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.

How many types of federal aid are there? ›

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.

What type of financial aid can you apply through the FAFSA? ›

The FAFSA® form allows students to request federal grants, work-study funds, and loans, all in one application. The FAFSA® form allows students to request federal grants, work-study funds, and loans, all in one application.

What is the difference between student aid and FAFSA? ›

Financial aid is any form of funding that helps you pay for college, including scholarships, grants, loans and work-study programs. You have to complete the Free Application for Federal Student Aid, known as the FAFSA, to be eligible for most forms of financial aid.

What is the difference between FAFSA and Pell Grant? ›

Both are for students with financial need. Some Cal Grants have a minimum GPA requirement while federal Pell Grants do not. You could qualify for both a Pell Grant and a Cal Grant. To apply for a Pell Grant, you must submit the FAFSA.

Who is eligible for federal student aid? ›

Eligibility Requirements. Our general eligibility requirements include that you have financial need for need-based aid, are a U.S. citizen or eligible noncitizen, and are enrolled in an eligible degree or certificate program at an eligible college or career/trade school.

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

What is the most federal aid you can get? ›

The maximum Federal Pell Grant for the 2023–24 award year (July 1, 2023, through June 30, 2024) is $7,395. The amount an individual student may receive depends on a number of factors.

Is FAFSA a loan or a grant? ›

The FAFSA is not a loan. It is an application form. However, you can use the FAFSA to apply for financial aid and federal student loans. The FAFSA, or Free Application for Federal Student Aid, is used to apply for several types of financial aid, including grants, student employment and federal student loans.

What doesn't qualify for FAFSA? ›

Students must be in good academic standing to receive federal aid. The required GPA varies from school to school, but typically students need a 2.0 or higher. If your grades fall below the minimum GPA, you could lose eligibility for financial aid. See also: What GPA do you need to get a full scholarship?

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.

Is everyone eligible for federal student loans? ›

The borrower must be a U.S. citizen, permanent resident or eligible non-citizen. For Federal Parent PLUS loans, the student must satisfy the citizenship criteria. Eligibility for Federal Stafford loans does not depend on the borrower's credit. The borrower of a Federal PLUS loan must have a good credit history.

What type of financial aid must be paid back? ›

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.

Which type of financial aid does not have to be repaid? ›

Grants. A grant is a form of financial aid that is given to students to assist them in paying for their education. Grants are usually awarded based on financial need or academic achievement and do not require the student to repay the money.

Do you pay back FAFSA? ›

The FAFSA is your application for federal financial aid. Some types of aid you receive through the FAFSA, like grants or scholarships, do not need to be repaid. However, federal student loans received through your FAFSA do have to be repaid with interest after you graduate or leave school.

What are the 4 main sources for financial aid? ›

Types of Aid
  • Grants. A grant is considered gift aid (i.e., money which does not need to be repaid). ...
  • Scholarships. Scholarships are gift aid (i.e., money which does not need to be repaid). ...
  • Work Study. Work Study is simply a part-time job, often on campus, for which a student earns a paycheck. ...
  • Loans. ...
  • Need-Based Aid.

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

The following are used to determine your eligibility: your Expected Family Contribution (EFC), your year in school, your enrollment status, and your cost of attendance. Learn more about the aid disbursem*nt process.

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