Federal student aid can come in the terms of grants, scholarships, on-campus work study opportunities or loans held by the student or the parents. In all cases, the federal money works through the college to the student.
The process of obtaining federal student aid starts with completing the Free Application for Federal Student Aid (FAFSA). This form can be found online (fafsa.ed.gov) or through a college’s financial aid department.
This application is what starts the process of seeing what you are eligible for with federal student aid. Once your financial information is reviewed, your college’s financial aid department makes the award announcements to you.
Your federal student aid award can be used for many aspects of undergraduate or graduate education. This includes tuition and fees, housing and books and supplies.
The process typically includes you first registering for classes. When the funds arrive, the tuition and fees are taken out of the award. Any remaining amount may be credited to you at some point during the semester depending on the college’s financial aid policies.
Your federal student aid can also be used to help pay for on-campus or off-campus housing. This can also include your meal plan for on-campus housing. Off-campus housing expenses are paid by you directly and then you receive any remaining federal student aid funds after tuition and fees are paid.
In order for your federal student aid to directly pay for books and supplies, they must be purchased through campus bookstores. Otherwise you pay directly and are reimbursed when you receive your remaining balance after tuition and fees.
Your federal student aid package can technically be used for any “reasonable college-related expense” according to the U.S. Department of Education. This can even include costs for studying abroad as well as costs for specific equipment if you are disabled.
Any federal student aid loans must be paid back. Typically, payments start after a six-month grace period after graduation or leaving the educational institution. Scholarships and grants for college don’t have to be paid back.
