Types of Financial AID:

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The following are the types of Financial Aid under FAFSA

  • Pell Grant
  • Stafford Loan
  • Federal Perkins Loan
  • The Federal Work-Study Program

TYPES OF FEDERAL FINANCIAL AID

  • Grants and Scholarships
    These are the best kind of financial aid, because they don’t have to be repaid. A large part of these aid come from the federal government, some come from the state government, and the rest comes from private grants.
  • Federal Work-Study
    In this form of aid, the students are provided with part-time jobs, and the money earned from it can be put towards either their tuition fees, or living expenses.
  • Student Loans: -The student loans are given to the students – not the parents. No interest is charged, as long as the student is studying in the college, and the repayment starts only after the student has graduated, or left the college

Before we proceed to understand the process, you should keep the following points in mind, and concentrate on the strategies accordingly:

  • The people who understand the financial aid process best, receive the BEST AID.
  • No college should be ruled out on the basis of the sticker price (cost of attendance), because after you avail the financial aid, you may have to pay the same price for an expensive college, as you pay for a cheap one.

For example, if your calculated EFC is $10,000, and your child has been accepted by a state college whose annual fee is $20,000, then you have to pay $10,000 of the EFC and the college takes care of the rest $10,000 with an aid package. Similarly, if your child gets selected by an expensive Ivy league college whose annual fees is $55,000, still you only have to pay the $10,000 of the EFC, rest $45,000 will be taken care of by the college.

Note: It is not necessary that the college allots aid to meet all your need. There are a lot of exceptions that may cause a gap between the (EFC + Aid) figure and the sticker price of the college. The above example is just a theory to give you an idea.

Eligibility for Financial Student Aid
The applicants can be eligible for the financial aid, if he/she meets all of the following criteria:

  • Maintains at least a C average minimum GPA for federal student aid or a higher minimum set by the school for institutional aid and eligibility
  • He/she is a US citizen, a U.S national, or an eligible non-citizen.
  • Has a valid Social Security number
  • Has a high school diploma or GED
  • Completes the FAFSA, promising to use the federal aid for educational purpose only.
  • Does not owe refunds on any federal student grants.
  • Is not in default on any student loans.
  • Has not been found guilty of the sale of illegal drugs, at the time the federal aid was being received.

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