FAFSA - Free Application for Federal Student Aid
By Ingrid Bryan, March 17, 2009
Thinking about beginning or going back to school? If you have not done so already, you may want to fill out the FAFSA. It's the U.S. Department of Education's Free Application for Federal Student Aid. Believe it or not, it's one of the most important forms you'll fill out during your college career.
The FAFSA application is used to determine your Expected Family Contribution and your eligibility for the following programs:
 Federal Pell Grants - With a few exceptions, Federal Pell Grants are available only to undergraduate students. Grants do not have to be repaid.
Federal Stafford Loans - are student loans that must be repaid and are available to both undergraduate and graduate students. There are two types: Federal Direct Loan (Direct Loan) and Federal Family Education Loan (FFEL).
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If it is a subsidized Stafford loan (demonstrated need for the loan), you are not responsible for interest while attending at least half-time and the principle is deferred.
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If it is an unsubsidized Stafford loan (financial need was not demonstrated) the principle is still deferred but you are responsible for paying interest on the loan.
Federal PLUS Loans - available to parents of dependent undergraduate students who are enrolled at least half-time. The PLUS Loan is also available to graduate and professional degree students. Financial need is not a requirement.
Perkins Loans - low-interest (5 percent) loans that must be repaid; the maximum annual loan amount is $4,000 for undergraduate students and $6,000 for graduate students.
Federal Supplemental Educational Opportunity Grants - are grants available for undergraduates with exceptional financial need. Awards range from $100-$4,000.
Federal Work Study - provides jobs to undergraduate and graduate students, allowing them to earn money to pay education expenses.
There are different state and federal deadlines for completion of the FAFSA application. Because such aid is often provided on a first-come first-served basis, you must submit your FAFSA as soon as possible after the beginning of the year to be considered for this aid.
Be prepared to answer questions about your income. The FAFSA consists of numerous questions regarding your finances, as well as those of your family. If you will not be receiving aid from your family for college expenses, you may be able to appeal directly to your school of choice for a review of aid, based on your personal circumstances.
For a Guide to 1,900+ Schools, plus Financial Aid & Federal Grants, SearchByDegree offers a Free Student Grant Guide.
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