"Title IV" refers to the section of the Higher Education Act of 1965 that covers federal student financial aid programs. Title IV financial aid is any federally funded aid program, such as a Federal Pell Grant, subsidized and unsubsidized direct loans and the Federal Perkins Loan. Federal aid, the nation's largest source of student financial assistance, is available to students at participating four-year, two-year, public and private institutions, as well as vocational and trade schools.
Title IV financial aid is meant to assist students and their families in paying for college tuition, textbooks, room and board, and other expenses associated with higher education.
The three most common types of aid are grants, loans and work-study. Grants are "gifts" that do not need to be repaid; they typically range in size from $400 to $7,500, based on a student's needs and program of study. For example, there are federal grants for students of mathematics or science, as well as for low- to middle-income students. Loans involve money that students and their families borrow either directly from the federal government or from private lenders. The loans, which are federally guaranteed, must be repaid with interest. Work-study programs provide students with jobs through their college or university, allowing them to earn money toward their tuition payments and other living expenses.
To qualify for federal aid, students must be U.S. citizens, or eligible noncitizens; possess a Social Security number; be registered with Selective Service if they are male and aged 18 to 25; have a high school diploma or the equivalent; be enrolled in, or accepted to, a participating institution; and not have a drug conviction for an offense committed while receiving federal aid. Most federal aid is distributed based on a student's "expected family contribution," or the amount of money that the family will be able to put toward higher education, and the cost of attending her chosen college or university.
The easiest way to receive federal aid is to fill out a FAFSA (Free Application for Federal Student Aid) form, which can be done online at FAFSA's website using the link in References. Student financial needs are determined through the information provided in the FAFSA. Discretionary grants, which award federal aid based on a competitive process in which the Department of Education decides who is best qualified, must be applied for separately. Students must apply for work-study aid through programs at their own institutions.