As you know, education is your most important first step toward success. But the cost of education beyond high school continues to rise. That’s why we offer financial aid programs and advice to help students manage the cost of education each year.

Education creates opportunities. No qualified student should be denied an education because the cost is too high. So, if you’re considering education beyond high school and wondering how you will pay, we can help. There’s money available—but you need to apply to be eligible.

We tell you exactly how to navigate your financial aid options. In fact, we can tell you most everything you need to know about federal student assistance programs—grants, loans, work-study and more.

Our team is committed to making sure that all eligible students can benefit from financial help for education beyond high school. There may be a good deal more of this help on hand than you think. Last year alone, the federal government provided nearly $78 billion in the form of grants, work-study and low-interest loans.

About 10 million students benefited from this aid. Many of them could not have managed the rising cost of education without help.

Chances are you know someone who took advantage of one or more of our federal student assistance programs. It’s very possible that you can make this happen for yourself or a family member. The key: Start here, today, and go further.

Start at www.FederalStudentAid.ed.gov
You’ll find lots of useful information at the Department of Education’s Web site. Their office publishes many other print publications that you will find helpful. All of them are free by calling 1-800-4-FED-AID (1-800-433-3243) or by going to www.studentaid.ed.gov/pubs.

Financial Aid Starts with the FAFSA
Apply between Jan. 1, 2007, and June 30, 2008. To determine your eligibility for federal student financial assistance, you need to complete the FAFSA. Although you might have to complete an additional application in order to be considered for financial aid from your state or the school you’re interested in attending, most states and schools use FAFSA information to award nonfederal student aid.

Can I apply online?
Yes. You can complete the FAFSA online at www.fafsa.ed.gov. Applying online is faster and easier than the paper FAFSA, although you may still complete and submit the FAFSA in paper form. A FAFSA on the Web Worksheet is available online for you to print and write down your information prior to completing the online submission of the FAFSA. You can also obtain printed copies of the worksheet by calling 1-800-4-FED-AID (1-800-433-3243) or by contacting a financial aid office.

There Are Two Types of Federal Aid Programs
With the Direct Loan program, your school will act as the loan's originator so you don't need to endorse bank checks or wait in lines since the school will process the loan electronically. There is an Income Contingent Repayment option in which the size of your monthly payments while in repayment will be determined by your total income. You'll repay the loan directly to the government, and the loans will never be sold to another bank. So you'll have a single contact number for any questions you may have for the duration of your repayment period.

If your school chooses not to be a Direct Lender, it will belong to the Federal Family Education Loan Program (FFELP). You will therefore have to use private lenders to obtain your federal education loans. In some cases, schools will establish relationships with various lenders and offer their loan products to you and your family as part of a Preferred Lender list.

William D. Ford Federal Direct Loan (Direct Loan) Program: Loans made through this program are referred to as Direct Loans. Eligible students and parents borrow directly from the U.S. Department of Education at participating schools. Direct Loans include subsidized and unsubsidized Direct Stafford Loans (also known as Direct Subsidized Loans and Direct Unsubsidized Loans), Direct PLUS Loans, and Direct Consolidation Loans. You repay these loans directly to the government.

Federal Family Education Loan (FFEL) Program: Loans made through this program are referred to as FFEL Loans. Private lenders provide funds that are guaranteed by the federal government. FFEL Loans include subsidized and unsubsidized FFEL Stafford Loans, FFEL PLUS Loans and FFEL Consolidation Loans. You repay these loans to the private lender who originated your loan.