Significance

• Many students simply cannot afford to pay for college. Fortunately, the government has an abundance of financial aid resources available to help students pay for their college education. Without financial aid funds, many students would not have the opportunity to pursue their career goals and earn a college degree. Therefore, if a student truly wants to attend college, but does not have the money to do so, then he should definitely consider applying for financial aid.
  
  

Function

• In order to receive financial aid, a student must first complete the Free Application for Federal Student Aid (FAFSA). This application identifies the types and amounts of financial aid that a student can receive each semester based on their income. The application must be completed once every year and students should submit the application by the designated deadline. In addition to completing the FAFSA, all students are required to complete and submit a financial aid package to their school before they are awarded funds for that academic year.
  
  

Types

• There are several types of federal student aid programs that can assist students with their financial needs. A federal grant is money given to qualified undergraduate students to help cover their college expenses; these do not have to be repaid.
  Federal student loans are also available to help students pay for their education. Some students may also qualify for the federal work-study program, which allows students to work part-time (normally on campus) while they attend school. In addition to the above federal student programs, some schools and states offer a variety of scholarship programs for students and there are also additional loan sources a student may utilize, such as private or alternative student loans.
  
  

Benefits

• Students can apply for federal student loans even if they have bad, poor, or no credit. However, this does not apply to private or alternative loans which usually require a student (or the student's parent) to have good credit and possibly collateral, too. Also, loan payments are postponed until after graduation and students are always given a grace period before the repayment period begins. In addition, a student never has to repay grant money unless he withdraws from school and does not complete the semester.
  
  

Expert Insight

• It important to submit all of the required financial aid documents in a timely manner, because if you miss the deadlines you may not receive financial aid assistance for that school year. Also, if you plan to use student loans to help pay for college, be sure to only borrow the amount of money that you actually need. Many students borrow excessive amounts of money and later find it difficult to make their monthly payments after they graduate from college.