The Free Application for Federal Student Aid, or FAFSA as it is commonly known, is an application form that is used to apply for financial aid to pay for college. It is not the financial aid itself.
However, the FAFSA enables the student to qualify for many types of financial aid from several sources.
Some of this money is free money, some must be earned through work, and some must be repaid.
There are three main types of financial aid.
Gift Aid. Gift aid is free money. It includes grants and scholarships. Grants are typically awarded based on financial need, while scholarships are awarded based on merit.
Student Employment. Student employment is money you earn through working a part-time job during the academic term. It includes employment through the Federal Work-Study program and College Work-Study programs. Work-study jobs are typically awarded based on financial need. Read our Complete Guide to Work Study.
Student Loans. Student loans must be repaid, usually with interest. Some student loans are subsidized, where the interest during the in-school and grace periods is paid by the federal government, and some are unsubsidized. Eligibility for subsidized loans depends on financial need, while even wealthy students can qualify for unsubsidized loans.
There are also education tax benefits, college savings plans, employer tuition assistance and loan forgiveness programs.
Financial aid can come from many sources.
Federal government
State government
Colleges and universities
Employers and unions
Foundations, philanthropists and other private scholarship providers
Fraternal organizations
Education lenders
The college financial aid office will assemble the financial aid for which you are eligible into a financial aid package. You may receive a financial aid award letter or notification that summarizes all of the types and sources of financial aid in your financial aid package.
Mark Kantrowitz is a nationally-recognized expert on student financial aid, scholarships and student loans. His mission is to deliver practical information, advice and tools to students and their families so they can make informed decisions about planning and paying for college.
Mark writes extensively about student financial aid policy. He has testified before Congress and federal/state agencies about student aid on several occasions.
Mark has been quoted in more than 10,000 newspaper and magazine articles. He has written for the New York Times, Wall Street Journal, Washington Post, Reuters, Huffington Post, U.S. News & World Report, Money Magazine, Bottom Line/Personal, Forbes, Newsweek and Time Magazine. He was named a Money Hero by Money Magazine. He is the author of five bestselling books about scholarships and financial aid, including How to Appeal for More College Financial Aid, Twisdoms about Paying for College, Filing the FAFSA and Secrets to Winning a Scholarship.
Mark serves on the editorial board of the Journal of Student Financial Aid and the editorial advisory board of Bottom Line/Personal (a Boardroom, Inc. publication). He is also a member of the board of trustees of the Center for Excellence in Education. Mark previously served as a member of the board of directors of the National Scholarship Providers Association.
Mark is currently Publisher of PrivateStudentLoans.guru, a web site that provides students with smart borrowing tips about private student loans. Mark has served previously as publisher of the Cappex.com, Edvisors, Fastweb and FinAid web sites. He has previously been employed at Just Research, the MIT Artificial Intelligence Laboratory, Bitstream Inc. and the Planning Research Corporation.
Mark is President of Cerebly, Inc. (formerly MK Consulting, Inc.), a consulting firm focused on computer science, artificial intelligence, and statistical and policy analysis.
Mark is ABD on a PhD in computer science from Carnegie Mellon University (CMU). He has Bachelor of Science degrees in mathematics and philosophy from MIT and a Master of Science degree in computer science from CMU. He is also an alumnus of the Research Science Institute program established by Admiral H. G. Rickover.
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