FAFSA Application A Must For Securing Federal Student Aid
Government's Student Aid Portal Can Help With College Costs
It's an excellent idea to start thinking about financial aid as early as possible in your senior year of high school if you're thinking about college or career school after you graduate. While most students and parents probably think first of an academic scholarship to fund a college degree, it pays to consider another possibility: Federal financial aid.
According to studentaid.ed.gov, a student aid portal managed by the U.S. Department of Education, the Federal government remains the single largest source of student aid in America. The three main student aid programs - grants, work-study programs and loans - pay out more than 80 billion dollars annually in aid to high school grads who are willing to learn first in order to earn more later.
Having a good grasp of the three types of aid available from the Federal government is an essential prerequisite for completing the FAFSA, also called the Free Application for Federal Student Aid. All high school grads must complete and submit their FAFSA application as part of the qualifying process for Federal student financial aid.
Student aid from the Federal government comes in three basic forms: grants, work-study programs, and loans. The types of aid differ in the amount of aid you may receive and whether or not the financial aid has to be repaid. Grants do not require repayment, nor do work-study programs, which pay a wage or salary for work performed. Loans, however, must be repaid, just like a car loan or home mortgage, over a period ranging from ten to twenty-five years.
Within this general three-tiered framework, there are several types of grant and loan programs. Many people have heard of a specific type of grant, the Federal Pell Grant, which is considered to be the foundation of the Federal student aid program. Other less well-known grants include the Federal Supplemental Educational Opportunity Grant (FSEOG), the Academic Competitiveness Grant (ACG), and the National Science and Mathematics Access to Retain Talent Grant, which is usually referred to as the National SMART Grant.
Loans, too, come in a variety of formats. The best-known type of loan is probably the direct Stafford loan, in which the lender is the Department of Education. Recipients of this type of government loan have between ten and twenty-five years to repay the government, based on the amount of the loan and payment plan selected.
With only a pair of exceptions, your financial need determines the amount of Federal student aid you can receive. The amount is calculated by subtracting your Expected Family Contribution, or EFC, from the cost of attendance at a college or career school. Your EFC is calculated with a formula established by Federal law using the information you supply on your FAFSA, including factors like family income, family assets and benefits like unemployment or Social Security. The Federal government informs you of your EFC on your Student Aid Report, or SAR. You'll receive your SAR after the government has processed your FAFSA application.
If all this sounds complicated, the government has a number of outstanding resources to help you make sense of Federal student aid programs. One exceptional resource is the website referred to at the beginning of this article, studentaid.ed.gov. Another is "Funding Education Beyond High School", a free 60-page guide available for download at www.fafsa.ed.gov. Be sure to explore these resources as early as possible in your senior year of high school if you want to have the best possible chance of receiving Federal student aid.
About the Author
Matt Paolini works from home as a distance learner. Visit University of Pheonix Online or University of Pheonix Degrees for free distance learning info.
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