You want to go to college so you can make a lot of money but you don’t have a lot of money, so you can’t go to college. Congratulations! You have just met the main requirements for getting federal student aid (Education Grants).

The The U.S. Department of Education provides more than $67 billion in loans, grants for education and campus-based aid every year to assist millions of students and their families pay for postsecondary education. This feature presents an overview of the types of federal student financial aid available, eligibility requirements and the application process.

Federal Student Loan Programs

The government’s “Stafford/Ford” program offers both subsidized and unsubsidized student loans . Subsidized loans require proof of financial need. All interest on subsidized loans is paid by the government while the student is actually enrolled at least half time and during certain periods, such as grace and deferment. Unsubsidized loans are available regardless of financial need. The student must pay all interest on unsubsidized loans. The Direct PLUS program offers unsubsidized loans to parents of dependent students.

The parents must pay all interest on Direct PLUS loans.

Amounts that can be borrowed, repayment options and interest rates vary greatly and can be modified during the term of the loan. For details on federal student loan programs, see: Federal Direct Student Loans - Frequently Asked Questions

(Note : Some teachers and childcare providers may be able to cancel payment of portions of their federal student loans.)

Federal Pell Grants

Unlike loans, Pell Grants do not have to be paid back. Eligibility is based on financial need. Maximum amounts available vary yearly as determined by Congress. Besides financial need, the amount of a Pell grant also depends on costs to attend school, the student’s status as a full- or part-time student, and the student’s plans to attend school for a full academic year or less. Student Pell grant funds are paid directly to the student by the school at least once each semester, trimester, or quarter.

Campus-Based Aid Programs

Campus based programs like the Federal Supplemental Educational Opportunity Grant (FSEOG), Federal Work-Study (FWS), and Federal Perkins Loan programs are administered directly by the financial aid office at each participating school. Federal funds for these programs are given to the schools and distributed to students at the schools’ discretion.

Amounts students can receive depends on individual financial need, amounts of other aid the student receives and the total availability of funds at the school.

(Note : Getting one form of aid does not make you ineligible for others. Many students get a ”package” mixing all three types of financial aid.)

Scholarships by Government & Private Foundations

Scholarships are tricky things. Everyone wants one. Few people get them. Apparently, there are millions out there that go unused on an annual basis. Because scholarships differ from loans in that they are free money, they are coveted beautiful things. They are also brilliant resume boosters and look fantastic on any resume.

Now, there are so many types of scholarships, it helps to be abreast of the types, time ranges, amounts, and places to find them. Some high schools give away scholarships prior to attending college. Some education scholarships are merit based, others need based, others interest based, other cultural based. The list goes on.

The best way to begin seeking scholarships is to do your research. Every college and university will have a dowry with various scholarships. Usually they will be listed on the school’s website; however, you can always inquire as to their prevalence. When you learn about them, you can find out how much, many, and reasons behind them. Essentially, education scholarships don’t usually just get handed to you (although some lucky people do find this fortuitous world). You must do your research.

Here are some types of scholarships.

Merit Scholarships

Scholarships typically revolve around this type of award. People who excel in academics are awarded an education scholarship on the basis of their overall academic achievement. This may come in the form of top GPA, excellent SAT scores, and so on. These are highly competitive and may come in various forms.

Need-Based Scholarships

This type of education scholarship is given purely on financial means. They are designed to fund the less-fortunate students in their academic pursuits. Scholarship committees look at various reasons for this hardship: Parents’ income, number of siblings in school simultaneously, expenses, cost of living, etc.

Athletic Scholarships

Scholarships are popularly given to star athletes by universities to recruit them for the athletic teams. Many athletes complete their education free of charge, but also pay the price of overworked team sports. Usually full-scholarship athletes are recruited by ”scouts” while in high school. You don’t usually pursue this type of scholarship; it is given to you.

School-Based Individual Scholarships

Every school offers specific education scholarships relevant to specifics from the university: donors, individual name scholarships, personal scholarships, and so on. Sometimes you have to apply directly to the scholarship, and other times, just by being accepted, you are placed in the bowl for possible scholarship awards.

Full/Partial Scholarship

Many people look at scholarships as a whole and think that they sometimes cover everything. If you are lucky enough to receive a full education scholarship, then yes, they cover living, books, and tuition. However, many scholarships are partial, meaning they may cover simply living, simply books, or part of the tuition. If you are awarded any type of scholarship, take it and run! They are prized, wonderful gifts, and you should feel honoured to receive one.

While several education scholarships are school based, others are based on almost every other personal element that can exist. Several websites and books are designed purely for the existence of finding scholarships. Here are some websites and books that serve as search agents and listings of all the scholarships that exist. If you try hard enough, you are likely to find at least one or two that match your interests and qualifications. It takes much patience and time, but you are bound to find a scholarship for you.

Basic Eligibility Requirements for Student Aid

Eligibility for federal student aid is determined on the basis of financial need and on several other factors. The financial aid administrator at the college or career school you plan to attend will determine your eligibility. Basically, to receive aid from federal programs, you must:

• Qualify for financial need (except for certain loans);
• Have a high school diploma or a General Education Development (GED) certificate, or pass a test approved by the U.S. Department of Education;
• Be working toward a degree or certificate;
• Be enrolled in an eligible program;
• Be a U.S. citizen or eligible non-citizen;
• Have a valid Social Security Number;
• Register with the Selective Service (Web site) if required;
• and Maintain satisfactory academic progress once in school.

Under federal law, persons who have been convicted under federal or state law of the sale or possession of drugs are not eligible for federal student aid. If you have a conviction or convictions for these offenses, call the Federal Student Aid Information Center at:

1-800-4-FED-AID (1-800-433-3243 ) to find out if, or how, this law applies to you.

Even if you are ineligible for federal aid, the Education Department urges you to complete a Free Application for Federal Student Aid, because you may be eligible for non-federal aid from states and private institutions.

How to Apply for Student Aid (FAFSA)

The “Free Application for Federal Student Aid (FAFSA)” can be used to apply for all loans, grants and campus based student aid programs. The FASFA can be completed online or on paper.

The FAFSA Web site www.fafsa.ed.gov/, takes you through every step of the process and provides all the information you need to apply for federal student aid. Applicants can access worksheets to estimate their incomes, electronically sign loan documents, save an application at any computer and print a complete report. The three main elements of the process are:

In 2007, over 4 million student loan applications were processed online, a number the Department of Education expects to top 6 million during 2008. Between Jan. 1 and March 1, 2007, over 500,000 applications had already been processed online.