Federal Student Aid (2024)

FAQs

Federal Student Aid? ›

Thousands of schools across the country participate in the federal student aid programs; ask the schools you're interested in whether they do! Apply for federal student aid—grants, work-study, and loans—using the Free Application for Federal Student Aid (FAFSA^®) form.

Thousands of schools across the country participate in the federal student aid programs; ask the schools you're interested in whether they do! Apply for federal student aid—grants, work-study, and loans—using the Free Application for Federal Student Aid (FAFSA^®) form.

If you are an undergraduate student, the maximum amount you can borrow each year in Direct Subsidized Loans and Direct Unsubsidized Loans ranges from $5,500 to $12,500 per year, depending on what year you are in school and your dependency status.

You may be eligible for discharge of your federal student loans based on borrower defense to repayment if you took out the loans to attend a school and the school did something or failed to do something related to your loan or to the educational services that the loan was intended to pay for.

This free application form is used to apply for federal student aid, as well as financial aid from state governments and most colleges and universities. FAFSA is not the financial aid itself, as it is just an application, so you do not have to pay anything back in that regard.

To be eligible for federal student aid and college financial aid, a student must be making Satisfactory Academic Progress (SAP). This generally consists of maintaining at least a 2.0 GPA on a 4.0 scale (i.e., at least a C average) and passing enough classes with progress toward a degree.

Our general eligibility requirements include that you have financial need, are a U.S. citizen or eligible noncitizen, and are enrolled in an eligible degree or certificate program at your college or career school.

You are generally required to repay your student loan, but in certain situations, your loan may be forgiven, canceled, or discharged.

But, the maximum amount can be in the low tens of thousands of dollars per year. Average amounts are about $9,000, with less than half of that in the form of grants. This table shows the maximum and average amounts for various types of federal student aid for undergraduate students for 2020-2021.

Who qualifies for $20,000 student loan forgiveness? ›

To be eligible, your annual income must have fallen below $125,000 (for individuals) or $250,000 (for married couples or heads of households). If you received a Pell Grant in college and meet the income threshold, you will be eligible for up to $20,000 in debt relief.

All federal student aid programs – which include student loans, Pell Grants and work-study, for example – are funded by federal tax dollars paid by U.S. citizens. Each year, Congress appropriates money to fund these programs as part of the annual budget process.

What student loans are not eligible for forgiveness? Private student loans, by definition, are private and are not eligible to be forgiven. These are loans the borrower owes to student loan providers and not the federal government.

Who is eligible for student loan forgiveness? Only borrowers who hold federal student loans and meet certain income requirement can qualify for forgiveness. In 2020 or 2021, single-earners must have made less than $125,000, and for households, less than $250,000.

1. Check the top of your federal loan promissory notes, applications, and billing statements, as these state the name of the federal loan program at the top of the document. Federal loan programs include the William D.

To be eligible for forgiveness after making 120 qualifying payments, you must be employed full-time by a qualifying employer at the time you make each qualifying payment, at the time you apply for loan forgiveness, and at the time you receive loan forgiveness.

Failing a class does not force you to pay back your FAFSA financial aid. However, it could put you at risk for losing eligibility to renew it next semester. If you do not make Satisfactory Academic Progress, or SAP, your federal financial aid is at risk of being suspended.

Does my aid "expire" if I don't use it? Yes, aid will be canceled if a student does not enroll in classes within the term or year that aid is offered. For loans to be reinstated students must request reinstatement of loans via askfas email or student can complete the request loan form.

Your GPA is too low

Students must be in good academic standing to receive federal aid. The required GPA varies from school to school, but typically students need a 2.0 or higher. If your grades fall below the minimum GPA, you could lose eligibility for financial aid.

Incarceration, misdemeanors, arrests, and more serious crimes can all affect a student's aid. Smaller offenses won't necessarily cut off a student from all aid, but it will limit the programs they qualify for as well as the amount of aid they could receive. Larger offenses can disqualify a student entirely.

What is the 67% rule for financial aid? ›

The US Department of Education requires students to complete at least 67 percent of all courses attempted for all colleges attempted to maintain eligibility for federal financial aid. PACE is calculated by dividing the earned credits by the attempted credits.

If you are a dependent student, include your and your parents' or guardians' untaxed and taxed income on the FAFSA, along with other information such as their assets and benefits. Independent students shouldn't include anyone else's financial information on the FAFSA, unless they're married.

Students selected for verification of their FAFSA form may wonder, “Does FAFSA check your bank accounts?” FAFSA does not directly view the student's or parent's bank accounts.

The good news is that the Department of Education doesn't have an official income cutoff to qualify for federal financial aid. So, even if you think your parents' income is too high, it's still worth applying (plus, it's free to apply).

Eligible students may receive up to a maximum of four years of full-time grant payments. The actual number of years of eligibility will depend on the student's class level at the time an award is initially received.

Any money left over is paid to you directly for other education expenses. If you get your loan money, but then you realize that you don't need the money after all, you may cancel all or part of your loan within 120 days of receiving it and no interest or fees will be charged.

Failing or taking an incomplete grade in courses can impact your financial aid in multiple ways. The 3 main impacts may be owing money back for the current term, losing federal aid eligibility for future terms, and not meeting the renewal criteria for scholarships and institutional aid.

To qualify for a Pell Grant, a student must demonstrate financial need through the Free Application for Federal Student Financial Aid (FAFSA®) form.

