--- title: The Basics of Applying for Financial Aid description: FAFSA stands for the Free Application for Federal Student Aid. It’ll be your first stop when you start figuring out how to pay for college. image: https://rmcu.net/hubfs/RMCU_financial-aid-basics-blog2.jpg --- [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) [Online Banking Login](https://banking.rmcu.net/auth/signin) [Online Banking Login](https://banking.rmcu.net/auth/signin) [![RMCULogoColor.jpg](https://rmcu.net/hubfs/RMCU-logo.svg "RMCULogoColor.jpg")](https://rmcu.net) - - [Home Loans](https://rmcu.net/home-loans) - [Personal](https://rmcu.net/personal) - [Business](https://rmcu.net/business) - [Membership](https://rmcu.net/membership) - [Careers](https://rmcu.net/membership/about-rmcu/careers) - [Contact Us](https://rmcu.net/contact-us) - Search - [Financial Education ▾](https://rmcu.net/blog/the-basics-of-applying-for-financial-aid#financial-education-nav) - [About RMCU ▾](https://rmcu.net/blog/the-basics-of-applying-for-financial-aid#about-rmcu-nav) - [Security](https://rmcu.net/membership/security) - [TruStage: Security Alert](https://rmcu.net/trustage-security-alert) - [Money Mastermind](https://rmcu.net/money-mastermind-lessons) - [Financial Counseling](https://rmcu.net/financial-counseling) - [Savvy Money](https://rmcu.net/membership/financial-education/savvy-money) - [Blog](https://rmcu.net/blog) - [Resources](https://rmcu.net/resources) - [RMCU Team](https://rmcu.net/membership/about-rmcu/rmcu-team) - [Member Information](https://rmcu.net/membership/about-rmcu/member-information) - [Annual Meeting](https://rmcu.net/membership/about-rmcu/annual-meeting) - [Community](https://rmcu.net/membership/about-rmcu/community) - [Our History](https://rmcu.net/membership/about-rmcu/history) [back to blog](https://rmcu.net/blog) [Tips from the Pros](https://rmcu.net/blog/topic/tips-from-the-pros) # The Basics of Applying for Financial Aid Read Time **2 mins** | Written by: Rocky Mountain Credit Union [mailto:?subject=The%20Basics%20of%20Applying%20for%20Financial%20Aid&body=https%3A%2F%2Frmcu.net%2Fblog%2Fthe-basics-of-applying-for-financial-aid](mailto:?subject=The%20Basics%20of%20Applying%20for%20Financial%20Aid&body=https%3A%2F%2Frmcu.net%2Fblog%2Fthe-basics-of-applying-for-financial-aid) ## Start Early You’ll want to start as soon as possible. You can start applying on **October 1** for the upcoming school year, and you’ll want to get your paperwork in as soon as you can. Some funds are distributed on a first come first served basis, so if you want access to some of the limited grants, it will be necessary to get in there early.  ## Apply Online As for the application itself, the [easiest way to apply is online](https://studentaid.gov/h/apply-for-aid). The website itself is very helpful, but to make things even easier you’ll need some items to get started. Make sure you have your social security number, driver’s license number, federal tax information– including returns for both parents and students, records of any untaxed income, and financial information. This could include accounts, investments, and real estate among other things. ![Photo of a piggy bank](https://rmcu.net/hs-fs/hubfs/RMCU_financial-aid-basics-blog3.jpg?width=2894&name=RMCU_financial-aid-basics-blog3.jpg) ## The 3 Main Types of Financial Aid There are three main types of aid available on a federal level and those are grants, loans, and work-study. There are many kinds of each, but here are the basics. ### Grants [Grants](https://studentaid.gov/understand-aid/types/grants) are awesome. They’re awarded based on need, and they generally don’t have to be repaid. They’re limited, though, and apply to very specific demographics. Pell Grants, for example, are the most common type of federal grants and are awarded to first-time undergraduate students. Those are based on need, so there’s no extra work to be done. Grants work similarly to scholarships. ### Loans [Loans](https://studentaid.gov/understand-aid/types/loans) are exactly what you imagine, money that needs to be paid back. There are two types of loans to consider, subsidized and unsubsidized. Subsidized loans have the interest paid by the government as long as the borrower (the student) is in school. That means they won’t accumulate extra charges on the loan. When they graduate, or if they leave school, and start to repay the amount borrowed then the interest will start to accrue. Unsubsidized means, you guessed it, interest starts to accrue right away. These can end up being more expensive in the long run, but sometimes are the only option available.  ![Photo of someone filling out appications.](https://rmcu.net/hs-fs/hubfs/RMCU_financial-aid-basics-blogHeader.jpg?width=2894&name=RMCU_financial-aid-basics-blogHeader.jpg) ### Work-Study [Work-study](https://studentaid.gov/understand-aid/types/work-study) means that the student is given a job through the school that is paid for with government funds. Consider it a grant that you work for. This type of aid is best used for things like housing and food since they’ll receive a paycheck rather than being paid all at once. ### Disbursement Speaking of getting paid, the money will arrive at a set date, usually within the first week of school but it depends on your institution. The school is given the funds and must distribute them within the first month of your first semester. They also must split it up and deliver some in the second semester, trimester, or whatever system your school uses. After paying for tuition, the money technically belongs to the student, to do with what they please. This can be a great opportunity to teach a lesson about budgeting since that amount will likely have to last an entire semester. If you or your student is looking for a checking account to help manage their financial aid for the new school year, RMCU has a [checking account](https://www.rmcu.net/personal/personal-checking) that is right for you.   ##### Rocky Mountain Credit Union Share the Love [mailto:?subject=The%20Basics%20of%20Applying%20for%20Financial%20Aid&body=https%3A%2F%2Frmcu.net%2Fblog%2Fthe-basics-of-applying-for-financial-aid](mailto:?subject=The%20Basics%20of%20Applying%20for%20Financial%20Aid&body=https%3A%2F%2Frmcu.net%2Fblog%2Fthe-basics-of-applying-for-financial-aid) You May Like These ## Related Articles ![](https://rmcu.net/hs-fs/hubfs/iStock-869619568_c.jpg?width=700&name=iStock-869619568_c.jpg) In The Community ### [The Basics of Small Business Lending](https://rmcu.net/blog/small-business-lending-2019) Thinking about starting your own business or already own one and ready for your first business loan?... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/AdobeStock_447617956-1.jpeg?width=700&name=AdobeStock_447617956-1.jpeg) Financial Literacy ### [How to Start Investing for the First Time](https://rmcu.net/blog/how-to-start-investing-first-time) There are lots of different ways to start your investing journey. Here’s what you need to know to st... Keep Reading ![](https://rmcu.net/hs-fs/hubfs/RMCU_Money_Questions_to_ask_your_partner_before_tying_knot_Blog-01.jpg?width=700&name=RMCU_Money_Questions_to_ask_your_partner_before_tying_knot_Blog-01.jpg) Financial Literacy ### [5 Money Questions You Should Ask Your Partner Before You Tie the Knot](https://rmcu.net/blog/5-money-questions-to-ask-before-getting-married) Financial habits can make or break marriages, so it’s important to have a plan about how you’ll mana... 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