Financial Aid for Students

Guides students through the process of locating and applying for financial aid. Prepared by the Congressional Research Service for Members of Congress, updated January 2012.

The basics: getting started

Student aid and where it comes from

Targeted aid for specific groups

Repaying your loans

 

The basics: getting started

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• 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 termsstudent financial aid OR assistance)

• Ask questions of counselors: you may have exceptional circumstances that affect your eligibility.
• Keep copiesof all forms and correspondence: you must reapply for aid each year.
• Parents of students: save money long before your child attends college.

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

• Good overviews:

About Financial Aid
FinAid: The Smart Student Guide to Financial Aid
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

 

Student aid and where it comes from

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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 U.S. Department of Education:

Student Aid on the Web

Financial Aid Resource Publications

Loans, the most common federal aid, must be repaid when you graduate or leave college.

Stafford Loans

Federal PLUS Loans parental loans, not need-based.

Perkins Loans (Campus-based Aid) for the most needy undergraduates; through participating schools.

Scholarships/grantsare mostly need-based and require no repayment:

Pell Grants

Federal Supplemental Educational Opportunity Grants (FSEOG)

Other grants, scholarships, and fellowships, mostly graduate level: search the Catalog of Federal Domestic Assistance (CFDA) by Beneficiary such as "Student or Trainee" or "Graduate Student".

"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 studyprograms allow you to earn money while in school:

Federal Work Study Program: college campus jobs

Student Educational Employment: jobs with the federal government

For questions not covered by the Department of Education website, call the Federal Student Aid Information Center at 1-800-433-3243.

Statesoffer 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 universitiesprovide some 20% of aid, most need-based. Check university websites 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

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

African Americans: For Students: Scholarships

Disabled students: Financial Aid for Students with Disabilities

Foreign students: Financial Aid for International Students

Hispanic Americans: Scholarships

Law school students Financial Aid for Law School

Medical students: Association of American Medical Colleges

Native Americans: American Indian College Fund

Study abroad (for U.S. and non-U.S. citizens): International Financial Aid

Veterans: Education Benefits

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).

AmeriCorps Education Award
Volunteers who complete one year of service receive an education award for current higher education expenses or to repay student loans.

Army Tuition Assistance
Additional benefits for Army personnel.

Bureau of Health Professions
Scholarships and loans to needy health profession students from disadvantaged backgrounds.

Student Educational Employment
Employments, internships, cooperative education, scholarships, grants, and fellowships with federal agencies.

Indian Health Service
Scholarships for American Indian/Alaskan Native health profession students and loan repayment for persons working in IHS facilities.

Military academies:
U.S. Air Force Academy
U.S. Coast Guard Academy
U.S. Merchant Marine Academy
U.S. Military Academy
U.S. Naval Academy

National Health Service Corps
Scholarships and loan repayment for health profession students who agree to work in underserved areas.

Nursing Scholarships
Offered in exchange for two years of service in areas with critical nursing shortages.

Reserve Officers Training Corps (ROTC):
For students who want to be commissioned as officers after graduating from college.
U.S. Air Force ROTC
U.S. Army ROTC
U.S. Navy ROTC

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

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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.

Loan Consolidation: combine your federal loans into a single loan with one monthly payment.

Sometimes loans may be canceled in exchange for public service.
Teachers: Cancellation/Deferment Options
Health professions: National Health Service Corps
Law school graduates: Loan Repayment Assistance Programs
Medical school graduates: Loan Repayment/Forgiveness Programs

Federal employees: Federal Student Loan Repayment Program

If you are having problems with your loan and all other approaches fail, contact the Department of Education's Office of the Ombudsman.