You know you have to fill out the Free Application for Federal Student Aid (FAFSA®), but maybe you’re not sure what to do.
Let’s review what to expect.
Filling out the FAFSA® can be a straightforward and easy process. The online FAFSA atfafsa.gov will guide you through the application; click on the “Start A New FAFSA” button on the home page, and just follow the directions on the screen. Below are some tips to help you along the way.
Ready to fill out the FAFSA now? Go for it!
Getting an FSA ID
Gathering the Documents Needed to Apply
Getting Help
Starting Your FAFSA® and Providing Your Basic Personal Information
Listing Colleges and/or Career Schools
Determining Your Dependency Status
Reporting Parents’ Information
Providing Financial Information (Before or After Filing Taxes)
Determining When Tax Information Will Be Available Via the IRS Data Retrieval Tool (IRS DRT)
Signing and Submitting the FAFSA
Taking the Next Steps
Getting an FSA IDYou’ll need an FSA ID, a username and password combination that allows you to sign your FAFSA electronically. Your FSA ID also can be used to sign loan contracts and to access certain information online. You can get your FSA ID as you fill out the FAFSA, but you also have the option to get it ahead of time. Find out how to get an FSA ID and what to do if you forgot your FSA ID.
Getting an FSA ID before you begin the FAFSA could prevent processing delays, and it only takes a few minutes to apply.
Gathering the Documents Needed to ApplyThe FAFSA asks for information about you (your name, date of birth, address, etc.) and about your financial situation. Depending on your circumstances (for instance, when you filed taxes or what tax form you used), you might need the following information or documents as you fill out the FAFSA:
- Your Social Security number (it’s important that you enter it correctly on the FAFSA!)
- Your parents’ Social Security numbers if you are a dependent student
- Your driver’s license number if you have one
- Your Alien Registration number if you are not a U.S. citizen
- Federal tax information or tax returns including IRS W-2 information, for you (and your spouse, if you are married), and for your parents if you are a dependent student:
- IRS 1040, 1040A, 1040EZ
- Foreign tax return and/or
- Tax return for Puerto Rico, Guam, American Samoa, the U.S. Virgin Islands, the Marshall Islands, the Federated States of Micronesia, or Palau
- Records of your untaxed income, such as child support received, interest income, and veterans noneducation benefits, for you, and for your parents if you are a dependent student
- Information on cash; savings and checking account balances; investments, including stocks and bonds and real estate but not including the home in which you live; and business and farm assets for you, and for your parents if you are a dependent student
Learn more about reporting tax information on your FAFSA.
One thing you don’t need for the FAFSA is money! The FAFSA is FREE, so if a website asks you to pay to fill it out, you’re not dealing with the official FAFSA site. Remember, the FAFSA comes from the government, so it’s on a .gov site: fafsa.gov.
Getting HelpIf you need help filling out the FAFSA, use these free tools:
- Read the “Help and Hints” located on the right side of any FAFSA entry page. (The hints change depending on what question you’re on.)
- Click “Need Help?” at the bottom of any FAFSA entry page (in other words, any page where you’re entering information into the application).
- Chat (in English or Spanish) with live technical support staff by clicking the “Help” icon with the big question mark at the top of any FAFSA entry page, and then selecting "Contact Us," "Federal Student Aid Information Center," and then "Chat With Us." (Note: The "Chat With Us" option isn't visible outside of business hours, which are listed on the Federal Student Aid Information Center contact page.)
- Contact the financial aid office at the college or career school you plan to attend.
- For details about the purpose of FAFSA questions and how information should be reported in some unusual cases, try our guide called Completing the FAFSA.
Although the FAFSA is compatible with Macintosh, Mac users will have a slightly different experience on fafsa.gov than PC users.
Starting Your FAFSA® and Providing Your Basic Personal InformationIf you are starting a FAFSA for the first time, go to fafsa.gov and click on "Start A New FAFSA." As you start your FAFSA, keep the following in mind:
- Your name and Social Security number must match those on your Social Security card.
- If you’re concerned about providing your personal information on the login page, choose the virtual keyboard option for additional security.
- Near the beginning of the application, you’ll create a “save key,” which you’ll use if you start your FAFSA, save it without finishing it, then want to open it again later to finish it. (One benefit of the save key is that students and parents can use this function to pass the FAFSA back and forth if they are completing the FAFSA in separate locations.)
