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Whatever type of school you attend after high school—a public or private university, trade school or community college— you have to be thinking about how you are going to pay for it. If you are 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 14 million students each year with grants, work-study and low-interest loans. That is what this guide is all about: steering you through the process of applying for and receiving aid, and repaying your student loans.
Now is the time to take action. You may qualify for more financial aid than you think. Investing a little time now could pay off in a brighter future.
Do you need help paying for college or for a career or vocational school?
Most student financial aid comes from the federal government programs you will read about in this publication. The U.S. Department of Education's office of Federal Student Aid administers these programs.
Applying for federal student aid is FREE
That is why our application is called the Free Application for Federal Student Aid (FAFSASM). If you need help completing the FAFSA, that help is free too. You don't have to pay anyone for help and you should beware of scams and services that will search for financial aid for you for a fee. The College Scholarship Fraud Protection Act protects you from this type of fraud. We tell you how to protect yourself from scams here.
The information in this guide was compiled in the summer of 2009. For changes to the federal student aid programs since then, visit www.FederalStudentAid.ed.gov
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This section is a quick reference to our federal student aid programs and how to apply for this aid. The rest of this publication provides more detail of what you need to know as you go through the federal student aid process. |
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The graphic at the bottom of each page provides a key to the primary topic—based on the Prepare-Apply-Receive-Repay cycle—covered in the text on that page. |
It's financial help for eligible students to pay for educational expenses at an eligible postsecondary school (e.g., college, vocational school, graduate school).
There are three categories of federal student aid: grants, work-study, and loans. Check with your school to find out which programs your school participates in.
Federal student aid covers expenses such as tuition and fees, room and board, books and supplies, and transportation. Aid also can help pay for a computer and for dependent care.
Many factors determine eligibility for federal student aid programs. Our most basic eligibility requirements are that you must
- demonstrate financial need (except for certain loans),
- be a U.S. citizen or eligible noncitizen,
- have a valid Social Security number,
- be working toward a degree or certificate in an eligible program,
- 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 in postsecondary school, and
- show you're qualified to obtain a postsecondary education by
- having a high school diploma or a General Educational Development (GED) certificate;
- passing an approved ability-to-benefit test (if you don't have a high school 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 that your state establishes and that we have approved.
- completing six credit hours or equivalent course work toward a degree or certificate;
- meeting other federally approved standards your state establishes; or
- completing a high school education in a homeschool setting approved under state law.
1. Complete the Free Application for Federal Student Aid (FAFSASM).
For FAFSA on the WebSM, go to www.fafsa.ed.gov. Using FAFSA on the Web is faster and easier than using a paper FAFSASM. If you don’t have Internet access, you can get a paper FAFSA from
You can apply beginning Jan. 1, 2010; you have until June 30, 2011, to submit your FAFSA. But you need to apply early! Schools and states often use the FAFSA information to also award nonfederal aid. Their deadlines are usually early in the year. You can find state deadlines at FAFSA on the Web or on the paper FAFSA. Check with the schools you're interested in for their deadlines.
2. Review your Student Aid Report (SAR).
After you apply, you’ll receive a Student Aid Report, or SAR. Your SAR contains the information reported on your FAFSA and usually includes your Expected Family Contribution (EFC). The EFC, a measure of your family’s financial strength, is used to determine your eligibility for federal student aid. Review your SAR information and make any corrections or changes, if necessary. The school(s) you list on your FAFSA will get your SAR data electronically.
3. Contact the school(s) you might attend.
Make sure the financial aid office at each school you're interested in has all the information needed to determine your eligibility. If you're eligible, each school's financial aid office will send you an award letter showing the amount and types of aid (from all sources) the school will offer you. You can compare award letters from the schools to which you applied and see what aid you can receive from each school.
