High school, college and financial aid offices will usually guide students and parents to the federal process as a starting point. Traditionally, this has been because federal aid is offered at lower interest rates than other types of loans. Conventional wisdom has rightly held that a student should first apply for all the financial aid he or she is qualified for, then seek other sources of funding to fill the gap that federal aid leaves for most students and their families.
What is it?
Federal financial aid is just what it sounds like: financial help from the U.S. government. It is available to students enrolled in two- or four-year public or private educational institutions, career schools or trade schools.
How do you get it?
Complete a Free Application for Federal Student Aid (FAFSA) form sharing detailed personal and financial information with the government to help them determine your need and ability to pay for college. Based on the FAFSA, your college will receive a report from the government. The college will then send a financial aid award package detailing what federal aid you’re qualified for along with whatever additional aid the school may offer, including but not limited to state aid, grants, scholarships, work-study programs and much more. Your school will also provide your Expected Family Contribution, which is the total cost of attendance, less your financial aid package.
Special circumstances
Financial aid administrators can adjust a student's Expected Family Contribution based on special circumstances such as unusual medical expenses, tuition expenses or unemployment. However, the student will have to provide adequate proof of the situation to support any adjustments.