When your FAFSA is accepted and reviewed, you could qualify for different types of aid. The aid type and funding amount appear on your financial aid award letter. This same letter will get sent to the schools you named during the application. You’ll also have access to a copy.
Here is a summary of the type of aid you might expect.
Federal grants
Everyone loves grants: they are essentially free money you don’t need to pay back. Some grants have conditions you must meet to keep the money, like not withdrawing from school. You could lose your grant if you receive a grant like a TEACH Grant and don’t continue to meet the required obligations.
The most common type of federal grant is the Pell Grant, awarded only to undergraduate students demonstrating financial need. Pell grant awards only apply to one school of your choice, but you can split the funds between semesters.
There’s also the Federal Supplemental Educational Opportunity Grant (FSEOG) for undergraduate students with the most financial need. Some states also have educational grants that can appear on your FAFSA financial aid award letter if you qualify.
Student loans
You can receive several types of student loans if you apply for a FAFSA. If the maximum amount of grant money you receive does not fully cover tuition and educational costs, loans can fill in the gaps.
Federal student loans have maximum borrowing and interest rates, but interest is often lower than private loans. Depending on the type of federal student loan, your interest may not even accrue while you’re in college.
Direct Subsidized loans are available to undergraduate students who demonstrate financial need. With these loans, you won’t accrue interest while actively attending school at least part-time, since the Department of Education will pick up interest fees while you’re a student.
With Direct Unsubsidized student loans, there’s no requirement to demonstrate financial need, and undergraduate and graduate students can get these loans.
Direct PLUS or Parent PLUS loans allow a parent to take out a loan for their dependent’s higher education costs.
Work-study
Work-study, short for the Federal Work-Study Program, will enable you to earn money to pay for school by working part-time. Colleges and universities that accept financial aid will have certain jobs available on campus that are work-study eligible.
Work-study jobs will pay at least the federal minimum wage, and you’ll work part-time hours. You can choose your own work-study job from the opportunities on campus, but the amount of your award will vary depending on the school’s funding level and how much financial aid you qualify for.
Military and international study
If you or your spouse or parent has served in the military, some financial aid programs are available for school. The Reserve Officers’ Training Corps Scholarship (ROTC) is based on merit rather than financial need. The ROTC scholarship, Navy scholarships, and Marine ROTC scholarships are available at more than 1,000 colleges across the U.S.
If you’re studying outside of the U.S., you may still be able to receive financial aid if the school accepts federal aid programs. You can also use the aid benefits you receive to cover educational costs for studying abroad.
Get the scoop on student loans, student jobs, credit cards, and budgeting in our college finance guide.
