Federal Student Aid (http://studentaid.ed.gov) is a division of the US Department of Education that has a goal of “ensuring that all eligible individuals benefit from federal financial assistance—grants, loans and work-study programs—for education beyond high school.” Each year the Federal Student Aid (FSA) office provides over $100 billion in new aid (!!) to over 14 million students and oversees over $500 billion in outstanding student loans.
Here is a breakdown of all of the types of financial aid that you can qualify for through the FSA:
- Federal Pell Grant. This is a grant that does not have to be repaid. It is available almost exclusively to undergrads and in the 2006-07 school year provided between $400 to $4,050 annually to individual students.
- FSEOG (aka Federal Supplemental Educational Opportunity Grant.) Grant that does not have to be repaid and usually for undergrads with exceptional financial need. Priority is given to Federal Pell Grant recipients. Normally provides between $100 to $4000 annually.
- Federal Work-Study. The work study program gives students the ability to work and earn money while attending school and does not have to be repaid. Used for undergrad and grad students for both on or off campus jobs. The jobs pay at least minimum wage and there are no annual minimum or maximum amounts one can earn.
- Federal Perkins Loan. Federal loan that must be repaid. Loan includes 5% interest for graduate and undergraduate students. Payments on the loan are owed to the school that makes the loan. $4k annual maximum for undergrads and $6k max for graduate students.
- Subsidized Direct or FFEL Stafford Loan. Loan in which the US Department of Education pays interest while the borrower is in school. Eligible students must be enrolled as at least half-time students. Amounts awarded are between $2625 to $8500 depending on grade level.
- Unsubsidized Direct or FFEL Stafford Loan. Unlike the subsidized version, for the borrower is responsible for interest during life of the loan. Same eligibility including being a half-time student. Amounts awarded are between $2625 to $8500 depending on grade level.
- Direct or FFEL Plus Loan. This loan is available for parents of dependent undergrads who are enrolled at least half-time. The maximum amount is the cost of attendance minus any other financial aid.
One of the FSA’s most important components is the creation and administration of the Free Application for Federal Student Aid (FAFSA), the starting point for seeing if you qualify for financial aid. The FAFSA is probably the most important step in seeking federal and government aid, including guaranteed commercial lenders' programs, as well as many state, regional and private student aid programs.
The FAFSA will walk you through the basic federal aid requirements, which include the following:
- Prospective students must show a real financial need.
- Aid seekers must be US citizens or eligible non-citizens with a valid Social Security number.
- Qualification, via one of the below:
- Be already working on a postsecondary degree.
- Maintain satisfactory academic performance while in school.
Before filling out the FAFSA form, you will need to get some information together. You will need to know if your parents claim you as a dependent; if so, they will need to provide some information during the application process. You’ll also need to get the appropriate school codes from the FSA website for the application. Finally, you’ll need to check all applicable submission deadlines to ensure your submission occurs in a timely fashion.
The FAFSA form can be located here: http://www.fafsa.ed.gov/FOTWWebApp/complete013.jsp.Good luck!
Quick tips:
- Avoid fee-based FAFSA assistance; you can fill out the form yourself.
- All FSA material is available in Spanish.