- If you are applying for a summer session, contact the financial aid office at your college to find out which school year you should select when you complete your FAFSA.
Listing Colleges and/or Career SchoolsWhile completing the FAFSA, you must list at least one college to receive your information. The schools you list will use your FAFSA information to determine the types and amounts of aid you may receive.
For purposes of federal student aid, it does not matter in what order you list the schools. However, to be considered for state aid, some states require you to list schools in a particular order (for instance, you might need to list a state school first). Find out whether your state has a requirement for the order in which you list schools on your FAFSA.
You can list up to 10 schools on the online FAFSA or up to four schools on a paper FAFSA. (You canadd more schools to your FAFSA later.) Schools you list on your FAFSA will automatically receive your FAFSA results electronically.
Note: Schools will not be able to see which other schools you listed on your FAFSA.
Determining Your Dependency StatusThe FAFSA asks a series of questions that determine whether you are a dependent or independent student for purposes of applying for federal student aid. If you are a dependent student, you must report parent information, as well as your own information, on your FAFSA. If you’re curious, you can find out now whether you’re a dependent student.
Reporting Parents’ InformationIf you’re a dependent student, you’ll need to report parent information on your FAFSA. Visit our page on reporting parent information to find out who counts as your parent, what to do if you don’t live with your parents, and what to do if you don’t have access to your parents’ financial information.
Your FAFSA information is safe with us! Is it safe with you? Read Federal Student Aid and Identity Theft to learn how we safeguard the personal information you report on your online FAFSA. We've also included some tips on what you can do (at home, online, or in the dorm) to keep your identity from being stolen.
Providing Financial Information (Before or After Filing Taxes)The FAFSA asks for financial information, including balances of savings and checking accounts and information from tax forms.
- Use income records for the tax year prior to the academic year for which you are applying: for instance, if you are filling out the 2016–17 FAFSA, you will need 2015 tax information. (Starting with the 2017–18 FAFSA, you'll need to report income information from the tax year two years prior to the academic year. Learn more about the 2017–18 FAFSA.)
- If you haven’t done your taxes by the time you fill out your FAFSA, it’s okay to estimate the amounts. You might want to base your estimates on last year’s tax return. If your income changed drastically since last year’s tax return, you may click on “Income Estimator” on the FAFSA page that asks for income information. The Income Estimator will help you estimate adjusted gross income (AGI). After you file your taxes, you’ll need to log back in to the FAFSA and correct any estimated information that was wrong.
- If you have done your taxes before filling out your FAFSA, be sure to consider the option the FAFSA offers you to use the IRS Data Retrieval Tool (IRS DRT). You may be able to use the tool if you filed your taxes electronically at least three weeks ago or if you filed on paper at least 11 weeks ago. Find out when your tax return information will likely be available using the IRS DRT. Here’s how the IRS DRT process works:
- The IRS DRT takes you to the IRS website, where you’ll need to log in by providing your name and other information exactly as you provided it on your tax return.
- At the IRS site, you can preview your information before agreeing to have it transferred to your FAFSA.
- When you return to the FAFSA, you’ll see that questions that are populated with tax information will be marked with “Transferred from the IRS.” Don’t make any changes to those answers (except where Individual Retirement Account or pension rollovers are involved), or you’ll invalidate the information you retrieved.
- If you or your parents are married and you’ve used IRS DRT to transfer information into your FAFSA, you’ll see that a value for Income Earned from Work is transferred. Refer to the guidance about Income Earned from Work for student and spouse and guidance about Income Earned from Work for parents in the help topics on the FAFSA site to correctly document this value.
- You don’t have to find your tax records.
- You don’t have to worry about making mistakes entering your tax information on your FAFSA.
- If you use the IRS DRT and don’t change any of the retrieved information in your FAFSA (other than that listed in step 3 above), you won’t need to provide tax transcripts if you’re selected for verification.
Determining When Tax Information Will Be Available Via the IRS Data Retrieval Tool (IRS DRT)The IRS has provided the following guidance to help you determine when you should be able to access your tax data using the IRS DRT.
