Types of Aid and Eligibility | Federal Student Aid Aid Toolkit (2025)

We recommend that you and your students visit StudentAid.gov/types for information on financial aid from the federal government and from states, schools, and private sources. Eligibility criteria for federal student aid are described at StudentAid.gov/eligibility.

Federal Student Aid
State Financial Aid
Financial Aid From the College
Finding Scholarships
Avoiding Financial Aid Scams
Eligibility for Federal Student Aid

Federal Student Aid

Aid is available from the federal government in the form of grants, work-study funds, and loans. Students use the Free Application for Federal Student Aid (FAFSA®) form to apply. Besides referring your students to the information at StudentAid.gov/types to learn about federal aid, you also can recommend they visit StudentAid.gov/resources for fact sheets, videos, and infographics. Meanwhile, you can access those items and more here on the Financial Aid Toolkit. We've provided a feature to help you search financial aid tools and resources that you can use in advising students about aid.

Do You Need Money for College or Career/Trade School?(Result Type: PDF)
Description:Publication providing students with information on applying for aid, types of federal student aid, and eligibility. [404 KB]
Resource Type:Handout
AlsoAvailable in:Text Version(Result Type: General),Spanish(Result Type: PDF),Text Version - Spanish(Result Type: General)

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State Financial Aid

To find out about state financial aid for college, try www.ed.gov/sgt to find your state agency's website.

Talking point: Often, students and parents comment that they don't qualify for federal student aid or they qualify for too small an amount. State aid could help fill in some of the gaps.

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Financial Aid From the College

Many colleges offer financial aid from their own funds. Direct your students to visit a school's financial aid website for information about aid available at that school. For students with an interest in a particular area of study, encourage them to inquire about any available scholarships in that area or department.

Talking points:

  • When a student submits the FAFSA® form, they are automatically applying for aid from not only the federal government but also the state and—in many cases—the college(s) listed on the FAFSA form.
  • Students should be sure to meet any financial aid deadlines the school may have.

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Finding Scholarships

One of the most frequent questions we hear from students at college fairs or financial aid information events is, "How do I get money to help me pay for college?" While the FAFSA form is an application for certain grants and scholarships, not all students will qualify. That's why we've provided information to help them find and apply for scholarships at StudentAid.gov/scholarships.

Talking points:

  • Students should spend the summer between their junior and senior years of high school looking for scholarships, determining which ones are right for them, noting application deadlines, and submitting any applications that they possibly can at that point. They'll have plenty to keep them busy during fall of senior year, so getting a head start will make a difference in levels of stress and anxiety.
  • As a student assesses which online scholarship search to use, they should consider whether it is free and, if it requests personal information from the student, they should carefully read its privacy policy.

U.S. Department of Labor Scholarship Finder(Result Type: General)
Description:Free scholarship search tool for students finding scholarships along with information on how to apply.
Resource Type:Web Resource or Tool

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Avoiding Financial Aid Scams

Financial aid scams are less prevalent now than they were 10 or 15 years ago, but you'll still want to remind students to keep their eyes open as they look for financial aid for college. Refer them to StudentAid.gov/scams for tips.

Talking points:

  • You can find plenty of sources of financial aid without paying anyone for help or paying an application fee for the aid.
  • The first F in "FAFSA" stands for "Free."

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Eligibility for Federal Student Aid

Eligibility for federal student aid is based on financial need and on several other factors such as U.S. citizenship or eligible noncitizenship, enrollment in an eligible program, satisfactory academic progress in college, and more. The full list of our basic eligibility criteria is on our student site.

Tip: A quick URL to share with your students for information on federal student aid eligibility criteria is StudentAid.gov/eligibility.

Talking point: There is no such thing as an income cut-off for federal student aid. Eligibility is based on a number of factors, including a complicated mathematical formula. No student should assume that they won't qualify for federal aid. Filling out the FAFSA form is the only way to find out. And please remind your students that the FAFSA form is also an application for state and school aid—and many schools won't consider a student for their aid (even merit-based aid) unless the student submits a FAFSA form.

15 Myths We're Busting About the FAFSA® Process article(Result Type: General)
Description:Article for students debunking common myths about the 2023–24 FAFSA form and process.
Resource Type:Article or Blog Post

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Types of Aid and Eligibility | Federal Student Aid 
	Aid Toolkit (2025)

FAQs

What are the 4 types of student aid? ›

Options include grants, loans, scholarships, and work-study. Visit Types of Financial Aid on the Federal Student Aid website. You will learn about funding you can get from the government, your school, and private sources including: Grants.

