Financial aid is money either loaned or given outright to help defray the cost of higher education. It comes in various types: scholarships, grants, loans and work-study jobs. The typical financial aid package is a combination of types of aid.
The federal government awards about $100 billion in student assistance every year. States, individuals, corporations, organizations and special interest groups award many millions more. Your share is there—all you have to do is go get it! But how, exactly? And how much can you get? Three abbreviations hold a host of answers.
1. FAFSA
The Free Application for Federal Student Aid is the key that unlocks all need-based college funds. You must fill out this form, listing your family's assets, income, investments, debt and other household information, to obtain need-based aid from virtually any U.S. college, university or career school.
The FAFSA is a detailed form, but you only have to prepare it once, no matter how many college applications your student files. Preview the form at www.FAFSA.ed.gov. When you're ready, complete the form online for easier tracking and faster processing.