Whatever form this "postsecondary" education takes-whether it's university, trade school or community college—you have to be thinking about how you're going to pay for it. The cost of education continues to rise. But if you're determined to achieve the success that education beyond high school can bring, the investment is worth it. But that doesn't mean managing these costs isn't a challenge.

Federal Student Aid can help. We assist more than 10 million students each year with grants, low-interest loans and work-study programs. That's what this guide is about: steering you step by step through the process of applying for and receiving aid. If you received a student loan, we'll also explain the process of repaying it—and grace periods, deferments and other options available to you.

Now is the time to take action. You may qualify for more financial aid than you think. But you won't know until you follow the steps we describe here. Investing a little time now could pay off in a brighter future. Start right here.

Do you need help paying for college or for a career or vocational school? This section is a quick reference to our federal student aid programs and how to apply. The rest of this publication provides more detail of what you need to know.

Most student financial aid comes from the federal government programs you'll read about here, which the U.S. Department of Education's Federal Student Aid office administers. For additional sources of student financial aid, see Other Financial Aid Sources.

Applying for federal student aid is FREE; that's why our application is called the Free Application for Federal Student Aid (FAFSA). If you need help completing the FAFSA, that help is free, too. You don't have to pay anyone for assistance.

Beware of scams and services that will search for financial aid money for you for a fee. The College Scholarship Fraud Protection Act protects you from this type of fraud.

What is federal student aid?

Federal student aid is financial assistance through the U.S. Department of Education that's available if you're enrolled in an Eligible Program* as a Regular Student* at a school participating in our federal student aid programs.

Federal student aid covers school expenses such as tuition and fees, room and board, books and supplies and transportation. This aid can also help you pay for a computer and dependent child-care expenses. (Note that accepting any of this aid does not commit the student to military or other government service.)

How Do I apply for Federal Student Aid?

Step 1

• Get free information and help from your school counselor, the financial aid office at the college or career school you plan to attend, or the U.S. Department of Education (ED) at www.FederalStudentAid.ed.gov or 1-800-4-FED-AID (1-800-433-3243). Free help is available any time during the application process. You should never have to pay for help.

Step 2

• Get a PIN, a personal identification number. A PIN lets you apply, "sign" your online Free Application for Federal Student Aid (FAFSA), make corrections to your application information, and more—all online. Go to www.pin.ed.gov.

Step 3

• Collect the documents needed to apply, including income tax returns and W-2 forms (and other records of income). A full list of what you need is at www.fafsa.ed.gov. Tax return not completed at the time you apply? Estimate the tax information, apply, and correct information later.

Step 4

• Complete the FAFSA between Jan. 1, 2007 and June 30, 2008 (no exceptions to either date!). BUT, apply as soon as possible after Jan. 1 to meet school and state aid deadlines (see note at bottom of page). Apply online (the faster and easier way) by going to www.fafsa.ed.gov.

Step 5

• ED will send you your Student Aid Report (SAR)—the result of your FAFSA. Review your SAR, and if necessary, make changes or corrections and submit your SAR for reprocessing. Your complete, correct SAR will contain your Expected Family Contribution (EFC)—the number used to determine your federal student aid eligibility.

Step 6

• If you are selected for verification, your school’s financial aid office will ask you to submit tax returns and other documents, as appropriate. Be sure to meet the school’s deadlines, or you will not receive federal student aid.

Step 7

• Whether you’re selected for verification or not, make sure the financial aid office at the school has all the information needed to determine your eligibility.

Step 8

• All students: Contact the financial aid office if you have any questions about the aid being offered.
  First-time applicants: Review Award Letters from schools to compare amounts and types of aid being offered. Decide which school to attend based on a combination of (a) how well the school suits your needs and (b) its affordability after all aid is taken into account.

Note:
You also might be able to get financial aid from your state government, your school or a private scholarship. Research nonfederal aid early (ideally, start in the spring of your junior year of high school). Be sure to meet all application deadlines!

There are three categories of federal student aid: grants, work- study and loans. (See "Federal Student Aid Summary Chart" for an overview of these programs.) Check with your school to find out which programs your school participates in.

Who gets federal student aid?

Eligibility for most federal student aid programs is based on financial need and several other factors. Your eligibility is determined by the information you provide on the FAFSA.

Basic eligibility requirements:

• Demonstrate financial need (except for certain loans, see under "Loans" section).
• Be a U.S. citizen or Eligible Noncitizen* (for most programs) with a valid Social Security number (SSN).
• Be working toward a degree or certificate in an Eligible Program.
• Show, by one of the following means, that you're qualified to obtain a postsecondary education:
• Have a high school diploma or a General Education Development (GED) Certificate.
• Pass an approved Ability-to-Benefit* (ATB) test (if you don't have a diploma or GED, a school can administer a test to determine whether you can benefit from the education offered at that school).
• Meet other standards your state establishes that we have approved.
• Complete a high school education in a home school setting approved under state law.
• Register (if you haven't already) with the Selective Service, if you're a male between the ages of 18 and 25.
• Maintain Satisfactory Academic Progress* once in school. (See the complete list of eligibility requirements under "First Things First: Am I Eligible?".)

Process Summary Chart

PREPARE	APPLY	RECEIVE	REPAY
This guide tells you almost everything you need to know about federal student aid, as well as other means of paying for your education after high school. Take what we say to heart … and then take it to the next step.	This step is where many deserving students falter, either because they assume they won’t qualify, or because the FAFSA may seem complex and difficult to complete. In the case of the FAFSA, the improved online version streamlines the application process considerably. It’s a good idea to apply. You may be surprised by the amount of aid for which you qualify.	We will inform you and your selected schools about your Expected Family Contribution (EFC). Then they (or your private lender) will tell you how much—and what sorts of—aid you qualify for. In most cases, funds are disbursed directly to you.	If your aid is in the form of a loan or loans, this guide will fill you in on the repayment process.