U.S. Federal financial aid
The information in this section is provided by the Federal Student Aid (FSA) website. The U.S. Department of Education provides more than $120 billion in financial aid to help pay for college or career school each year. Make sure you develop a plan early and start by filling your FAFSA. In addition to grants and scholarships you may qualify for loans that may have a lower interest rate compared to some private loans.
Types of federal financial aid
According to the FSA, a grant is a form of financial aid that typically doesn’t have to be repaid (unless, for example, you withdraw from school and owe a refund, or you receive a TEACH Grant and don’t complete your service obligation). A variety of federal grants are available, including Pell Grants, Federal Supplemental Educational Opportunity Grants (FSEOG), Teacher Education Assistance for College and Higher Education (TEACH) Grants, and Iraq and Afghanistan Service Grants.
Scholarships, which are often based on academic merit, talent, or a particular area of study, can make a real difference in helping you manage your education expenses.
When you receive a student loan, you are borrowing money to attend a college or career school. You must repay the loan as well as interest that accrues. It is important to understand your repayment options so you can successfully repay your loan. Recently interest rates for federal loans were announced. You can find current rates for federal loans here.
How to apply
1) Start Planning Early
Develop your plan to pay for college
2) Fill Out the FAFSA® Form
3) Review Your Aid Offer
Compare the aid each school is offering
4) Get Your Aid
Aid goes to your student account first
5) Repay Your Loans
Find an affordable repayment plan
Everyone’s situation is different and it is important to understand your own financial picture and to research the options that might work best for you.