If you're a high school junior or senior, it's never too early to start thinking about some kind of financial aid if you're considering college or career school. When thinking about the cost of higher education, many students - and parents - think scholarship first when it comes to footing the bill for college. But there are other ways to fund a college education. One of the best sources for financial aid is still good old Uncle Sam.
According to studentaid.ed.gov, a student aid gateway administered by the U.S. Department of Education, the Federal government remains the single biggest source of student aid in America. The three main student aid programs - grants, work-study programs and loans - pay out more than 80 billion dollars a year in aid to high school grads who are willing to learn first in order to earn more later.
Having a good grasp of the three types of aid available from the Federal government is an key precondition for completing the FAFSA, also called the Free Application for Federal Student Aid. All high school grads must complete and submit their FAFSA application as part of the qualifying process for Federal student financial aid.
Student aid from the Federal government comes in three basic forms: grants, work-study programs, and loans. The different kinds of aid 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 a 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 that ranges from 10 to 25 years.
There are several types of grant and loan programs within this general three-tiered framework of Federal financial aid. Many people have heard of a specific type of grant, the Federal Pell Grant, which is considered to be the foundation of the Federal student aid program. Other less familiar 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, which is usually referred to as the National SMART Grant.
There are different loan formats, too. The direct Stafford loan, in which the lender is the Department of Education, is probably the best-known example of this kind of Federal student aid. Based on the amount of their loan and the payment plan they select, recipients of a direct Stafford loan have between ten and twenty-five years to repay the government.
With just a pair of exceptions, the amount of Federal student aid you can receive is determined by your financial need. This amount is determined by subtracting your Expected Family Contribution, or EFC, from the cost of attendance at 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 Federal government notifies you of your EFC on your Student Aid Report, or SAR. You'll receive your SAR once the government has completed its review of your FAFSA application.
If all this sounds confusing, the government has a number of extremely useful resources to help you make sense of Federal student aid programs. 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 document 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.
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Matt Paolini works from home as a distance learner. Visit University of Phenix Online or University of Pheonix Online for free distance learning info.