The IRS tax return processing times and the availability of the IRS DRT reflected in the chart below are merely guides to help tax filers estimate when they will be able to retrieve their IRS tax return information using the IRS DRT. Specific questions related to the processing of your IRS tax return should be directed to the IRS at 1-800-829-1040.
When a tax return filer who...
If Tax Return Filed Electronically
If Paper Tax Return Filed
At the time his or her tax return was submitted to the IRS, has no amount owed or has an expected refund
- Generally tax returns are accepted by the IRS within a day or two of the return having been electronically filed with the IRS.
- In most cases, the IRS DRT is available within two–three weeks after the return has been accepted by the IRS.
- Generally tax returns are accepted by the IRS when the tax return is received by the IRS.
- In most cases, the IRS DRT is available within eight–11 weeks after the tax return has been accepted by the IRS.
At the time his or her tax return was submitted to the IRS, has an amount owed and makes a full payment on that amount
- Generally tax returns are accepted by the IRS within a day or two of the return having been electronically filed with the IRS.
- In most cases, the IRS DRT is available within two–three weeks after the return has been accepted by the IRS.
- IRS will process the tax return in June.
- In most cases, the IRS DRT is available within two–three weeks after the tax return has been processed by the IRS.
Has an amount owed and subsequent to submitting his or her tax return to the IRS, pays the full amount due
- Generally tax returns are accepted by the IRS within a day or two of the return having been electronically filed with the IRS.
- In most cases, the IRS DRT is available within three–four weeks after full payment is made.
- IRS will process the tax return in June.
- In most cases, the IRS DRT is available within two–three weeks after the tax return has been processed by the IRS.
At the time his or her tax return was submitted to the IRS, has an amount owed and has not paid in full
- Generally tax returns are accepted by the IRS within a day or two of the return having been electronically filed with the IRS. However, IRS will not process the return until May.
- In most cases, the IRS DRT is available within two–three weeks after the return has been processed in May.
- IRS will process the tax return in June.
- In most cases, the IRS DRT is available within two–three weeks after the tax return has been processed by the IRS.
Signing and Submitting the FAFSABefore your FAFSA can be processed, you’ll need to sign and submit it. Here are some tips as you finish your FAFSA:
- Be sure to sign with your FSA ID (your username and password) so your FAFSA will be processed as quickly as possible.
- Once you see your confirmation page, you’ll know you’ve successfully submitted your FAFSA. If you provided an e-mail address on your FAFSA, you’ll automatically receive the confirmation page by e-mail. There are a few differences between the e-mailed confirmation and the one you’ll see in the FAFSA before exiting the application, so consider printing or saving your confirmation page before you exit. For example, the e-mailed confirmation won’t include the college graduation, retention, and transfer rates for schools you listed on your FAFSA.
- When you fill out the FAFSA, you’re also automatically applying for certain state financial aid. In some cases, the state requires an additional application in order to determine your eligibility for state aid. There are some states that have a partnership with the FAFSA that allows you to transfer your information directly into your state aid application, so if you see a link on your FAFSA confirmation page to your state financial aid application, you should click on it. (Please note that the link won't appear on the e-mailed confirmation page, so be sure to take advantage of it while you're still at the original confirmation page.)
- Your confirmation page offers the option for the parent information in your FAFSA to be transferred automatically into another student’s FAFSA. So if you have a sibling who needs to fill out a FAFSA, be sure to use this option when you see your confirmation page. (Please note that the link won't appear on the e-mailed confirmation page, so be sure to take advantage of it while you're still at the original confirmation page.)
Taking the Next StepsOnce you’ve completed your FAFSA, there are more steps you have to take before you receive financial aid. Make sure you know what happens after you submit your FAFSA.
Quick LinksResources
2016-17 Completing the FAFSA
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Glossary
FAFSA Free Application for Federal Student Aid
Financial Aid Office The office at a college or career school that is responsible for preparing and communicating information on financial aid. This office helps students apply for and receive student loans, grants, sc...
State Aid Financial aid from a student's state of legal residence.
Independent Student An independent student is one of the following: at least 24 years old, married, a graduate or professional student, a veteran, a member of the armed forces, an orphan, a ward of the court, or someo...
Academic Year This is the amount of the academic work you must complete each year, and the time period in which you are expected to complete it, as defined by your school. For example, your school’s academic y...
