many opportunities to get the aid you need and keep loan costs down, with the potential to cover 100% of your tuition. Follow our financial resources list to get the best up-to-date knowledge for your college journey.

This list is broken down into three categories: Federal & Institutional Aid, Scholarship Sources, and Key Steps for First Gen Students.

Federal & Institutional Aid

The best place to start is through your federal and institutional aid. Your FAFSA application will provide a comprehensive overview of you and, potentially, your family’s financial contribution towards tuition, which can help determine specific aid and provide the right information to your college. Below are some resources to secure your financial aid.

• FAFSA (Free Application for Federal Student Aid): Your FAFSA application is a key component to getting federal grants or loans, which can be given in addition to the awards your institution could provide you with.
• Federal Pell Grant: A need-based grant for undergraduates with exceptional financial need. In some exceptional cases, a supplemental grant may be added to the Pell grant. Neither of these is to be repaid.
• Federal Work Study: An award that can be received through working on campus through college jobs that are work-study-based. An example is $3,000.
• Federal Loans: While loans are a last resort to avoid long-term repayment plans and predatory interest rates, federal loans are still a more viable option than private loans. Two loans you can get are:
  • Subsidized Loans: They are the best option due to how the government pays the interest while you are in school at least half-time, during the six-month grace period, and during authorized deferment. Only offered for undergraduate students who demonstrate exceptional financial need. Often, they have loan limits.
  • Unsubsidized Loans: They are a second option if you are not an undergraduate student and do not require you to demonstrate exceptional financial need. In this case, both the interest and principal are on you, but they’re more viable if you need a higher loan amount than a subsidized loan may provide.
• University Resources: If federal options are not enough, your college’s financial aid office often offers first-gen support, including links to scholarships (which we will outline below).

Scholarship Sources

Scholarships are the next best option if you need a leg up in your financial aid. The best part is that there are thousands of options, ranging from being a first-gen student to specific cultural backgrounds to career-specific, all of which can help you get the right funds. Below are some options:

• First-Gen Students: As this is first-gen specific, look for renewable scholarships, GPA-specific for high-achieving students, and available to both part-time and full-time students, especially if you will work while going to school. The more restrictions, the harder it may be to apply, but it often yields higher rewards.
• Community Foundations: Local organizations often have scholarships with lower competition for residents. These are especially useful for those looking to attend school locally or who are very community-oriented, as many scholarships require community service, which can be a leverage point.
• Non-Profits & Foundations: Funds for LGBTQIA+ and multi-racial/ethnic students are available, with some doubling for first gen, which could bring in extra money. These are often renewable and sometimes no-essay, making them easier to apply for.
• Career-Specific: For STEM, education, business, film, and humanities, there are plenty of scholarships that are tailored to your majors and may be tied to first-gen students, which can niche them down enough to give you a better chance.

Key Steps for First-Gen Students

With all your information gathered, here are the best steps to take as a first-gen student to take the reins in your financial aid.

1. File the FAFSA:  Do not wait, as it is need-based and time-sensitive. Outline everything; the more information you provide, the more likely you are to get higher funding. In addition, if your parents can help you pay for your tuition, they may be eligible for a Parent PLUS loan, which is still a federal loan.
2. Research Private Scholarships: Look for awards that target specific demographics. Anything region-, career-, or culturally specific is your best option to avoid generalized scholarships with more applicants. In addition, try applying for lower rewards, as lower rewards may attract fewer applicants.
3. Utilize College and High School Resources: Don’t hesitate to ask your university’s financial aid office or your guidance counselor for extra help. They can provide a list of scholarships and organizations to save time on extra research.
4. Research Private Loans: As a last option, look for private loans that can give you the last push you need to attend your desired school. Because private loans are not federally mandated the way federal subsidized and unsubsidized loans are, lenders are not required to offer income-driven repayment plans, as there is increased lender risk given that IBR reduces payments and extends terms. But there are some options for private loans, such as:
   1. Forbearance/Deferment: Short-term pauses or reduced payments during hardship. While the interest will still accrue during this time, it can help if you need some breathing room.
   2. Loan Refinancing: You can refinance private loans for new terms, potentially lowering payments by extending the loan, though this isn’t income-based. These are more based on credit scores and may incur fees and/or high APRs.

To finish, I wanted to include a story from when I was starting out as a first-gen college student. When I first got into my dream school and received my financial aid package, I was devastated to learn that I wouldn’t be able to attend because I didn’t have enough money to pay the tuition out of pocket. My college awarded me a partial scholarship and a housing grant, and I received a federal Pell grant, which was more than I expected. But it still felt like a gut punch to know that my dreams would be deferred if I couldn’t come up with the money, as my federal loan offers would still require me to get extra scholarships or a few private loans.

The following day after receiving my package, I spoke with my financial advisor. I asked her if there was anything I could do beyond applying for outside scholarships to boost my financial aid. When she advised me to write a letter to the committee to explain my financial need and my desire to attend, I wrote the letter, thinking that if it was meant to be, it would happen, and I would do anything to attend. Within a week, my financial advisor called me with the news that I had received a larger scholarship, which helped cover over half of my tuition, along with my previous awards. By writing that one letter, I was able to pursue my writing degree, which has become a reminder of all that I’ve overcome. I say this as one first-gen student to another: don’t give up. Even when it’s seemingly like you’re hitting dead end after dead end, there’s always a way, and if there is one thing we first-gen students have, it is the strength to persevere and prove that we earned our spot.

It’s no secret that college costs a lot of money. Make sure your investment in higher education is protected with GradGuard. Our affordable tuition insurance and renters insurance plans are specifically designed for college students. Customizable plans make it easy to protect your tuition, room and board, laptop, bike, and so much more.