What make college affordable?

When it comes to paying for school, you're not alone. Grants, work-study, and low-interest loans help make college affordable.

Financial aid is available from a variety of sources for college, career school, graduate school, and professional school.

Financial aid is money to help pay for college or career school. Aid can come from

• the U.S. federal government,
• the state where you live,
• the college you attend, or
• a nonprofit or private organization.

Besides financial aid, you also should think about what you can do to lower your costs when you go to college

Aid and Other Resources From the Federal Government

The federal government offers a number of financial aid programs. Besides aid from the U.S. Department of Education (discussed below), you also might get

• aid for serving in the military or for being the spouse or child of a veteran,
• tax benefits for education,
• an Education Award for community service with AmeriCorps,
• Educational and Training Vouchers for current and former foster care youth, and/or
• scholarships and loan repayment through the Department of Health and Human Services’ Indian Health Service, National Institutes of Health, and National Health Service Corps.

The U.S. Department of Education awards about $150 billion a year in grants, work-study funds, and low-interest loans to more than 15 million students. Federal student aid covers such expenses as tuition and fees, room and board, books and supplies, and transportation. Aid also can help pay for other related expenses, such as a computer and dependent care. Thousands of schools across the country participate in the federal student aid programs; ask the schools you’re interested in whether they do!

Federal student aid includes:

• Grants—financial aid that doesn’t have to be repaid (unless, for example, you withdraw from school and owe a refund)
• Loans— borrowed money for college or career school; you must repay your loans, with interest
• Work-Study—a work program through which you earn money to help you pay for school

Use FAFSA4caster to get an estimate of how much aid you might receive from the U.S. Department of Education.

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

Aid From Your State Government

Even if you're not eligible for federal aid, you might be eligible for financial aid from your state. Contact your state grant agency for more information.

Aid From Your College or Career School

Many colleges offer financial aid from their own funds. Find out what might be available to you:

• Visit your school’s financial aid page on its website, or ask someone in the financial aid office.
• Ask at the department that offers your course of study; they might have a scholarship for students in your major.
• Fill out any applications the school requires for its own aid, and meet the deadlines.

Aid From a Nonprofit or Private Organization

Many organizations offer scholarships or grants to help students pay for college. This free money can make a real difference in how affordable your education is..

What's free money for college or career school!

Find and apply for as many scholarships as you can.

Start researching early, and meet deadlines, and you may be on your way to scholarship success.

Scholarships are gifts. They don't need to be repaid. There are thousands of them, offered by schools, employers, individuals, private companies, nonprofits, communities, religious groups, and professional and social organizations.

What kinds of scholarships are available?

Some scholarships for college are merit-based. You earn them by meeting or exceeding certain standards set by the scholarship-giver. Merit scholarships might be awarded based on academic achievement or on a combination of academics and a special talent, trait, or interest. Other scholarships are based on financial need.

Many scholarships are geared toward particular groups of people; for instance, there are scholarships for women or high school seniors. And some are available because of where you or your parent work, or because you come from a certain background.

A scholarship might cover the entire cost of your tuition, or it might be a one-time award of a few hundred dollars. Either way, it’s worth applying for, because it’ll help reduce the cost of your education. 

How do I find scholarships?

You can learn about scholarships in several ways, including contacting the financial aid office at the school you plan to attend and checking information in a public library or online. But be careful. Make sure scholarship information and offers you receive are legitimate; and remember that you don't have to pay to find scholarships or other financial aid. 

Try these free sources of information about scholarships:

• the financial aid office at a college or career school
• a high school or TRIO counselor
• the U.S. Department of Labor’s FREE scholarship search tool
• federal agencies
• your state grant agency
• your library’s reference section
• foundations, religious or community organizations, local businesses, or civic groups
• organizations (including professional associations) related to your field of interest
• ethnicity-based organizations
• your employer or your parents’ employers

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When do I apply for scholarships?