Adjusted Gross Income (AGI) Your or your family's wages, salaries, interest, dividends, etc., minus certain deductions from income as reported on a federal income tax return. Commonly referred to as AGI.
Verification The process your school uses to confirm that the data reported on your FAFSA is accurate. Your school has the authority to contact you for documentation that supports income and other information t...
Links:
Bestselling FAFSA financial aid book offered free in Kindle, PDF or ePub format:
http://www.examiner.com/article/bestselling-fafsa-financial-aid-book-offered-free-kindle-pdf-or-epub-format
FAFSA
Everything you and your students need to know about FAFSA and federal financial aid programs. Apply after January 1 for freshman college entrance in the fall of the year.
http://www.fafsa.ed.gov
After January 1 of your high school senior year (or the year in which you’ll be entering college), complete a Free Application for Federal Student Aid (FAFSA), which is available to complete online (preferred method) or in paper format. You must submit this form in order to be considered for all federal financial aid programs, most institutional programs, and most state programs. When completing your FAFSA, be sure to list all of the schools you’re interested in attending (a maximum of ten colleges can be listed via FAFSA on the Web and a maximum of four colleges can be listed on the paper FAFSA), even though you may not yet have been notified that you’ve been accepted for enrollment. Also, if you’re a dependent student, be sure to ask your parents to fill out their tax forms in early spring in order to have the information needed for your FAFSA and other financial aid forms. If they do not have their tax returns completed in time to apply for financial aid, you can use an estimate of income and taxes to file your FAFSA. You also need to fill out your tax forms in early spring in order to have the information needed for the FAFSA.
·For specific instructions on how to complete the FAFSA, visit the Filling Out the FAFSA page of Federal StudentAid's StudentAid.gov.
·If you filed your FAFSA online you’ll receive a Student Aid Report (SAR) within two weeks after submission. If you filed a paper FAFSA, you will receive a SAR within four to six weeks. Review your SAR carefully and follow the instructions provided. If you need a duplicate SAR, or need to check the status of your application, call the Federal Student Aid Information Center at 800.4FEDAID or 319.337.5665. You can also check the status of your FAFSA online.
Everything you and your students need to know about FAFSA and federal financial aid programs. Apply after January 1 for freshman college entrance in the fall of the year.
http://www.fafsa.ed.gov
After January 1 of your high school senior year (or the year in which you’ll be entering college), complete a Free Application for Federal Student Aid (FAFSA), which is available to complete online (preferred method) or in paper format. You must submit this form in order to be considered for all federal financial aid programs, most institutional programs, and most state programs. When completing your FAFSA, be sure to list all of the schools you’re interested in attending (a maximum of ten colleges can be listed via FAFSA on the Web and a maximum of four colleges can be listed on the paper FAFSA), even though you may not yet have been notified that you’ve been accepted for enrollment. Also, if you’re a dependent student, be sure to ask your parents to fill out their tax forms in early spring in order to have the information needed for your FAFSA and other financial aid forms. If they do not have their tax returns completed in time to apply for financial aid, you can use an estimate of income and taxes to file your FAFSA. You also need to fill out your tax forms in early spring in order to have the information needed for the FAFSA.
·For specific instructions on how to complete the FAFSA, visit the Filling Out the FAFSA page of Federal StudentAid's StudentAid.gov.
·If you filed your FAFSA online you’ll receive a Student Aid Report (SAR) within two weeks after submission. If you filed a paper FAFSA, you will receive a SAR within four to six weeks. Review your SAR carefully and follow the instructions provided. If you need a duplicate SAR, or need to check the status of your application, call the Federal Student Aid Information Center at 800.4FEDAID or 319.337.5665. You can also check the status of your FAFSA online.
Before You List Colleges on Your FAFSA, Read ThisNov. 24, 2015
The rules are changing this year, but the schools you list and the order you put them in can still affect your financial aid.
You probably know that your income and assets are important factors in determining your eligibility for college aid. But did you know that the schools you list on the Free Federal Application for Financial Aid, or FAFSA, can also play a role?
When students file the online FAFSA, they can list up to 10 colleges that they’re interested in. Most students list them in preference order.
