Different Types of Federal Student Aid for Community College Students

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It shouldn't be any surprise that Uncle Sam has the most money available for student financial aid. If you're undecided about whether or not to apply, think about this: Your tax dollars go to finance these programs, so if you are eligible, you are essentially tapping into a resource that you are helping to support.

• Many of these programs are financial need-based programs where your family's income, assets, and ability to contribute count in determining your eligibility to receive aid. It's worthwhile to fill out the forms and see if you're qualified. The Free Application for Federal Student Aid (FAFSA) is the application form you'll need to complete (see "What is FAFSA?" later in this chapter).
• Sources of funding and eligibility requirements for federal aid programs can change. If you don't qualify one year, don't assume that you don't qualify the next year. The best source of information about all federal aid programs is the most recent copy of The Student's Guide to Federal Financial Aid Programs, available at www.studentaid.gov or by calling 1-800-433-3243).
• Most federal student aid funds can be used to pay for: (1) tuition and fees; (2) room and board (if applicable); (3) books and supplies; (4) computers; (5) transportation and some
  living expenses; and (6) dependent care. It's definitely worthwhile investigating.
• Financial need is only one criterion that you will need to fulfill to be eligible for federal funding. There are a number of educational and legal criteria that apply. Be sure to check with the financial aid office to understand what all the eligibility requirements are. (Other types of assistance, such as scholarships, have their own requirements).

The federal government also determines whether or not you are considered a dependent or independent student. This is an important factor in deciding how much you or your family must contribute to your education. If you are considered to be a dependent student, your parents' income and yours will both be considered.

You'll generally be considered independent by the federal government if you meet at least one of the following requirements:

1. Are 24 years of age by December 31st of the award year.
2. Are married or have legal dependents (other than a spouse) for whom you provide at least one-half their support.
3. Are an orphan or ward of the court.
4. Are a veteran of the U.S. Armed Forces.

It's best to check with the financial aid office if you have questions or special circumstances.

What Types of Federal Student Aid Exist?

Three major types of federal aid - grants, loans, and work-study - currently exist, each with its own requirements and merits. The ­section below identifies some of the most common federal programs. Keep in mind that eligibility requirements and amounts of assistance (and even the programs themselves) can change from year to year. Specific details about each type of assistance will be available from your college's financial aid office and also from www.studentaid.gov.