Financial Aid for Students

This Information Web page, prepared by the Congressional Research Service for Members of Congress, guides students through the process of locating and applying for financial aid. [Updated March 2006]

• The basics: getting started
• Student aid and where it comes from
• Targeted aid for specific groups
• Repaying your loans

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
U.S. Department of Education Web page
Other Internet sites (search terms student financial aid OR assistance)

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

Be organized: use calendars to keep on track.

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.
College Savings Plan Network (state "Section 529" plans)
FinAid: for Parents
Tax incentives for higher education expenses

Good overviews:
Cash for College
FinAid: The Smart Student Guide to Financial Aid
Financial Aid: You Can Afford It
Looking for Student Aid
Mapping Your Future
Paying for College

Beware of scholarship scams -- don't pay for free information!
Department of Education
Federal Trade Commission

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 theUnited States Department of Education:
  • Funding Your Education
  • Student Guide
• Loans are the most common federal aid and must be repaid when you graduate or leave college.
  • Stafford Loans include:
    • Federal Family Education Loans (FFEL) from private lenders, such as banks and credit unions, guaranteed by the federal government.
    • William D. Ford Direct Loans (DL) directly from 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: