A key type of financial aid that the government distributes is a grant, a form of financial aid you do not repay. The most common grant is the Federal Pell Grant, which offers a maximum amount of aid of $5,550 per year. Several other grants are also available, including the teacher education assistance for college and higher education grant. Others include the federal Supplemental Educational Opportunity Grant, the Academic Competitiveness Grant, the national science and mathematics access to retain talent grant, institutional grants and the Iraq and Afghanistan Service Grant.
Campus-based aid is another form of financial assistance the government offers through the FAFSA form. Most campus-based aid results in federal-work study grants that allow students to work on campus with an allocated cap on how much a student can make per year. Campus-based aid can also alter the amount you receive for the federal Supplemental Educational Opportunity Grant and the federal Perkins Loan.
The FAFSA form also determines if students are able to take out loans to help fund their education. Obtaining a direct Stafford Loan through the FAFSA form allows students to receive low-interests loans and choose between subsidized and unsubsidized loan options.
FAFSA forms also determine the loan amount parents can take out under the Direct Plus Loan program to help fund their childrens' college education. Parents need to prove that their child is dependent on them and also under the age of 24 to receive a Direct Plus Loan.