Federal student aid is at hand

In these times of a weakening national economy and tightening credit, paying for a college education is a greater challenge than ever. Help is at hand, but obtaining it takes a lot of work. Roughly $150 billion in federal financial aid is available to students and their families through the Free Application for Federal Student Aid (FAFSA) program.

The process demands a large amount of information, which is used by not only the federal government but states and learning institutions to determine a student’s eligibility for grants, loans and work-study programs.

Video: The 5 Minute FAFSA

Are you eligible?

The FAFSA4caster is a free online tool that provides students with an early estimate of eligibility and reduces the time it takes to complete the FAFSA. Almost every student is eligible for some kind of help, provided that he or she

  • Is a U.S. citizen, U.S. national, or eligible non-citizen.
  • Has a valid Social Security Number.
  • Has a high school diploma or General Equivalency Degree.
  • Is registered with the U.S. Selective Service (if male and aged 18-25).
  • Does not owe refunds on federal student grants.
  • Is not in default on student loans.
  • Has not been found guilty of the sale or possession of illegal drugs.
  • Has completed a FAFSA.

Financials must be reported

The FAFSA program expects students and/or their family to contribute at least something to the costs of college education. The government determines the exact amount -- called the Expected Family Contribution -- after conducting a thorough analysis of personal financial information submitted as part of the FAFSA.

FAFSA

Be on time or be left out

Timeliness in filing a FAFSA is crucial. Ideally, you would file your FAFSA as close to January 1 as possible. Aid dollars are limited and are awarded on a first-come, first-served basis. Early filers stand the best chance of receiving the aid they need. Anyone – students and/or their parents – who has a valid Social Security Number and is a U.S. citizen or eligible non-citizen may apply for a FAFSA personal identification number that will permit access to personal information stored in various U.S. Department of Education systems and allow regular updates on status.

Many grants and loans are available

Here’s a quick overview of some of the specific financial-aid programs available:

  • applying for Federal Student AidTEACH Grant. The Teacher Education Assistance for College and Higher Education Grant program provides up to $4,000 per year to students who plan to teach in a public or private elementary or secondary school serving students from low-income families.
  • Pell Grant. Federal Pell Grants are usually awarded only to undergraduate students who have not yet earned a degree. The current maximum Pell Grant amount is approximately $4,700. The amount can vary with the student’s needs, status as either a full-time or part-time student and whether he or she will attend school for a full academic year or less.
  • Federal Supplemental Educational Opportunity Grant. This is for undergraduates having exceptional financial needs. Students can receive between $100 and $4,000 annually.
  • Academic Competitiveness Grant (ACG). The ACG is available to first-year college students who graduated from high school after Jan. 1, 2006, and for second-year college students who graduated from high school after Jan. 1, 2005. An ACG provides $750 for the first year and $1,300 for the second year of study. Recipients of a federal Pell Grant are eligible to apply.
  • National Science & Mathematics Access to Retain Talent Grant. Also known as the SMART Grant, this is available to undergraduate, full-time students who are eligible for a Pell Grant and are majoring in physical, life or computer sciences, mathematics, technology or engineering or in a foreign language determined to be critical to national security. A SMART Grant provides up to $4,000 for each of the third and fourth years of undergraduate study.
  • Boren Scholarship. Students awarded a Boren Scholarship must, after graduating, fulfill an agreement to work briefly at a governmental agency or office involved in national security. Students interested in studying critical languages or security issues are given preference. Boren Scholarships provide a maximum of $10,000 per semester or $20,000 per academic year.

Video: Top 5 FAFSA Filing Tips

All the hard work pays off

Applying for financial aid, beginning with the FAFSA, is, like, the worst homework assignment ever. But all the hard work pays off and can determine whether a student will be able to attend the school of his or her choice or miss out on collage altogether. It’s well worth the time and effort.