Federal Student Aid (2024)

FAQs

Federal Student Aid? ›

Through Federal Student Aid (a performance-based organization), the U.S. Department of Education awards more than $120 billion a year in grants, work-study funds, and low-interest loans to approximately 13 million students.

Through Federal Student Aid (a performance-based organization), the U.S. Department of Education awards more than $120 billion a year in grants, work-study funds, and low-interest loans to approximately 13 million students.

Apply for federal student aid—grants, work-study, and loans—using the Free Application for Federal Student Aid (FAFSA^®) form.

They can both be used to help fund education-related expenses. Financial aid doesn't typically need to be repaid. Student loans must be repaid within a given loan term, plus interest. FAFSA® must be filled out for financial aid and federal student loans.

Go to fafsa.gov.

Once you graduate, drop below half-time enrollment, or leave school, your federal student loan goes into repayment. However, if you have a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, you have a six-month grace period before you are required to start making regular payments.

To receive federal student aid, you'll need to… to obtain a college, career school, or trade school education, either by having a high school diploma or equivalent, by completing a high school education in a homeschool setting approved under state law, or by meeting the criteria for an ability-to-benefit alternative.

Eligibility for federal student aid is based on financial need and on several other factors such as U.S. citizenship or eligible noncitizenship, enrollment in an eligible program, satisfactory academic progress in college, and more.

It is a transportation expense, after all. Despite that, federal student loans don't allow you to use the funds to buy a car.

Anyone of any income level can be eligible for unsubsidized federal student loans. However, grants, subsidized loans, and other types of aid may have income limits.

Is FAFSA a loan or free money? ›

It is not the financial aid itself. However, the FAFSA enables the student to qualify for many types of financial aid from several sources. Some of this money is free money, some must be earned through work, and some must be repaid. There are three main types of financial aid.

FAFSA serve different functions, they both have a role under the broader federal student aid program. A FAFSA provides students access to the Pell Grant, and Pell Grant eligibility is determined by the FAFSA. FAFSA is an application for various federal aid programs, while a Pell Grant is a specific type of federal aid.

The FAFSA is the official form that students or their families use to apply for financial assistance for college from the federal government. States, individual colleges and universities, and private scholarship programs rely on the information provided in the application as well.

The primary factors that increase your total loan balance are loan interest, recapitalized interest, fees, and variable interest rates.

There is no set income limit for eligibility to qualify for financial aid through. You'll need to fill out the FAFSA every year to see what you qualify for at your college.

For a FAFSA form to be considered complete, all contributors must provide their information, consent and approval, and signature on the form. This includes your child. If you start the FAFSA form on your child's behalf, remind them to enter their form.

The FAFSA is an application that the federal government uses to gather the financial information it needs to assess what loans and grants you qualify for. The FAFSA needs to be completed each new aid year to determine eligibility for federal student aid.

A federal student loan is money that you or your parents borrow from the government to pay for your education and repay later with interest. Interest is the cost of borrowing that money, paid in the form of a percentage of your total loan amount. A higher interest rate means you pay more over time.

The maximum amount of money you can get from a Pell Grant is: $7,395 (2023–24). The amount granted depends on your Expected Family Contribution (EFC), cost of attendance, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less.

To qualify for financial aid, students must have a high school diploma, be home-schooled, or have one of the following recognized equivalents of a high school diploma.