That depends on each scholarship’s deadline. Some deadlines are as early as a year before college starts, so if you’re in high school now, you should be researching and applying for scholarships during the summer between your junior and senior years. But if you’ve missed that window, don’t give up! Look at scholarship information to see which ones you can still apply for now.

How do I apply for scholarships?

Each scholarship has its own requirements. The scholarship’s website should give you an idea of who qualifies for the scholarship and how to apply. Make sure you read the application carefully, fill it out completely, and meet the application deadline.  

How do I get my scholarship money?

That depends on the scholarship. The money might go directly to your college, where it will be applied to any tuition, fees, or other amounts you owe, and then any leftover funds given to you. Or it might be sent directly to you in a check. The scholarship provider should tell you what to expect when it informs you that you’ve been awarded the scholarship. If not, make sure to ask.

How does a scholarship affect my other student aid?

A scholarship will affect your other student aid because all your student aid added together can’t be more than your cost of attendance at your college or career school. So, you’ll need to let your school know if you’ve been awarded a scholarship so that the financial aid office can subtract that amount from your cost of attendance (and from certain other aid, such as loans, that you might have been offered). Then, any amount left can be covered by other financial aid for which you’re eligible. Questions? Ask your financial aid office.

Learn about the eligibility criteria for the federal student aid programs.

Different types of aid (private scholarships, state grants, etc.) have different rules, called eligibility criteria, to determine who gets the aid. Here are the eligibility criteria for the federal student aid programs.

Basic Eligibility Criteria

Our general eligibility requirements include that you have financial need, are a U.S. citizen oreligible noncitizen, be enrolled in an eligible degree or certificate program at your college or career school, and more. Make sure you’re familiar with our basic eligibility criteria, and ask a collegefinancial aid office if you have any questions about whether you qualify.

Most students are eligible to receive financial aid from the federal government to help pay for college or career school. Your age, race, or field of study won’t affect your eligibility for federal student aid. While your income is taken into consideration, it does not automatically prevent you from getting federal student aid.

To receive federal student aid, you’ll need to…

Qualify to obtain a college or career school education, either by having a high school diploma orGeneral Educational Development (GED) certificate, or by completing a high school education in ahomeschool setting approved under state law

AND

Be enrolled or accepted for enrollment as a regular student in an eligible degree or certificate program

AND

Be registered with Selective Service, if you are a male (you must register between the ages of 18 and 25)

AND

Have a valid Social Security number unless you are from the Republic of the Marshall Islands, Federated States of Micronesia, or the Republic of Palau

AND

Sign certifying statements on the Free Application for Federal Student Aid (FAFSA) stating that

- you are not in default on a federal student loan and do not owe a refund on a federal grant and

- you will use federal student aid only for educational purposes

AND

Maintain satisfactory academic progress in college or career school 

In addition you must…

Be a U.S. CITIZEN or U.S. NATIONAL

You are a U.S. citizen if you were born in the United States or certain U.S. territories, if you were born abroad to parents who are U.S. citizens, or if you have obtained citizenship status through naturalization. If you were born in American Samoa or Swains Island, then you are a U.S. national.

OR

Have a GREEN CARD

You are eligible if you have a Form I-551, I-151, or I-551C, also known as a green card, showing you are a U.S. permanent resident

OR

Have an ARRIVAL-DEPARTURE RECORD

Your Arrival-Departure Record (I-94) from U.S. Citizenship and Immigration Services must show one of the following:

-Refugee

-Asylum Granted

-Cuban-Haitian Entrant (Status Pending)

-Conditional Entrant (valid only if issued before April 1, 1980)

-Parolee

OR

Have BATTERED IMMIGRANT STATUS

You are designated as a “battered immigrant-qualified alien” if you are a

victim of abuse by your citizen or permanent resident spouse, or you are the child of a person designated as such under the Violence Against Women Act.

OR

Have a T-VISA

You are eligible if you have a T-visa or a parent with a T-1 visa.

