What is Federal Financial Aid?
Federal Student Financial Aid, an office of the U.S. Department of Education, plays a central and essential role in
Federal Student Financial Aid’s core mission is to ensure that all eligible individuals benefit from federal financial aid assistance—grants, loans and work-study programs—for education beyond high school. The programs they administer comprise the nation’s largest source of federal student aid: during the 2005-06 school year alone, they alone provided approximately $78 billion in new student aid to nearly 10 million higher education students and their families. There staff of 1,100 is based in 10 cities in addition to there
Among there most visible and essential services are the development, distribution, and processing of the Free Application for Federal Student Aid (FAFSA), the fundamental qualifying form used for all federal and government guaranteed commercial lenders’ programs—as well as for many state, regional and private student aid programs. By filling out the online or paper FAFSA, applicants start the process of qualifying for federal student financial aid. Each year there staff processes approximately 14 million FAFSAs.
Because they oversee $391 billion of outstanding federal student loans, it is there job to ensure that all of our partners in the federal student aid community—schools, lenders, servicers and guaranty agencies operate fairly, honestly and efficiently. Another key role they perform is to make students and their families aware that student financial aid is available and is a necessary first step to higher education. As
The Federal Student Financial Aid team is passionately committed to making education beyond high school more attainable for all Americans, regardless of socioeconomic status. By championing access to higher education, they uphold its value as a force for greater inclusion in American society and for the continued vitality of
Federal student financial aid is financial help for students enrolled in eligible programs at participating schools to cover school (a four-year or two-year public or private educational institution, a career school or trade school) expenses, including tuition and fees, room and board, books and supplies, and transportation. Most federal student aid is need based. The three most common types of aid are grants, loans, and work-study.
Grants are a type of financial student aid that does not have to be repaid. Grants are generally for undergraduate students and the grant amount is based on need, cost of attendance, and enrollment status. Federal Pell Grants for the 2006-2007 and 2007-2008 school year will range from $400 to $4,050. Federal Supplemental Educational Opportunity Grants will range from $100 to $4,000.
Loans are borrowed money that must be repaid with interest. Both undergraduate and graduate students may borrow money. Maximum loan amounts depend on the student’s year in school. Parents may also borrow to pay education expenses for dependent undergraduate students. Graduate and professional students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance.
· Federal Stafford Loans are made to students and PLUS Loans are made to parents and graduate/professional students through two loan programs:
· William D. Ford Federal Direct Loan (Direct Loan) Program Eligible students and parents borrow directly from the federal government at participating schools. Direct Loans include Direct Stafford Loans, Direct PLUS Loans, and Direct Consolidation Loans.
· Federal Family Education Loan (FFEL) Program: Private lenders provide federally guaranteed funds. FFELs include Federal Stafford Loans, Federal PLUS Loans, and Federal Consolidation Loans.
· Federal Perkins Loans are offered by participating schools to provide students who demonstrate the most need with low-interest loans.
Work-study lets you earn money while enrolled in school to help pay for education expenses.
