The first step in applying for federal aid is submitting a Free Application for Federal Student Aid (FAFSA), which certifies that you are a U.S. citizen, have a high school diploma and can demonstrate the need for financial aid by looking at the results of tax returns. Home-schooled students can self-certify on the FAFSA that they did complete a high school education by way of home schooling that abides by all the laws of their respective states. If a student's home-schooled program provided a diploma, it would be considered a non-accredited diploma, but graduates of the program are eligible for financial aid so long as they finished a secondary education program.
If a family of a home-schooled student meets the eligibility criteria for financial assistance, then the high school graduate would be able to receive Pell Grant funds. These funds do not have to be paid back and are awarded based on the family's financial eligibility, cost of the graduate's chosen school and his enrollment status. To continue to receive these funds, reapply every year and maintain a passing grade point average.
If a family's income does not allow meet the requirements for a Pell Grant but otherwise meets all other requirements, the graduate is eligible for a student loan. Federal subsidized Stafford loans come with a grace period of six months after the student stops going to school to start repaying the funds borrowed. Parents who wish to take advantage of federal subsidized loans can take out a Federal PLUS loan.
The Higher Education Act amendment in 1998 updated the financial aid requirements for home-schooled students so they can be eligible for any financial aid without taking the GED or an ability-to-benefit test if they have passed the secondary education requirements of their respective states. Now, home-schooled students can be considered for the scholarships and grants that regular students seek.
The Robert C Byrd Honors Scholarship Program is awarded to exceptional high school students with high academic potential and is available nationwide to all students, including home-schooled students. The Home School Foundation works to provide assistance to special needs, including single-parent homes and international homeschooling families. Check for other state resources for public and private schools that offer assistance to all families. Athletic scholarships, academic scholarships, minority scholarships, and music scholarships are among those available to qualifying home-schooled students who are diligent about applying.