Government's Student Aid Portal Can Help With College Costs
By: Matt P | Posted: 24th July 2007
It's a good idea to begin exploring your financial options as early as possible in your senior year of high school if you're thinking about college or career school after you graduate. While most of us probably think first of an academic scholarship to pay for college, it pays to consider another option: Federal financial aid.
The Federal government remains the single most prolific source of student aid in America, according to studentaid.ed.gov, a student aid portal managed by the U.S. Department of Education. The three main student aid programs - grants, work-study programs and loans - account for more than 80 billion dollars each year in aid to high school grads who believe they must learn more to earn more.
Having a basic grasp of the three types of aid available from the Federal government is an important precondition for completing the FAFSA, or Free Application for Federal Student Aid. The process of qualifying for Federal student financial aid requires all high school graduates to complete and submit a FAFSA application.
Student aid from the Federal government is available in three basic forms: grants, work-study programs, and loans. The types of financial assistance differ in the dollar value of the aid you receive and whether or not the financial aid must be repaid. Grants do not require repayment, nor do work-study programs, which pay an hourly wage or salary for work performed. Loans, on the other hand, must be repaid, just like a car loan or home mortgage, over a period ranging from ten to twenty-five years.
There are several types of grant and loan programs within this general three-tiered framework of Federal financial aid. One of the best known types of grant, the Federal Pell Grant, is generally considered to be the foundation of the Federal student aid program. Other less well-known grants include the Federal Supplemental Educational Opportunity Grant (FSEOG), the Academic Competitiveness Grant (ACG), and the National Science and Mathematics Access to Retain Talent Grant, a long name that is usually shortened to the National SMART Grant.
Loans, too, come in a variety of formats. The best-known type of loan is probably the direct Stafford loan, in which the lender is the Department of Education. Recipients of this type of financial aid have between ten and twenty-five years to repay the government, based on the loan amount and payment schedule selected.
With only two exceptions, your financial need determines the amount of Federal student aid you can receive. The amount is determined by subtracting your Expected Family Contribution, or EFC, from the cost of attending a college or career school. Using factors you supply on your FAFSA � including family income, family assets and benefits like unemployment and Social Security � your EFC is calculated according to a formula laid down in Federal law. The Department of Education notifies you of your EFC on your Student Aid Report, or SAR. You'll receive your SAR once the government has processed your FAFSA application.
If all this sounds complicated, the government has several outstanding resources to help you cut through the clutter. One exceptional resource is the website referred to at the beginning of this article, studentaid.ed.gov. Another is "Funding Education Beyond High School", a free 60-page guide available for download at www.fafsa.ed.gov. Delve into these resources as early as possible during your senior year of high school if you want to have the best chance of receiving Federal student aid.
Matt Paolini works from home as a distance learner. Visit University of Pheonix online degrees or University of Phoneix for free distance learning info.
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Tags: twenty five years, free application for federal student aid, federal student aid, u s department of education, hourly wage, financial options, federal financial aid, student financial aid, federal pell grant