Federal Student Aid (2024)

FAQs

Is federal student aid different from FAFSA? ›

Apply for federal student aid—grants, work-study, and loans—using the Free Application for Federal Student Aid (FAFSA^®) form. And remember, the first F in “FAFSA” stands for “free”—you shouldn't pay to fill out the FAFSA form!

The 2024–25 FAFSA form is now available. We've started sending submitted applications to colleges and states.

Federal Student Aid offers three types of financial 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.

The Free Application for Federal Student Aid (FAFSA®) is the first step in the process of obtaining government-provided student aid while a Pell Grant is a type of federal aid. Although the Pell Grant vs. FAFSA serve different functions, they both have a role under the broader federal student aid program.

It is not the financial aid itself. However, the FAFSA enables the student to qualify for many types of financial aid from several sources. Some of this money is free money, some must be earned through work, and some must be repaid. There are three main types of financial aid.

There is no set income limit for eligibility to qualify for financial aid through. You'll need to fill out the FAFSA every year to see what you qualify for at your college. It's important to make sure you fill out the FAFSA as quickly as possible once it opens for the following school year.

Award amounts can change yearly. The maximum Federal Pell Grant award is $7,395 for the 2023–24 award year (July 1, 2023, to June 30, 2024). The maximum Federal Pell Grant award is $7,395 for the 2024–25 award year (July 1, 2024, to June 30, 2025).

You can receive the Pell Grant for no more than 12 terms or the equivalent (roughly six years). This is called the Federal Pell Grant Lifetime Eligibility Used (LEU). You'll receive a notice if you're getting close to your limit. If you have any questions, contact your school's financial aid office.

It's best to apply as close to the opening date, October 1, as possible. Federal Student Aid, the government provider of student financial assistance in the US, hands out grants, loans, and more on a “first-come, first-served” basis, meaning there's more money to work with at the very start of a new FAFSA cycle.

Do both parents need to fill out FAFSA? ›

If your parents are married (not separated), both of your parents' information must be included on the FAFSA form, regardless of whether your parents are of the same or opposite sex. If your parents didn't file taxes jointly, then both of your parents are contributors.

Beginning on the 2024–25 FAFSA form, you and your contributors must provide consent and approval to have your federal tax information transferred directly from the IRS into your FAFSA form.

Financial aid is either money that doesn't need to be paid back, known as gift aid, or earned through a federal work-study program. Student loans must be repaid within a given loan term. Not only are students expected to pay back student loans, but there's typically interest that accrues over the life of the loan.

The FAFSA formula doesn't expect students or families to use all of their adjusted available income to pay for college. The formula allocates 50 percent of a dependent student's adjusted available income to cover college expenses and anywhere from 22 to 47 percent of parents' available income.

Once you graduate, drop below half-time enrollment, or leave school, your federal student loan goes into repayment. However, if you have a Direct Subsidized, Direct Unsubsidized, or Federal Family Education Loan, you have a six-month grace period before you are required to start making regular payments.

Fill Out the FAFSA^® Form Each Year

In order to receive aid the next year, you'll need to submit that next year's FAFSA form. Luckily, the FAFSA form makes it easy for you by remembering certain information you reported the year before and placing it in your new FAFSA form.

Direct PLUS Loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required.

FAFSA aid is calculated based on a number of factors. Broadly speaking, these include a student's Expected Family Contribution (EFC) and cost of attendance. A student's EFC is subtracted from their COA to determine the amount of need-based aid the student is eligible for.

There are two ways to determine whether a loan is federally or privately held: 1. Check the top of your federal loan promissory notes, applications, and billing statements, as these state the name of the federal loan program at the top of the document.