Federal student aid is made available by the government to college-eligible students who don’t have the required funding to get a college education on their own. Each year the US Department of Education provides funding in excess of $67 billion in the form of grants, loans and campus-based aid. These monies are all intended to assist students in getting the post-secondary education for which they are qualified.
1Types of Federal Student Aid - Subsidized and Unsubsidized Loans
Through the Stafford Loan program (studentaid.ed.gov) the government issues subsidized and unsubsidized loans to post-secondary students. To get a subsidized loan for college, a student needs to prove that indeed he/she has a financial need. Once this funding is provided, the beneficiary will be enrolled in the respective institution for at least half the time required. The government takes full responsibility in paying for the interest that accrues on the loaned amount. Unsubsidized loans are the direct opposite of the subsidized loans in that one can access them whether or not there is a financial need. The benefiting student takes care of the interest.
Under the Direct PLUS program, parents with dependent children are offered unsubsidized loans and they are then required to pay all the accruing interest. Different terms and conditions apply for borrowable amounts, repayment preferences, and interest rates. More details on these are available via www2.ed.gov.
2Other Types of Federal Student Aid
Students who benefit from federal Pell Grants (www.ed.gov) are not obligated to pay them back. To qualify for these one has to have proof of financial need. The maximum amounts extended to students are subject to annual determinations by Congress. The main considerations looked at before a student gets this funding include the cost required to attend school, whether the student schools on a part-time or full-time basis, and if the student intends to attend school for the entire academic year or less. These funds are paid directly to the student’s school.
The other type of funding has to do with campus-based programs. Examples of these include the Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Perkins Loan programs, and the Federal Work-Study (FWS). These funds are channeled directly to schools and then disbursed to students by the respective financial aid office at the institution. More information is available via studentaid.ed.gov.
3Eligibility Requirements for Federal Student Aid
In addition to the student’s financial need there are several other factors that are considered as eligibility requirements for federal student aid. One’s eligibility is determined by the financial aid administrator at the institution one plans to attend. These requirements are as follows:
- One must have proof of financial need – except for certain loans as described previously.
- One must have a GED certificate or a high school diploma or indeed have passed a US Department of Education approved test.
- One must be working towards getting a certificate or degree.
- One must be registered in an eligible program.
- One must be a US citizen or an eligible non-citizen.
- One must have a legitimate Social Security Number.
- Once in school one must maintain convincing academic progress.
- If required one must be registered with the selective service (http://www.sss.gov/).
You cannot get federal student aid if you have been convicted for the sale or possession of drugs under state or federal law. The Federal Student Aid Information Center will offer you more information on this if you have previously been convicted for these offenses. Call them via 1-800-4-FED-AID (1-800-433-3243).
It is also prudent to complete a Free Application for Federal Student Aid form (www.fafsa.ed.gov) even if one is not eligible for Federal Student Aid. This is because one may be eligible to get non-federal aid from private institutions and states.
4Applying for Federal Student Aid to Get a Loan for College
You can use the aforementioned Free Application for Federal Student Aid form (www.fafsa.ed.gov) to apply for all types of Federal Student Aid that have been described here. This form can be completed online or offline. The application process is made quite easy with the use of the FAFSA website considering that it offers step-by-step advice and all the information required for the same. The website also features worksheets to facilitate income estimation, loan documents electronic signing, saving options and the ability to print out the complete report.
All inquiries and additional information can be directed to the Federal Student Aid Information Center (www.fafsa.ed.gov/help/). This facility remains open every day of the week from 8am until midnight.
