FAFSA Basics
The U.S. Department of Education's Federal Student Aid program ensures that all students who meet certain financial eligibility requirements receive assistance in order to help them pay for college. According to the U.S.D.E.'s website, Federal Student Aid programs are the largest source of student financial support in the country, and disburse more than $80 billion per year to eligible individuals.
The Federal Student Aid office works with postsecondary institutions as well as banks and other lending establishments in order to back loans for students. The program also helps to fund grants, which is money that is not required to be paid back after graduation. The Free Application for Federal Student Aid (FAFSA) is a form which asks questions about a student and parents' finances, future plans for school, and other basic information in order to determine eligibility for federal loans and grants.
Determining EligibilityThere are certain basic criteria that a student must meet in order to be eligible for federal aid. A candidate must be a U.S. citizen or eligible non-citizen, have a social security number, possess a high school diploma or GED, and must have been accepted into an accredited postsecondary institution. In addition, the applicant must not be in default on a previous student loan, must demonstrate a need for financial assistance, and males aged 18 to 25 are required to be registered with Selective Service. The amount and types of aid a student can receive depend upon a number of factors, including his or her enrollment status, year in school, anticipated cost of tuition, and expected family contribution.
Disqualifying FactorsCertain drug-related offense convictions may bar an individual from receiving federal aid, especially if the act occurred while the student was enrolled in school and receiving financial assistance. The Federal Student Aid website provides more detail regarding this potentially disqualifying factor.
Another issue which may prohibit a student from receiving federal monies is being in default on a previous student loan, being in arrears on payments, or owing a refund on a federal grant.
In addition, if a student cannot demonstrate an economic need for financial aid, the individual may not be eligible.
The Benefits of Student AidFederal Student Aid makes it possible for millions of people to attend college every year. Repayment of student loans with interest usually begins within six months after graduation from college.
How to ApplyThe first step in applying for student aid is preparation. FAFSA's website provides tools for determining dependency status, a worksheet which serves as a rough draft of the actual FAFSA form, the necessary school and program codes, and a list of application deadlines so that you can know when you need to apply for funding.
Once you are ready to go ahead with the application, you can fill out your FAFSA online, obtain a PIN, and sign the form electronically via FAFSA's website. You can also log back into your application in order to make corrections, check your application status, and view your student aid report.
Article Resources:
U.S. Department of Education: Free Application for Federal Student Aid
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