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Federal Student Aid – Online Colleges in USA

Federal Student Aid (FSA) offers grants, scholarships, loans, and work-study programs to support American students in pursuing higher education.

India CSR by India CSR
January 30, 2018
in Articles
Reading Time: 5 mins read
Federal Student Aid – Online Colleges in USA
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Federal Student Aid (FSA) is a financial aid by the Federal Government of the United States of America, especially, the U.S Department of Education (USDE). It is a fund that supports students enrolled in degrees like best online accounting degree to pay towards the cost of education. This is available for post-secondary education like college, vocational institute, graduate school, etc.

Understanding Federal Student Aid

This fund can be used towards expenses like tuition, fees, boarding, books and stationery, and transportation. Students are required to complete and submit Free Application for Federal Student Aid (FAFSA). The information from the FAFSA will be used to realize the student’s eligibility for FSA. After applying for FAFSA, use the FSA ID which allows signing into the FAFSA and make corrections and changes to the application.

Categories of Federal Student Aid

The Federal Student Aid has four categories namely; Grant, Scholarship, Work-Study, and Loan. Grants is usually does not have to be repaid. Most grants are awarded on the basis of the financial status of the student by the United States Department of Education (USDE).

Scholarship is also assigned by the United States Department of Education. This is assigned on the basis of academic performances and achievement which are not required to be repaid. Work-Study Program is a program available at few universities like best online accounting colleges where the student is given an opportunity by the institute to earn money through a job on or off campus but nearby with a small commute. Federal Student Loan are offered at low fixed rates of interest, income-based repayment plans, loan forgiveness etc. The repayment of the loan begins after the student graduates. This type of loan does not require credit history and a cosigner. Loans provided by banks usually don’t provide such benefits.

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Eligibility Criteria for Federal Student Aid

The enrolled students are required to meet a set of eligibility criteria for federal student aid. They are:

  • Be a U.S. citizen or an eligible non-citizen
  • Have a Social Security number
  • Maintain a Satisfactory Academic Progress
  • Be enrolled in a program eligible for Financial Aid
  • Federal Tax information like tax returns of yourself, parents or spouse

The FAFSA needs to be submitted within time of deadlines set by the university. The FAFSA can submitted by the enrolled student, the parent or the guardian. When it comes types of federal aid. There are four already mentioned categories: Grants, Scholarships, Work-Study and Loans. There are various types in each category. The different types of grants are:

  • Federal Pell Grant: It is a grant allocated to students from low and middle-class income undergraduate students. It is a fund given by the federal government to the financial aid fund of the university.
  • Iraq and Afghanistan Service Grant: It is a grant allocated to students who are not eligible for Pell Grant. It is awarded to the parents and dependent of servicemen who died in the military service during 9/11.
  • Teacher Education Assistance for College and Higher Education (TEACH) Grant: It is awarded to students who are studying to become elementary and secondary teacher. The students who are granted this are required to serve as a teacher for four years in an academic institution.

Types of Federal Aid

The different types of federal loans are:

  • Federal Stafford Loans: These loans are borrowed by students which are low-interest loans. Parents are not required to cosign on this loan.
  • Federal PLUS Loans: These loans are borrowed by parents. This loan is the responsibility of the students and parents or guardians.
  • Federal Family Education Loan: These loans are lent by private organization with federal authorization. These loans include; Stafford Loans, PLUS Loans, and Consolidation Loans.

Other Federal Aid disbursed on the basis of availability. They are:

  • Federal Perkins Loans: These are low-interest loans through the school’s financial aid office. This loan is allocated to students with extreme financial need.
  • Federal Supplemental Educational Opportunity Grant (FSEOG): It is a fund provided to schools who offer this grant to the eligible students.
  • Federal Work-Study program: It is a program which provides part-time jobs for undergraduate and graduate students with financial need which allows them to work for earning money which can be paid towards the cost of education.

Federal Aid is given to ensure that all Americans are given the opportunity of education by the Federal Government.


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Tags: FAFSAFederal Family Education Loan:Federal Financial Aid Plan for CollegeFederal Pell GrantFederal PLUS LoansFederal Stafford LoansFederal Student AidFederal Student Aid - U.S. Department of EducationFederal Supplemental Educational Opportunity GrantFinancial Aid for Online College StudentsFree Application for Federal Student AidGradzzGrantsIraq and Afghanistan Service GrantOnline Colleges in USAScholarshipScholarship for EducationScholarshipsTeacher Education Assistance for College and Higher Education (TEACH) GrantUnited States Department of EducationWork-Study and Loans
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India CSR is the largest media on CSR and sustainability offering diverse content across multisectoral issues on business responsibility. It covers Sustainable Development, Corporate Social Responsibility (CSR), Sustainability, and related issues in India. Founded in 2009, the organisation aspires to become a globally admired media that offers valuable information to its readers through responsible reporting.

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