Should I empty my bank account for FAFSA? ›

Empty Your Accounts

If you have college cash stashed in a checking or savings account in your name, get it out—immediately. For every dollar stored in an account held in a student's name (excluding 529 accounts), the government will subtract 50 cents from your financial aid package.

Eligibility for Biden's Student Loan Cancellation Plan

You must earn less than $125,000 a year for individuals, or $250,000 for married couples and/or head of households.

You qualify to have up to $10,000 forgiven if your loan is held by the Department of Education and you make less than $125,000 individually or $250,000 for a family. If you received Pell grants, which are reserved for undergraduates with the most significant financial need, you can have up to $20,000 forgiven.

Federal Pell Grants typically are awarded to undergraduate students with low or moderate income. Most borrowers can log in to StudentAid.gov to see if they received a Pell Grant. We display information about the aid you received, including Pell Grants, on your account Dashboard and your My Aid page.

The answer, actually, is not really one or the other. Rather, both the parent and the student need to complete information on the FAFSA.

Your eligibility depends on your Expected Family Contribution, year in school, enrollment status, and the cost of attendance at the school you will be attending. The financial aid office at the college or career school you will attend will determine how much financial aid you're eligible to receive.

You will remain responsible for repaying your loan according to the terms of the promissory note you signed. You should talk to your loan servicer about repayment options if you have a Direct Loan or Federal Family Education Loan Program loan.

The Biggest PSLF Errors That Cause Loan Forgiveness Denial

Failing to submit your Employment Certification Form (ECF) each year. Making mistakes on your ECF. Not consolidating your ineligible loans. Not being in an income-driven repayment (IDR) plan.

Which types of federal student loans qualify for Public Service Loan Forgiveness (PSLF)? A qualifying loan for PSLF is any non-defaulted loan received under the William D. Ford Federal Direct Loan (Direct Loan) Program.

In some cases, both parents applied for Parent PLUS loans for their children and they'll both individually be eligible for loan cancellation.

Will my credit score go up if my student loans are forgiven? ›

For some people, student loan forgiveness could actually lead to a higher credit score. That's because eliminating up to $20,000 in debt could constitute a major decrease in your total debt balance, which accounts for 30% of your FICO score.

Women. Women would be among the biggest winners of student loan forgiveness. That's because around two-thirds of the country's outstanding balance is carried by women. White women student loan borrowers owe an average of $31,300, compared with $29,900 for White male borrowers.

There are four types of federal student loans: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans and Direct Consolidation Loans.

Who qualifies for student loan forgiveness? To be eligible for forgiveness, you must have federal student loans and earn less than $125,000 annually (or $250,000 per household). Borrowers who meet that criteria can get up to $10,000 in debt cancellation.

Generally, there are two types of student loans—federal and private. Federal student loans and federal parent loans: These loans are funded by the federal government. Private student loans: These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school.

The FAFSA has no income limits, so you should fill this form out even if you think your family earns too much to qualify for federal aid.

Yes. Student loans in collections can be forgiven. The Department of Education recently announced its Fresh Start program. Through the program, borrowers with defaulted federal student loans can return to making payments without a past-due balance.

Undergraduates can receive up to $16,000 toward their degree. This is $4,000 per year or $2,000 per semester. Graduate students can receive up to $8,000 to continue their education. For a two-year master's degree, this is $4,000 per year or $2,000 per semester.

Generally, your school will give you your grant or loan money in at least two payments called disbursem*nts. In most cases, your school must give you your grant or loan money at least once per term (semester, trimester, or quarter).

How much federal student aid can I get for lifetime? ›

The amount of Federal Pell Grant funds you may receive over your lifetime is limited by federal law to be the equivalent of six years of Pell Grant funding. Since the amount of a scheduled Pell Grant award you can receive each award year is equal to 100%, the six-year equivalent is 600%.

An Expected Family Contribution (EFC) of $50,000 means that the family is expected to contribute $50,000 toward the student's education expenses for the academic year.

Federal Grants and Loans

Federal loans and grants, as well as state loans and grants, will be applied first to your student bill to cover tuition and other school costs. Then any leftover will be deposited to your bank account.

How long does it take from the time I submit my FAFSA to when I receive my first check? Approximately 8 to 12 weeks after submitting your required documents to the Financial Aid Office.

There is a maximum amount of Federal Pell Grant funds you can receive over your lifetime. You can receive the Pell Grant for no more than 12 terms or the equivalent (roughly six years). This is called the Federal Pell Grant Lifetime Eligibility Used (LEU). You'll receive a notice if you're getting close to your limit.

Federal Pell Grant

Award amounts are based on the student's level of financial need and enrollment status for each term. The maximum Pell Grant for the 2023-24 award year is $7,395. The maximum Pell Grant per term is $3,698 for Fall/$3697 for Spring.

There is no set income limit for eligibility to qualify for financial aid through. You'll need to fill out the FAFSA every year to see what you qualify for at your college. It's important to make sure you fill out the FAFSA as quickly as possible once it opens on October 1st for the following school year.

Why is my EFC so high? If your EFC is high, it generally means that your family's income is high. Parental income is one of the biggest drivers of Expected Family Contribution. This is because the FAFSA takes both parents' income into account, as well as the student's income.

If your EFC is greater than the cost of attendance, there's a very slim chance you will receive any financial aid. The only option for you, then, would be to take out a federal direct loan or PLUS loan in the event that you needed assistance in paying for school.

In general, you should receive a more substantial financial aid package with a low EFC, whereas a high EFC means you might need to resort to unsubsidized or private student loans to cover costs your family can't afford.