Statistically, students who are admitted to the college they list first on the FAFSA enroll there about half to two-thirds of the time. For the college listed second, about a third of students will enroll if they’re admitted. For the college listed third, about 10 percent will enroll if admitted.
It’s an open secret that some colleges used this insight in their admissions and financial aid decisions. For example, if a college wasn’t listed in the top three, it might just reject the student to try to improve its “yield,” which has an impact on some college rankings. That led to anomalous situations like a student being admitted to an Ivy League institution but rejected by less selective colleges. (No college has confessed to using FAFSA position in its admissions decisions because it is illegal under federal privacy rules concerning FAFSA data.)
To prevent future abuses, starting with the 2016-17 FAFSA, the U.S. Department of Education will no longer share your list of colleges with the schools receiving your FAFSA data. But your list will still be available to state aid agencies, and some states require that students list an in-state public college first to qualify for state aid. So the order in which you list your colleges remains important for financial-aid purposes.
What you can do:
The rules are changing this year, but the schools you list and the order you put them in can still affect your financial aid.
You probably know that your income and assets are important factors in determining your eligibility for college aid. But did you know that the schools you list on the Free Federal Application for Financial Aid, or FAFSA, can also play a role?
When students file the online FAFSA, they can list up to 10 colleges that they’re interested in. Most students list them in preference order.
Statistically, students who are admitted to the college they list first on the FAFSA enroll there about half to two-thirds of the time. For the college listed second, about a third of students will enroll if they’re admitted. For the college listed third, about 10 percent will enroll if admitted.
It’s an open secret that some colleges used this insight in their admissions and financial aid decisions. For example, if a college wasn’t listed in the top three, it might just reject the student to try to improve its “yield,” which has an impact on some college rankings. That led to anomalous situations like a student being admitted to an Ivy League institution but rejected by less selective colleges. (No college has confessed to using FAFSA position in its admissions decisions because it is illegal under federal privacy rules concerning FAFSA data.)
To prevent future abuses, starting with the 2016-17 FAFSA, the U.S. Department of Education will no longer share your list of colleges with the schools receiving your FAFSA data. But your list will still be available to state aid agencies, and some states require that students list an in-state public college first to qualify for state aid. So the order in which you list your colleges remains important for financial-aid purposes.
What you can do:
- List an in-state public college first on the FAFSA in order to be eligible for state aid.
- List colleges with the earliest financial aid deadlines in the first set of 10 colleges on the FAFSA, to ensure that they get your information in time.
- If you want to list more than 10 colleges, wait until you receive the Student Aid Report (SAR). This is a sign that the colleges and universities you listed on the FAFSA have received your FAFSA information. At that point, you can log in to fafsa.ed.gov to change the list of colleges, replacing the first set of 10 with a new set of 10. Select “Make FAFSA Corrections” and then go to the “School Selection” page. You can also change your list of colleges by calling 800-4-FED-AID (800-433-3243). You will need the data release number (DRN) from SAR. If you are applying to more than 20 colleges, just repeat this process, each time waiting for the SAR before updating your list on the FAFSA web site.
5 Things To Do After Filing Your FAFSA
Congratulations! You submitted your Free Application for Federal Student Aid (FAFSA®)! Wondering what happens next? Here are a few things to look out for:
Any student with a Federal Student Aid PIN can view and print his or her SAR by logging in to fafsa.gov and clicking on the appropriate school year. This is also where you can check the status of your application if you have not received your SAR yet. Once you get your SAR, you should review it carefully to make sure it’s correct and complete.
2. Review Your EFC
When reviewing your SAR, look for the Expected Family Contribution (EFC) number. Your EFC can be found in the box at the top of the first page of your SAR, under your Social Security number.
Your EFC is a measure of your family’s financial strength and is calculated according to aformula established by law. This formula considers your family’s taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) as well as your family size and the number of family members who will attend college during the year.
Schools use your EFC to determine your federal student aid eligibility and your financial aid award. However, it’s important to remember that your EFC is not the amount of money your family will have to pay for college nor is it the amount of federal student aid you will receive. It is a number used by your school to calculate how much financial aid you are eligible to receive. Contact your school’s financial aid office if you have any questions about how they calculate financial aid.
3. Make Corrections If You Need To
It’s important to make sure that everything on your FAFSA is correct and complete, as your school may ask you to verify some of the information.
