Preparing for College - Financial Aid Planning
For many students and their parents, the need for financial aid is a prerequisite for going to college. To assist in
understanding more about different kinds of financial aid, the following information is offered as a primer from which
to pursue further information as might be desired.
For Middle School students and their parents, information from a financial planner may also be helpful. In some
communities, financial planners will offer their expertise to a school free of charge.
The illustration that follows reflects general information that will be informative and helpful to those interested
in learning more about financial aid.
Financial Aid
Financial aid could make a difference in your life.
It may mean being able to continue your education when you otherwise would not be able. Or it could mean being able to
attend the school of your choice despite higher tuition costs.
Financial aid covers the education costs that you can't pay for. Most financial aid is awarded to families on the basis
of eligibility or need which is determined by the college or university that you attend based on information you provide
about you and your family's ability to pay for your education costs and formulas set by law.
In general, there are four types of financial aid -- Scholarships, grants, work-study and loans -- some of which you
may receive to help pay for your education.
- Scholarships and grants are gift aid. Scholarships may be based on merit or special interests.
- Grants are given to students judged to have financial need.
- Government-sponsored student loans are based on eligibility requirements and must be repaid.
- Work-study provides jobs for students with financial need to help pay for education expenses.
When you are a high school student,
- ask your school counselor for information on schools and financial aid.
- contact the financial aid office of the school you are interested in attending for information on financial
aid programs, application procedures and forms, deadlines and awarding policies.
It is very important that you complete the forms and follow their procedures accurately and on time. Talk to the
financial aid counselor if you have problems or unusual circumstances. He or she can help you design financial aid
plans to meets your needs and qualifications.
The first form you will need to fill out to receive financial
aid is the
Free Application for Federal Student Aid
(FAFSA). This form, is designed to determine your eligibility for federal and state financial aid, and should be
completed as early as possible in the year you plan to start college.
The federal government offers the most grant and student loan programs but several states also offer a variety of
financial aid programs. Federal financial aid programs include the following:
- Federal Pell Grant assists undergraduate students with financial need attending any eligible public or private
school. For many students, Pell Grants provide a foundation of financial aid to which other aid may be added.
- Federal Supplemental Education Opportunity Grant assists undergraduate students with financial need attending
any eligible public or private postsecondary school.
- Federal Work-Study Program provides employment opportunities for undergraduate students with financial need
attending any eligible postsecondary school.
- Federal Perkins Loan Program provides long-term, low-interest loans to financially needy students attending
any eligible postsecondary school.
- Federal Family Education Loan Programs includes Federal Stafford Loans (subsidized and unsubsidized), Federal
PLUS (Parent) Loans, and Federal Consolidation Loans.
- Federal Direct Student Loan Program offers loans directly to students and parents through schools. The Direct
Loan Program offers Direct Stafford Loans (Direct Subsidized), Direct Unsubsidized Stafford Loans (Direct
Unsubsidized), Direct PLUS (Parent) Loans, and Direct Consolidation Loans.
Financial aid is also available through
state-sponsored programs.
To obtain more information on federal or state financial aid programs, or to apply for financial aid through any of
these programs, contact the financial aid office at the school you plan to attend, talk to your guidance counselor or
call the U.S. Department of Education at 800-4-FED-AID.
Students should contact individual schools for applications for campus-based financial aid.
See the Commission's
Financial Aid
page for additional resources.
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