• Types of financial aid
• FAFSA (free application for Federal Student Aid) forms
• Who qualifies for financial aid?
• Myths about financial aid
• Financial aid links

Types of Financial Aid
Information furnished by the Office of Student Financial Assistance, U.S. Department of Education

There are three basic types of federal student aid:

• Grants—are awards you don't have to repay. Pell Grants are for undergraduate students attending school at least half time. Supplemental Educational Opportunity Grants (SEOG) are for undergraduates with exceptional financial need. See your financial aid administrator for more information about these school-based grants.
• Work-Study—is employment at your school that gives you a chance to earn money to help pay for your education expenses. See your financial aid administrator for more information about Work-Study.
• Loans—have to be repaid with interest. The loan programs are:
  • Perkins Loans , administered by your school. These low-interest loans are for students in vocational programs, and for undergraduate and graduate students.
  • Stafford Loans , made by lenders such as banks, credit unions, and savings and loan associations, for students attending school at least half time. These loans are repaid when the student graduates or leaves school.
  • Supplemental Loans for Students (SLS), for independent student borrowers, and Plus Loans for parents who want help to pay for their children's education. These loans are also make by commercial lenders, but have variable interest rates, adjusted each year. PLUS and SLS borrowers generally must begin repaying their loans within 60 days after receiving the last loan payment.

Before you take out a loan, your school (and your lender) must give you information about:

• Loan limits, loan fees, and interest rates for various loans
• When you can postpone repayment of your loan, and provisions for loan cancellation
• Loan consolidation and refinancing
• Estimated monthly repayment amounts for borrowing one or more student loans
• The consequences of failing to repay your loan on time
• Your rights and responsibilities as a borrower

For answers to questions about applications, student eligibility requirements, the process of determining financial aid awards, your responsibilities as a borrower, and for information about default rates at a school, call the Office of Student Financial Assistance, U.S. Department of Education, toll-free: 1-800-433-3243

Be a smart borrower: Get all the facts if you plan to apply for a student loan. When you sign for a student loan, you must repay it according to the terms of the loan, even if you don't finish school or you are not satisfied with your education program.

FAFSA forms (free application for Federal Student Aid) will be available by late October or early November.

The completed form should be mailed in as soon after December 31st as possible. As an alternative, you may visit www.fafsa.ed.gov and fill out the form there. This is a self-correcting method and is much faster!

Qualifying for Financial Aid
To receive aid from federal student aid programs you must:

show financial need (except for PLUS and SLS loans) have a high school diploma, a GED, or pass a special test given by your school be a U.S. citizen or an eligible non-citizen

To apply for Federal student aid, you need to fill out and sign the application form your school uses. Your application must be received by the deadline given on the form, or you will not be able to receive aid for the school year shown on the form.

MYTHS ABOUT FINANCIAL AID

"I'm not going to bother to fill out the Free Application for Federal Student Aid because …"

"…there isn't enough financial aid for students like me."

False. Many students and parents have the impression that the budget for the federal student aid programs has been severely reduced. In fact, funding for these programs has grown steadily. While it's true that the aid available cannot meet the full financial need of all students, it's still important to apply and find out how much aid you're eligible for at your school of choice.

"…only students with good grades get financial aid."

False. Many students think that financial aid is awarded on the basis of grades. While a high grade point average will help a student get into a good school and may help with academic scholarships, most of the federal student aid programs do not take a student's grades into consideration. Provided a student maintains satisfactory academic progress in his or her program of study, federal student aid will help a student with an average academic record complete his or her education.

"…you have to be a minority to get financial aid."

False. Funds from federal student aid programs are awarded on the basis of financial need, NOT on the basis of race, creed, or gender. The Free Application for Federal Student Aid (FAFSA) - the financial aid application for these programs - doesn't even collect this kind of information about an applicant.

"…millions of dollars in scholarships go unawarded each year, so I'll get some of that money. I won't need government help."

Only partly true. Most of the money referred to in such statistics is offered by companies to their employees' children or by organizations to their members' children. While it is well worth researching nonfederal scholarships and grants, the truth is that the majority of student aid available comes from the federal government. Therefore, filling out a FAFSA is an important first step for any student.

For more information about federal student aid, see http://www.ed.gov/studentaid or call the Federal Student Aid Information Center at 1-800-4-FED-AID.

Useful Links
www.fastweb.com—information to locate and apply for college scholarships, internships, loan and savings opportunities, and to successfully transition from high school to college and from college to career.
www.ed.gov/prog_info/SFA/ —This student's guide is the most comprehensive resource on student financial aid from the U.S. Department of Education.
www.finaid.org
www.students.gov