Federal Financial Aid For College

It's a good idea to start thinking about financial aid as soon as possible in your final year of secondary school if you're considering a college or career school after graduation. While most of us probably think first of a university grant to finance a college degree, it pays not to overlook another possibility: a federal financial assistance.

According studentaid.ed.gov, a portal run student aid by the U.S. Department of Education, the federal government remains the main source of student aid in America. The three main programs of student aid - grants, work study programs and loans - pay more than $ 80 billion annually in assistance to high school graduates who are willing to learn first in order to win later.

Having a good knowledge of the trio of financial aid options offered by the federal government is a prerequisite for completing the FAFSA, also called the Free Application for Federal Student Aid. All high school graduates must complete and submit their FAFSA application through the process of qualifying students federal financial assistance.

Student Aid Federal Government is available in three basic forms: grants, work study programs and loans. The different types of financial aid differ in the dollar value of aid you receive and whether or not financial aid must be repaid. Grants do not require repayment or work-study programs, which pay a salary for work performed. Loans, however, must be repaid, just as a car loan or mortgage, over a period ranging from 10 to 25 years.

There are several types of grants and loans in this context generally three levels of federal financial assistance. Many people have heard of a specific type of grant, the Federal Pell Grant, which is generally considered the foundation of federal student aid. Other subsidies less familiar include additional Federal Educational Opportunity Grant (FSEOG), the Academy of competitiveness grant (ACG) and National Science and Mathematics Access to retain talent Grant, a long name is normally reduced to the National SMART Grant.

There are different formats loan, too. The Direct Loan Stafford, in which the lender is the Ministry of Education, is probably the best known example of this type of federal student financial aid. Depending on the amount of their loan and the payment plan they choose, the recipients of a direct loan Stafford have between ten and twenty-five years to repay the government.

With only a couple of exceptions, the amount of federal student aid, you may receive is determined by your financial needs. The amount is determined by subtracting your Expected Family Contribution or EFC, the cost of attending college or vocational school. The use of factors that you provide on your FAFSA including family income, assets and family benefits such as unemployment and social security of your EFC is calculated using a formula established in federal law. The Ministry of Education informs you of your EFC on your Student Aid Report, or SAR. You will receive your SAR after the government completed its review of your FAFSA application.

If this seems confusing, the government has a number of extremely useful resources to help you cut through the clutter. A great resource is the site mentioned earlier in this article, studentaid.ed.gov. Another is "Financing Education Beyond High School", a free 60-page document available in PDF format at www.fafsa.ed.gov. Be sure to dive into these resources as soon as possible during your senior year to get the best possible chance to receive federal student aid.