Federal Student Financial Aid is an integral part of the education department of US. This provides financial aid to student sand plays an important role in America’s postsecondary education community. They have a comprehensive set of programs to help the students who are willing to pursue their studies. The objective of this department is to make available the financial assistance of the federal body. The assistance comes in the form of loans, grants and work-study programs for students who wish to pursue postsecondary education. Their headquarters in based in Washington and they have provided around $78million as aid to 10 million students in the year 2005-06.
The Application Form
FAFSA, the free application form is required to be filled up by the student who is interested to apply for the aid program. This is the form, which is used by all government, private aid programs, at national, regional and international level. Filling up the form is the first step in the process of enrollment for the aid programs. They also run awareness programs online and offline to make the parents as well as the students aware of such grants that would help them to progress in life. They also look into the matter that all students who are in need of the aid and all the collaborating institutions work in all fairness towards the objective.
Types of Financial Aids
The financial aid consists of the expenses that a student would require to develop a career. It provides full financial support to the student including the tuition fees, lodging, food, books, transportation and supplies. Major portion of the federal aid is need-based. Financial aids are available in three forms. They are:
- Grants- grant is a need-based aid and is offered to students at the undergraduate level. In this type of aid one does not worry about repaying the money, as h/she does not need to repay the aid. This aid is provided considering the need of the student, enrolment status and cost of attendance. The grant announced during the period of 2006-08 was announced to be between $400-$4050. Another grant known as the Federal Supplement Educational Opportunity will range between $100-$4000.
Two special grants, the National Science and Mathematics Access to Retain Talent Grant and Academic Competitiveness Grant are also offered. The present grant period has already begun.
- Loans- aids can also come in the form of loans, which are repayable aids. The money received in the form of loan has to be repaid by the loan seeker. This is applicable for both the graduate and undergraduate students. Loans are available for students who are dependent on their parents. In such a case the parents can borrow the money. The loan amount depends on the number of years a student has spent in the educational institution. At present even graduate and professional student scan borrow under the special Plus Loan Program. Within this structure the two kinds of loans are available. They are:
- William D. Ford federal Direct Loan Program- students and parents both are eligible to draw the loan directly from the federal government available at their schools. The direct Loans can be obtained in three different forms. They are, Direct Stafford Loan, Direct Plus Loans and Federal Consolidation Loans.
- Federal Family Education Loan Program- these loans are government-aided loans provided by private moneylenders. They come in three forms namely, Federal Stafford Loans, Federal Plus Loans and Federal Consolidation Loans.
The Federal Perkins Loan is offered to students who are in dire need of the loan. The school that is participating in the FSA provides the loan.
The work-study program allows a student to study as well as earn his living simultaneously. These aids help the needy students who wish to pursue their studies and aspire to establish themselves in a sphere, which is their favorite.
