What type of aid is fafsa

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Our opinions are our own. Here is a list of our partners and here's how we make money. Financial aid can help fill in the gaps. Here's what you need to know:. Financial aid is any form of funding that helps you pay for college, including scholarships, grants, loans and work-study programs.

We go into detail about the different types of aid below. There are generally two ways to qualify for aid: through financial need and through merit.

Need-based aid: The federal government calculates your financial need based on the information you provide on the FAFSA. Work-study dollars and most grants are need-based. Merit-based aid: Colleges and private organizations award scholarships to students with academic, athletic or artistic talent. Some, including federal direct subsidized loans, are need-based. Others, including private student loans, depend on your credit score.

And any student attending an accredited school can qualify for federal direct unsubsidized loans, regardless of his or her financial need or merit. Academic, athletic or artistic talent. Grants, federal work-study, federal direct subsidized loans, federal Perkins loans. You should borrow a Federal Direct Student Loan before you borrow any other loan because these loans offer fixed interest rates and several repayment options.

This loan does not require a credit check and the student is the sole borrower. The current maximum Federal Direct Student Loan amounts are as follows for undergraduate students. Graduate student limits are larger and can be found here. The interest rate on the Federal Direct Loan is fixed for the life of the loan, though each academic year's new loans have a new interest rate determined by the year Treasury note rate and an additional percentage.

The loan is always unsubsidized for graduate students, but can be either subsidized or unsubsidized for undergraduate students:. The Commonwealth of Massachusetts offers the Massachusetts No Interest Loan NIL , a loan with zero interest and created to help needy Massachusetts residents attending post-secondary educational institutions in Massachusetts pay for educational costs.

Like the interest rate on the Federal Direct Student Loan, the Graduate PLUS Loan interest rate is fixed for the life of the loan, though each academic year's new loans have a new interest rate determined by the year Treasury note rate and an additional percentage.

The loan is unsubsidized. You may borrow up to the school's full cost of attendance minus any additional aid received. Visit our Financial Aid Applications page to learn about applying for financial aid for students.

Each year, hundreds of billions of dollars in financial aid are awarded to undergraduate students in the form of grants and scholarships, work-study, and loans. Financial aid is provided by the federal government , the state government , and colleges and universities. Find out the details of the different types of financial aid, and learn the resources available to you and your family if you're a Veteran or serving in the military.

You must meet certain criteria to receive financial aid, so first learn about financial aid eligibility. At MEFA, we encourage you to apply for all types of financial aid, from all sources, so that you are considered for as much financial aid as possible.

Visit our Financial Aid Applications page to learn about applying for financial aid for college. Most federal, state, and college financial aid is based on a student's financial need. Recipients may receive financial aid to cover some or all of their college costs beyond what they can afford.

In addition, need-based aid:. Merit-based financial aid is generally awarded by a college in recognition of a student's achievement — academic, athletic, artistic, or extracurricular — in the form of a scholarship. Not all colleges award merit-based financial aid, and those that do only select its most competitive applicants as recipients.

When awarding merit-based financial aid, each college:. Colleges and universities take many factors into consideration when awarding financial aid for college students. Visit our After You Apply page to learn about your Expected Family Contribution and how colleges use it to award financial aid.

In addition to applying for financial aid for college, be sure to apply for private scholarships , which can also help offset college costs. And make sure to read our tips on how to maximize your financial aid.

After financial aid is applied toward the school's cost, you are responsible for the remaining balance also called the "net price". Because of varying financial aid policies, it can be difficult to predict which college will be the most affordable for your family. Therefore, we encourage you to use the Net Price Calculators found on college web sites, and consider applying to at least one college that is affordable regardless of financial aid.

Financial aid programs vary from college to college. To help identify a college that your family can afford, it's important that you learn how each school on your list makes its decisions when awarding financial aid to students. These questions can help guide your research. Here at MEFA, we're always available to help you with any of your financial aid questions. You can reach us by phone at MEFA or by email at collegeplanning mefa.

You can also communicate with us via Twitter or Facebook. For additional in-person financial aid assistance, you can visit a Massachusetts Educational Opportunity Center , where you can receive help with all aspects of college planning. Want a full overview of the financial aid application process? It does not indicate how much the student must pay the college. It is used by the school to calculate how much student aid the applicant is eligible to receive.

The FAFSA is the official form that students or their families use to apply for financial assistance for college from the federal government. States, individual colleges and universities, and private scholarship programs rely on the information provided in the application as well.

Those assets include bank accounts and investments but excludes the value of retirement accounts, life insurance policies, and annuities. Any equity in the family home is also excluded. The information you supply on the FAFSA determines whether you qualify for need-based aid, non-need-based aid, or some combination of the two. Grants are the most attractive type of financial aid because they do not need to be repaid.

Pell Grants , the main federal grants for college, are intended for students with "exceptional financial need. A college or university's financial aid office determines how much money students qualify to receive, based on their family's EFC and the school's cost of attendance COA. These grants also do not need to be repaid, but they are only available at certain schools. As with Pell Grants, these supplemental grants are meant for students with few other financial resources.

These loans are subsidized by the government, which means that will not be required to pay interest on them while you are in school and for a grace period of six months after you graduate. These subsidized loans are not available for graduate study. The federal work-study program makes paid part-time jobs available through participating colleges and universities.

Both undergraduate and graduate students may be eligible. Federal loans, whether subsidized or unsubsidized, tend to be less costly than private loans and have more flexible repayment options. If students or their parents don't pay the interest during this time period , it will be added to the principal of the loan. Schools can offer these loans as part of a financial aid package regardless of a family's financial situation. These loans are intended for parents or graduate students.

To qualify, the student must take certain classes and, within eight years of graduation, have worked for at least four years in an elementary or secondary school or educational service agency that serves low-income families. These grants don't have to be repaid unless the student fails to fulfill the requirements, in which case the grant is converted into a direct unsubsidized loan. The U. Department of Education uses the FAFSA application to determine a student's eligibility for need-based federal financial aid for college based upon their financial situation.

It is simply an application that you fill out in order to determine your eligibility for receiving a federal loan. There are three main types of financial aid that a student may be deemed eligible for after completing a FAFSA application.

Some of this money is free money, some must be earned through work, and some must be repaid. The most general eligibility requirements to qualify for the various forms of federal student aid include that you have financial need, are a U.

However, there are more eligibility requirements you must meet to qualify for federal student aid and these requirements are specific, based on the type of aid. The majority of students are eligible to receive some type of financial aid from the federal government to help pay for college or career school.

The age of the student, race, and field of study are not taken into account when determining their eligibility. To be considered for federal student aid for the — award year, you needed to complete a FAFSA form between Oct.

Most families—regardless of how much they earn or have accumulated in assets—will find it useful to fill out FAFSA.