Many families are shocked by a college's sticker price. While the price of tuition can be overwhelming, a financial aid package can make college more affordable.

In fact, income and savings only represent a few of the resources families use to pay students' college expenses, according to the 2017 Sallie Mae/Ipsos survey How America Pays for College. The survey found that for a typical family, scholarships and grants were the primary source of funding for the 2016-2017 academic year. Scholarships and grants are two types of financial aid that don't need to be repaid.

With the complexity of paying for college, navigating the financial aid process can seem challenging. Here are a few answers to common financial aid questions.

What Is Financial Aid?

Financial aid helps students and their families pay for college by covering higher education expenses, such as tuition and fees, room and board, books and supplies, and transportation. There are several types of financial aid; these include grants, scholarships, work-study and federal or private loans.

Different types of aid are provided through various sources, such as federal and state agencies, colleges, high schools, foundations and corporations, to name a few. The amount of aid a student receives depends on federal, state and institutional guidelines.

How much will financial aid give me for college?

You can't receive more need-based aid than the amount of your financial need. For instance, if your COA is $16,000 and your EFC is 12000, your financial need is$4,000; so you aren't eligible for more than $4,000 in need-based aid. 

How does financial aid work if you fail a class?

Your financial aid account will be affected in two ways if you fail a class. You will receive an “F” grade which will affect your overall GPA. Please remember that you must maintain a 3.0 GPA as a graduate student and a 2.0 GPA if you are an undergraduate student to be eligible to receive financial aid.

How is financial aid disbursed?

Summary: Disbursement is the payment of student aid funds. ... Colleges are required to disburse (or pay out) federal student aid funds, including Direct Subsidized Loans, Direct Unsubsidized Loans, and Federal Pell Grants, at the start of each academic term. Federal Work-Study funds are disbursed as the money is earned.

How much do your parents have to make to qualify for financial aid?

So if the parent's have one child in college and have an earned income of $140,000, their EFC will be about $30,000 per year for that child. With two children in college, the parent's EFC will get split 50/50 and applied to each child's overall EFC, or $15,000 each.

How long does it take to get a student loan?

After loan approval, it can take 2 weeks to 2 months for the lender to send the loan proceeds to the college or to you, as applicable. If the money is sent directly to the college, it typically takes 1-2 weeks before the remaining money is refunded to you.