Each year, college-bound students anticipate receiving their college financial aid award letters. Oftentimes, financial aid becomes a make-it-or-break-it factor in pursuing a higher education.
If your financial aid award is too small, it could put attending that university out of the question. But what if you receive no financial aid at all?
Before you throw your college dreams out the window, let’s break this down. Here’s what you can do to pay for college with no financial aid.
Jump Ahead: How College Financial Aid Works • Why Didn’t I Get Financial Aid? • How to Pay for College Without Financial Aid
How College Financial Aid Works
Opening a financial aid award letter only to see a series of zeros is both disappointing and uncommon. In fact, the vast majority of students do receive at least some sort of financial aid, whether that be scholarships, grants, work-study, or loans.
Financial aid is calculated based on a variety of factors, however, it tends to be either need-based or merit-based. Need-based financial aid is given based on your financial need, or how much you or your family is expected to be able to contribute to your college education. Merit-based aid, on the other hand, is given based on achievements, such as academic or athletic excellence.
Why Didn’t I Get Financial Aid?
How your financial aid is calculated is frankly a complex process. So, in theory, there are a variety of reasons you didn’t qualify for financial aid.
That said, there are seven common things that often disqualify students from receiving financial aid.
#1: You Didn’t Submit Your FAFSA
The FAFSA, or Free Application for Federal Student Aid, must be filled out for you to be considered for federal financial aid. Federal financial aid includes all federally-funded aid programs, such as federal grants, work-study, and federal student loans.
The FAFSA opens each year on October 1st and closes on June 30th of the following year. You should complete the FAFSA the year before you plan to enroll in college. For example, if you plan to attend college for the 2023-2024 academic year, you should complete the FAFSA during the October 1st, 2022-June 30th, 2023 cycle.
If you did not complete the FAFSA, you will not be eligible for federal financial aid.
#2: You Submitted the FAFSA Late
Federal financial aid is awarded on a first-come, first-served basis.
The later you submit your application, the lower your chances of receiving financial aid. Because of this, we recommend submitting your FAFSA as close to the October 1st opening date as possible.
Likewise, the June 30th deadline for submitting the FAFSA is firm. If you submitted the FAFSA past the deadline, you will be ineligible for federal financial aid for that academic year. You must wait until the next application cycle to fill it out again.
If helpful, put the FAFSA opening date and submission deadline in your calendar for future academic years so you don’t forget.
#3: You’ve Reached Your Financial Aid Limit
Certain financial aid has limits. For example, some grant programs award recipients with $20,000 and allow them to use the funds as they see fit. So, if the recipient had already used the entire $20,000 of that award to fund their freshman year tuition, they will not receive any additional grant funding from that program in following years.
If you have already met the maximum award or borrowing limits for the financial aid you have access to, you will not see more financial aid in your aid package.
Some of the most common financial aid programs with limits are:
| Financial Aid Program | Limit |
| Pell Grant | 6 years of funding. Recipients are eligible to receive 600% of their yearly award (over the course of a 6-year period). If recipients use 150% of their total 600% in their freshman year, they will have a remaining 450% for the rest of their college career. |
| Federal Undergraduate Subsidized Loans | The total Cost of Attendance minus your Estimated Family Contribution (EFC). |
| Federal Undergraduate Unsubsidized Loans (Dependent Students) | • First Year: $5,500 ($3,500 subsidized, $2,000 unsubsidized) • Second Year: $6,500 ($4,500 subsidized, $2,000 unsubsidized) • Third Year and Beyond: $7,500 ($5,500 subsidized, $2,000 unsubsidized) • Total Limit Over the Course of Your Entire Education: $31,000 ($23,000 subsidized, $7,000 unsubsidized) |
| Federal Undergraduate Unsubsidized Loans (Independent Students) | • First Year: $9,500 ($3,500 subsidized, $6,000 unsubsidized) • Second Year: $10,500 ($4,500 subsidized, $6,000 unsubsidized) • Third Year and Beyond: $12,500 ($5,500 subsidized, $7,000 unsubsidized) • Total Limit Over the Course of Your Entire Education: $57,500 ($23,000 subsidized, $34,500 unsubsidized) |
| Graduate Federal Student Loans | $20,500 in unsubsidized loans with a lifetime limit of $138,500, which includes undergraduate federal student loans. |
If you have already reached your maximum award or borrowing limit, you may not receive more financial aid.
#4: You are Defaulted on a Federal Student Loan
Your federal student loans are considered defaulted after you’ve missed your scheduled loan payments for more than 9 months, which is around 270 days.
If you are defaulted on a federal student loan, you are ineligible for federal student aid, regardless of whether you submitted the FAFSA.
If your student loans are in default, or you believe they may be in default, contact your federal student loan servicer as soon as possible to discuss options such as loan rehabilitation.
You will not be eligible for any federal financial aid until the defaulted loan is paid off.
#5: You Did Not Meet the Income Threshold for Need-Based Aid
Need-based financial aid requires you to meet a certain threshold of financial need to be eligible. Information such as your expected family contribution (EFC), your school year, and the cost of attendance at your school will determine your eligibility for need-based financial aid.
