Financial Aid

Guides students through the process of locating and applying for financial aid. Prepared by the Congressional Research Service for Members of Congress, updated January 2010.

 

The Basics: Getting Started

Start gathering information early.

Free information is readily available from:

  • High school counselors
  • College and career school financial aid offices (where you plan to attend)
  • Local and college libraries
  • Student Aid on the Web (U.S. Department of Education)
  • Other Internet sites (search terms student financial aid OR assistance)

Ask questions: counselors may know if you have exceptional circumstances that affect your eligibility.

Keep copies of all forms and correspondence: you must reapply for aid each year.

Parents of students: save money long before your child attends college.

 

Good overviews:

Beware of scholarship scams -- don’t pay for free information!


Student Aid and Where it Comes from

Basic assistance categories:

Financial need-based
Remember that students and their parents are responsible for paying what they can -- financial aid is a supplement, not a substitute, for family resources.

Non need-based
Factors include academic excellence, ethnic background, or organization membership. Corporations may also offer assistance to employees and children.

Federal Student Aid:

  •  Provides nearly 70% of student aid under Loans, Grants and Work/study programs.
  •  Available to all need-based applicants; some loans and competitive scholarships for non need-based.
  •  Free information from the United States Department of Education:
  •  Student Aid on the Web
  •  Financial Aid Resource Publications

 

Loans are the most common federal aid and must be repaid when you graduate or leave college.
  • Stafford Loans (FFELs and Direct Loans) include:
  • Federal Family Education Loans (FFEL) from private lenders, such as banks and credit unions, guaranteed  by the federal government.
  • Federal PLUS Loans parental loans, not need-based.
  • Perkins Loans for the most needy undergraduates; through participating schools.

 

Scholarships/grants are mostly need-based and require no repayment:

 

"Congressional" scholarships:

  • Named for Member of Congress or other prominent individual (such as Byrd Honors Scholarships,    Fulbright fellowships)
  • Merit-based and highly competitive
  • Members of Congress do not play a role in selecting recipients

 

Work study programs allow you to earn money while in school:
States offer residents a variety of scholarships, loans, and tuition exemptions.
  •  Check with your State Higher Education Agency and State Guarantee Agency.
  •  Consider prepaid tuition and college savings ("Section 529") plans: College Savings Plans Network.
  •  Search your Internet browser under terms such as student financial aid or assistance AND your state.


Colleges and universities provide some 20% of aid, most need-based. Check university Web sites and the institution’s financial aid office when you apply for admission.

Private foundations, corporations, and organizations offer scholarships or grants:

  • College Board Scholarship Search
  • FastWeb
  • Grants for Individuals

Targeted Aid for Special Groups

Grants for Minorities: Asians, Blacks, Hispanics, Latinos, Native Americans, and Other Ethnic Groups


Interested in public service?

Federal assistance programs seek to encourage people to work in geographic areas or professions where there’s a particular need (such as doctors in underserved areas); encourage underrepresented groups to enter a particular profession; and provide aid in exchange for services provided (such as military service).


Aid for private K-12 education: No direct federal assistance, check with schools themselves:

Coverdell Education Savings Accounts: for elementary and secondary school expenses as well as higher education.


Repaying your Loans

After college, the federal government has ways to help you repay your loans.

Eligibility depends upon the type of loan, when it was made, and whether it’s in default. Check with your loan officer to find out if you qualify.