: Credit and Loans :

Financial Aid

It refers to funding intended to help students pay tuition or other costs, such as room and board, for education at a college, university, or private school. General governmental funding for public education is not called financial aid, which refers to awards to specific individual students. A scholarship is sometimes used as a synonym for a financial aid award.

Types of financial aid

Financial aid may be classified into two types based on the criteria through which the financial aid is awarded: merit-based or need-based.

Merit-based
Merit-based scholarships include both scholarships awarded by the individual college or university and merit scholarships awarded by outside organizations. Merit-scholarships are typically awarded for outstanding academic achievements, although some merit scholarships can also be awarded for special talents, leadership potential and other personal characteristics. Merit scholarships are sometimes awarded without regard for the finncial need of the applicant. At many colleges, every admitted student is automatically considered for merit scholarships. At other schools, however, a separate application process is required.

Athletic scholarships are a form of merit scholarship that take athletic talent into account.

Need-based
Need-based financial aid is awarded on the basis of the financial need of the student.
To receive federal need-based financial aid, the student must file a FAFSA application. The FAFSA uses a calculation taking into account income and assets to determine a student's Expected Family Contribution (EFC). Colleges use the EFC to decide what types of financial aid a student is eligible to receive. Students must complete the FAFSA each year in order to be considered for financial aid.

The United States government provides need-based financial aid in the form of Federal Pell grants, Federal SEOG Grants, SSIG Grants, Federal Work-Study, Federal Stafford loans (in a subsidized and unsubsidized form), Federal Perkins Loans, and Federal Parent (PLUS) loans. Federal Perkins Loans are made by participating schools, whereas Federal Stafford Loans and Federal PLUS Loans are made by participating lenders or the US Department of Education. The availability of lenders will vary on the specific post-secondary institution and their participation level in either the traditional "guaranteed student loan" program or the William D. Ford Direct Loan program.

State governments also typically provide some types of need- and non-need based aid, consisting of fiancial grants, loans, work-study programs, tuition waivers and scholarships. Individual colleges and universities may provide grants and need- and merit-based scholarships. Students requiring financial aid beyond what is offered by their institution may consider a private (alternative) educational loan, available from most large lending institutions.

Paperwork demystified -- find forms and instructions here. Tips on filling out the FAFSA and maximizing eligibility. 'Ask the Aid Advisor' for personalized help. Read the financial aid FAQ and glossary for other answers.

Many families mistakenly think they don't qualify for aid and prevent themselves from receiving financal aid by failing to apply for it. In addition, there are a few sources of aid such as unsubsidized Stafford and PLUS loans that are available regardless of need. The FAFSA form is free. There is no good excuse for not applying.

Most financial aid offices require that you apply for financial aid every year. If your financial circumstances change, you may get more or less aid. After your first year you will receive a "Renewal Application" which contains preprinted information from the previous year's FAFSA. Note that your eligibility for finnacial aid may change significantly, especially if you have a different number of family members in college. Renewal of your financial aid package also depends on your making satisfactory academic progress toward a degree, such as earning a minimum number of credits and achieving a minimum GPA.
www.finaid.org
financila, finanical, finacnial, finnacial, fianncial, fniancial, ifnancial, inancial, fiancial, finncial, finacial, finanial, financal, financil, fnancial,

See also:
• Online Credit and Loan Applications
• Charge Card
• Credit
• Credit Cards
• Credit Report
• Debit Card
• Grants
• Personal Loans
• Payday Loan
• Scholarship
• Structured Settlement
• Student Loan
• Auto loan
• Arsidian Introduces New Free Online Mortgage & Loan Calculator

This article is licensed under the GNU Free Documentation License.
It uses material from the Wikipedia article "Financial Aid".