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FAFSA (Free Application
for Free Student Aid)
Program:
Federal
Student Aid Programs
Program Description:
A student's financial
aid package is likely to include funds from the Federal Student
Aid (FSA) programs. Note that not all schools participate in all
FSA programs. These programs, described below, are administered by
the U.S. Department of Education and provide over $33 billion a
year to students attending post secondary schools:
- Federal
Stafford Loans are student loans that must be repaid
and are available to both undergraduate and graduate students.
If the student's school participates in the Federal Direct Loan
(Direct Loan) Program, the federal government provides the funds
for the Stafford Loan. If the student's school participates in
the Federal Family Education Loan (FFEL) Program, a private
lender provides the funds for the student's Stafford Loan,
although the Federal Government guarantees the loan funds.
First-year undergraduates are eligible for loans up to $2,625.
Amounts increase for subsequent years of study, with higher
amounts for graduate students. The interest rate is variable,
but never exceeds 9 percent. There are two types of Stafford
Direct Loans:
-
-
Subsidized Stafford loan - A loan for which the
government pays the interest while the student is in school,
during grace periods, and during any deferment periods.
-
Unsubsidized Stafford loan - A loan for which the
student is responsible for paying all the interest that
accrues at any point in time.
- Federal
PLUS Loans are unsubsidized loans made to parents for
undergraduate students. If a student's parents cannot obtain a
PLUS loan, the student may be eligible to borrow additional
Unsubsidized Stafford loan funds. The interest rate is variable,
but never exceeds 9 percent.
-
Campus-Based Programs are financial aid programs
administered by participating schools. There are three Campus
Based programs.
-
Federal Supplemental Educational Opportunity Grants
are grants available for undergraduates only; awards range
from $100-$4,000.
-
Federal Work-Study provides jobs to undergraduate
and graduate students, allowing them to earn money to pay
education expenses.
-
Perkins Loans are low-interest (5 percent) loans
that must be repaid; the maximum annual loan amount is
$4,000 for undergraduate students.
Eligibility:
In general to receive aid from federal student aid
programs, you must meet the following requirements:
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Be a
United States citizen or eligible non-citizen of the United States
with a valid Social Security Number;
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Have a
high school diploma, a General Education Development (GED)
certificate, or pass an approved "ability to benefit" test;
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Enroll in
an eligible program as a regular student seeking a degree or
certificate;
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Register
(or have registered) for Selective Service, if the student is a
male between the ages of 18-25; and
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Have a
result of Eligible or Partially Eligible for the FAFSA Question
“Have you ever been convicted of possessing or selling illegal
drugs?”
Other important information:
Ideally, you should complete a FAFSA after you've done your tax return,
but don't wait until April. Many colleges award aid on a first-come,
first-served basis. You may not be eligible for state aid if you
wait until April to submit your FAFSA.
To complete FAFSA on the Web,
click here.
Click
here for the website that provides a
step-by-step guide through the application questions.
Referral Contact Information
Federal Student Aid Information Center
Phone: 1-800-4-FED-AID (1-800-433-3243)
Web site:
www.studentaid.ed.gov
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