Start filling out the FAFSA at www.fafsa.gov.

The U.S. Department of Education’s office of Federal Student Aid provides more than $150 billion every year in grants, loans, and work-study funds to students attending college or career school. Visit StudentAid.gov today to learn how to pay for your higher education.

There is no age limit when it comes to receiving federal student aid.

Students With a Parent Who Was Killed in Iraq or Afghanistan

If your parent died as a result of military service in Iraq or Afghanistan after the events of 9/11, you might be eligible for additional Federal Pell Grant funding or for an Iraq and Afghanistan Service Grant.

Non-U.S. Citizens

Generally, if you have a “green card” (in other words, if you are a permanent resident alien), you will be considered an “eligible noncitizen” and will be able to get federal student aid if you meet the other basic eligibility criteria. Full details of which immigration statuses make you an eligible noncitizen are at our Non-U.S. Citizen page.

Students With Criminal Convictions

If you are incarcerated, have a conviction for a drug offense, or are subject to an involuntary civil commitment after completing a period of incarceration for a sexual offense, your eligibility for federal student aid may be limited.

Students With Intellectual Disabilities

Students with intellectual disabilities may receive funding from the Pell Grant, Federal Supplemental Educational Opportunity Grant, and Federal Work-Study programs in certain circumstances.

Staying Eligible

Once you’re in college or career school, make sure you stay eligible for federal student aid by paying attention to a few things, including keeping on track toward graduation. And remember to fill out your Free Application for Federal Student Aid (FAFSA^®) every year.

Regaining Eligibility

You might lose federal student aid eligibility in a number of ways. Some of the most common are that you

• are in default on a federal student loan,
• don’t maintain satisfactory academic progress in college or career school, or
• are convicted of a drug offense.

Know More about Loan Consolidation

A Direct Consolidation Loan allows you to consolidate (combine) multiple federal education loans into one loan. The result is a single monthly payment instead of multiple payments.

There is no application fee to consolidate your federal education loans into a Direct Consolidation Loan. If you are contacted by someone offering to consolidate your loans for a fee, you are not dealing with one of the U.S. Department of Education’s (ED's) consolidation servicers. To apply for a Direct Consolidation Loan, you must follow the process outlined below.

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Should I consolidate my loans?

Carefully consider whether loan consolidation is the best option for you. Loan consolidation can greatly simplify loan repayment by centralizing your loans to one bill and can lower monthly payments by giving you up to 30 years to repay your loans. You might also have access to alternative repayment plans you would not have had before, and you’ll be able to switch your variable interest rate loans to a fixed interest rate.

However, if you increase the length of your repayment period, you'll also make more payments and pay more in interest. Be sure to compare your current monthly payments to what monthly payments would be if you consolidated your loans.

You also should consider the impact of losing any borrower benefits offered with the original loans. Borrower benefits from your original loan, which may include interest rate discounts, principal rebates, or some loan cancellation benefits, can significantly reduce the cost of repaying your loans. You might lose those benefits if you consolidate.

If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you can consider reevaluating your budget and income situation. You can also consider deferment or forbearance as options for short-term payment relief needs.

Once your loans are combined into a Direct Consolidation Loan, they cannot be removed. The loans that were consolidated are paid off and no longer exist.

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What types of loans can be consolidated?

Most federal student loans, including the following, are eligible for consolidation:

• Direct Subsidized Loans
• Direct Unsubsidized Loans
• Subsidized Federal Stafford Loans
• Unsubsidized Federal Stafford Loans
• Direct PLUS Loans
• PLUS loans from the Federal Family Education Loan (FFEL) Program
• Supplemental Loans for Students (SLS)
• Federal Perkins Loans
• Federal Nursing Loans
• Health Education Assistance Loans
• some existing consolidation loans

Private education loans are not eligible for consolidation. If you are in default, you must meet certain requirements before you can consolidate your loans.
A PLUS loan made to the parent of a dependent student cannot be transferred to the student through consolidation. Therefore, a student who is applying for loan consolidation cannot include the PLUS loan the parent took out for the dependent student’s education.
A complete list of the federal student loans eligible for consolidation is available in the application.

