For most parents, the concern about how to pay for their children’s college education begins when their kids are still young. But the reality truly sets in during their children’s final years of high school, when tough questions start to arise: Can we afford this? Will my child graduate buried in debt? Will we have to pay for everything ourselves? 

“A lot of parents don’t know about financial aid systems,” said Israel Flores, Strategic Outreach Coordinator at the California Student Aid Commission (CSAC). “They may think that they or their children have to pay for college themselves.”  

That misunderstanding alone can discourage families from applying for aid or even believing college is financially possible. But according to Flores, programs like FAFSA (Free Application for Federal Student Aid) and the California Dream Act Application (CADAA) were specifically designed to help students access higher education — especially those from low-income and first-generation backgrounds. 

To dive deeper into the topic, it is important to understand the difference between the FAFSA and the California Dream Act Application (CADAA). The FAFSA (Free Application for Federal Student Aid) is used by U.S. citizens and eligible noncitizens to apply for federal financial aid, including federal grants, federal student loans, work-study programs, as well as many state and institutional aid programs. In comparison, the CADAA is designed for eligible undocumented and certain nonresident students in California. Students who complete the California Dream Act Application may qualify for state financial aid programs and institutional aid from participating colleges and universities, but they are not eligible to receive federal financial aid. 

Now, the amount of financial assistance a student receives is largely determined by family income. Families in higher income brackets are generally expected to contribute a larger share toward college costs, while students from lower-income households often qualify for more grant-based aid. “For example,” said Flores, “a higher-income family may be responsible for covering about 50% of tuition expenses, with financial aid covering the remaining portion. In contrast, low-income families may receive grants and aid that cover up to 90% of educational costs, leaving parents responsible for only a small percentage of the total expense.” 

This means that students from low-income households can have the same opportunity to attend college as any other student. 

Still, even with financial aid opportunities available, families must carefully consider what is financially realistic for their situation. Parents and students need to have honest conversations about what options are available to them. “The key is understanding what is financially manageable for their situation and what level of financial risk they are willing to take. Some families may decide loans are worth it, while others may look for alternatives that allow students to avoid borrowing altogether,” explained Flores. “For some students, it may mean starting at a community college or attending a four-year university while continuing to live at home to reduce costs.” 

Once financial aid is awarded, colleges typically apply the funds first to tuition and other school-related charges, such as room and board. If there is any remaining balance, the student receives it as a financial aid refund, which can be used for additional education-related expenses. 

“Let me explain it with an example,” said Flores. “If a student’s semester tuition costs $6,000 and they receive $10,000 in financial aid, the school will first deduct the $6,000 owed for tuition. The remaining $4,000 is then issued to the student as a financial aid refund, which can help cover additional college-related expenses such as books, technology, transportation, meals… pretty much anything.” 

Flores added that if a student is also paying for room and board through the university, those housing and meal costs are typically deducted before the remaining refund is distributed to the student. 

For families who may still feel overwhelmed or nervous about completing financial aid applications, the California Student Aid Commission (CSAC) offers resources and guidance to help students and parents through the process. As California’s state-based financial aid agency, CSAC assists families with completing the FAFSA and California Dream Act Application. The agency regularly hosts free online webinars and partners with local organizations across the state to offer financial aid workshops and outreach events. Webinar dates and registration information are available on CSAC’s website, and anyone interested can sign up to attend.  

“Students only need to complete the FAFSA or California Dream Act Application, depending on their eligibility, and CSAC will then determine which grants and aid programs the student may qualify for,” said Flores. 

While completing the application is an important first step, Flores emphasized that submitting it on time is just as critical. He encouraged parents to remind — and even “nag” — their students to meet financial aid deadlines in order to maximize the assistance they may receive.  

“Make sure to submit the FAFSA or California Dream Act Application before the deadline because that is how students can maximize the amount of financial aid they may receive,” he said. “If you miss the deadline, you may receive less aid or potentially no aid at all.” 

For financial aid in California, the FAFSA and the California Dream Act Application (CADAA) open on October 1 of the previous year for the next school year. While the FAFSA federal deadline is June 30, the most important date is March 2, which is the priority deadline for state aid like the Cal Grant. The Cal Grant is not a separate application—students are automatically considered when they submit FAFSA or CADAA—so submitting by March 2 is the best way to maximize eligibility for financial aid. Students can still submit applications after March 2, but they may receive less state financial aid. 

Flores also warned families against waiting until the last minute to apply, noting that technical issues, such as website outages or heavy traffic, can create unexpected delays.  

The application is relatively simple and straightforward to complete, typically taking no more than an hour. “As long as you complete and submit the application before the deadline, you can always go back and make corrections,” said Flores. “The original submission date is what counts, regardless of any changes made afterward.” 

Flores encourages high school students to take advantage of college and career expos, where they can speak directly with representatives from different colleges and gather information about admissions, programs, and financial aid. “Go to these events, ask questions, and get informed,” Flores said. “The more you know ahead of time, the easier the process will be later on.”