Typically filling out the FAFSA is the very first step when completing the Financial Aid Process. The FAFSA is the Free Application for Federal Student Aid which is usually administered by the U.S. Department of Education. The U.S. Department of Education uses the information submitted through the FAFSA form to determine you Expected Family Contribution (EFC). The government will conduct a “need analysis” based on your family’s financial information. Your EFC report measures you family’s financial strength as well as determines you eligibility for federal student aid. After being examined by a federal processor, your results are then sent to the financial aid offices of the colleges you’ve chosen. Your state and the colleges you list may also use your results to determine your eligibility for school or state aid, in addition to your federal aid.
You can fill out your Free Application for Federal Student Aid form by logging onto the U.S. Department of Education’s website (http://www.fafsa.ed.gov/). You can also submit your free form by printing the application and mailing it directly to them. You can mail your application to the following address:
Federal Student Aid Programs
It is best that you begin filling out and submitting your FAFSA form as early as January 1. The earlier you submit your application the better the possibility of receiving more financial assistance.
Once all of your information has been collected, submitted, and analyzed, your school will put together a financial aid package specifically for you. Your financial aid package may or may not include:
Grants: grants can be considered “free money”. This is money that typically does not have to be repaid when the student completes their studies.
Federal Pell Grant
TEACH Grant Program
Federal Supplemental Educational Opportunity Grant (FSEOG)
Academic Competitiveness Grant
National Smart Grant
Some schools will also offer some Institutional Grants in addition to the above grants
Federal Work-Study: provides part-time jobs for students with financial need. This allows them to earn money while in school to help pay for expenses such as books, supplies, lab fees, food plan, etc.
Federal Perkins Loans: a low interest loan that is paid through the schools financial aid office. The school is the lender.
Direct Stafford Loans:
Direct Subsidized Loans: low interest loans for students with financial need. With this loan you are not charged interest while you’re in school at least part-time, during grace periods, and during deferment periods.
Direct Unsubsidized Loans: low interest loans that don’t require students to express a financial need. These loans accumulate interest from the time they are paid out. If students choose not to pay on the interest while in school, during the grace periods, and during the deferment periods, the total repayment amount will increase because the student will be charged interest on a higher principal amount.
Direct Plus Loans for Parents: low interest loans that parents can use to help pay for their child’s education expenses as long as the child is classified as a dependant student.
Direct Plus Loans for Graduate and Professional Degree Students