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When can I consolidate my loans?

Generally, you are eligible to consolidate after you graduate, leave school, or drop below half-time enrollment.

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What are the requirements to consolidate a loan?

Here are some tips on qualifying for a Direct Consolidation Loan:

• You must have at least one Direct Loan or FFEL Program loan that is in a grace period or in repayment.
• If you want to consolidate a defaulted loan, you must either make satisfactory repayment arrangements on the loan with your current loan servicer before you consolidate, or you must agree to repay your new Direct Consolidation Loan under the
  
  • Income-Based Repayment Plan,
  • Pay As You Earn Repayment Plan, or
  • Income-Contingent Repayment Plan.
• Generally, you cannot consolidate an existing consolidation loan again unless you include an additional Direct Loan or FFEL Program loan in the consolidation. However, under certain circumstances you may reconsolidate an existing FFEL Consolidation Loan without including any additional loans.

There are no application fees for a Direct Consolidation Loan, and you may prepay your loan at any time without penalty.

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What is the interest rate on a consolidation loan?

A Direct Consolidation Loan has a fixed interest rate for the life of the loan. The fixed rate is based on the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of 1%. There is no cap on the interest rate of a Direct Consolidation Loan.

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When do I begin repayment?

Repayment of a Direct Consolidation Loan can begin 60 days after the loan is disbursed, or sooner. Your loan servicer will let you know when the first payment is due. The repayment term ranges from 10 to 30 years, depending on the amount of your consolidation loan, your other education loan debt, and the repayment plan you select.
Note: If any loan you want to consolidate is still in the grace period, you can delay entering repayment on your new Direct Consolidation Loan until closer to your grace period end date. You will indicate this when you apply, and the consolidation servicer will wait to process your application until the appropriate time.

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Are there different repayment plans?

There are several repayment plans that are designed to meet the different needs of individual borrowers. You will receive more detailed information on your repayment options from your consolidation servicer when you consolidate your loan.

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Know more about Repayment Plans

Work with your loan servicer to choose a federal student loan repayment plan that’s best for you.

To make your payments more affordable, repayment plans can give you more time to repay your loans or can be based on your income.

Although you may select or be assigned a repayment plan when you first begin repaying your student loan, you can change repayment plans at any time—for free.

