Federal Student Aid

DIRECTIONS: Use the Federal Student Aid website along with an estimate of your college tuition
(see College Board or school websites) to answer these questions.
What Types of Aid Can I Get?
1. What are four sources of financial aid? The U.S. Federal government, the state where
you live, the college you attend and or a nonprofit private organization.
2. Define the three types of federal student aid:
a. Grants financial aid that doesnt have to be repaid (unless, for example, you
withdraw from school and owe a refund)
b. Loans borrowed money for college or career school; you must repay your
loans, with interest
c. Work-Study a work program through which you earn money to help you pay
for school
3. What are two other federal financial aid programs offered besides aid from the Department of
Education? Tax benefits for education and or aid for serving in the military or being
a child or spouse of a veteran.
4. What does federal student aid cover? Tuition, room and board, books, supplies and
transportation.
5. How do you contact the NJ state grant agency? Through the state department of
education, a state higher education agency, and or a state special education
agency.
6. What are 3 things you must do to get aid from your college? Fill out the FAFSA, the
schools financial aid office and any other forms or requirements the school requires
for its own aid.
7. What types of aid are offered from nonprofits or private organizations? Scholarships and
Grants
Do I Qualify For Aid?
1. View the graphic What are the 7 things you must do to qualify for federal student aid? High
school diploma, be enrolled into a college, be registered with Selective Service,
have a valid social security number, fill out the FAFSA, maintain academic progress,
and be a U.S. citizen.
2. What is required to stay eligible for student aid? Meet the basic eligibility criteria, make
academic process, and fill out the FAFSA each year.
How Do I Apply for Aid?
1. What does FAFSA stand for? Free Application for Federal Student Aid
2. Where do you fill out the FAFSA form? www.fafsa.gov
3. Where can you get an early estimate of your aid? Depending on the school the school
will send an aid offer or also called an award letter of how much aid youre eligible
for.
4. What happens after you fill out the FAFSA? The financial aid offers uses your information
to find out how much financial aid youre eligible for.
How Do I Manage My Loans?
1. Define the following:
a. Loan Servicer A company that collects payments, responds to customer
service inquiries, and performs other administrative tasks associated with
maintaining a federal student loan on behalf of a lender.
b. Repayment Plan The amount you pay and the length of time to repay your
loans will vary depending on the repayment plan you choose.

c. Loan Consolidation The process of combining one or more loans into a single
new loan.
d. Deferment A period during which repayment of the principal and interest of
your loan is temporarily delayed.
e. Loan Forgiveness Your obligation to repay your federal student is removed.
f. Default failing to make your payments on your student loan as scheduled
according to the terms of your promissory note.
2. How can you avoid defaulting on your student loans? Create a budget, contact the
schools financial aid office and request a lower loan amount, and complete
financial awareness counseling.
3. What can you do if you cannot make your monthly payment? Switch repayment plans,
consider and income-driven repayment plan, change your payment due date, and
or get a deferment or forbearance.