Understanding Federal Student Aid: A Plain-Language Guide

Paying for college, trade school or a certificate program can feel like a puzzle with too many pieces. The good news is that there is one official starting point for most of it. Federal student aid is help from the U.S. Department of Education that can go toward tuition, fees, books and living costs. This guide walks you through the main parts in plain language, so you know what to expect and where to go next.

What federal student aid is

Federal student aid is money and support that helps students pay for school after high school. It can be used at many colleges, community colleges, career schools and technical programs. The official home for all of it is studentaid.gov, run by the Department of Education’s Federal Student Aid office.

There are a few main types of help to know about:

• Grants — aid that generally does not need to be paid back, often based on financial need.
• Work-study — part-time jobs for students, usually on campus or with community groups, that help cover school costs.
• Scholarships — awards from schools, states, employers, community groups and private organizations, often based on need, talent, field of study or background.

Your school may also offer its own aid. State governments often have grant programs too. In most cases, the first step for all of these is the same form.

The FAFSA: your starting point

The FAFSA stands for the Free Application for Federal Student Aid. It is a free form you fill out online at studentaid.gov. Schools and states use the information on it to decide what aid they can offer you.

Who fills it out

Students fill out the FAFSA. Depending on your age and situation, a parent or spouse may also need to provide information. The form will ask questions to figure out whose information is needed. These are called “contributors.”

What you will need

Before you start, it helps to gather a few things:

1. Your Social Security number (or that of any contributor, if they have one).
2. Federal tax information from two years before the school year begins.
3. Records of savings, checking accounts and investments, if the form asks for them.
4. A list of schools you are thinking about. You can add several.
5. A StudentAid.gov account, called an FSA ID, for you and each contributor.

Our document checklist tool can help you list what you have and what you still need to find.

What happens after you submit

After you send the FAFSA, you will get a FAFSA Submission Summary. It shows your answers and a number called the Student Aid Index. Schools use that number to help figure out your aid. Read the summary carefully and fix any mistakes on studentaid.gov.

Each school you listed will then send its own aid offer. An aid offer lists the types and amounts of help that school can provide. Offers can look very different from school to school, so take your time comparing them.

Grants

Grants are one of the most helpful types of aid because they usually do not need to be repaid. The best-known federal grant is the Federal Pell Grant, which is generally for undergraduate students who show financial need. There are also other federal grants for specific situations, such as students planning to teach in certain fields.

Many states and schools offer their own grants as well. Some of them use FAFSA information, and some have their own forms. Amounts and rules change, so check the current details on studentaid.gov and on your state’s higher education agency website.

Work-study

Federal Work-Study gives students part-time jobs to help pay for school. Jobs are often on campus, like working in a library or office. Some are with nonprofit groups or public agencies. Not every school takes part, and funding at each school is limited. If you are interested, check the box on the FAFSA and ask your school’s financial aid office how to find an opening.

Scholarships

Scholarships come from many places:

• The college or program you plan to attend.
• Your state.
• Employers, unions and professional groups.
• Local clubs, faith groups and community foundations.
• National organizations tied to a field of study or background.

A few tips to keep in mind:

• Start local. Smaller, local awards often have fewer applicants.
• Keep a list. Track each scholarship, its deadline and what it asks for.
• Never pay to apply. Real scholarships do not charge fees. If someone asks for money to “hold” an award, walk away.

The Federal Trade Commission shares tips on spotting scholarship and aid scams at consumer.ftc.gov.

Deadlines to watch

Student aid deadlines come from three different places, and each one matters.

The federal deadline

The FAFSA is available for each school year starting in the fall before that year begins. The federal deadline is late, often at the end of June after the school year ends. But waiting that long can mean missing other aid.

State deadlines

Many states have earlier deadlines, and some give aid on a first-come, first-served basis. Studentaid.gov lists state deadlines.

School deadlines

Colleges set their own priority dates. Filing by a school’s priority date can help you be considered for the most aid that school offers. Check each school’s financial aid page.

A simple rule: file as early as you can once the form opens. The year-round household calendar can help you remember when the FAFSA opens each year.

Keeping your aid each year

Federal student aid is awarded one year at a time. To keep getting it:

• Submit a new FAFSA each year.
• Make steady progress in your classes. Schools have rules called Satisfactory Academic Progress.
• Read emails and letters from your school’s aid office.
• Tell your school if your situation changes in a big way, like a job loss in the family.

If something unusual happens during the year, ask the financial aid office about a “professional judgment” review. They can sometimes look at your situation again.

Getting help

You do not have to figure this out alone. Good places to ask questions include:

• Your school’s financial aid office.
• Your high school counselor, if you are still in high school.
• The help center and live chat on studentaid.gov.
• Local college access programs and libraries, which sometimes host FAFSA help nights.

For more ways to keep learning at any age, see our guide to free learning for adults.

The bottom line

Federal student aid starts with one free form, the FAFSA, at studentaid.gov. From there, grants, work-study and scholarships can help make school more affordable. File early, watch federal, state and school deadlines, and compare each aid offer with care. When you have questions about eligibility rules or amounts, the official site and your school’s aid office are the best places to get answers.