The Free Application for Federal Student Aid is exactly what it sounds like, and is the application a student needs to fill out, along with other forms and applications depending on the university, in order to receive federal student aid, such as Pell Grants, miscellaneous scholastic grants (depending on state, these are often tied with Merit Exams, such as the Michigan Merit Exam, which offers a scholarship based on various test scores), and subsidized, or unsubsidized federal student loans. Another option that is available is the federal work-study program, which offers the student the opportunity to apply for and receive aid based on work within an organization on the student’s campus. These jobs require a certain grade point average and other qualifications depending on the position.
Applying for financial aid is a relatively simple process. Go to the FAFSA website at fafsa.ed.gov, and follow the directions for applying within. The student will need parental information if they do not meet certain criteria, such as being above the age of 24, going for a masters degree, married or a veteran of the armed forces. The student will also need a social security number and their current year’s tax data. After the student submits all of the relevant information, they will receive an estimated family contribution (EFC). This number tells the student how much their family is required to pay toward the student’s costs, which will not be covered by loans or other aid.
This EFC is also what the school uses to determine how much the loan or grant award will be. Once the application is received by the university (which is achieved by the student entering the school code within the FAFSA), the student will receive an award letter describing the type of aid they are eligible for. If the student is eligible for grants, such as the Pell, Grant the award will automatically be accepted and applied toward the student’s tuition costs. Work study and loan awards are not automatically accepted, and require additional paperwork before the awards will process on the student’s account. Work study requires that the student apply for and be hired by a participating on-campus employer. Student loans require a signature, as well as entrance counseling when the student accepts the loan, and exit counseling when the student completes their required credits for graduation. In the end these are great financial aid instruments, and if you were looking for no cosigner student loans, these are the types of loans you should look for.
