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Where does the money for federal financial aid come from?
All federal student aid programs – which include student loans, Pell Grants and work-study, for example – are funded by federal tax dollars paid by U.S. citizens. Each year, Congress appropriates money to fund these programs as part of the annual budget process.
Does the federal government provide most of the financial aid?
College financial aid can come from a variety sources. The largest source of financial aid comes from the federal government. Federal aid is pretty much dominated by student loans. Federal student loans are by far the major component of federal financial aid.
How much does the US spend on financial aid?
The office of Federal Student Aid provides more than $120 billion in grant, work-study, and loan funds each year to help pay for college or career school.
What is the Student Aid Index?
Your EFC is an index number that college financial aid staff use to determine how much financial aid you would receive if you were to attend their school. The information you report on your FAFSA form is used to calculate your EFC. The EFC is calculated according to a formula established by law.
Is FAFSA federal student aid?
Before each year of college, apply for federal grants, work-study, and loans with the Free Application for Federal Student Aid (FAFSA®) form. Your college uses your FAFSA data to determine your federal aid eligibility. Many states and colleges use FAFSA data to award their own aid.
Why is it best to file the Fafsa as early as possible?
Filing early can give students an extra edge: Many schools and states award aid and grant money on a first-come, first-served basis. Students who file the FAFSA in the first three months tend to get twice as many grants as those who file later, according to college planning expert Mark Kantrowitz.
Is Federal Student Aid the same as FAFSA?
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.
What is the EFC changing to?
The EFC will be replaced with the Student Aid Index (SAI). Both are calculated through formulas with information derived from the FAFSA form. The big reason behind the change is to create a better reflection on the true cost of colleges.
What is the FAFSA expected family contribution?
Your Expected Family Contribution (EFC) is an index number used to determine your eligibility for federal student financial aid. Your EFC is calculated according to a formula established by law and considers your family’s taxed and untaxed income, assets, and benefits (such as unemployment or Social Security).