Federal Student Aid
WHAT Is Federal Student Aid?
Federal student aid comes from the federal government—specifically, the U.S. Department of Education. It’s money that helps a student pay for education expenses at a postsecondary school (e.g., college, vocational school, graduate school).
Federal student aid covers such expenses as tuition and fees, room and board, books and supplies, and transportation. Aid also can help pay for a computer and for dependent care.
The three main categories of federal student aid are:
- Grant—Grant money usually doesn’t have to be repaid. Most U.S. Department of Education grants are based on the student’s financial need.
- Work-study—Work-study money is earned by a student through a job on or near campus while attending school and does not have to be repaid.
- Loan—Loan money must be repaid with interest.
For details about the federal student aid programs, including maximum annual amounts and loan interest rates, visit www.studentaid.ed.gov/guide.
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Why Get a Federal Student Loan? Federal student loans offer low fixed interest rates; income-based repayment plans; loan forgiveness; and deferment options, including deferment of loan payments when a student returns to school. Generally, repayment of a federal loan does not begin until after the student leaves school. And did you know that a student receiving a federal loan does not need a credit history or a cosigner? Private loans from banks often do not offer such benefits. So if you need to borrow money to pay for college or trade school, start with federal student loans. |
WHO Gets Federal Student Aid?
Our most basic eligibility requirements are that you must
- be a U.S. citizen or an eligible noncitizen,
- have a valid Social Security number, and
- show you’re qualified to obtain a postsecondary education by
- having a high school diploma or General Educational Development (GED) certificate;
- passing an approved ability-to-benefit test (if you don’t have a diploma or GED certificate, a school can administer a test to determine whether you can benefit from the education offered at that school);
- meeting other federally approved standards your state establishes; or
- completing a high school education in a homeschool setting approved under state law.
HOW Do You Apply for Federal Student Aid?
Refer to “FAFSA Filing Time” of this checklist for a step-by-step guide to filling out the Free Application for Federal Student Aid.
