Federal Student Aid, an office of the U.S. Department of Education, plays a central and essential role in America's postsecondary education community. Some of the most visible and essential services are the development, distribution, and processing of the Free Application for Federal Student Aid (FAFSA), the fundamental qualifying form used for all federal and government-guaranteed commercial lenders' programs—as well as for many state, regional and private student aid programs. By filling out the online or paper FAFSA, applicants start the process of qualifying for aid. Each year FSA's staff processes approximately 14 million FAFSAs.
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Federal Student Aid's (FSA) core mission is to ensure that all eligible Americans benefit from federal financial assistance—grants, loans and work-study programs—for education beyond high school. The programs they administer comprise the nation's largest source of student aid: during the 2004-05 school year alone, FSA provided approximately $74 billion in new aid to nearly 10 million postsecondary students and their families. A staff of 1,100 is based in 10 cities in addition to their Washington headquarters.
While overseeing $448 billion of outstanding student loans, FSA ensures that all partners in the student aid community—schools, lenders, servicers and guaranty agencies—operate fairly, honestly and efficiently. Another key role they perform is to make students and their families aware that financial aid is available and is a necessary first step to further education. They distribute numerous publications, host multiple Web sites and run several customer call centers. Most of these services are provided in Spanish as well.
The Federal Student Aid team is committed to making education beyond high school more attainable for all Americans, regardless of socioeconomic status.
Federal Student Aid is financial help for students enrolled in eligible programs at participating schools to cover school (a four-year or two-year public or private educational institution, a career school or trade school) expenses, including tuition and fees, room and board, books and supplies, and transportation. Most federal aid is need-based. The three most common types of aid are grants, loans, and work-study.
Grants are a type of financial aid that does not have to be repaid. Generally, grants are for undergraduate students and the grant amount is based on need, cost of attendance, and enrollment status.
Loans are borrowed money that must be repaid with interest. Both undergraduate and graduate students may borrow money. Parents may also borrow to pay education expenses for dependent undergraduate students. Maximum loan amounts depend on the student's year in school.
Campus-Based Aid are types of federal aid in which the school and Federal Student Aid share in the cost of providing the aid. The school provides a portion and the federal government provides the remainder. The school is responsible for administering the program on behalf of the federal government.
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