Applying for Federal Financial Aid
(This article appeared in the November/December 2012 issue of The American Postal Worker magazine.)
Joyce B. Robinson, Research & Education Department Director
College students and their families are facing increasing tuition rates, and figuring out how to pay for a college education is more challenging than ever.
But opportunities to pay for education are available from the government through the U.S. Department of Education. To take advantage of such opportunities, students must complete the Free Application for Federal Student Aid (FAFSA).
The FAFSA is the application most colleges use to determine a student’s eligibility for federal, state, and college-sponsored financial aid, including grants, educational loans, and work-study programs. The Department of Education uses this form to calculate your Expected Family Contribution (EFC) towards your education.
The government conducts a “need analysis” based on your financial status, including income and assets, which you (or your parents if you are a dependent student) will be asked to provide. The application is examined by a federal processor and the results are sent electronically to the financial aid offices of the colleges you’ve chosen.
The FAFSA determines your eligibility for several types of federal financial aid. Additionally, most states, colleges and universities use the FAFSA to award other types of aid, including state-and college-sponsored financial aid, such as grants, loans, and work-study programs.
Eligibility, Types of Aid
Most students residing in the U.S. are eligible for some form of financial aid, regardless of income or circumstances, provided they are a U.S. citizen, a U.S. national, or an eligible non-citizen; have a valid Social Security Number; have a high school diploma or GED; are registered with the U.S. Selective Service (if they are a male age 18 to 25); complete a FAFSA and promise to use all federal aid for educational purposes; do not owe refunds on any federal student grants; are not in default on any student loans, and have not been found guilty of the sale or possession of illegal drugs during a period when he or she received federal student aid.
Several types of financial aid are available:
Federal student loans must be repaid with interest. Such low-interest options include subsidized and unsubsidized Stafford loans and PLUS loans.
The Federal Pell Grant, unlike a loan, does not have to be repaid and is normally awarded to undergraduate students who have not earned a bachelor’s or a professional degree. The maximum Pell Grant award amount for July 1, 2012, to June 30, 2013, is $5,550. The amount varies based not only on financial need, but also on tuition costs, and the student’s status as a full-time or part-time student.
The Federal Work-Study (FWS) program provides part- time jobs for undergraduate and graduate students with financial need. The program encourages community service work and career-related work assignments. Wages must equal or be higher than the current federal minimum wage, depending on the type of work done and the skills required. The amount earned can’t exceed the total FWS award.
Completing the FAFSA
Completing the form can be complicated, so submitting your information as close to Jan. 1 as possible is highly recommended. Federal aid is limited, and much of it is offered on a first-come, first-served basis. Missing deadlines can ruin your opportunity for financial aid. You can obtain the FAFSA form:
- Online at FAFSA on the Web, www.fafsa.gov,
- Download the PDF file at www.studentaid.ed.gov/PDFfafsa or
- Request a hard copy to be sent in the mail by calling (1) (800) 433-3243.
Also, check with the financial aid administrator at the school you are interested in attending for assistance with your application.
For additional information, contact the financial aid office at the college you plan to attend. The financial aid administrator can tell you about student aid available from your state, the college itself, FAFSA deadline, and other sources of aid.