#6: You Did Not Meet the Eligibility Requirements for Merit-Based Aid
When determining your eligibility for merit-based aid, your academic standing may be considered. If you are not making Satisfactory Academic Progress (SAP), you will be ineligible for merit-based federal financial aid.
To make SAP, you must have at least a 2.0 GPA on a 4.0 scale (a C average) and pass enough classes to make progress toward earning a degree.
#7: You Are Not a U.S. Citizen
When it comes to federal financial aid, only U.S. citizens and permanent residents with a green card are eligible. If you are neither, you will not be eligible to receive federal financial aid.
6 Ways to Pay for College Without Financial Aid
If you fall into one of the above categories, and thus did not receive financial aid, there are a few things you can — and should — do to pay for college.
Here are the top six things you can do to pay for college with no financial aid:
Write an Appeal Letter
While it may sound intimidating, appealing your financial aid package should be your first step. Before you write an appeal letter, though, you should consider the following:
- Has your or your family’s financial situation changed since you submitted the FAFSA due to unexpected or special circumstances? (ie. medical expenses)
- Did you make an error on your FAFSA that you believe impacted your financial aid package?
- Did you receive a better financial aid package from another school that you’d like another school to match?
If any of the above circumstances are applicable to you, it is worthwhile to appeal your financial aid award.
When writing your appeal letter, be mindful of what you say and how you say it. Remember, their initial assessment granted you $0 in financial aid. They will need to spend time reevaluating your financial aid package, so be understanding and respectful of their time.
Look for Merit-Based Scholarships
Merit-based scholarships should be your next stop in paying for college without financial aid. Scholarships, unlike student loans, do not have to be paid back. (Yup, free money.)
We recommend starting your search with scholarship search engines. These sites compile thousands, sometimes even hundreds of thousands, of scholarship opportunities, making it easy for you to apply to several in one place.
Our favorite scholarship search engines include:
Complete the FAFSA
If it isn’t too late, you should submit the FAFSA.
For example, if you received your financial aid package of $0 on May 1st, 2023, you still have until June 20th, 2023 to complete the FAFSA. While you may not receive any financial aid due to submitting so late in the cycle, it is worth a shot.
To complete the FAFSA, start by gathering any necessary documents such as:
- Your social security number
- Your parents’ social security numbers (if you are a dependent)
- Your Alien Registration Number (if you are not a U.S. citizen)
- Tax information, such as tax returns
- Records of any untaxed income
- Information on cash you may have
After you have this information, fill out the FAFSA, and submit it before June 30th.
Look for Jobs that Offer Tuition Assistance
If receiving other financial aid is not an option, pursuing employment at a company with tuition assistance is another solid option.
There are a variety of companies offering both part-time and full-time employment with incredible tuition reimbursement benefits.
For example:
- Starbucks offers both full-time and part-time employees up to 100% tuition reimbursement for courses taken through Arizona State University’s online program.
- Target offers employees up to 100% tuition reimbursement for undergraduate degrees.
- Papa John’s offers employees at corporate-owned locations up to 100% tuition reimbursement for undergraduate and graduate degree programs done through Purdue University Global.
Consider Private Student Loan Options
If you are unable to secure other forms of financial aid, private student loans can be a viable option. As with any loan, however, you should always compare interest rates and terms so you can get the best student loan possible.
The following are our top picks for private student loans:
- Arkansas Student Loan Authority – Best if you are located in Arkansas, have a qualified cosigner, and want competitive interest rates.
- Ascent – Best if you don’t have a cosigner, are an international or DACA student, or have a low credit score.
- Brazos – Best if you are a Texas resident, have strong credit, and want competitive interest rates.
- College Ave – Best if you are seeking competitive interest rates and a more flexible repayment plan that matches your budget.
- Earnest – Best if you are seeking competitive interest rates, unique borrower perks, and flexible repayment options.
- Funding U – Best if you are a high-achieving student with limited credit history and no access to a creditworthy cosigner.
- INvestED – Best if you are a resident of or student in Indiana seeking competitive interest rates and a variety of repayment options.
- LendKey – Best if you have strong credit and want generous cosigner release and forbearance policies.
- MPOWER – Best if you are an international or DACA student, don’t have a credit history, or can’t access a qualified cosigner.
- Nelnet Bank – Best if you are seeking competitive interest rates, a variety of repayment terms, and a flexible forbearance policy.
- Prodigy Finance – Best if you are an international student who doesn’t have a credit history and can’t access a qualified cosigner.
- Sallie Mae – Best if you are seeking a more flexible repayment plan and competitive interest rates.
- SoFi – Best if you are seeking competitive interest rates and have a strong credit history or a creditworthy cosigner.
Rather than completing an individual application with each lender to see what you qualify for, consider using Sparrow. The Sparrow application allows you to submit one single application to see what rates you qualify for at 15+ student lenders. Using Sparrow is also free and won’t impact your credit score.
Consider Community College
If your top choice school is simply out of reach due to a lack of financial aid, it may be worthwhile to consider a less expensive school, or even a year or two at a local community college. Community college is often far cheaper than traditional 4-year institutions.
Final Thoughts from the Nest
If you didn’t receive any financial aid, don’t lose hope. There are a variety of things you can do to still pursue a higher education. Start with appealing your financial aid award, then look for other avenues for aid, such as scholarships and private student loans.
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