General Requirements

• The Department of Education requires that applicants for federal student aid have a high school diploma or equivalency. They must also be accepted or enrolled at an eligible college or university. Home-schooled students must have completed the academic requirements as set forth by their state's board of education. Applicants must also be U.S. citizens with a valid Social Security number and be registered for Selective Service, if applicable. Students who have been civilly committed for sexual offenses are ineligible to receive certain types of federal aid.
  
  

Expected Family Contribution

• The federal government uses the information you provide on the FAFSA to determine your expected family contribution, or EFC. This figure is calculated based on your income and assets, your parents' income and assets, your family size and your dependency status. The FAFSA includes a specific set of questions to determine whether you are dependent or independent. The EFC is only an estimate of what you should expect to pay out-of-pocket for education costs. Generally, the lower your EFC, the more you aid you are eligible to receive.
  
  

Determining Financial Need

• Your financial need is determined by subtracting your expected family contribution from your cost of attendance, or COA. As part of your application, you must provide an estimate of how much you expect to pay for tuition, books, fees, room and board, transportation and health care at your chosen school. The federal government then subtracts your EFC from this figure to determine how much money you're eligible to receive through student loan funding, grant programs or work-study. Typically, students with the greatest financial need are more likely to receive grant or work-study funding, which does not need to be repaid.
  
  

Considerations

• All students should complete the FAFSA, even if they think they may be ineligible for aid. If you are ineligible to receive federal loans or grants, you may pursue funding through private lenders, such as Sallie Mae. When completing your application, check it carefully for errors, as incorrect or incomplete information can delay processing. In addition to applying for federal student aid, consider applying for scholarships or grant funding, which does not have to be repaid and can reduce the amount you need to borrow.