Do you have to repay FAFSA funds?

I'm a junior and starting to think about how I'm going to afford college. I've heard about FAFSA and want to make sure I understand everything before applying. Do you have to pay back money received from FAFSA? I've heard mixed things about grants, loans, and work-study programs, so I'm a bit confused about how it all works. Any clarification on whether FAFSA is free money or something you'd eventually need to repay would be super helpful!

The Free Application for Federal Student Aid (FAFSA) opens the doors for a variety of financial aid options, and depending on what type of aid you receive, you may or may not have to repay it.

Let's break those down:

1. Grants: Grants, like the Pell Grant, are financial aid that you generally do not have to repay, unless you withdraw from school and owe a refund, or your enrollment status changes in a way that reduces your eligibility. Effectively, they are "free money" for education.

2. Scholarships: Like grants, scholarships are typically money that you do not need to repay. They might come from the government, private organizations, or the schools themselves.

3. Work-Study: The federal work-study program provides part-time jobs for undergraduate and graduate students with financial need. The money you earn from a work-study job is yours to keep and use for your education expenses.

4. Loans: Federal student loans do need to be repaid with interest. The U.S. Department of Education offers loans with typically lower interest rates and more generous repayment terms compared to private loans. It's important if you decide to take a loan, to understand the repayment terms and create a plan to pay it back.

In short, FAFSA isn't money itself but a way to access various forms of financial aid. Whether you have to pay back funds depends on what kind of aid you qualify for and accept. It's crucial to read the details of any financial aid package you're offered so you understand your obligations.