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STUDENT FINANCIAL AID
In the United States, federal student financial aid refers to funding, intended to help students pay some costs for college, university, or private school. These costs can be help in tuition, fees, room, board, books, health insurance, etc. General governmental funding for public education is not called student financial aid. A scholarship is sometimes used as a synonym for a financial aid award.
Types of student aid
Student aid may be classified into two types based on the criteria through which the financial aid is awarded: merit-based student financial aid or need-based student financial aid.
Merit-based financial aid
Merit-based student financial aid includes both academic and athletic scholarships.
Need-based financial aid
Need-based financial aid is awarded on the basis of the financial need of the student.
To receive federal need-based student financial aid, the student must file the federal student financial aid form. The Free Application for Federal Student Aid (FAFSA) uses a calculation taking into account income and assets to determine a student's Expected Family Contribution (EFC); this decides the possibility for student financial aid. Students must complete the FAFSA each year to be considered for student financial aid.
The US government provides need-based students financial aid but also non-need-based student financial aid in the form of unsubsidized Stafford loans and Parent (PLUS) loans.
State governments also typically provide some types of need- and non-need based financial aid, consisting of grants, loans, work-study programs, tuition waivers and scholarships. Individual colleges and universities may provide grants and need- and merit-based scholarships. Students requiring student financial aid beyond what is offered by their institution may consider a private (alternative) educational loan.
FinAid
Information on many types of student financial aid.
www.finaid.org
Free Application for Federal Student Aid
Online form to complete and submit over the Internet.
www.fafsa.ed.gov
Student Aid on the Web
Provides student resources and links for preparing.
www.studentaid.ed.gov
 Students.net Homepage  Back to Student Loan
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