When applying for federal student aid follow the golden rule; the earlier you apply, the better your chances for receiving the maximum amount of qualified aid. There are federal and state deadlines for applying, but colleges and universities may set internal deadlines, as well. Be sure you are aware of these time restrictions. The safest bet is to apply on or immediately after Jan. 1 of each year.
The Free Application for Federal Student Aid is available both online and in print. The print version has a longer processing time than the online version. Have your Social Security number, tax and current income information available. The form is detailed and will prompt you for specific person and financial information. The main purpose is to determine the type of aid available to you; the other purpose is to make sure you are eligible for aid at all.
Available aid is based on need, merit, type of undergraduate program and your status. The Free Application for Federal Student Aid uses a formula that will determine your estimated family contribution. The lower the estimated family contribution, the more need-based aid you qualify for. There is a section that asks if you have been convicted of past crimes. Certain types of convictions can exclude your eligibility for federal aid.
Federal aid is available in three formats: grants, loans and work study. Grants are not required to be repaid. Pell grants are the most common and need-based. Loans are also available and not particularly contingent on a low estimated family contribution. Work-study programs allow students to work without the income counting against financial need. Unlike most grants and loans, work-study programs are often limited on campus and, therefore, more competitive.