Funding Education Beyond High School: The Guide to Federal Student Aid 2008-09

Do you need help paying for college or for a career or vocational school? This section is a quick reference to our federal student aid programs and how to apply for this aid. The rest of this publication provides more detail of what you need to know.

Federal Student Aid Summary Chart

Federal Student Aid Program	Type of Aid	Program Details	Annual Award Limits
Federal Pell Grant	Grant: does not have to be repaid	Available almost exclusively to undergraduates; all eligible students will receive the Federal Pell Grant amount they qualify for.	$400 to $4,731 for 2008–09
Federal Supplemental Educational Opportunity Grant (FSEOG)	Grant: does not have to be repaid	For undergraduates with exceptional financial need; priority is given to Federal Pell Grant recipients; funds depend on availability at school.	$100 to $4,000
Academic Competitiveness Grant (ACG)	Grant: does not have to be repaid	For undergraduates receiving Pell Grants who are U.S. citizens enrolled full-time in their first or second Academic Year of study. For first Academic Year students who have completed a rigorous secondary school program of study, graduated from high school after Jan. 1, 2006, and have not been previously enrolled in an undergraduate program. For second Academic Year students who have completed a rigorous secondary school program of study, graduated from high school after Jan. 1, 2005, and have at least a 3.0 cumulative GPA at the completion of their fi rst year of postsecondary study.	First Academic Year students: up to $750 Second Academic Year students: up to $1,300
National Science and Mathematics Access to Retain Talent Grant (National SMART Grant)	Grant: does not have to be repaid	For undergraduates receiving Pell Grants, who are U.S. citizens enrolled full-time in their third or fourth Academic Year of an eligible degree program majoring in physical, life, or computer sciences, engineering, technology, mathematics or a critical-need foreign language and have at least a 3.0 cumulative GPA.	Up to $4,000 for each of the third and fourth Academic Year
Federal Work-Study (FWS)	Money is earned while attending school; does not have to be repaid	For undergraduate and graduate students; jobs can be on campus or off campus; students are paid at least federal minimum wage.	No annual minimum or maximum award amounts
Federal Perkins Loan	Loan: must be repaid	Interest charged on this loan is 5 percent for both undergraduate and graduate students; payment is owed to the school that made the loan.	$4,000 maximum for undergraduate students; $6,000 maximum for graduate and professional degree students; no minimum award amount
Subsidized Direct or FFEL Stafford Loan	Loan: must be repaid	Subsidized: U.S. Department of Education pays interest while borrower is in school and during grace and deferment periods; you must be at least a Half-time student and have financial need.	$3,500 to $8,500, depending on grade level
Unsubsidized Direct or FFEL Stafford Loan	Loan: must be repaid	Unsubsidized: Borrower is responsible for interest during life of the loan; you must be at least a Half-time student; fi nancial need is not a requirement.	$3,500 to $20,500 (less any subsidized amounts received for the same period), depending on grade level and dependency status
Direct or FFEL PLUS Loan	Loan: must be repaid	Available to parents of dependent undergraduate students and graduate and professional students enrolled at least Half-time. Financial need is not a requirement. PLUS Loans are unsubsidized: Borrower is responsible for interest during the life of the loan.	Maximum amount is cost of attendance minus any other fi nancial aid the student receives; no minimum award amount

The information in this guide was compiled in summer 2007. For any changes to the federal student aid programs since then, visit www.FederalStudentAid.ed.gov and click on “Students, Parents and Counselors.” Any new information will appear in the “Announcements” section.

Most student financial aid comes from the federal government programs you’ll read about here. The U.S. Department of Education’s office of Federal Student Aid administers these programs. For other sources of student financial aid, see page 14.

Applying for federal student aid is FREE; that’s why our application is called the Free Application for Federal Student Aid (FAFSA). If you need help completing the FAFSA, that help is free too. You don’t have to pay anyone for help and you should be aware of scams and services that will search for financial aid for you for a fee. The College Scholarship Fraud Protection Act protects you from this type of fraud. We tell you how to protect yourself from scams on page 15.

What is federal student aid?
Federal student aid is financial assistance through the U.S. Department of Education available to eligible students enrolled in Eligible Programs as Regular Students at schools participating in our federal student aid programs.

Federal student aid covers school expenses such as tuition and fees, room and board, books and supplies and transportation. This aid can also help you pay for a computer and dependent child-care expenses. (Note that accepting any Title IV student financial aid does not commit the student to military or other government service.)