Do you need to update any information?
The last page of your SAR includes information about your financial aid history, specifically the student loans you have taken out. It’s important to keep track of how much you’re borrowing and to understand the terms and conditions of the loan. Click here to learn more about federal student loans.
Remember: You can always access your financial aid history by logging into My Federal Student Aid. Make sure you have your PIN and Social Security number ready.
5. Double-Check With Your Schools
Lastly, make sure that you double-check with the financial aid offices at the schools you applied to. Sometimes schools need additional paperwork or have other deadlines. You never want to leave money on the table!
Congratulations! You submitted your Free Application for Federal Student Aid (FAFSA®)! Wondering what happens next? Here are a few things to look out for:
- Review Your Student Aid Report (SAR)
Any student with a Federal Student Aid PIN can view and print his or her SAR by logging in to fafsa.gov and clicking on the appropriate school year. This is also where you can check the status of your application if you have not received your SAR yet. Once you get your SAR, you should review it carefully to make sure it’s correct and complete.
2. Review Your EFC
When reviewing your SAR, look for the Expected Family Contribution (EFC) number. Your EFC can be found in the box at the top of the first page of your SAR, under your Social Security number.
Your EFC is a measure of your family’s financial strength and is calculated according to aformula established by law. This formula considers your family’s taxed and untaxed income, assets, and benefits (such as unemployment or Social Security) as well as your family size and the number of family members who will attend college during the year.
Schools use your EFC to determine your federal student aid eligibility and your financial aid award. However, it’s important to remember that your EFC is not the amount of money your family will have to pay for college nor is it the amount of federal student aid you will receive. It is a number used by your school to calculate how much financial aid you are eligible to receive. Contact your school’s financial aid office if you have any questions about how they calculate financial aid.
3. Make Corrections If You Need To
It’s important to make sure that everything on your FAFSA is correct and complete, as your school may ask you to verify some of the information.
Do you need to update any information?
- It’s easy to make corrections at gov. Simply log in and click “Make FAFSA Corrections.” You’ll need to enter your Federal Student Aid PIN to make any corrections. Corrections should be processed in 3-5 days and you should receive a revised SAR. Detailed instructions here.
- Did you submit your FAFSA using income and tax estimates?
To correct your application after filing your taxes, click “Make FAFSA Corrections” after logging in to gov. Navigate to the “Finances” section and indicate that you have already completed your taxes. More details here. - Has your situation changed?
Most information cannot be updated because it must be accurate as of the day you originally signed your FAFSA. You should speak to the financial aid office at the school you plan to attend if there will be a significant change in your or your parent’s income for the present year or if your family has other circumstances that cannot be reported on the FAFSA. There are, however, certain items that you must update. Click here to find out what those are.
The last page of your SAR includes information about your financial aid history, specifically the student loans you have taken out. It’s important to keep track of how much you’re borrowing and to understand the terms and conditions of the loan. Click here to learn more about federal student loans.
Remember: You can always access your financial aid history by logging into My Federal Student Aid. Make sure you have your PIN and Social Security number ready.
5. Double-Check With Your Schools
Lastly, make sure that you double-check with the financial aid offices at the schools you applied to. Sometimes schools need additional paperwork or have other deadlines. You never want to leave money on the table!
Award Letters for Financial Aid:
https://studentaid.ed.gov/fafsa/next-steps/accept-aid?utm_content=sf37313523&utm_source=facebook&utm_medium=spredfast&utm_campaign=Federal&sf37313523=1#ive-got-an-award-letter
You’ll need to tell your college or career school which financial aid you’d like to accept.Start by accepting the financial aid funds you don’t have to pay back.
When your school financial aid office sends you an award letter, they’ll ask you to indicate which financial aid you want. Look carefully at your options and make an informed decision.
I’ve got an award letter from my school. Which financial aid is the best to accept?
I will need to borrow some money. How do I decide which student loans to accept?
Is it okay to accept less loan money than the school offered?
How do I tell the school what aid I’m accepting?
How and when will I get my financial aid?
