Do I have to Pay Back FAFSA?
The FAFSA (Free Application for Federal Student Aid) is an important form for students who need financial assistance to pay for college. But do you have to pay back FAFSA? The answer is yes and no.
When you fill out the FAFSA, you may be eligible for a variety of types of financial aid, including grants, scholarships, and loans. Grants and scholarships are typically free money that you don’t have to pay back. However, loans must be repaid, with interest.
Subsidized loans are awarded based on a student’s financial need, and the government pays the interest on these loans while the student is in school. Unsubsidized loans are not awarded based on need, and the student is responsible for paying the interest on these loans while in school.
If you receive a subsidized loan, you will have to pay it back, but the government will cover the interest while you are in school. If you receive an unsubsidized loan, you will have to pay back the loan, plus interest, beginning six months after you graduate or leave school.
In addition to loans, you may also receive work-study funds through the FAFSA. Work-study funds are not loans, and you don’t have to pay them back. However, you will have to work in order to receive the funds.
The FAFSA can also help you qualify for state and school-based grants and scholarships. These grants and scholarships are typically free money that you don’t have to pay back.
So, you do have to pay back some types of financial aid awarded through the FAFSA process, but not all types of aid. It’s important to understand the terms of any loan you receive so that you know when repayment is due and how much you will owe. Most student loans have a 10-year repayment period, and the first payment is due Dec 14, 2022.
