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 at least 3 types of aid that will be included in your financial aid package? ›

Types of Aid

Student aid includes grants, scholarships, work-study jobs, and loans.

What is the difference between student aid and FAFSA? ›

They can both be used to help fund education-related expenses. Financial aid doesn't typically need to be repaid. Student loans must be repaid within a given loan term, plus interest. FAFSA® must be filled out for financial aid and federal student loans.

What is the difference between PSLF and Tepslf? ›

TEPSLF forgives the remaining balance on your Direct Loans, but is available if you do not qualify for PSLF only because some or all of your payments were made under a repayment plan that did not qualify for PSLF and you meet other requirements.

What are the three categories of federal 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.

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

Need-based aid depends on your family's financial circ*mstances and is determined by completing financial aid forms like the FAFSA or the CSS. Merit aid depends on your academic, athletic, or other achievements regardless of financial need.

Who is eligible for federal student aid? ›

Be a U.S. citizen or eligible noncitizen with a valid Social Security number (with certain exceptions). Have a high school diploma or a GED certificate. Be enrolled or accepted for enrollment in a qualifying degree or certificate program.

What is the most common type of financial aid? ›

Scholarships are a popular form of financial aid that does not need to be repaid. They are typically awarded based on merit, need, or a combination of both. Scholarships can come from various sources, including colleges, universities, private organizations, and government agencies.

What is the difference between a subsidized and unsubsidized loan? ›

If you take out a Direct Subsidized Loan, you will not be charged interest while you're in school, during your grace period, or during other periods of deferment. If you take out a Direct Unsubsidized Loan, interest will accrue on your loan as soon as it is disbursed, even while you are in school.

Is a Pell Grant a loan or free money? ›

Quick information on Pell grants: A Federal Pell Grant, unlike a loan, does not have to be repaid. The maximum Federal Pell Grant award is $6,895 for the 2022–23 award year (July 1, 2022, to June 30, 2023).

Is FAFSA a loan or 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.

How many years does FAFSA cover? ›

You can remain eligible for a Federal Pell Grant until you receive your bachelor's degree or for up to 12 full-time terms or the equivalent (roughly six academic years). Federal Student Aid (FSA) provides additional information about Federal Pell Grant lifetime eligibility.

Why is PSLF so hard to get? ›

Requirements for Qualifying Payments

To get PSLF, you have to get a total count of 120 qualifying payments. So you'll want to make sure that you're getting closer to your goal with each payment you make. Keep in mind, your payments don't have to be consecutive.

What is the downside to PSLF? ›

Along with the pros of PSLF, there are some cons. 1) Complex Eligibility Requirements. Although the Education Department has made considerable efforts to simplify and streamline PSFL, it is still complex. Borrows must meet specific requirements for loan types, repayment plans, employment status, and timely payments.

Which is better, PSLF or teacher loan forgiveness? ›

TLF has a forgiveness period of five consecutive years. Some may conclude that TLF is the better plan to pursue because of the shorter forgiveness period, but this is not always the case. Though you may make payments for twice as long under PSLF, you may be eligible for greater forgiveness.

What are the four types of student loans? ›

Federal Loans

There are four types of Direct Loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. Direct Subsidized Loans are made to eligible undergraduate students based on financial need. Your school determines the amount you can borrow.

What are the four sources of 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 4 factors determine how much aid a student will receive? ›

Financial aid is available in the form of student loans, grants and work-study. The amount you're eligible for depends on your enrollment status and year of study, how much your family is expected to contribute and the overall cost of attendance.

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