This Information Web page, prepared by the Congressional Research Service for Members of   Congress, guides students through the process of locating and applying for   financial aid. [March 2006]

•   The basics: getting started
  
  
•   Student aid and where it comes from
  
  
•   Targeted aid for specific groups
  
  
•   Repaying your loans

           

The basics: getting started

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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
  U.S. Department of Education Web page
  Other Internet sites (search terms student financial aid OR assistance)

Ask questions: counselors may know if you have exceptional   circumstances that affect your eligibility.

Be organized: use calendars to keep on track.

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

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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 U.S. Department of Education 
 
• Funding Your Education 
• Student Guide
 
• Loans are the most common federal aid and must   be repaid when you graduate or leave college.
 
• Stafford loans include: 
   
  • Federal Family Education Loans (FFEL) from private lenders, such as banks   and credit unions, guaranteed by the federal government. 
   
  • William D. Ford Direct Loans (DL) directly from 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:
 
• Pell Grants
 
• Federal Supplemental Educational Opportunity Grants (FSEOG)
 
• Other grants, scholarships, and fellowships,   mostly graduate level: search the Catalog of Federal Domestic Assistance (CFDA) by Beneficiary,   such as "Student or Trainee" or "Graduate Student".
 
• "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
 
• Search by Beneficiary in   the Catalog of Federal Domestic Assistance
 
• 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 website,   call the Federal Student Aid Information Center at 1-800-433-3243.

States offer residents a variety of scholarships,   loans, and tuition exemptions. 

• Check with your state higher education agency and guarantee agency.
 
• 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 websites and the institution's financial aid   office when you apply for admission.
 
Private foundations, corporations, and organizations offer scholarships or grants:

College Board Scholarship Search
  FastWeb
  Grants for Individuals
  SRN Express

           

Targeted aid for special groups

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• Grants for Minorities: Asians, Blacks, Hispanics, Latinos, Native Americans, and Other Ethnic Groups
 
• African Americans: Scholarships (UNCF)
 
• Disabled students: HEATH   Resource Center
 
• Foreign students: Financial Aid for International   Students
 
• Hispanic Americans: Scholarships (HSF)
 
• Financial Aid for Law School: Law School Admission Council
 
• Medical students: Association of American Medical Colleges
 
• Native Americans: American Indian College Fund
 
• Study abroad (for U.S. and non-U.S. citizens): International Education Financial Aid
 
• Veterans: Education Benefits

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). 

• AmeriCorps Education Award
    Volunteers who complete one year of service receive an education award for   current higher education expenses or to repay student loans.
  
  
• Army Continuing   Education System
    Additional benefits for Army personnel. 
  
  
• Bureau of Health Professions
    Scholarships and loans to needy health profession students from disadvantaged   backgrounds. 
  
  
• e-Scholar
    Scholarships, grants, fellowships, internships, and cooperative education   with federal agencies. 
  
  
• Indian Health Service
    Scholarships for American Indian/Alaskan Native health profession students   and loan repayment for persons working in IHS facilities. 
  
  
• Military academies:
    U.S. Air Force Academy
    U.S. Coast Guard Academy
    U.S. Merchant Marine Academy
    U.S. Military Academy
    U.S. Naval Academy 
  
  
• National Health Service Corps
    Scholarships and loan repayment for health profession students who agree   to work in underserved areas. 
  
  
• Nursing Scholarships
    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.
    U.S. Air Force ROTC
    U.S. Army ROTC
    U.S. Navy ROTC

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. 
• Children's Scholarship Fund: partial tuition assistance to low-income students.
   

       
   

Repaying your loans

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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.
    Teachers: Cancellation/Deferment Options
    Health professions: National Health Service Corps 
 
• Federal employees: Federal Student 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.

States and some private employers provide help in repaying   loans in exchange for certain types of public service. 

• Law school graduates: State Loan Repayment/Forgiveness Programs
 
• Medical school graduates: State Loan Repayment Program