filing-the-fafsa-2015-2016-edition

Filing the FAFSA 1
INTRODUCTION
Paying for college is the second largest expense most families incur, second only to the purchase of a
home.
A college education provides many benefits. College graduates earn more money and have lower
unemployment rates, on average, than high school graduates. The prospects for future job growth are
greatest for jobs requiring a college degree. People with college degrees are also healthier, happier, more
likely to volunteer and more likely to vote. College is a pathway to success and a better life. 1
To go to college, most people need some financial help. Everybody, regardless of income, struggles to
pay for college. Even wealthy students need some help. Luckily, there are many sources of money to help
students pay for college costs and make college more affordable.
▶ Money for College
Last year, there were more than $248 billion in student financial aid funds available to help students
and their families pay for college. 2 About twothirds
of the total, $165 billion, came from the
federal government (including $96 billion in
federal education loans), $10 billion from state
governments, $49 billion from colleges and
universities, and $24 billion from private sources
(including private scholarships, employer tuition
assistance and private student loans).
Federal Government
$165 Billion
SOURCES OF FINANCIAL AID
State Governments
$10 Billion
Colleges and
Universities
$49 Billion
There are four major types of student financial aid –
grants and scholarships, work-study, education tax
benefits and education loans.
Private Sources
$24 Billion
Grants and scholarships are gift aid, which
typically is money that does not require repayment. Grants are usually awarded based on the student’s
demonstrated financial need. Scholarships are generally based on merit, such as academic, athletic
or artistic talent. More than $100 billion in grants are awarded by the government and colleges each
year. Scholarships are available from a variety of sources, including foundations, corporations, private
agencies and employers. Scholarships provide about 6 percent of total financial aid awarded to students
and about 13 percent of gift aid. To find scholarships, use a free scholarship matching service like
StudentScholarshipSearch.com. Another source of scholarship money is ScholarshipPoints.com, where
students use points earned completing surveys to enter drawings for scholarships. Beware of services
that charge a fee to find or apply for scholarships. If you have to pay money to get money, it’s probably a
scam.