Overview of Direct Loan and FFEL Program Repayment Plans

Repayment Plan	Eligible Loans	Monthly Payment and Time Frame	Eligibility and Other Information
Standard Repayment Plan	Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans all Consolidation Loans (Direct or FFEL)	Payments are a fixed amount. Up to 10 years (up to 30 years for Consolidation Loans).	All borrowers are eligible for this plan. You’ll pay less over time than under other plans.
Graduated Repayment Plan	Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans all Consolidation Loans (Direct or FFEL)	Payments are lower at first and then increase, usually every two years. Up to 10 years (up to 30 years for Consolidation Loans).	All borrowers are eligible for this plan. You’ll pay more over time than under the 10-year Standard Plan.
Extended Repayment Plan	Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans all Consolidation Loans (Direct or FFEL)	Payments may be fixed or graduated. Up to 25 years.	If you're a Direct Loan borrower, you must have more than $30,000 in outstanding Direct Loans. If you're a FFEL borrower, you must have more than $30,000 in outstanding FFEL Program loans. Your monthly payments will be lower than under the 10-year Standard Plan or the Graduated Repayment Plan. You’ll pay more over time than under the 10-year Standard Plan.
Revised Pay As You Earn Repayment  Plan (REPAYE)	Direct Subsidized and Unsubsidized Loans Direct PLUS loans made to students Direct Consolidation Loans that do not include PLUS loans (Direct or FFEL) made to parents	Your monthly payments will be 10 percent of discretionary income. Payments are recalculated each year and are based on your updated income and family size. If you're married, both your and your spouse’s income or loan debt will be considered, whether taxes are filed jointly or separately (with limited exceptions). Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 or 25 years.	Any Direct Loan borrower with an eligible loan type may choose this plan. Your monthly payment can be more than the 10-year Standard Plan amount. You may have to pay income tax on any amount that is forgiven. Good option for those seeking Public Service Loan Forgiveness (PSLF).
Pay As You Earn Repayment Plan (PAYE)	Direct Subsidized and Unsubsidized Loans Direct PLUS loans made to students Direct Consolidation Loans that do not include (Direct or FFEL) PLUS loans made to parents	Your maximum monthly payments will be 10 percent of discretionary income. Payments are recalculated each year and are based on your updated income and family size. If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return. Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 years.	You must be a new borrower on or after Oct. 1, 2007, and must have received a disbursement of a Direct Loan on or after Oct. 1, 2011. You must have a high debt relative to your income. Your monthly payment will never be more than the 10-year Standard Plan amount. You’ll pay more over time than under the 10-year Standard Plan. You may have to pay income tax on any amount that is forgiven. Good option for those seeking Public Service Loan Forgiveness (PSLF).
Income-Based Repayment Plan (IBR)	Direct Subsidized and Unsubsidized Loans Subsidized and Unsubsidized Federal Stafford Loans all PLUS loans made to students Consolidation Loans  (Direct or FFEL) that do not include  Direct or FFEL PLUS loans made to parents	Your monthly payments will be 10 or 15 percent of discretionary income. Payments are recalculated each year and are based on your updated income and family size. If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return. Any outstanding balance on your loan will be forgiven if you haven't repaid your loan in full after 20 or 25 years. You may have to pay income tax on any amount that is forgiven.	You must have a high debt relative to your income. Your monthly payment will never be more than the 10-year Standard Plan amount. You’ll pay more over time than under the 10-year Standard Plan. Good option for those seeking Public Service Loan Forgiveness (PSLF).
Income-Contingent Repayment Plan (ICR)	Direct Subsidized and Unsubsidized Loans Direct PLUS Loans made to students Direct Consolidation Loans	Your monthly payment will be the lesser of  20 percent of discretionary income, or the amount you would pay on a repayment plan with a fixed payment over 12 years, adjusted according to your income. Payments are recalculated each year and are based on your updated income, family size, and the total amount of your Direct Loans. If you're married, your spouse's income or loan debt will be considered only if you file a joint tax return or you choose to repay your Direct Loans jointly with your spouse. Any outstanding balance will be forgiven if you haven't repaid your loan in full after 25 years.	Any Direct Loan borrower with an eligible loan type may choose this plan. Your monthly payment can be more than the 10-year Standard Plan amount. You may have to pay income tax on the amount that is forgiven. Good option for those seeking Public Service Loan Forgiveness (PSLF). Parent borrowers can access this plan by consolidating their Parent PLUS Loans into a Direct Consolidation Loan.
Income-Sensitive Repayment Plan	Subsidized and Unsubsidized Federal Stafford Loans FFEL PLUS Loans FFEL Consolidation Loans	Your monthly payment is based on annual income. Up to 15 years.	You’ll pay more over time than under the 10-year Standard Plan. The formula for determining the monthly payment amount can vary from lender to lender.

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Repay Your Federal Perkins Loan

Perkins Loan repayment plan options are not the same as those for Direct Loan Program or FFEL Program loans. Check with your school for more information on Perkins Loan repayment plans.

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Consolidate Your Loans

If you have multiple federal student loans, you can consolidate them into a single Direct Consolidation Loan. This may simplify repayment if you are currently making separate loan payments to different loan holders or servicers, as you'll only have one monthly payment to make. There may be tradeoffs, however, so you'll want to learn about the advantages and possible disadvantages of consolidation before you consolidate.