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 December 2004]

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 termsstudent financial aidOR assistance)

The Basics- Getting Started

• Ask questions: counselors may know if you have exceptional circumstances that affect your eligibility.
• Free information
• Start gathering information early. Use calendars to keep on track.
• Be organized with all of your forms and correspondence: you must reapply for aid each year.
• Keep copies: save money long before your child attends college.
  College Savings Plan Network (state "Section 529" plans)
  Tax incentives for higher education expenses
• Parents of students

Student Aid and Where it Comes From

Basic assistance categories:

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

• Stafford Loans
• 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
  Pell Grants
  Federal Supplemental Educational Opportunity Grants (FSEOG)
• mostly graduate level: search the Catalog of Federal Domestic Assistance (CFDA) by Beneficiary, such as "Student or Trainee" or "Graduate Student".