Federal Student Aid Summary Chart
| Program
| Type of Aid
| Program Details
| Annual Amount
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| Federal Pell Grant |
Grant: does
not have to be repaid |
Available almost exclusively to undergraduates; student may receive up to 2 consecutive maximum awards in a year if attending school year-round |
2010-11: $609-$5,550 |
| Federal Supplemental Educational Opportunity Grant (FSEOG) |
Grant: does
not have to be repaid |
For undergraduates with exceptional financial need; Federal Pell Grant recipients take priority; funds depend on availability at school |
$100–$4,000 |
| Academic Competitiveness Grant (ACG) |
Grant: does
not have to be repaid |
For Pell-eligible students enrolled at least half-time in their first or second year of study or in a certificate program of at least one year at a degree-granting school |
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| 1st year: must have completed rigorous secondary school program of study; graduated from high school after Jan. 1, 2006; not have been enrolled in ACG-eligible program while at or below age of compulsory school attendance |
1st year: Up to $750 |
| 2nd year: must have completed rigorous secondary school program of study; graduated from high school after Jan. 1, 2005; have at least 3.0 cumulative GPA at end of first year postsecondary study |
2nd year: Up to $1,300 |
| National Science and Mathematics Access to Retain Talent Grant (National SMART Grant) |
Grant: does
not have to be repaid |
For Pell-eligible students enrolled at least half-time in third or fourth year (or fifth year of a five-year program) majoring in certain subject areas with at least a 3.0 cumulative GPA |
Up to $4,000 a year |
| Teacher Education Assistance for College and Higher Education (TEACH) Grant |
Grant: does not have to be repaid unless you fail to carry out the service obligation, in which case you must repay TEACH Grant as a Direct Unsubsidized Loan with interest accrued from the date the grant was disbursed |
For undergraduate, postbaccalaureate, and graduate students who are taking or will be taking course work necessary to become an elementary or secondary teacher; recipient must sign an Agreement to Serve promising to teach full-time in a high-need field for four complete academic years (within eight years of completing academic program for which the TEACH Grant was received) at a low-income elementary or secondary school or educational service agency |
Up to $4,000 a year |
| Iraq and Afghanistan Service Grant |
Grant: does not have to be repaid |
For students who are not Pell-eligible; whose parent or guardian died as a result of military service in Iraq or Afghanistan after Sept. 11, 2001; and who, at the time of the parent's or guardian's death, were less than 24 years old or were enrolled at least part-time at an institution of higher education |
Maximum is same as Pell maximum; payment adjusted for less-than-full-time study |
| Federal Work-Study |
Money earned while attending school; does not have to be repaid |
For undergraduate and graduate students; jobs can be on campus or off campus; students are paid at least federal minimum wage |
No annual minimum or maximum amounts |
| Federal Perkins Loan |
Loan: must be repaid |
For undergraduate and graduate students; must be repaid to school that made the loan; interest 5 percent |
Undergraduate students: up to $5,500; graduate and professional students: up to $8,000 |
Subsidized Direct
or
FFEL Stafford Loan |
Loan: must be repaid |
Subsidized: The U.S. Department of Education pays interest while the borrower is in school and during grace and deferment periods; student must be attending at least half-time and have financial need; fixed interest rate of 5.6% for loans made to undergraduates with the first disbursement date between July 1, 2009 and June 30, 2010; fixed rate of 6.8% is set for loans made to graduate students |
$3,500–$8,500, depending on grade level |
Unsubsidized Direct
or
FFEL Stafford Loan |
Loan: must be repaid |
Unsubsidized: The borrower is responsible for all interest; must be at least half-time; financial need not required; fixed interest rate of 6.8% for new borrowers |
$5,500–$20,500 (less any subsidized amounts received for same period), depending on grade level and dependency status |
| Direct or FFEL PLUS Loan |
Loan: must be repaid |
For parents of dependent undergraduate students and for graduate and professional students; students must be enrolled at least half-time; financial need not required
Borrower must not have adverse credit history
PLUS Loans are unsubsidized, the borrower is responsible for all interest |
Maximum amount is cost of attendance minus any other financial aid student receives; no minimum amount |
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This type of loan is from the William D. Ford Federal Direct Loan Program. These loans are also known as Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.
This type of loan is from the Federal Family Education Loan (FFELSM) Program. These loans are also known as Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, and Federal PLUS Loans.
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Steps to 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 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.
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Step 2
Get a Federal Student Aid PIN, a personal identification number. A PIN lets you apply, “sign” your online Free Application for Federal Student Aid (FAFSASM), make corrections to your application information, and more—so keep it safe. Go to www.pin.ed.gov to get one.
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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.
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Step 4
Complete the FAFSA between Jan. 1, 2010, and June 30, 2011 (no exceptions to either date!). BUT, apply as soon as possible after Jan. 1 to meet school and state aid deadlines (see note). Apply online at FAFSA on the WebSM (the faster and easier way) by going to www.fafsa.ed.gov. If you don't already have your PIN, you can get it when you complete the online FAFSA.
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Step 5
The U.S. Department of Education 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.
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Step 6
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The college or trade school that you plan to attend might request additional information from you. Be sure to respond by any deadlines, or you might not receive federal student aid.
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Step 7
All applicants: The college or trade school will tell you how much aid you can get at that school. 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.
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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). You can find a free scholarship search at www.FederalStudentAid.ed.gov/scholarship. Be sure to meet all application deadlines!
Process Summary Chart
| PREPARE |
APPLY |
RECEIVE |
REPAY |
| This guide gives you information about federal student aid programs, as well as other means of paying for your education after high school. Take what we say to heart … and then take the next step. |
This step is where many deserving students falter, either because they assume they won’t qualify, or because the FAFSA looks difficult to complete. In the case of the FAFSA, the improved online version simplifies 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’ll inform you and your selected schools about your Expected Family Contribution (EFC). Then the schools (or your student loan provider) will tell you how much—and what sorts of—aid you qualify for. |
If your aid is in the form of a loan or loans, this guide will fill you in on the repayment process. |
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