Types of Aid Offered Through the FAFSA

March 24, 2022 Off By Virgil Olson

Types of Aid Offered Through the FAFSA

Submit it online on the website using your FSA ID Ask your college to submit FAFSA directly on your behalf. Take a printout of the PDF version of the form. Fill it out and mail the copy to Federal Student Aid Programs, P.O. Box 7650, London, KY 40742-7650.

The FAFSA offers various financial aid packages to students applying for a college education in the forthcoming academic year. Here’s a quick look at all of them:

Federal grants

Grants refer to non-repayable money. Federal grants for college education are per the students’ needs and depend on your FAFSA results.

Scholarships

Your school may offer you a scholarship, which refers to money you will never need to pay back. In most cases, you earn a scholarship on merit. If you have done exceedingly well in academics, athletics, or other fields, you could be eligible for a scholarship from your school.

Work-Study Loans

Your federal student loan could include work-study provisions, which means you can earn and pay back this money by working part-time on campus. Get in touch with your financial aid office for further information about these programs and the related repayment options.

Federal Student Loans

The federal government offers a wide range of federal direct subsidized loans and unsubsidized student loan options that help students pay for college. With a student loan, you are liable to pay the money back to the federal government with interest.

Wondering how to get financial aid or which kind of aid package is most suitable for you? Head to our Financial Aid Overview page for help.

How is Financial Aid Calculated?

Okay, so you need financial aid to pay for college. But how will the authorities determine how much money you are eligible to receive as aid? It depends on these four factors:

COA refers to the actual cost you would incur for going to a particular college for one year. This cost includes your tuition, study material, supplies, boarding, and other expenses. The COA may differ from school to school.

EFC is the amount of money that the federal government anticipates your family can afford for one year. The FAFSA assumes that 20% of your assets and 5.64% of your parent’s assets are available for spending in a year.

Since your Student Aid Report (SAR) lists the EFC, ensure all the information you entered in your FAFSA reflects correctly on the SAR.

For financial aid calculation, subtract the EFC from the COA. This total is roughly the amount that you will need in the form of aid. As mentioned above, since the cost of attendance varies from college to college, every college will individually calculate and determine the aid amount.

Need Vs. Non-need Based Financial Aid

Federal Pell Grants, Supplemental Education Opportunity Grants, Work-Study Programs, and Direct Subsidized loans are examples of need-based grants. Students with exceptional about his financial needs receive grants, while most students are eligible for subsidized loans. Other students and parents can apply for unsubsidized loans, PLUS loans, and TEACH grants.

The primary difference between subsidized and unsubsidized loans is the amount of interest. When you take a subsidized loan, you do not have to pay interest for the duration you’re in school and six months afterward. Unsubsidized loans accrue interest from day one.

What to Do If Your Family’s Financial Situation Has Changed?

Due to the recent COVID-19 pandemic or any other reason, if your family’s financial situation has changed, you can apply for FAFSA form readjustment. You must complete the FAFSA questions and submit the form. Discuss with your school’s financial aid office regarding the revised amount. They can readjust the amount as per your current family income.