The first step in getting financial aid for college is to fill out a FAFSA form. The FAFSA can either be filled out online or mailed. The FAFSA will ask for information about the student's family income, assets and dependents. These factors will determine how much aid a student will receive and how much his family will be expected to contribute to educational costs. The amount of money the family will have to pay is called the expected family contribution (EFC). A student must reapply each year to continue to receive aid.
If a student has not yet received a degree, he might be eligible to receive a Federal Pell Grant. The annual award for PELL is up to $4,731, as of 2009. A student can receive a PELL grant for up to five years.
Individuals must qualify for grants such as the Academic Competitiveness Grant (ACG) or SMART Grant. ACG is for first- and second-year students and provides up to $1,300 a year. The SMART Grant provides $4,000 a year for third- and fourth-year students pursuing math and science majors. Recipients of the ACG and SMART grants must maintain a 3.0 GPA to keep their grants.
Most states also offer their own financial aid programs. New York's TAP program will provide up to $4,800 a year toward tuition expenses for residents of New York who attend a college in the state. State aid must be applied for separately. A student can receive both federal and state aid to pay for college costs.
If a student doesn't receive enough grants to cover educational expenses, he can consider taking out a low-interest government loan. A dependent undergraduate student can borrow up to $7,500 per year under the Stafford Loan program. Interest rates are low. For the 2009-10 educational year, rates were 5.6 percent. These loans don't have to be repaid until the student is finished with school.
Low-income students can receive up to $1,850 a year in federal work study awards. Students earn part of the money for their education by working up to eight hours a week. Some students are given jobs on campus and others serve as tutors for area public schools. Work study earnings are paid biweekly directly to the student and can be used for tuition, books or living expenses.