Understanding How Student Aid Works

Each year, students and their families rely on student aid to help pay for college. Student aid comes from many sources – the federal government, state governments, colleges, private organizations, and businesses. Nearly everyone is eligible for some student aid.

College students received more than $170 billion in aid during the 2008-2009 academic year. The competition for aid is fierce because more students need help paying for the often high cost of college. Knowledge is power! Become well informed by reading StudentAid.com’s aid explanations and strategies. Follow the links to learn more about each topic.

• The best preparation for the student aid process is learning how the application process works.
• Learn about the various types of student aid and which types are available to you and your family.
• Learn about the different sources of student aid.
• Maximize your aid eligibility by following these tips and strategies.
• Eligibility for student aid programs varies significantly. Learn more about some of the most common eligibility requirements and how to improve your chances of receiving aid.
• Apply for student aid by first completing a federal student aid application (FAFSA).
• Learn how to sign and make changes on your FAFSA.
• Once your aid application is processed by the U.S. Department of Education, you will receive a Student Aid Report (SAR) that summarizes the information you submitted and states what the federal government considers your expected family contribution (EFC).
• Learn what to do if you are selected for FAFSA verification.
• Once you receive student aid award letters from the colleges that accept you, follow these next steps.

Additional Resources:

• Find out about your student aid eligibility and net cost estimates by college, years before you apply, with a College Cost & Planning Report™
• Learn about student aid eligibility requirements
• Learn about college savings plans, such as the 529 Plan and the Coverdell ESA