As the cost of higher education continues to rise, so does the importance of financial aid for students. The financial aid reaffirmation agreement, also known as the FARA, is a crucial aspect of the financial aid process that all students should understand.
At its core, the FARA is a legally binding agreement between the student and the educational institution that outlines the terms and conditions of the student`s financial aid award. It is typically provided to students who have received need-based financial aid, such as grants or scholarships, to ensure that they continue to meet the eligibility criteria.
The FARA is typically required to be signed and returned by the student before they can receive their financial aid award for the upcoming academic year. It acts as a confirmation from the student that they understand the terms of their award and agree to continue meeting the eligibility requirements.
One of the main components of the FARA is the requirement for students to maintain satisfactory academic progress (SAP). SAP is typically defined by the institution and includes requirements such as maintaining a certain GPA and completing a certain number of credits each semester. If a student fails to meet these requirements, they may lose their financial aid eligibility and have to repay any funds they have received.
The FARA may also include other conditions, such as a requirement to notify the institution of any changes to the student`s financial circumstances or enrollment status. It is important for students to carefully read and understand the terms of their FARA to avoid any potential issues with their financial aid award.
In summary, the financial aid reaffirmation agreement is a critical component of the financial aid process for students. It outlines the terms and conditions of their award, including the requirement to maintain satisfactory academic progress and other eligibility criteria. Students should carefully read and understand the terms of their FARA to avoid any issues with their financial aid eligibility.