Types of Aid and Eligibility | Federal Student Aid Aid Toolkit (2024)

We recommend that you and your students visit StudentAid.gov/types for information on financial aid from the federal government and from states, schools, and private sources. Eligibility criteria for federal student aid are described at StudentAid.gov/eligibility.

Federal Student Aid
State Financial Aid
Financial Aid From the College
Finding Scholarships
Avoiding Financial Aid Scams
Eligibility for Federal Student Aid

Federal Student Aid

Aid is available from the federal government in the form of grants, work-study funds, and loans. Students use the Free Application for Federal Student Aid (FAFSA®) form to apply. Besides referring your students to the information at StudentAid.gov/types to learn about federal aid, you also can recommend they visit StudentAid.gov/resources for fact sheets, videos, and infographics. Meanwhile, you can access those items and more here on the Financial Aid Toolkit. We've provided a feature to help you search financial aid tools and resources that you can use in advising students about aid.

Do You Need Money for College or Career/Trade School?(Result Type: PDF)
Description:Publication providing students with information on applying for aid, types of federal student aid, and eligibility. [404 KB]
Resource Type:Handout
AlsoAvailable in:Text Version(Result Type: General),Spanish(Result Type: PDF),Text Version - Spanish(Result Type: General)

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State Financial Aid

To find out about state financial aid for college, try www.ed.gov/sgt to find your state agency's website.

Talking point: Often, students and parents comment that they don't qualify for federal student aid or they qualify for too small an amount. State aid could help fill in some of the gaps.

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Financial Aid From the College

Many colleges offer financial aid from their own funds. Direct your students to visit a school's financial aid website for information about aid available at that school. For students with an interest in a particular area of study, encourage them to inquire about any available scholarships in that area or department.

Talking points:

  • When a student submits the FAFSA® form, they are automatically applying for aid from not only the federal government but also the state and—in many cases—the college(s) listed on the FAFSA form.
  • Students should be sure to meet any financial aid deadlines the school may have.

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Finding Scholarships

One of the most frequent questions we hear from students at college fairs or financial aid information events is, "How do I get money to help me pay for college?" While the FAFSA form is an application for certain grants and scholarships, not all students will qualify. That's why we've provided information to help them find and apply for scholarships at StudentAid.gov/scholarships.

Talking points:

  • Students should spend the summer between their junior and senior years of high school looking for scholarships, determining which ones are right for them, noting application deadlines, and submitting any applications that they possibly can at that point. They'll have plenty to keep them busy during fall of senior year, so getting a head start will make a difference in levels of stress and anxiety.
  • As a student assesses which online scholarship search to use, they should consider whether it is free and, if it requests personal information from the student, they should carefully read its privacy policy.

U.S. Department of Labor Scholarship Finder(Result Type: General)
Description:Free scholarship search tool for students finding scholarships along with information on how to apply.
Resource Type:Web Resource or Tool

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Avoiding Financial Aid Scams

Financial aid scams are less prevalent now than they were 10 or 15 years ago, but you'll still want to remind students to keep their eyes open as they look for financial aid for college. Refer them to StudentAid.gov/scams for tips.

Talking points:

  • You can find plenty of sources of financial aid without paying anyone for help or paying an application fee for the aid.
  • The first F in "FAFSA" stands for "Free."

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Eligibility for Federal Student Aid

Eligibility for federal student aid is based on financial need and on several other factors such as U.S. citizenship or eligible noncitizenship, enrollment in an eligible program, satisfactory academic progress in college, and more. The full list of our basic eligibility criteria is on our student site.

Tip: A quick URL to share with your students for information on federal student aid eligibility criteria is StudentAid.gov/eligibility.

Talking point: There is no such thing as an income cut-off for federal student aid. Eligibility is based on a number of factors, including a complicated mathematical formula. No student should assume that they won't qualify for federal aid. Filling out the FAFSA form is the only way to find out. And please remind your students that the FAFSA form is also an application for state and school aid—and many schools won't consider a student for their aid (even merit-based aid) unless the student submits a FAFSA form.

15 Myths We're Busting About the FAFSA® Process article(Result Type: General)
Description:Article for students debunking common myths about the 2023–24 FAFSA form and process.
Resource Type:Article or Blog Post

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Types of Aid and Eligibility | Federal Student Aid 
	Aid Toolkit (2024)

FAQs

What are the 4 types of student aid? ›

Financial aid is money to help pay for college or career school. Grants, work-study, loans, and scholarships help make college or career school affordable.