I’ve got an award letter from my school. Which financial aid is the best to accept?The rule is: free money first (scholarships and grants), then earned money (work-study), then borrowed money (federal student loans). Start from the top of this table and work your way down:
Order in Which to Accept Aid
Type of Aid
What to Keep in Mind
1 Scholarships and grants
Make sure you understand the conditions you must meet (for instance, you might have to maintain a certain grade-point average in order to continue receiving a scholarship, or yourTEACH Grant might turn into a loan if you don’t teach for a certain number of years under specific circumstances).
2 Work-study
You don’t have to pay the money back, but you do have to work for it, so take into account that that’ll mean less time for studying. However, research has shown that students who work part-time jobs manage their time better than those who don’t!
3 Federal student loans
You’ll have to repay the money with interest. Subsidized loans don’t start accruing (accumulating) interest until you leave school, so accept a subsidized loan before an unsubsidized loan.
4 Loans from your state government or your college
You’ll have to repay the money with interest, and the terms of the loan might not be as good as those of a federal student loan. Be sure to read all the fine print before you borrow.
5 Private loans
You’ll have to repay the money with interest, and the terms and conditions of the loan almost certainly will not be as good as those of a federal student loan.
I will need to borrow some money. How do I decide which student loans to accept?Accept the loans with the most favorable terms and conditions; usually, that means federal student loans and state aid offered to you. If you are considering getting a private or commercial student loan, first you should learn about the differences between federal and private loans.
If you have any questions or don’t understand what types of loans are in your award letter, contact the school. Always ask questions and be an informed borrower. Make sure you understand what you’re receiving and the repayment terms.
Is it okay to accept less loan money than the school offered?Sure! You should borrow only what you need. If your living expenses are not going to be as high as the amount estimated by your school, you have the right to turn down the loan or to request a lower loan amount. In the award letter, the school will tell you how to do this.
Manage your money by listing your college expenses and the resources you’ll have available to pay them: make a budget.
How do I tell the school what aid I’m accepting?Read and follow the directions in the award letter. You might have to enter the amounts you’re accepting in an online form and then submit the form. If you receive a paper award letter, you might have to sign it and mail it back to the school.
Accepting a loan listed in the award letter involves some additional steps, which vary depending on the type of loan you’re receiving. Saying yes may be as simple as signing a promissory note—a contract between you and the lenderthat specifies terms and conditions of the loan. (If you take out a loan from the Direct Loan Program, the U.S. Department of Education will be your lender.) By signing the promissory note, you are promising to repay your student loan. The financial aid office will guide you through the paperwork or direct you to www.studentloans.govto sign the online Master Promissory Note.
How and when will I get my financial aid?Every school is a little different, so ask your school’s financial aid staff what to expect. Meanwhile, read about receiving aid for some general information.
Quick LinksGlossaryFinancial Aid OfficeThe office at a college or career school that is responsible for preparing and communicating information on financial aid. This office helps students apply for and receive student loans, grants, sc...
Award LetterAn offer from a college or career school that states the type and amount of financial aid the school is willing to provide if you accept admission and register to take classes at that school.
Work-StudyA federal student aid program that provides part-time employment while you are enrolled in school to help pay your education expenses.
ScholarshipMoney awarded to students based on academic or other achievements to help pay for education expenses. Scholarships generally do not have to be repaid.
InterestA loan expense charged for the use of borrowed money. Interest is paid by a borrower to a lender. The expense is calculated as a percentage of the unpaid principal amount of the loan.
Subsidized LoanA loan based on financial need for which the federal government pays the interest that accrues while the borrower is in an in-school, grace, or deferment status. For Direct Subsidized Loans fi...
Unsubsidized LoanA loan for which the borrower is fully responsible for paying the interest regardless of the loan status. Interest on unsubsidized loans accrues from the date of disbursement and continues througho...
Federal Student LoanA loan funded by the federal government to help pay for your education. A federal student loan is borrowed money you must repay with interest.
State AidFinancial aid from a student's state of legal residence.
LenderThe organization that made the loan initially; the lender could be the borrower's school; a bank, credit union, or other lending institution; or the U.S. Department of Education.
Direct LoanA federal student loan, made through the William D. Ford Federal Direct Loan Program, for which eligible students and parents borrow directly from the U.S. Department of Education at participating ...
Promissory NoteThe binding legal document that you must sign when you get a federal student loan. It lists the terms and conditions under which you agree to repay the loan and explains your rights and responsibil...