Student Financial Aid

Guides students through the process of locating and applying for financial aid. Prepared by the Congressional Research Service for Members of Congress, updated January 2010.

The basics: getting started
Start gathering information early.

Free information is readily available from:
High school counselors
College and career school financial aid offices (where you plan to attend)
Local and college libraries
Student Aid on the Web (U.S. Department of Education)
Other Internet sites (search terms student financial aid OR assistance)

Ask questions: counselors may know if you have exceptional circumstances that affect your eligibility.
Keep copies of all forms and correspondence: you must reapply for aid each year.

Parents of students: save money long before your child attends college.
FinAid: for Parents
College Savings Plan Network (state "Section 529" plans)
Tax incentives for higher education expenses

Good overviews:
Cash for College
FinAid: The Smart Student Guide to Financial Aid
Financial Aid: You Can Afford It
Looking for Student Aid
Mapping Your Future
Paying for College

Beware of scholarship scams -- don’t pay for free information!
Department of Education
Federal Trade Commission

Student aid and where it comes from
Basic assistance categories:
Financial need-based
Remember that students and their parents are responsible for paying what they can -- financial aid is a supplement, not a substitute, for family resources.
Non need-based
Factors include academic excellence, ethnic background, or organization membership. Corporations may also offer assistance to employees and children.

Federal Student Aid:
Provides nearly 70% of student aid under Loans, Grants and Work/study programs.
Available to all need-based applicants; some loans and competitive scholarships for non need-based.
Free information from the United States Department of Education:
Loans are the most common federal aid and must be repaid when you graduate or leave college.
Stafford Loans (FFELs and Direct Loans) include:
Federal Family Education Loans (FFEL) from private lenders, such as banks and credit unions, guaranteed by the federal government.
Federal PLUS Loans parental loans, not need-based.
Perkins Loans for the most needy undergraduates; through participating schools.
Scholarships/grants are mostly need-based and require no repayment:
"Congressional" scholarships:
Named for Member of Congress or other prominent individual (such as Byrd Honors Scholarships, Fulbright fellowships)
Merit-based and highly competitive
Members of Congress do not play a role in selecting recipients
Work study programs allow you to earn money while in school:
Federal Work Study Program: college campus jobs
Student Educational Employment: jobs with the federal government
For questions not covered by the Department of Education Web site, call the Federal Student Aid Information Center at 1-800-433-3243.
States offer residents a variety of scholarships, loans, and tuition exemptions.
Consider prepaid tuition and college savings ("Section 529") plans: College Savings Plans Network.
Search your Internet browser under terms such as student financial aid or assistance AND your state.
Colleges and universities provide some 20% of aid, most need-based. Check university Web sites and the institution’s financial aid office when you apply for admission.
Private foundations, corporations, and organizations offer scholarships or grants:
Targeted aid for special groups
Grants for Minorities: Asians, Blacks, Hispanics, Latinos, Native Americans, and Other Ethnic Groups
African Americans: For Students: Scholarships
Hispanic Americans: Scholarships
Law school students: Financial Aid for Law School
Study abroad (for U.S. and non-U.S. citizens): International Financial Aid
Interested in public service?
Federal assistance programs seek to encourage people to work in geographic areas or professions where there’s a particular need (such as doctors in underserved areas); encourage underrepresented groups to enter a particular profession; and provide aid in exchange for services provided (such as military service).
Volunteers who complete one year of service receive an education award for current higher education expenses or to repay student loans.
Additional benefits for Army personnel.
Scholarships and loans to needy health profession students from disadvantaged backgrounds.
Scholarships, grants, fellowships, internships, and cooperative education with federal agencies.
Scholarships for American Indian/Alaskan Native health profession students and loan repayment for persons working in IHS facilities.
Military academies:
Scholarships and loan repayment for health profession students who agree to work in underserved areas.
Offered in exchange for two years of service in areas with critical nursing shortages.
Reserve Officers Training Corps (ROTC)
For students who want to be commissioned as officers after graduating from college.
Aid for private K-12 education: No direct federal assistance, check with schools themselves:
Coverdell Education Savings Accounts: for elementary and secondary school expenses as well as higher education.
Repaying your loans
After college, the federal government has ways to help you repay your loans.
Eligibility depends upon the type of loan, when it was made, and whether it’s in default. Check with your loan officer to find out if you qualify.
Loan Consolidation: combine your federal loans into a single loan with one monthly payment.
Sometimes loans may be canceled in exchange for public service.
Health professions: National Health Service Corps
Medical school graduates: Loan Repayment Program
If you are having problems with your loan and all other approaches fail, contact the Department of Education’s Office of the Ombudsman.