What are the three types of federal student aid group of answer choices? ›

Types of Financial Aid: Loans, Grants, and Work-Study Programs.

What is used to determine eligibility for student financial aid? ›

The FAFSA is used to determine eligibility for federal, state, and institutional aid.

What 4 factors determine how much aid a student will receive? ›

The following are used to determine your eligibility: your Expected Family Contribution (EFC), your year in school, your enrollment status, and your cost of attendance. Learn more about the aid disbursement process.

What's the difference between unsubsidized and subsidized student loans? ›

Direct Subsidized Loans: You won't be charged interest while you're enrolled in school or during your six-month grace period. Direct Unsubsidized Loans: Interest starts accumulating from the date of your first loan disbursement (when you receive the funds from your school).

What are the four types of student loans? ›

Four types of federal student loans are available:
  • Direct subsidized loans.
  • Direct unsubsidized loans.
  • Direct PLUS loans.
  • Direct consolidation loans.
Oct 17, 2023

What is the most common type of financial aid? ›

Types of Financial Aid for Students
  1. Scholarships. By far and away the most common form of student financial aid, scholarships are essentially gift money that does not have to be paid back. ...
  2. Grants. ...
  3. Loans. ...
  4. Work Study.
Jun 29, 2023

Is FAFSA the same as Pell Grant? ›

Schools use the information on the FAFSA® form to determine your eligibility for a Pell Grant, and if so, how much you're eligible to receive. You will have to fill out the FAFSA form every year you're in school to stay eligible for federal student aid, including Pell Grant awards.

What type of federal funding is free? ›

Federal grants

Grants, like scholarships, are sometimes called gift aid because they don't need to be repaid. Grants are usually distributed based on financial need rather than merit.

How is student loan eligibility determined? ›

Your eligibility depends on your Student Aid Index (2024–25 FAFSA form) or Expected Family Contribution (2023–24 FAFSA form), your year in school, your enrollment status, and the cost of attendance at the school you will be attending.

What is the highest income to qualify for financial aid? ›

There is no income cut-off to qualify for federal student aid. Many factors—such as the size of your family and your year in school—are considered.

How can I maximize my financial aid eligibility? ›

Basic Principles
  1. Reducing income during the base years.
  2. Reducing “included” assets. ...
  3. Increasing the number of family members enrolled in college and pursuing a degree or certificate at the same time.

What is the most FAFSA will pay? ›

How much can you get from FAFSA?
Maximum amount (2024-25)
Direct Subsidized Loan$3,500 to $5,500 per year, depending on year in school
Direct Unsubsidized Loan$5,500 to $20,500 per year, depending on year in school and dependency status
Direct PLUS LoanTotal cost of attendance (net of other financial assistance received)
4 more rows
Jul 25, 2024

How do I see how much financial aid I will get? ›

Log in to StudentAid.gov using your account username and password. Select your processed FAFSA submission. Select “View FAFSA Submission Summary.” Select the “Eligibility Overview” tab.

In what 3 methods might students receive financial aid? ›

Grants: Financial aid that generally doesn't have to be repaid. Loans: Borrowed money for college or career school; your loans must be repaid with interest. Work-Study: A federal work program through which undergraduates and graduate students at participating schools earn money to help pay for school.

What is the difference between the FAFSA and the Pell Grant? ›

Both are for students with financial need. Some Cal Grants have a minimum GPA requirement while federal Pell Grants do not. You could qualify for both a Pell Grant and a Cal Grant. To apply for a Pell Grant, you must submit the FAFSA.

What's the difference between need and merit-based aid? ›

Merit-based aid offers financial support based on a student's academic achievements. Need-based aid provides funds for students based on their level of financial need. Students may receive both types of aid to fund their postsecondary studies.

What are the four primary sources of financial aid? ›

Financial aid is provided by four basic sources: the federal government, state government, the colleges and universities themselves, and the private sector (such as foundations, corporations and banks).

What are 3 forms of government financial aid? ›

Grants: Financial aid that generally doesn't have to be repaid. Loans: Borrowed money for college or career school; your loans must be repaid with interest. Work-Study: A federal work program through which undergraduates and graduate students at participating schools earn money to help pay for school.

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