Student Financial Aid

FINANCIAL AID FOR STUDENTS

Guides students through the process of locating and applying for financial aid. Prepared by the Congressional Research Service for Members of Congress, updated February 2014.

THE BASICS: GETTING STARTED

-Start gathering information early.

-Free information is readily available from:
High school counselors
College and career school financial aid offices (where you plan to attend)
Local and college libraries
Federal Student Aid (U.S. Department of Education)
Other Internet sites (search terms student financial aid OR assistance)

-Ask questions: counselors may know if you have exceptional circumstances that affect your eligibility.

-Keep copies of all forms and correspondence: you must reapply for aid each year.

-Parents of students: save money long before your child attends college.
FinAid: for Parents
College Savings Plan Network (state "Section 529" plans)
Tax incentives for higher education expenses

-Good overviews:
About Financial Aid
FinAid: The Smart Student Guide to Financial Aid
Mapping Your Future

-Beware of scholarship scams -- don’t pay for free information!
Department of Education
Federal Trade Commission

STUDENT AID AND WHERE IT COMES FROM

Basic assistance categories:

-Financial 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.

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

Federal Student Aid:
-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 the United States Department of Education:
-Federal Student Aid
-Financial Aid Resource Publications

Loans are the most common federal aid and must be repaid when you graduate or leave college. Stafford Loans (FFELs and Direct Loans) include:
-Federal Family Education Loans (FFEL) from private lenders, such as banks and credit unions, guaranteed by the federal government.
-Federal PLUS Loans parental loans, not need-based.
-Perkins Loans [Download a free PDF reader] for the most needy undergraduates; through participating schools.

Scholarships/grants are mostly need-based and require no repayment:
-Pell Grants
-Federal Supplemental Educational Opportunity Grants (FSEOG)

"Congressional" scholarships:
-Named for Member of Congress or other prominent individual (such as Byrd Honors Scholarships, Fulbright fellowships)
-Merit-based and highly competitive
-Members of Congress do not play a role in selecting recipients

Work study programs allow you to earn money while in school:
-Federal Work Study Program: college campus jobs
-USA Jobs: Welcome Students and Recent Graduates: jobs with the federal government

For questions not covered by the Department of Education website, call the Federal Student Aid Information Center at 1-800-433-3243.

States offer residents a variety of scholarships, loans, and tuition exemptions.

Check with your State Higher Education Agency and State Guarantee Agency.
Consider prepaid tuition and college savings ("Section 529") plans: College Savings Plans Network.
Search your Internet browser under terms such as student financial aid or assistance AND your state.

Colleges and universities provide some 20% of aid, most need-based. Check university websites and the institution’s financial aid office when you apply for admission.

Private foundations, corporations, and organizations offer scholarships or grants:
-College Board Scholarship Search
-FastWeb
-Grants for Individuals

TARGETED AID FOR SPECIAL GROUPS

Grants for Minorities: Asians, Blacks, Hispanics, Latinos, Native Americans, and Other Ethnic Groups
African Americans: For Students: Scholarships
Disabled students: Financial Aid for Students with Disabilities
Foreign students: Financial Aid for International Students
Hispanic Americans: Scholarships
Law school students: Law school students
Medical students: Association of American Medical Colleges
Native Americans: American Indian College Fund
Study abroad (for U.S. and non-U.S. citizens): International Financial Aid
Veterans: Education Benefits

Interested in public service?

Federal assistance programs seek to encourage people to work in geographic areas or professions where there’s a particular need (such as doctors in underserved areas); encourage underrepresented groups to enter a particular profession; and provide aid in exchange for services provided (such as military service).

AmeriCorps Education Award
-Volunteers who complete one year of service receive an education award for current higher education expenses or to repay student loans.
Army Tuition Assistance
-Additional benefits for Army personnel.
Indian Health Service
-Scholarships for American Indian/Alaskan Native health profession students and loan repayment for persons working in IHS facilities.
Military academies:
-United States Air Force Academy
-United States Coast Guard Academy
-United States Merchant Marine Academy
-United States Military Academy
-United States Naval Academy
National Health Service Corps
-Scholarships and loan repayment for health profession students who agree to work in underserved areas.
Nursing Scholarships
-Offered in exchange for two years of service in areas with critical nursing shortages.
Reserve Officers Training Corps (ROTC), for students who want to be commissioned as officers after graduating from college:
-United States Air Force ROTC
-United States Army ROTC
-United States Navy ROTC
USA Jobs: Welcome Students and Recent Graduates
-Scholarships, grants, fellowships, internships, and cooperative education with federal agencies.

Aid for private K-12 education: No direct federal assistance, check with schools themselves:

Coverdell Education Savings Accounts: for elementary and secondary school expenses as well as higher education.

REPAYING YOUR LOANS

After college, the federal government has ways to help you repay your loans.

-Eligibility depends upon the type of loan, when it was made, and whether it’s in default. Check with your loan officer to find out if you qualify.
-Loan Consolidation: combine your federal loans into a single loan with one monthly payment.
-Sometimes loans may be canceled in exchange for public service:
Teachers: Cancellation/Deferment Options
Health professions: National Health Service Corps
Law school graduates: Loan Repayment Assistance Programs
Medical school graduates: Loan Repayment Program
Federal employees: Federal Student Loan Repayment Program
-Consumer Financial Protection Bureau, Student Debt Repayment Assistant.