How Do I apply for Federal Student Aid?
Step 1

Get free information and help from your school counselor, the financial aid office at the college or career school you plan to attend, or the U.S. Department of Education, Federal Student Aid at www.FederalStudentAid.ed.gov or 1-800-4-FED-AID (1-800-433-3243). Free help is available any time during the application process. You should never have to pay for help.

Step 2

Get a Federal Student Aid PIN, a personal identification number. A PIN lets you apply, “sign” your online Free Application for Federal Student Aid (FAFSA), make corrections to your application information, and more—all online. Apply for a PIN at www.pin.ed.gov.

Step 3

Collect the documents needed to apply, including income tax returns and W-2 forms (and other records of income). A full list of what you need is at www.fafsa.ed.gov. Tax return not completed at the time you apply? Estimate the tax information, apply, and correct information later.

Step 4

Complete the FAFSA between Jan.1, 2008 and June 30, 2009 (no exceptions to either date!). BUT, apply as soon as possible on or after Jan.1 to meet school and state aid deadlines (see note at bottom of page). Apply online (the faster and easier way) by going to www.fafsa.ed.gov.

Step 5

Federal Student Aid will send you a Student Aid Report (SAR)—which is a summary of the information from your FAFSA. Review your SAR, and if necessary, make changes or corrections and submit your SAR for reprocessing. Your complete, correct SAR will contain your Expected Family Contribution (EFC)—the number used to determine your federal student aid eligibility.

Step 6

If you are selected for verification, your school’s financial aid office will ask you to submit tax returns and other documents, as appropriate. Be sure to meet the school’s deadlines, or you will not receive federal student aid.

Step 7

Whether you’re selected for verification or not, make sure the financial aid office at the school has all the information needed to determine your eligibility.

Step 8

All students: Contact the financial aid office if you have any questions about the aid being offered.
First-time applicants: Review Award Letters from schools and compare the aid being offered. Decide which school to attend based on a combination of (a) how well the school suits your needs (programs of study and academics) and (b) its affordability after all aid is taken into account.

Note: You also might be able to get financial aid from your state government, your school or a private scholarship. Research nonfederal aid early (ideally, start in the spring of your junior year of high school). Be sure to meet all application deadlines!

There are three categories of federal student aid: grants, work-study and loans. (See chart on page xi for an overview of these programs.) Check with your school to find out which programs your school participates in.

Who gets federal student aid?
Eligibility for most federal student aid programs is based on financial need and several other factors. Your eligibility is determined by the information you provide on the FAFSA.

Basic eligibility requirements:

Demonstrate financial need (except for certain loans, see "Loans" section).
Be a U.S. citizen or Eligible Programs(for most programs) with a valid Social Security number (SSN).
Be working toward a degree or certificate in an Eligible Programs.
Show, by one of the following means, that you’re qualified to obtain a postsecondary education:
- Have a high school diploma or a General Educational Development (GED) certificate.
- Pass an approved Ability-to-Benefit (ATB) test (if you don’t have a diploma or GED, a school can administer a test to determine whether you can benefit from the education offered at that school).
- Meet other standards that your state establishes and that we have approved.
- Complete a high school education in a homeschool setting approved under state law.
Register (if you haven’t already) with the Selective Service, if you’re a male between the ages of 18 and 25.
Maintain satisfactory Academic Year once in school. (See the complete list of eligibility requirements on pages 4 and 5.)

FAFSA4caster
If you’re not attending college this fall, but would like to find out how much federal student aid you might be eligible for, the FAFSA4caster is for you. This new product is for those who want to get an early start on the financial aid process. You can access FAFSA4caster at www.FederalStudentAid.ed.gov. For more information on FAFSA4caster, click here.

Process Summary Chart

PREPARE	APPLY	RECEIVE	REPAY
This guide gives you information about federal student aid programs, as well as other means of paying for your education after high school. Take what we say to heart … and then take the next step.	This step is where many deserving students falter, either because they assume they won’t qualify, or because the FAFSA may seem complex and difficult to complete. In the case of the FAFSA, the improved online version streamlines the application process considerably. It’s a good idea to apply. You may be surprised by the amount of aid for which you qualify.	We will inform you and your selected schools about your Expected Family Contribution (EFC). Then they (or your student loan provider) will tell you how much—and what sorts of—aid you qualify for.	If your aid is in the form of a loan or loans, this guide will fill you in on the repayment process.

U.S. Department of Education | Federal Student Aid