What are the three types of financial aid that FAFSA offers? ›

Types of Aid
  • Grants: Financial aid that generally doesn't have to be repaid.
  • Loans: Borrowed money for college or career school; your loans must be repaid with interest.
  • Work-Study: A federal work program through which undergraduates and graduate students at participating schools earn money to help pay for school.

What is used to determine eligibility for student financial aid? ›

The FAFSA is used to determine eligibility for federal, state, and institutional aid.

What 4 factors determine how much aid a student will receive? ›

Aid Amount: Who Decides and How

Your eligibility depends on your Student Aid Index (2024–25 FAFSA form) or Expected Family Contribution (2023–24 FAFSA form), your year in school, your enrollment status, and the cost of attendance at the school you will be attending.

What are the four types of student loans? ›

Four types of federal student loans are available:
  • Direct subsidized loans.
  • Direct unsubsidized loans.
  • Direct PLUS loans.
  • Direct consolidation loans.
Oct 17, 2023

What's the difference between unsubsidized and subsidized student loans? ›

Direct Subsidized Loans: You won't be charged interest while you're enrolled in school or during your six-month grace period. Direct Unsubsidized Loans: Interest starts accumulating from the date of your first loan disbursem*nt (when you receive the funds from your school).

What is the most FAFSA will pay? ›

FAFSA financial aid limits
Type of financial aidMaximum amount
Direct Unsubsidized Loans$5,500 to $7,500 annually (undergraduates) or $20,500 (graduates), depending on year in school; $31,000 to $138,500 aggregate limit based on dependency status and level in school (undergraduate or graduate)
9 more rows

Can FAFSA cover full tuition? ›

While it is possible for student financial aid to cover full tuition, in practice it will fall short. For most students, there will not be enough financial aid to cover the full cost of tuition, unless the parents borrow a Federal Parent PLUS loan.

Which FAFSA form do I choose? ›

The FAFSA form you fill out should correspond with the school year you're seeking aid for. For example, if you're applying for financial aid for the 2023‒24 school year (July 1, 2023, to June 30, 2024), submit the 2023‒24 FAFSA form.

What is the highest income to qualify for financial aid? ›

There is no maximum income you can have for the FAFSA. Whether you're the richest person in the country or have an annual income of $0, you can submit the FAFSA.

How do you increase your eligibility for financial aid? ›

Basic Principles
  1. Reducing income during the base years.
  2. Reducing “included” assets. ...
  3. Increasing the number of family members enrolled in college and pursuing a degree or certificate at the same time.

Will I get financial aid if my parents make over 100k? ›

In conclusion, even with a household income of $100,000, it is still possible to receive financial aid. To maximize your chances, ensure that you apply for as many different aid programs and scholarships as possible, both at the college level and from outside sources.

How do I see how much financial aid I will get? ›

View your SAR by doing the following:
  1. Go to fafsa.gov.
  2. Select “Start or Edit a 2023–24 FAFSA Form.”
  3. Enter your account username and password (FSA ID).
  4. Select the student role on the “Roles” page.
  5. Select “View Student Aid Report (SAR)” from the “My FAFSA” page.

What are the four ways I can get financial aid? ›

There are many ways to get help paying for college or career school. Options include grants, loans, scholarships, and work-study.

How much FAFSA can you get in a lifetime? ›

The lifetime aggregate limit for undergraduate students on federal student loans is $57,500, with no more than $23,000 in subsidized loans. Graduate students face a lifetime borrowing cap of $138,500, which includes undergraduate loans, with a maximum of $65,500 in subsidized loans.

What is the difference between FAFSA and Pell Grant? ›

Both undergraduate and graduate students can apply for FAFSA; Pell Grants are generally available only to undergraduate students. FAFSA provides access to multiple forms of financial aid, including Pell Grants, which are determined by the information provided in the FAFSA application.

What's the difference between need and merit-based aid? ›

Merit-based aid offers financial support based on a student's academic achievements. Need-based aid provides funds for students based on their level of financial need. Students may receive both types of aid to fund their postsecondary studies.

What is the difference between a Pell Grant and a Stafford loan? ›

Federal Stafford Loans and Pell Grants are types of federal student aid. The main difference between the two is that borrowers must repay Stafford Loans. Pell Grants don't need to be repaid. There's no interest rate or repayment period.

What is the most common type of financial aid? ›

Types of Financial Aid for Students
  1. Scholarships. By far and away the most common form of student financial aid, scholarships are essentially gift money that does not have to be paid back. ...
  2. Grants. ...
  3. Loans. ...
  4. Work Study.
Jun 29, 2023

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