Student Loan Basics
Every year, the U.S. Department of Education awards more than $80 billion in loans, grants and campus-based aid that helps millions of students and their families afford postsecondary education.
There are many different kinds of loans available to students, both public (via the government) and private (via a private company or corporation). Because federal loan interest rates are almost always fixed and capped, all students should check their federal aid eligibility before applying for private loans. During this process, your most important task is to make sure you are fully aware of all terms, fees and conditions before signing or agreeing to anything.
As you make decisions, we urge you to work closely with your college or university financial aid staff to understand all options available to you.
If you need additional assistance or advice, do not hesitate to call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) to speak with a representative. (TTY: 1-800-730-8913 or 1-319-337-5665).
Getting Started
To begin this process, prospective aid recipients must complete and submit a Free Application for Federal Student Aid (FAFSA) to the U.S. Department of Education. The FAFSA website guides you through locating all necessary information (W-2 forms, bank statements, etc.), and allows you to submit your application electronically or via regular mail.
Once all of your information is submitted, your eligibility and need will be assessed. After this review, your Student Aid Report (SAR) will be forwarded to your email address soon after you file the FAFSA online. If you file a paper FAFSA by mail and do not provide an email address, you should receive a paper SAR within three weeks. Obtaining an SAR report is critical to acquiring and maintaining student aid.
Eligibility Requirements
To receive federal aid, students generally must:
- qualify for financial need (except for certain loans);
- have a high school diploma or a General Education Development (GED) certificate;
- be enrolled in an eligible degree program;
- be a U.S. citizen or eligible non-citizen;
- have a valid Social Security Number.
That said, the U.S. Department of Education advises all students to apply for federal aid to determine their status.
Created 2/12/09: Information provided by ITD's Mass.Gov Office.